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 Asset Allocation Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, 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, 2016 through July 31, 2017
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 STOCKHOLDERS.
Pioneer Solutions - Conservative Fund
Pioneer Solutions - Balanced Fund
Pioneer Solutions - Growth Fund
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Annual Report | July 31, 2017
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Ticker Symbols:
Conservative Balanced Growth
Class Fund Fund Fund
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A PIAVX PIALX GRAAX
C PICVX PIDCX GRACX
R PSMRX BALRX SOGRX
Y IBBCX IMOYX IBGYX
[LOGO] Amundi Pioneer
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ASSET MANAGEMENT
visit us: www.amundipioneer.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Fund Reviews 12
Comparing Ongoing Fund Expenses 13
Prices and Distributions 19
Portfolio Summary & Performance Update 22
Schedule of Investments 37
Financial Statements 49
Notes to Financial Statements 71
Report of Independent Registered Public Accounting Firm 106
Additional Information 108
Approval of New and Interim Management Agreements 110
Trustees, Officers and Service Providers 137
Pioneer Solutions Funds | Annual Report | 7/31/17 1
President's Letter
We are very pleased to announce that on July 3, 2017, Amundi Asset Management, a
large European asset manager, officially acquired Pioneer Investments and
announced the completion of a merger which combined Pioneer Investment
Management USA, Inc., in Boston and Amundi Smith Breeden in Durham, N.C., to
form Amundi Pioneer Asset Management, Inc. ("Amundi Pioneer"). Amundi Smith
Breeden, founded as Smith Breeden Associates in 1982, is a highly regarded
relative-value credit investor managing an extensive range of fixed-income
strategies tailored to the needs of institutional investors.
Our new brand, Amundi Pioneer, now signifies:
o Ownership by Amundi Asset Management ("Amundi"). Amundi is Europe's largest
asset manager and among the world's top 10 asset managers, as measured by
assets under management (AUM), with approximately $1.3 trillion AUM.
o The significantly larger scale and resources of the combined firms.
o Amundi's desire to maintain the strong brand recognition of Pioneer in the
U.S., which dates back to 1928.
We would like to stress to shareowners that all of the Pioneer mutual funds have
retained their previous names. In addition, there have been no changes to the
portfolio managers or the funds' investment strategies as a result of the
merger. Amundi Pioneer's newly combined investment team works together as one
unit, discussing investment ideas, participating in research meetings, and
collaborating across the expanded organization.
We are looking forward to the opportunity to leverage the broad global resources
of Amundi. In bringing together Pioneer and Amundi Smith Breeden, we have
combined organizations that share similar investment philosophies and corporate
cultures, and that value teamwork across a collegial, collaborative environment.
We are very excited about our future, as we believe the greater scale and
expanded global reach of the combined firm provides several opportunities to
better meet the needs of today's investors by exploring new, innovative
investment solutions and integrating the abundance of thought leadership
resources at Amundi, while also maintaining our commitment to providing existing
shareowners with outstanding service locally.
2 Pioneer Solutions Funds | Annual Report | 7/31/17
Since 1928, we have believed in the importance of active management. The active
decisions to invest in equities or fixed-income securities are made by a team of
experienced investment professionals focusing on identifying value across global
markets using proprietary research, careful risk management, and a long-term
perspective. We believe Amundi Pioneer's shareowners can benefit from the
experience and tenure of our investment teams as well as the insights generated
from our extensive research process.
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future as we move into a new and exciting era.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
July 31, 2017
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Solutions Funds | Annual Report | 7/31/17 3
Portfolio Management Discussion | 7/31/17
Important Note: On July 3, 2017, Amundi acquired Pioneer Investments, a group of
asset management companies located throughout the world. Amundi, one of the
world's largest asset managers, is headquartered in Paris, France. As a result
of the transaction, Pioneer Investment Management, Inc., the Fund's investment
adviser, became an indirect wholly owned subsidiary of Amundi and Amundi's
wholly owned subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer
Investments was owned by Pioneer Global Asset Management S.p.A., a wholly owned
subsidiary of UniCredit S.p.A.
In connection with the transaction, the names of the Fund's investment adviser
and principal underwriter changed. Effective July 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc. and
the name of Pioneer Funds Distributor, Inc. changed to Amundi Pioneer
Distributor, Inc.
This transaction does not impact your existing relationship with Pioneer
Investments, your advisor, or the methods you use to communicate with us, as the
investor contact telephone numbers and services you expect will remain the same.
We are excited, however, to be launching a new website representing the combined
company. Come visit us at: www.amundipioneer.com.
In the following interview, portfolio managers John O'Toole and Paul Weber
discuss the market environment and investment strategies that applied to the
Pioneer Solutions Funds for the 12-month period ended July 31, 2017. Working out
of our Dublin, Ireland office, Mr. O'Toole, Head of Multi-Asset Portfolio
Management at Amundi Pioneer Asset Management, Inc. (Amundi Pioneer), Mr. Weber,
Head of Fund Research & Manager Selection at Amundi Pioneer, and Salvatore
Buono, Head of Strategy Alignment and Structured Products at Amundi Pioneer, are
responsible for the day-to-day management of the portfolios.
Q How did the Funds perform during the 12-month period ended July 31, 2017?
A During the 12-month period ended July 31, 2017, Pioneer Solutions -
Conservative Fund's Class A shares returned 3.91% at net asset value, while
the Morgan Stanley Capital International (MSCI) World ND Index(1)
(1) The MSCI information may only be used for your internal use, may not be
reproduced or redisseminated in any form and may not be used as a basis for
or a component of any financial instruments or products or indices. None
of the MSCI information is intended to constitute investment advice or a
recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis
should not be taken as an indication or guarantee of any future
performance analysis, forecast or prediction. The MSCI information is
provided on an "as is" basis and the user of this information assumes the
entire risk of any use made of this information. MSCI, each of its
affiliates and each other person involved in or related to compiling,
computing or creating any MSCI information (collectively, the "MSCI
Parties") expressly disclaims all warranties (including, without
limitation, any warranties of originality, accuracy, completeness,
timeliness, non-infringement, merchantability and fitness for a particular
purpose) with respect to this information. Without limiting any of the
foregoing, in no event shall any MSCI Party have any liability for any
direct, indirect, special, incidental, punitive, consequential (including,
without limitation, lost profits) or any other damages.
4 Pioneer Solutions Funds | Annual Report | 7/31/17
returned 16.12% and the Bloomberg Barclays U.S. Aggregate Bond Index
returned -0.51%. During the same period, the average return of the 359
mutual funds in Lipper's Mixed-Asset Target Allocation Conservative Funds
category was 5.53%, and the average return of the 208 mutual funds in
Morningstar's 15% to 30% Equity Allocation Funds category was 4.28%.
Pioneer Solutions - Balanced Fund's Class A shares returned 7.04% at net
asset value during the 12-month period, while the MSCI World ND Index
returned 16.12% and the Bloomberg Barclays U.S. Aggregate Bond Index
returned -0.51%. During the same period, the average return of the 548
mutual funds in Lipper's Mixed-Asset Target Allocation Moderate Funds
category was 8.95%, and the average return of the 819 mutual funds in
Morningstar's 50% to 70% Equity Allocation Funds category was 9.44%.
Pioneer Solutions - Growth Fund's Class A shares returned 11.30% at net
asset value during the 12-month period, while the MSCI World ND Index
returned 16.12% and the Bloomberg Barclays U.S. Aggregate Bond Index
returned -0.51%. During the same period, the average return of the 514
mutual funds in Lipper's Mixed-Asset Target Allocation Growth Funds
category was 11.01%, and the average return of the 373 mutual funds in
Morningstar's 70% to 85% Equity Allocation Funds category was 11.82%.
Q Could you characterize the economic and market backdrop during the 12-month
period ended July 31, 2017?
A Performance of risk-based asset classes - such as stocks and high-yield
bonds - over the 12-month period was driven in large part by the reaction
of investors to the results of the November 8, 2016, U.S. presidential
election, and to other election results in the developed markets. The
period opened in August 2016 against a backdrop of leading overseas
central banks in Europe, Japan, and China all pursuing aggressive monetary
policies to support economic growth in the wake of the previous month's
"Brexit" referendum in Britain, in which the country's electorate voted to
leave the European Union (E.U.). Activity in the developed markets was
relatively flat as economic data about global growth continued to be
indecisive. As 2016 progressed, markets saw a pick-up in volatility as
data indicated continued strengthening of the U.S. economy and as
speculation increased that the U.S. Federal Reserve (the Fed) would raise
its benchmark interest rate before the end of 2016.
Equity markets as well as interest rates would rise sharply in the wake of
the unanticipated U.S. election outcome in November, which resulted in
unified Republican control of the White House and both houses of Congress.
The results of the election led to speculation about stronger U.S.
economic growth going forward, based on the new administration's expressed
goals of cutting taxes, reducing regulations, and increasing
infrastructure spending.
Pioneer Solutions Funds | Annual Report | 7/31/17 5
In late November 2016, the OPEC (Organization of Petroleum Exporting
Countries) oil cartel announced an agreement on limiting production, which
stabilized the outlook for the energy sector and for a number of emerging
markets economies. Risk sentiment in the global markets would become
somewhat tempered in early December, however, as a referendum on Italian
constitutional reform failed, leading Italy's prime minister to resign.
Viewed in conjunction with the earlier Brexit referendum, the defeat of
the Italian referendum renewed broader market concerns over the effects of
rising populism on the future of the Euro zone, the world's second-largest
economic bloc. In mid-December, the Fed finally did raise the Federal
funds target rate by 0.25%, as expected, moving the target up to the 0.50%
to 0.75% range. At the same time, the Fed hinted that it was considering
three similarly incremental rate increases in 2017.
Politics and speculation over central bank policies continued to affect
market performance as 2017 got underway. The European Central Bank (ECB)
upgraded its growth and inflation forecasts, leading markets to price in a
rate hike. In the U.S., after priming markets for a rate increase, the Fed
did not disappoint, raising the Federal funds rate by another 0.25% in mid-
March. However, less aggressive rhetoric from the Fed on future
interest-rate policy resulted in global bond yields moving lower, even
though the Fed would raise rates yet again in June. The macroeconomic
backdrop continued to strengthen, however, with data surprising on the
upside across leading developed markets.
On the political front, President Trump endured a setback in the pursuit
of his goal of either repealing outright or significantly altering the
Affordable Care Act, due to the lack of Congressional support from his own
party. That failure prompted speculation that the president would also
have trouble getting his pro-growth policies passed into law, and perhaps
contributed to moderating U.S. economic growth over the first three months
of 2017. In Europe, political risks abated in the spring as elections in
both the Netherlands and France resulted in victories for more moderate
candidates. The victory of the pro-E.U. Emmanuel Macron in the French
elections in May had a particularly calming effect on global markets. The
diminishing political risks in the Euro zone, in turn, supported a rally
across riskier assets, led by equities.
Disappointing global inflation data led to a pull-back in bond yields
through most of the second quarter of 2017, but bond yields would bounce
back as markets began pricing in tighter monetary policies following
hawkish rhetoric from global central banks.
For the full 12 months, global equities in aggregate returned 16.12%, as
measured by the MSCI World ND Index. The U.S. equity market returned
16.03%, as measured by the Standard & Poor's 500 Index, modestly lagging
developed market international equities, which returned 18.32%, as gauged
6 Pioneer Solutions Funds | Annual Report | 7/31/17
by the MSCI Europe, Australasia, Far East Index. Emerging markets
outperformed all other areas during the 12-month period, returning 25.30%,
as measured by the MSCI Emerging Markets Index.
Within the U.S. equity market, while returns were comfortably into double
digits across all segments, growth stocks outperformed value stocks, and
small-cap stocks outperformed their large-cap counterparts. Based largely
on the post-U.S. election spike in interest rates, bond returns were muted
over the 12-month period, as reflected by the -0.51% return of the
Bloomberg Barclays U.S. Aggregate Bond Index, a widely used measure of the
performance of the U.S. bond market.
Q Can you review your overall investment approach taken with respect to
management of the Funds?
A We allocate the assets of each Fund within broad strategic guidelines
designed to address a particular investor risk profile. In seeking to gain
the desired exposures in the portfolios to U.S. equities, international
equities, bonds, and cash, we utilize a broad selection of mutual funds.
Under this approach, we typically incorporate into the portfolios a
substantial representation of carefully selected mutual funds managed by
Amundi Pioneer, and by other, third-party managers. In addition, we use
derivative positions, which we discuss in more detail later in this
report, to help manage exposures and the overall risk/reward profile for
each Fund. Importantly, we manage each Fund with an eye toward the
allocation of a "risk budget," rather than under a straightforward asset
allocation approach.
This reflects the fact that the majority of the risk embedded in an equally
weighted bond and equity portfolio is concentrated within the equity
component.
Q What considerations and tactical shifts did you apply to the Funds' asset
allocations during the 12-month period ended July 31, 2017?
A For most of the period, we positioned the portfolios with a relatively
constructive overall view of riskier assets, particularly equities. The
Funds' allocations to equities were at a neutral level early in the
12-month period, but we moved to an equity overweight as the period
progressed. Within equities, the portfolios had a bias toward the U.S. and
Japan, relative to Europe, entering the period. After the November 2016
U.S. presidential election, we implemented a tilt toward value within U.S.
equities. Later in the period, we trimmed the Funds' allocations to U.S.
equities back to neutral, while increasing exposure to European equities.
With respect to fixed income, toward the middle of the period we trimmed
the Funds' overweights to below-investment-grade (high-yield) corporates,
while increasing exposure to U.S. bond funds with flexible investment
approaches. Late in the period, we moved to a more conservative stance
Pioneer Solutions Funds | Annual Report | 7/31/17 7
within fixed income with respect to duration. (Duration is a measure of the
sensitivity of the price, or the value of principal, of a fixed-income
investment to a change in interest rates, expressed as a number of years.)
Q How did your allocations and investment strategies for the Funds affect
their performance during the 12-month period ended July 31, 2017?
A Across the portfolios, positive contributions to performance came from
selection results within fixed income. In particular, the Funds' positions
in Pioneer Strategic Income Fund, Pioneer Dynamic Credit Fund, and Western
Asset Core Plus Fund aided performance. Selection results within global
equity vehicles also added to the Funds' relative performance, driven by
allocations to Pioneer Global Equity Fund. The Funds' overweight exposures
to U.S. and Japanese equities contributed positively as well. Tactical
trading of U.S. Treasury Inflation Protected Securities (TIPS) also
contributed to the Funds' returns, as did long positions in the Indian
rupee versus the Singapore dollar.
Allocations to high-yield corporate bonds contributed to performance in
the Conservative and Balanced Funds, while selection results within
international equities were a positive contributor in the Balanced and
Growth portfolios.
On the downside, within fixed income, the portfolios' duration stance
detracted from performance over the 12-month period. The performance
shortfall caused by duration positioning largely derived from a sharp rise
in rates in the wake of the November 2016 U.S. elections. Within equities,
the Funds' underweight exposures to Europe constrained returns as the
European market rallied after the U.S. election. Overweight exposures to
real estate also weighed on the Funds' performance.
Short positions in financials within U.S. equities detracted from the
performance of the Balanced and Growth portfolios, while a value bias
within U.S. equities limited returns within the Growth portfolio, as did
the use of hedges against an overweight position in U.S. equities.
Q The Funds have the ability to invest in derivatives. Did you use
derivatives as part of your investment strategy during the 12-month period
ended July 31, 2017, and did those positions have a material effect on
performance?
A We will use derivatives regularly in an effort to execute our investment
strategies for each fund in an efficient manner, including to gain or trim
market exposures in the portfolios and to implement relative-value trades.
In particular, during the 12-month period we used derivatives to manage
the portfolios' overlay duration and corresponding interest rate
sensitivity. As noted earlier, the Funds' duration positioning detracted
from relative performance.
8 Pioneer Solutions Funds | Annual Report | 7/31/17
Q What factors are you watching most closely as you determine strategy for
the Funds going forward?
A As 2017 has progressed, we have raised our expected trajectories for
economic growth in Europe and China, while lowering them for the U.S. and
the emerging markets (outside of China). We do not view conditions in any
major economy as having the potential to threaten the global growth
outlook. Overall, we expect inflation to remain relatively mild, while it
moves closer to the targets set by central banks.
Against that backdrop, we continue to hold a positive view of global
equities. Within developed markets, the portfolios are positioned with a
preference for European and Japanese equities. The cyclical economic
momentum in the Euro zone is notable and appears likely to persist, given
the output gaps that remain in a number of European countries. The result
of the May 2017 French election marked a reduction in the risk of a
populist shift in the European political landscape, further boosting the
outlook for equities in the region. In Japan, we expect gross domestic
product (GDP) to continue to grow and become more balanced, with higher
contributions coming from household demand and capital expenditures.
Exports remain key to Japan's economy, and we believe they should remain
strong, given the current value of the yen on currency markets and
better-than-expected world trade levels. Investor sentiment towards Japan
remains subdued, and so we believe that Japanese equities have significant
potential upside. We hold a more cautious stance on U.S. equities,
however, as they appear to be trading near fair value. In our view, much
of the expected improvement in fundamentals is already priced into the
U.S. market. We believe emerging markets continue to offer interesting
long-term investment opportunities. In that vein, we have recently added a
long Korean equity position in the portfolios, based on improving
macroeconomic momentum as well as a broad-based move towards a more
shareholder-friendly corporate governance regime within Korea.
Turning to fixed income, the portfolios are positioned with a broadly
negative stance with respect to interest-rate risk. With economic
conditions improving, we have positioned the Funds' to potentially benefit
from rising rates by taking short positions in a number of government
bonds. In particular, the current valuation of German sovereigns has
reached unsustainable levels in our view. The portfolios also have
exposure to U.S. TIPS as well as inflation-protected securities in Japan,
where we expect loose monetary policy and stronger economic conditions to
push inflation higher over the medium term. Finally, the portfolios have
allocations to U.S. investment-grade and high-yield corporates. While
corporate credit spreads have narrowed, we believe that the stable
economic backdrop should allow for those bonds to earn their coupons with
relatively low volatility over the near term. (Credit spreads are commonly
defined as the differences in yield between Treasuries and other types of
fixed-income securities with similar maturities.)
Pioneer Solutions Funds | Annual Report | 7/31/17 9
Note to Shareholders: Recently, the Board of Trustees of the Pioneer Funds
approved the reorganization of Pioneer Solutions - Conservative Fund and
Pioneer Solutions - Growth Fund (the "Acquired Funds") into Pioneer
Solutions - Balanced Fund (the "Acquiring Fund"). The reorganization
involves the transfer by the Acquired Funds of all their assets and
liabilities to the Acquiring Fund. Shareholders of the Acquired Funds
would receive shares of the corresponding Acquiring Fund in exchange for
their Acquired Fund's shares, and the Acquired Fund would be terminated.
Amundi Pioneer Investment Management, Inc. ("Amundi Pioneer") expects the
reorganization to be completed in the fourth quarter of 2017 or early in
2018. Amundi Pioneer will provide shareholders of the funds involved in
the reorganization with further information pertaining to the impending
transaction in the coming weeks.
Please refer to the Schedule of Investments on pages 37-48 for a full listing of
fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Each portfolio in Pioneer Solutions Funds is a "fund-of-funds" which seeks to
achieve its investment objectives by investing primarily in other funds ("the
underlying funds") managed by Amundi Pioneer or one of its affiliates, rather
than by taking direct positions in securities. The Solutions Funds' performance
depend on the adviser's skill in determining the strategic asset allocations,
the mix of underlying 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. In addition to the Funds'
operating expenses, investors will indirectly bear the operating expenses of
investments in any underlying funds. Each of the underlying funds has its own
investment risks.
At times, the Funds' investments may represent industries or sectors that are
interrelated or have common risks, making them more susceptible to any economic,
political, or regulatory developments or other risks affecting those industries
and sectors.
Investments in equity securities are subject to price fluctuation.
When interest rates rise, the prices of fixed income securities in the funds
will generally fall. Conversely, when interest rates fall, the prices of fixed
income securities in the funds will generally rise.
Investments in the Funds are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
10 Pioneer Solutions Funds | Annual Report | 7/31/17
The portfolios may invest in underlying funds with exposure to REIT securities,
the value of which can fall for a variety of reasons, such as declines in rental
income, fluctuating interest rates, poor property management, environmental
liabilities, uninsured damage, increased competition, or changes in real estate
tax laws.
The Funds may invest in underlying funds with exposure to commodities. The value
of commodity-linked derivatives may be affected by changes in overall market
movements, commodity index volatility, changes in interest rates, factors
affecting a particular industry or commodity, international economic, political
and regulatory developments, supply and demand, and governmental regulatory
policies.
The Funds may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on fund performance.
Derivatives may have a leveraging effect on the Fund.
The Funds may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Funds and some of the underlying funds employ leverage, which increases the
volatility of investment returns and subjects the Funds to magnified losses if
an underlying fund's investments decline in value.
The Funds and some of the underlying funds may employ short selling, a
speculative strategy. Unlike the possible loss on a security that is purchased,
there is no limit on the amount of loss on an appreciating security that is sold
short.
The value of the investments held by the Funds for cash management or temporary
defensive purposes may be affected by market risks, changing interest rates, and
by changes in credit ratings of the investments. If the Funds hold cash that is
uninvested, the Funds will not earn income on the cash and the Funds' yields
will go down.
These risks may increase share price volatility.
There is no assurance that these and other strategies used by the Funds will be
successful. Please see the prospectus for a more complete discussion of the
Funds' risks.
Before making an investment in any fund, you should consider all the risks
associated with it. Please see the Fund Reviews beginning on page 12 for
information on specific weightings and performance for each of the funds.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Amundi Pioneer Asset Management, Inc., for
a prospectus or summary prospectus containing this information. Read it
carefully.
Any information in this shareowner report regarding market or economic trends or
the factors influencing each fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Solutions Funds | Annual Report | 7/31/17 11
Fund Reviews | 7/31/17
Portfolio Allocations
Pioneer Solutions - Conservative Fund
As of July 31, 2017, the Fund had an allocation of 23.3% equities and 76.7%
fixed income. Within the fixed-income portion of the Fund, the largest holding
at the end of the period was in Pioneer Bond Fund, at 27.4% of assets, followed
by Pioneer Strategic Income Fund, at 27.1%. The largest equity positions in the
portfolio at period end were in Pioneer Global Equity Fund, at 4.64% of assets,
and Pioneer International Equity Fund, at 4.1%.
Pioneer Solutions - Balanced Fund
As of July 31, 2017, the Fund had an allocation of 55.6% equities and 44.4%
fixed income. Within the fixed-income portion of the Fund, the largest holding
at the end of the period was in Pioneer Strategic Income Fund, at 13.7% of
assets, followed by Pioneer Bond Fund, at 9.1%. The largest equity positions in
the portfolio at period end were in Pioneer International Equity Fund, at 17.0%
of assets, and Pioneer Global Equity Fund, at 10.5%.
Pioneer Solutions - Growth Fund
As of July 31, 2017, the Fund had an allocation of 87.9% equities and 12.1%
fixed income. Within the equity portion of the Fund, the largest holding at the
end of the period was in Pioneer International Equity Fund, at 18.1% of assets.
Pioneer Global Equity Fund was the next-largest equity holding, at 12.3%,
followed by Pioneer Disciplined Value Fund, at 9.0%. Other significant equity
positions in the Fund at the end of the period included Pioneer Mid Cap Value
Fund (5.9%) and Pioneer Fund (5.0%). The largest fixed-income position in the
portfolio at period end was in Pioneer Bond Fund, at 6.2% of assets.
12 Pioneer Solutions Funds | Annual Report | 7/31/17
Comparing Ongoing Fund Expenses
Pioneer Solutions - Conservative Fund
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 Solutions Conservative Fund
Based on actual returns from February 1, 2017 through July 31, 2017.
--------------------------------------------------------------------------------
Share Class A C R Y
--------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 2/1/17
--------------------------------------------------------------------------------
Ending Account Value $ 1,041.39 $ 1,037.61 $ 1,040.53 $ 1,041.80
(after expenses)
on 7/31/17
--------------------------------------------------------------------------------
Expenses Paid $ 3.54 $ 7.33 $ 4.55 $ 3.29
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.70%,
1.45%, 0.90% and 0.65% for Class A, C, R and Y shares, respectively,
multiplied by the average account value over the period, multiplied by
181/365 to reflect the one half-year period. Fund expense ratios do not
include estimates for acquired fund fees and expenses (AFFE). If AFFE
estimates were included, expenses paid during the period would have been
$6.38, $10.15, $7.39 and $6.13 for Class A, C, R and Y shares,
respectively, based on the respective expense ratio for each class of
1.26%, 2.01%, 1.46% and 1.21%.
Pioneer Solutions Funds | Annual Report | 7/31/17 13
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 Solutions Conservative Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from February 1, 2017 through July 31, 2017.
--------------------------------------------------------------------------------
Share Class A C R Y
--------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 2/1/17
--------------------------------------------------------------------------------
Ending Account Value $ 1,021.32 $ 1,017.60 $ 1,020.33 $ 1,021.57
(after expenses)
on 7/31/17
--------------------------------------------------------------------------------
Expenses Paid $ 3.51 $ 7.25 $ 4.51 $ 3.26
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.70%,
1.45%, 0.90% and 0.65% for Class A, C, R and Y shares, respectively,
multiplied by the average account value over the period, multiplied by
181/365 to reflect the one half-year period. Fund expense ratios do not
include estimates for acquired fund fees and expenses (AFFE). If AFFE
estimates were included, expenses paid during the period would have been
$6.31, $10.04, $7.30 and $6.06 for Class A, C, R and Y shares,
respectively, based on the respective expense ratio for each class of
1.26%, 2.01%, 1.46% and 1.21%.
14 Pioneer Solutions Funds | Annual Report | 7/31/17
Comparing Ongoing Fund Expenses
Pioneer Solutions - Balanced Fund
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 Solutions Balanced Fund
Based on actual returns from February 1, 2017 through July 31, 2017.
--------------------------------------------------------------------------------
Share Class A C R Y
--------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 2/1/17
--------------------------------------------------------------------------------
Ending Account Value $ 1,059.70 $ 1,055.11 $ 1,058.11 $ 1,060.68
(after expenses)
on 7/31/17
--------------------------------------------------------------------------------
Expenses Paid $ 3.47 $ 7.03 $ 4.59 $ 2.40
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.68%,
1.38%, 0.90% and 0.47% for Class A, C, R and Y shares, respectively,
multiplied by the average account value over the period, multiplied by
181/365 to reflect the one half-year period. Fund expense ratios do not
include estimates for acquired fund fees and expenses (AFFE). If AFFE
estimates were included, expenses paid during the period would have been
$6.95, $10.50, $8.06 and $5.88 for Class A, C, R and Y shares,
respectively, based on the respective expense ratio for each class of
1.36%, 2.06%, 1.58% and 1.15%.
Pioneer Solutions Funds | Annual Report | 7/31/17 15
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 Solutions Balanced Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from February 1, 2017 through July 31, 2017.
--------------------------------------------------------------------------------
Share Class A C R Y
--------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 2/1/17
--------------------------------------------------------------------------------
Ending Account Value $ 1,021.42 $ 1,017.95 $ 1,020.33 $ 1,022.46
(after expenses)
on 7/31/17
--------------------------------------------------------------------------------
Expenses Paid $ 3.41 $ 6.90 $ 4.51 $ 2.36
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.68%,
1.38%, 0.90% and 0.47% for Class A, C, R and Y shares, respectively,
multiplied by the average account value over the period, multiplied by
181/365 to reflect the one half-year period. Fund expense ratios do not
include estimates for acquired fund fees and expenses (AFFE). If AFFE
estimates were included, expenses paid during the period would have been
$6.80, $10.29, $7.90 and $5.76 for Class A, C, R and Y shares,
respectively, based on the respective expense ratio for each class of
1.36%, 2.06%, 1.58% and 1.15%.
16 Pioneer Solutions Funds | Annual Report | 7/31/17
Comparing Ongoing Fund Expenses
Pioneer Solutions - Growth Fund
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 Solutions Growth Fund
Based on actual returns from February 1, 2017 through July 31, 2017.
--------------------------------------------------------------------------------
Share Class A C R Y
--------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 2/1/17
--------------------------------------------------------------------------------
Ending Account Value $ 1,081.63 $ 1,077.99 $ 1,079.68 $ 1,083.21
(after expenses)
on 7/31/17
--------------------------------------------------------------------------------
Expenses Paid $ 3.30 $ 6.96 $ 4.64 $ 2.12
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.64%,
1.35%, 0.90% and 0.41% for Class A, C, R and Y shares, respectively,
multiplied by the average account value over the period, multiplied by
181/365 to reflect the one half-year period. Fund expense ratios do not
include estimates for acquired fund fees and expenses (AFFE). If AFFE
estimates were included, expenses paid during the period would have been
$7.02, $10.67, $8.35 and $5.84 for Class A, C, R and Y shares,
respectively, based on the respective expense ratio for each class of
1.36%, 2.07%, 1.62% and 1.13%.
Pioneer Solutions Funds | Annual Report | 7/31/17 17
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 Solutions Growth Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from February 1, 2017 through July 31, 2017.
--------------------------------------------------------------------------------
Share Class A C R Y
--------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 2/1/17
--------------------------------------------------------------------------------
Ending Account Value $ 1,021.62 $ 1,018.10 $ 1,020.33 $ 1,022.76
(after expenses)
on 7/31/17
--------------------------------------------------------------------------------
Expenses Paid $ 3.21 $ 6.76 $ 4.51 $ 2.06
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.64%,
1.35%, 0.90% and 0.41% for Class A, C, R and Y shares, respectively,
multiplied by the average account value over the period, multiplied by
181/365 to reflect the one half-year period. Fund expense ratios do not
include estimates for acquired fund fees and expenses (AFFE). If AFFE
estimates were included, expenses paid during the period would have been
$6.80, $10.34, $8.10 and $5.66 for Class A, C, R and Y shares,
respectively, based on the respective expense ratio for each class of
1.36%, 2.07%, 1.62% and 1.13%.
18 Pioneer Solutions Funds | Annual Report | 7/31/17
Prices and Distributions | 7/31/17
Net Asset Value per Share
--------------------------------------------------------------------------------
Conservative Fund
--------------------------------------------------------------------------------
Class 7/31/17 7/31/16
--------------------------------------------------------------------------------
A $ 10.57 $ 10.41
--------------------------------------------------------------------------------
C $ 10.22 $ 10.06
--------------------------------------------------------------------------------
R $ 10.54 $ 10.38
--------------------------------------------------------------------------------
Y $ 9.96 $ 9.83
--------------------------------------------------------------------------------
Balanced Fund
--------------------------------------------------------------------------------
Class 7/31/17 7/31/16
--------------------------------------------------------------------------------
A $ 11.89 $ 11.35
--------------------------------------------------------------------------------
C $ 10.92 $ 10.44
--------------------------------------------------------------------------------
R $ 11.83 $ 11.30
--------------------------------------------------------------------------------
Y $ 12.06 $ 11.51
--------------------------------------------------------------------------------
Growth Fund
--------------------------------------------------------------------------------
Class 7/31/17 7/31/16
--------------------------------------------------------------------------------
A $ 13.51 $ 12.36
--------------------------------------------------------------------------------
C $ 12.71 $ 11.63
--------------------------------------------------------------------------------
R $ 13.41 $ 12.30
--------------------------------------------------------------------------------
Y $ 13.80 $ 12.63
--------------------------------------------------------------------------------
Pioneer Solutions Funds | Annual Report | 7/31/17 19
Prices and Distributions | 7/31/17 (continued)
Distributions per Share: 8/1/16-7/31/17
--------------------------------------------------------------------------------
Conservative Fund
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ 0.2350 $ -- $ --
--------------------------------------------------------------------------------
C $ 0.1527 $ -- $ --
--------------------------------------------------------------------------------
R $ 0.2142 $ -- $ --
--------------------------------------------------------------------------------
Y $ 0.2444 $ -- $ --
--------------------------------------------------------------------------------
Balanced Fund
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ 0.2400 $ -- $ --
--------------------------------------------------------------------------------
C $ 0.1619 $ -- $ --
--------------------------------------------------------------------------------
R $ 0.2307 $ -- $ --
--------------------------------------------------------------------------------
Y $ 0.2715 $ -- $ --
--------------------------------------------------------------------------------
Growth Fund
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ 0.1579 $ -- $ 0.0656
--------------------------------------------------------------------------------
C $ 0.0714 $ -- $ 0.0656
--------------------------------------------------------------------------------
R $ 0.1515 $ -- $ 0.0656
--------------------------------------------------------------------------------
Y $ 0.1960 $ -- $ 0.0656
--------------------------------------------------------------------------------
20 Pioneer Solutions Funds | Annual Report | 7/31/17
Index Definitions
--------------------------------------------------------------------------------
The Morgan Stanley Capital International (MSCI) World ND Index is an unmanaged
measure of the performance of stock markets in the developed world. The
Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged 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. It is not possible to invest directly in an index.
The indices defined here pertain to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 23-26, 28-31 and 33-36.
Pioneer Solutions Funds | Annual Report | 7/31/17 21
Portfolio Summary | 7/31/17
Pioneer Solutions - Conservative Fund
Asset Allocations
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Fixed Income 75.3%
International Equity 12.8%
U.S. Equity 7.7%
U.S. Government and Agency Obligation 2.2%
Sovereign Debt Obligation 2.0%
Actual Portfolio Holdings
(based on total portfolio)*
--------------------------------------------------------------------------------
U.S. Stocks
--------------------------------------------------------------------------------
Pioneer Disciplined Value Fund Class Y 1.89%
--------------------------------------------------------------------------------
Pioneer Mid Cap Value Fund Class K 1.34
--------------------------------------------------------------------------------
Pioneer Core Equity Fund Class Y 1.04
--------------------------------------------------------------------------------
Pioneer Fund Class Y 1.04
--------------------------------------------------------------------------------
Pioneer Fundamental Growth Fund
Class K 0.98
--------------------------------------------------------------------------------
AMG Managers Fairpointe Mid Cap Fund
Class I 0.85
--------------------------------------------------------------------------------
Oak Ridge Small Cap Growth Fund
Class K 0.58
--------------------------------------------------------------------------------
International Stocks
--------------------------------------------------------------------------------
Pioneer Global Equity Fund Class K 4.60%
--------------------------------------------------------------------------------
Pioneer International Equity Fund Class Y 4.14
--------------------------------------------------------------------------------
iShares MSCI China ETF 1.22
--------------------------------------------------------------------------------
iShares MSCI South Korea Capped ETF 1.06
--------------------------------------------------------------------------------
iShares MSCI Canada ETF 0.60
--------------------------------------------------------------------------------
T. Rowe Price International Funds -
European Stock Fund 0.50
--------------------------------------------------------------------------------
iShares Core MSCI Emerging Markets ETF 0.36
--------------------------------------------------------------------------------
JOHCM Asia Ex-Japan Equity Fund
Class IS 0.26
--------------------------------------------------------------------------------
Bonds
--------------------------------------------------------------------------------
Pioneer Bond Fund Class K 27.35%
--------------------------------------------------------------------------------
Pioneer Strategic Income Fund Class K 27.10
--------------------------------------------------------------------------------
Western Asset Core Plus Bond Fund
Class IS 4.85
--------------------------------------------------------------------------------
MFS Total Return Bond Fund Class I 4.76
--------------------------------------------------------------------------------
Metropolitan West Total Return Bond Fund
Class I 4.65
--------------------------------------------------------------------------------
Doubleline Total Return Bond Fund
Class I 4.20
--------------------------------------------------------------------------------
Columbia Contrarian Core Fund Class Y 0.85
--------------------------------------------------------------------------------
Pioneer Dynamic Credit Fund Class Y 0.75
--------------------------------------------------------------------------------
Pioneer Floating Rate Fund Class K 0.32
--------------------------------------------------------------------------------
Pioneer Global High Yield Fund Class Y 0.27
--------------------------------------------------------------------------------
Pioneer High Yield Fund Class Y 0.22
--------------------------------------------------------------------------------
U.S. Government and Agency Obligation
--------------------------------------------------------------------------------
U.S. Treasury Inflation Indexed Note 2.21%
--------------------------------------------------------------------------------
Sovereign Debt Obligation
--------------------------------------------------------------------------------
Japanese Government CPI Linked Bond 2.01%
--------------------------------------------------------------------------------
* This list excludes temporary cash investments 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.
22 Pioneer Solutions Funds | Annual Report | 7/31/17
Performance Update | 7/31/17 Class A Shares
Pioneer Solutions - Conservative Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Solutions - Conservative Fund at
public offering price during the periods shown, compared to that of the MSCI
World ND Index and the Bloomberg Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net Public U.S. MSCI
Asset Offering Aggregate World
Value Price Bond ND
Period (NAV) (POP) Index Index
--------------------------------------------------------------------------------
10 years 3.68% 3.07% 4.44% 4.45%
5 years 4.48 3.24 2.02 11.63
1 year 3.91 -2.11 -0.51 16.12
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.47% 1.31%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer Solutions - U.S. Aggregate MSCI World
Conservative Fund Bond Index ND Index
7/07 $ 9,425 $10,000 $10,000
7/08 $ 9,153 $10,615 $ 8,912
7/09 $ 8,746 $11,448 $ 6,986
7/10 $ 9,786 $12,468 $ 7,673
7/11 $10,671 $13,021 $ 9,095
7/12 $10,868 $13,965 $ 8,915
7/13 $11,816 $13,699 $10,986
7/14 $12,655 $14,243 $12,740
7/15 $12,908 $14,645 $13,367
7/16 $13,023 $15,515 $13,306
7/17 $13,532 $15,435 $15,451
Call 1-800-225-6292 or visit www.amundipioneer.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 shown 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 the contractual expense limitation currently in
effect through December 1, 2018, for Class A shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus for more information.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
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.
Effective November 17, 2014, Amundi Pioneer became directly responsible for
portfolio management of the Fund. The performance shown for periods prior to
November 17, 2014, reflects the investment strategies employed during those
periods.
Pioneer Solutions Funds | Annual Report | 7/31/17 23
Performance Update | 7/31/17 Class C Shares
Pioneer Solutions - Conservative Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Solutions - Conservative Fund
during the periods shown, compared to that of the MSCI World ND Index and the
Bloomberg Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
U.S. MSCI
Aggregate World
If If Bond ND
Period Held Redeemed Index Index
--------------------------------------------------------------------------------
10 years 2.86% 2.86% 4.44% 4.45%
5 years 3.71 3.71 2.02 11.63
1 year 3.18 3.18 -0.51 16.12
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.20% 2.06%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer Solutions - U.S. Aggregate MSCI World
Conservative Fund Bond Index ND Index
7/07 $10,000 $10,000 $10,000
7/08 $ 9,637 $10,615 $ 8,912
7/09 $ 9,104 $11,448 $ 6,986
7/10 $10,097 $12,468 $ 7,673
7/11 $10,923 $13,021 $ 9,095
7/12 $11,049 $13,965 $ 8,915
7/13 $11,914 $13,699 $10,986
7/14 $12,679 $14,243 $12,740
7/15 $12,825 $14,645 $13,367
7/16 $12,848 $15,515 $13,306
7/17 $13,256 $15,435 $15,451
Call 1-800-225-6292 or visit www.amundipioneer.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 shown 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 the contractual expense limitation currently in
effect through December 1, 2018, for Class C shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus for more information.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
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.
Effective November 17, 2014, Amundi Pioneer became directly responsible for
portfolio management of the Fund. The performance shown for periods prior to
November 17, 2014, reflects the investment strategies employed during those
periods.
24 Pioneer Solutions Funds | Annual Report | 7/31/17
Performance Update | 7/31/17 Class R Shares
Pioneer Solutions - Conservative Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class R shares of Pioneer Solutions - Conservative Fund
during the periods shown, compared to that of the MSCI World ND Index and the
Bloomberg Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net U.S. MSCI
Asset Aggregate World
Value Bond ND
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 3.64% 4.44% 4.45%
5 years 4.40 2.02 11.63
1 year 3.71 -0.51 16.12
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.11% 1.51%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer Solutions - U.S. Aggregate MSCI World
Conservative Fund Bond Index ND Index
7/07 $10,000 $10,000 $10,000
7/08 $ 9,712 $10,615 $ 8,912
7/09 $ 9,282 $11,448 $ 6,986
7/10 $10,384 $12,468 $ 7,673
7/11 $11,323 $13,021 $ 9,095
7/12 $11,533 $13,965 $ 8,915
7/13 $12,539 $13,699 $10,986
7/14 $13,429 $14,243 $12,740
7/15 $13,698 $14,645 $13,367
7/16 $13,789 $15,515 $13,306
7/17 $14,300 $15,435 $15,451
Call 1-800-225-6292 or visit www.amundipioneer.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.
The performance shown for Class R shares for the period prior to the
commencement of operations of Class R shares on July 1, 2015, is the net asset
value performance of the Fund's Class A shares, which has not been restated to
reflect any differences in expenses, including Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares generally are higher than those of
Class R shares, the performance of Class R shares prior to their inception would
have been higher than the performance shown. For the period beginning July 1,
2015, the actual performance of Class R shares is reflected. Class R shares are
not subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. 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 the contractual expense limitation currently in
effect through December 1, 2018, for Class R shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus and financial statements for more information.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
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.
Effective November 17, 2014, Amundi Pioneer became directly responsible for
portfolio management of the Fund. The performance shown for periods prior to
November 17, 2014, reflects the investment strategies employed during those
periods.
Pioneer Solutions Funds | Annual Report | 7/31/17 25
Performance Update | 7/31/17 Class Y Shares
Pioneer Solutions - Conservative Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Solutions - Conservative Fund
during the periods shown, compared to that of the MSCI World ND Index and the
Bloomberg Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net U.S. MSCI
Asset Aggregate World
Value Bond ND
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 2.68% 4.44% 4.45%
5 years 4.27 2.02 11.63
1 year 3.93 -0.51 16.12
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.43% 1.26%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Bloomberg Barclays
Pioneer Solutions - U.S. Aggregate MSCI World
Conservative Fund Bond Index ND Index
7/07 $5,000,000 $5,000,000 $5,000,000
7/08 $4,828,800 $5,307,515 $4,455,757
7/09 $4,313,841 $5,723,910 $3,492,865
7/10 $4,826,761 $6,233,900 $3,836,353
7/11 $5,269,643 $6,510,432 $4,547,525
7/12 $5,287,353 $6,982,710 $4,457,336
7/13 $5,710,597 $6,849,690 $5,493,099
7/14 $6,100,832 $7,121,584 $6,369,957
7/15 $6,211,062 $7,322,692 $6,683,740
7/16 $6,270,158 $7,757,296 $6,653,070
7/17 $6,516,865 $7,717,380 $7,725,450
Call 1-800-225-6292 or visit www.amundipioneer.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 Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors.
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 shown 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 the contractual expense limitation currently in
effect through December 1, 2018, for Class Y shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus for more information.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
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.
Effective November 17, 2014, Amundi Pioneer became directly responsible for
portfolio management of the Fund. The performance shown for periods prior to
November 17, 2014, reflects the investment strategies employed during those
periods.
26 Pioneer Solutions Funds | Annual Report | 7/31/17
Portfolio Summary | 7/31/17
Pioneer Solutions - Balanced Fund
Asset Allocations
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Fixed Income 42.3%
International Equity 35.1%
U.S. Equity 18.3%
U.S. Government and Agency Obligation 2.2%
Sovereign Debt Obligation 2.1%
Actual Portfolio Holdings
(based on total portfolio)*
--------------------------------------------------------------------------------
U.S. Stocks
--------------------------------------------------------------------------------
Pioneer Disciplined Value Fund Class Y 5.18%
--------------------------------------------------------------------------------
Pioneer Mid Cap Value Fund Class K 3.59
--------------------------------------------------------------------------------
Pioneer Fund Class Y 2.61
--------------------------------------------------------------------------------
Pioneer Core Equity Fund Class Y 2.48
--------------------------------------------------------------------------------
Pioneer Fundamental Growth Fund
Class K 2.39
--------------------------------------------------------------------------------
AMG Managers Fairpointe Mid Cap Fund
Class I 2.04
--------------------------------------------------------------------------------
International Stocks
--------------------------------------------------------------------------------
Pioneer International Equity Fund
Class Y 16.98%
--------------------------------------------------------------------------------
Pioneer Global Equity Fund Class K 10.50
--------------------------------------------------------------------------------
T. Rowe Price International Funds -
European Stock Fund 2.09
--------------------------------------------------------------------------------
iShares MSCI China ETF 1.82
--------------------------------------------------------------------------------
iShares MSCI South Korea Capped ETF 1.60
--------------------------------------------------------------------------------
iShares MSCI Canada ETF 1.56
--------------------------------------------------------------------------------
iShares Core MSCI Emerging
Markets ETF 0.55
--------------------------------------------------------------------------------
Bonds
--------------------------------------------------------------------------------
Pioneer Strategic Income Fund Class K 13.70%
--------------------------------------------------------------------------------
Pioneer Bond Fund Class K 9.08
--------------------------------------------------------------------------------
Doubleline Total Return Bond Fund
Class I 4.88
--------------------------------------------------------------------------------
Western Asset Core Plus Bond Fund
Class IS 4.03
--------------------------------------------------------------------------------
MFS Total Return Bond Fund Class I 3.96
--------------------------------------------------------------------------------
Pioneer Dynamic Credit Fund Class Y 2.91
--------------------------------------------------------------------------------
Columbia Contrarian Core Fund Class Y 1.99
--------------------------------------------------------------------------------
Pioneer Global High Yield Fund Class Y 1.73
--------------------------------------------------------------------------------
Pioneer High Yield Fund Class Y 0.00+
--------------------------------------------------------------------------------
U.S. Government and Agency Obligation
--------------------------------------------------------------------------------
U.S. Treasury Inflation Indexed Note 2.22%
--------------------------------------------------------------------------------
Sovereign Debt Obligation
--------------------------------------------------------------------------------
Japanese Government CPI Linked Bond 2.11%
--------------------------------------------------------------------------------
+ Amount rounds to less than 0.1%.
* This list excludes temporary cash investments 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.
Pioneer Solutions Funds | Annual Report | 7/31/17 27
Performance Update | 7/31/17 Class A Shares
Pioneer Solutions - Balanced Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Solutions - Balanced Fund at public
offering price during the periods shown, compared to that of the MSCI World ND
Index and the Bloomberg Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net Public U.S. MSCI
Asset Offering Aggregate World
Value Price Bond ND
Period (NAV) (POP) Index Index
--------------------------------------------------------------------------------
10 years 3.66% 3.05% 4.44% 4.45%
5 years 6.46 5.20 2.02 11.63
1 year 7.04 0.90 -0.51 16.12
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.39%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer Solutions - U.S. Aggregate MSCI World
Balanced Fund Bond Index ND Index
7/07 $ 9,425 $10,000 $10,000
7/08 $ 8,723 $10,615 $ 8,912
7/09 $ 7,746 $11,448 $ 6,986
7/10 $ 8,773 $12,468 $ 7,673
7/11 $ 9,906 $13,021 $ 9,095
7/12 $ 9,878 $13,965 $ 8,915
7/13 $11,293 $13,699 $10,986
7/14 $12,476 $14,243 $12,740
7/15 $12,892 $14,645 $13,367
7/16 $12,620 $15,515 $13,306
7/17 $13,508 $15,435 $15,451
Call 1-800-225-6292 or visit www.amundipioneer.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 the 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 shown 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.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
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.
Effective November 17, 2014, Amundi Pioneer became directly responsible for
portfolio management of the Fund. The performance shown for periods prior to
November 17, 2014, reflects the investment strategies employed during those
periods.
28 Pioneer Solutions Funds | Annual Report | 7/31/17
Performance Update | 7/31/17 Class C Shares
Pioneer Solutions - Balanced Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Solutions - Balanced Fund during
the periods shown, compared to that of the MSCI World ND Index and the Bloomberg
Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
U.S. MSCI
Aggregate World
If If Bond ND
Period Held Redeemed Index Index
--------------------------------------------------------------------------------
10 years 2.91% 2.91% 4.44% 4.45%
5 years 5.72 5.72 2.02 11.63
1 year 6.26 6.26 -0.51 16.12
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.09%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer Solutions - U.S. Aggregate MSCI World
Balanced Fund Bond Index ND Index
7/07 $10,000 $10,000 $10,000
7/08 $ 9,181 $10,615 $ 8,912
7/09 $ 8,093 $11,448 $ 6,986
7/10 $ 9,100 $12,468 $ 7,673
7/11 $10,202 $13,021 $ 9,095
7/12 $10,092 $13,965 $ 8,915
7/13 $11,461 $13,699 $10,986
7/14 $12,573 $14,243 $12,740
7/15 $12,905 $14,645 $13,367
7/16 $12,543 $15,515 $13,306
7/17 $13,328 $15,435 $15,451
Call 1-800-225-6292 or visit www.amundipioneer.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 shown 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.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
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.
Effective November 17, 2014, Amundi Pioneer became directly responsible for
portfolio management of the Fund. The performance shown for periods prior to
November 17, 2014, reflects the investment strategies employed during those
periods.
Pioneer Solutions Funds | Annual Report | 7/31/17 29
Performance Update | 7/31/17 Class R Shares
Pioneer Solutions - Balanced Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class R shares of Pioneer Solutions - Balanced Fund during
the periods shown, compared to that of the MSCI World ND Index and the Bloomberg
Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net U.S. MSCI
Asset Aggregate World
Value Bond ND
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 3.62% 4.44% 4.45%
5 years 6.38 2.02 11.63
1 year 6.89 -0.51 16.12
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.30% 1.62%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer Solutions - U.S. Aggregate MSCI World
Balanced Fund Bond Index ND Index
7/07 $10,000 $10,000 $10,000
7/08 $ 9,253 $10,615 $ 8,912
7/09 $ 8,217 $11,448 $ 6,986
7/10 $ 9,306 $12,468 $ 7,673
7/11 $10,508 $13,021 $ 9,095
7/12 $10,479 $13,965 $ 8,915
7/13 $11,979 $13,699 $10,986
7/14 $13,235 $14,243 $12,740
7/15 $13,676 $14,645 $13,367
7/16 $13,355 $15,515 $13,306
7/17 $14,275 $15,435 $15,451
Call 1-800-225-6292 or visit www.amundipioneer.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.
The performance shown for Class R shares for the period prior to the
commencement of operations of Class R shares on July 1, 2015, is the net asset
value performance of the Fund's Class A shares, which has not been restated to
reflect any differences in expenses, including Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares generally are higher than those of
Class R shares, the performance of Class R shares prior to their inception would
have been higher than the performance shown. For the period beginning July 1,
2015, the actual performance of Class R shares is reflected. Class R shares are
not subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. 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 the contractual expense limitation currently in
effect through December 1, 2018, for Class R shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus and financial statements for more information.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
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.
Effective November 17, 2014, Amundi Pioneer became directly responsible for
portfolio management of the Fund. The performance shown for periods prior to
November 17, 2014, reflects the investment strategies employed during those
periods.
30 Pioneer Solutions Funds | Annual Report | 7/31/17
Performance Update | 7/31/17 Class Y Shares
Pioneer Solutions - Balanced Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Solutions - Balanced Fund during
the periods shown, compared to that of the MSCI World ND Index and the Bloomberg
Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net U.S. MSCI
Asset Aggregate World
Value Bond ND
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 4.08% 4.44% 4.45%
5 years 6.74 2.02 11.63
1 year 7.33 -0.51 16.12
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.12%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Bloomberg Barclays
Pioneer Solutions - U.S. Aggregate MSCI World
Balanced Fund Bond Index ND Index
7/07 $5,000,000 $5,000,000 $5,000,000
7/08 $4,645,126 $5,307,515 $4,455,757
7/09 $4,176,278 $5,723,910 $3,492,865
7/10 $4,750,547 $6,233,900 $3,836,353
7/11 $5,385,668 $6,510,432 $4,547,525
7/12 $5,385,588 $6,982,710 $4,457,336
7/13 $6,176,096 $6,849,690 $5,493,099
7/14 $6,835,997 $7,121,584 $6,369,957
7/15 $7,083,915 $7,322,692 $6,683,740
7/16 $6,952,554 $7,757,296 $6,653,070
7/17 $7,461,844 $7,717,380 $7,725,450
Call 1-800-225-6292 or visit www.amundipioneer.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 Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors.
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 shown 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.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
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.
Effective November 17, 2014, Amundi Pioneer became directly responsible for
portfolio management of the Fund. The performance shown for periods prior to
November 17, 2014, reflects the investment strategies employed during those
periods.
Pioneer Solutions Funds | Annual Report | 7/31/17 31
Portfolio Summary | 7/31/17
Pioneer Solutions - Growth Fund
Asset Allocations
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
International Equity 46.8%
U.S. Equity 34.1%
Fixed Income 14.9%
U.S. Government and Agency Obligation 2.2%
Sovereign Debt Obligation 1.9%
Purchased Put Options 0.1%
Actual Portfolio Holdings
(based on total portfolio)*
--------------------------------------------------------------------------------
U.S. Stocks
--------------------------------------------------------------------------------
Pioneer Disciplined Value Fund Class Y 8.97%
--------------------------------------------------------------------------------
Pioneer Mid Cap Value Fund Class K 5.86
--------------------------------------------------------------------------------
Pioneer Fund Class Y 4.96
--------------------------------------------------------------------------------
Pioneer Fundamental Growth Fund
Class K 4.63
--------------------------------------------------------------------------------
Pioneer Core Equity Fund Class Y 4.22
--------------------------------------------------------------------------------
AMG Managers Fairpointe Mid Cap Fund
Class I 2.87
--------------------------------------------------------------------------------
Oak Ridge Small Cap Growth Fund
Class K 2.59
--------------------------------------------------------------------------------
International Stocks
--------------------------------------------------------------------------------
Pioneer International Equity Fund
Class Y 18.08%
--------------------------------------------------------------------------------
Pioneer Global Equity Fund Class K 12.25
--------------------------------------------------------------------------------
JPMorgan Intrepid European Fund
Class L 3.95
--------------------------------------------------------------------------------
T. Rowe Price International Funds -
European Stock Fund 3.43
--------------------------------------------------------------------------------
iShares MSCI China ETF 2.39
--------------------------------------------------------------------------------
iShares MSCI Canada ETF 2.20
--------------------------------------------------------------------------------
iShares MSCI South Korea Capped ETF 2.14
--------------------------------------------------------------------------------
JOHCM Asia Ex-Japan Equity Fund
Class IS 1.58
--------------------------------------------------------------------------------
iShares Core MSCI Emerging Markets ETF 0.72
--------------------------------------------------------------------------------
Bonds
--------------------------------------------------------------------------------
Pioneer Bond Fund Class K 6.17%
--------------------------------------------------------------------------------
Columbia Contrarian Core Fund Class Y 3.47
--------------------------------------------------------------------------------
Pioneer Strategic Income Fund Class K 3.15
--------------------------------------------------------------------------------
Doubleline Total Return Bond Fund
Class I 1.15
--------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund
Class Y 0.95
--------------------------------------------------------------------------------
U.S. Government and Agency Obligation
--------------------------------------------------------------------------------
U.S. Treasury Inflation Indexed Note 2.23%
--------------------------------------------------------------------------------
Sovereign Debt Obligation
--------------------------------------------------------------------------------
Japanese Government CPI Linked Bond 1.93%
--------------------------------------------------------------------------------
Purchased Put Option
--------------------------------------------------------------------------------
Russell 2000 Index 0.11%
--------------------------------------------------------------------------------
* This list excludes temporary cash investments 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.
32 Pioneer Solutions Funds | Annual Report | 7/31/17
Performance Update | 7/31/17 Class A Shares
Pioneer Solutions - Growth Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Solutions - Growth Fund at public
offering price during the periods shown, compared to that of the MSCI World ND
Index and the Bloomberg Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net Public U.S. MSCI
Asset Offering Aggregate World
Value Price Bond ND
Period (NAV) (POP) Index Index
--------------------------------------------------------------------------------
10 years 3.79% 3.17% 4.44% 4.45%
5 years 8.08 6.80 2.02 11.63
1 year 11.30 4.94 -0.51 16.12
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.40%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer Solutions - U.S. Aggregate MSCI World
Growth Fund Bond Index ND Index
7/07 $ 9,425 $10,000 $10,000
7/08 $ 8,494 $10,615 $ 8,912
7/09 $ 7,179 $11,448 $ 6,986
7/10 $ 8,176 $12,468 $ 7,673
7/11 $ 9,390 $13,021 $ 9,095
7/12 $ 9,267 $13,965 $ 8,915
7/13 $10,787 $13,699 $10,986
7/14 $12,077 $14,243 $12,740
7/15 $12,690 $14,645 $13,367
7/16 $12,280 $15,515 $13,306
7/17 $13,668 $15,435 $15,451
Call 1-800-225-6292 or visit www.amundipioneer.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 the 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 shown 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.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
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.
Effective November 17, 2014, Amundi Pioneer became directly responsible for
portfolio management of the Fund. The performance shown for periods prior to
November 17, 2014, reflects the investment strategies employed during those
periods.
Pioneer Solutions Funds | Annual Report | 7/31/17 33
Performance Update | 7/31/17 Class C Shares
Pioneer Solutions - Growth Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Solutions - Growth Fund during the
periods shown, compared to that of the MSCI World ND Index and the Bloomberg
Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
U.S. MSCI
Aggregate World
If If Bond ND
Period Held Redeemed Index Index
--------------------------------------------------------------------------------
10 years 3.08% 3.08% 4.44% 4.45%
5 years 7.33 7.33 2.02 11.63
1 year 10.58 10.58 -0.51 16.12
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.10%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer Solutions - U.S. Aggregate MSCI World
Growth Fund Bond Index ND Index
7/07 $10,000 $10,000 $10,000
7/08 $ 8,957 $10,615 $ 8,912
7/09 $ 7,516 $11,448 $ 6,986
7/10 $ 8,499 $12,468 $ 7,673
7/11 $ 9,698 $13,021 $ 9,095
7/12 $ 9,512 $13,965 $ 8,915
7/13 $10,995 $13,699 $10,986
7/14 $12,214 $14,243 $12,740
7/15 $12,747 $14,645 $13,367
7/16 $12,251 $15,515 $13,306
7/17 $13,537 $15,435 $15,451
Call 1-800-225-6292 or visit www.amundipioneer.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 shown 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.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
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.
Effective November 17, 2014, Amundi Pioneer became directly responsible for
portfolio management of the Fund. The performance shown for periods prior to
November 17, 2014, reflects the investment strategies employed during those
periods.
34 Pioneer Solutions Funds | Annual Report | 7/31/17
Performance Update | 7/31/17 Class R Shares
Pioneer Solutions - Growth Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class R shares of Pioneer Solutions - Growth Fund during the
periods shown, compared to that of the MSCI World ND Index and the Bloomberg
Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net U.S. MSCI
Asset Aggregate World
Value Bond ND
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 3.73% 4.44% 4.45%
5 years 7.96 2.02 11.63
1 year 10.97 -0.51 16.12
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.97% 1.65%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Bloomberg Barclays
Pioneer Solutions - U.S. Aggregate MSCI World
Growth Fund Bond Index ND Index
7/07 $10,000 $10,000 $10,000
7/08 $ 9,012 $10,615 $ 8,912
7/09 $ 7,616 $11,448 $ 6,986
7/10 $ 8,674 $12,468 $ 7,673
7/11 $ 9,962 $13,021 $ 9,095
7/12 $ 9,832 $13,965 $ 8,915
7/13 $11,444 $13,699 $10,986
7/14 $12,812 $14,243 $12,740
7/15 $13,462 $14,645 $13,367
7/16 $12,996 $15,515 $13,306
7/17 $14,422 $15,435 $15,451
Call 1-800-225-6292 or visit www.amundipioneer.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.
The performance shown for Class R shares for the period prior to the
commencement of operations of Class R shares on July 1, 2015, is the net asset
value performance of the Fund's Class A shares, which has not been restated to
reflect any differences in expenses, including Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares generally are higher than those of
Class R shares, the performance of Class R shares prior to their inception would
have been higher than the performance shown. For the period beginning July 1,
2015, the actual performance of Class R shares is reflected. Class R shares are
not subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. 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 the contractual expense limitation currently in
effect through December 1, 2018, for Class R shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus and financial statements for more information.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses. 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.
Effective November 17, 2014, Amundi Pioneer became directly responsible for
portfolio management of the Fund. The performance shown for periods prior to
November 17, 2014, reflects the investment strategies employed during those
periods.
Pioneer Solutions Funds | Annual Report | 7/31/17 35
Performance Update | 7/31/17 Class Y Shares
Pioneer Solutions - Growth Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Solutions - Growth Fund during the
periods shown, compared to that of the MSCI World ND Index and the Bloomberg
Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of July 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net U.S. MSCI
Asset Aggregate World
Value Bond ND
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 4.22% 4.44% 4.45%
5 years 8.35 2.02 11.63
1 year 11.56 -0.51 16.12
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.12%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Bloomberg Barclays
Pioneer Solutions - U.S. Aggregate MSCI World
Growth Fund Bond Index ND Index
7/07 $5,000,000 $5,000,000 $5,000,000
7/08 $4,547,550 $5,307,515 $4,455,757
7/09 $3,925,264 $5,723,910 $3,492,865
7/10 $4,487,578 $6,233,900 $3,836,353
7/11 $5,178,245 $6,510,432 $4,547,525
7/12 $5,060,202 $6,982,710 $4,457,336
7/13 $5,905,167 $6,849,690 $5,493,099
7/14 $6,628,588 $7,121,584 $6,369,957
7/15 $6,979,751 $7,322,692 $6,683,740
7/16 $6,773,270 $7,757,296 $6,653,070
7/17 $7,556,102 $7,717,380 $7,725,450
Call 1-800-225-6292 or visit www.amundipioneer.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 Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors.
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 shown 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.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
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.
Effective November 17, 2014, Amundi Pioneer became directly responsible for
portfolio management of the Fund. The performance shown for periods prior to
November 17, 2014, reflects the investment strategies employed during those
periods.
36 Pioneer Solutions Funds | Annual Report | 7/31/17
Schedule of Investments | 7/31/17
Pioneer Solutions - Conservative Fund
------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------
MUTUAL FUNDS -- 94.4%
UNAFFILIATED FUNDS -- 24.4%
10,871 AMG Managers Fairpointe Mid Cap Fund Class I $ 478,975
18,506 Columbia Contrarian Core Fund Class Y 479,490
221,619 Doubleline Total Return Bond Fund Class I 2,371,323
3,802 iShares Core MSCI Emerging Markets ETF 200,708
12,179 iShares MSCI Canada ETF 339,794
11,588 iShares MSCI China ETF 688,443
8,603 iShares MSCI South Korea Capped ETF 599,629
11,820 JOHCM Asia Ex-Japan Equity Fund Class IS 145,384
245,938 Metropolitan West Total Return Bond Fund Class I 2,624,158
250,261 MFS Total Return Bond Fund Class I 2,690,306
9,076 Oak Ridge Small Cap Growth Fund Class K 330,276
13,929 T. Rowe Price International Funds -- European Stock Fund 282,062
230,893 Western Asset Core Plus Bond Fund Class IS 2,738,391
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED FUNDS
(Cost $13,609,176) $ 13,968,939
------------------------------------------------------------------------------------------------
AFFILIATED FUNDS* -- 70.0%
1,587,722 Pioneer Bond Fund Class K $ 15,448,535
28,841 Pioneer Core Equity Fund Class Y 589,798
62,800 Pioneer Disciplined Value Fund Class Y 1,066,972
44,418 Pioneer Dynamic Credit Fund Class Y 423,748
26,170 Pioneer Floating Rate Fund Class K 178,218
18,199 Pioneer Fund Class Y 588,738
24,917 Pioneer Fundamental Growth Fund Class K 552,659
165,382 Pioneer Global Equity Fund Class K 2,596,497
17,231 Pioneer Global High Yield Fund Class Y 153,703
12,638 Pioneer High Yield Fund Class Y 124,233
100,030 Pioneer International Equity Fund Class Y 2,336,709
29,925 Pioneer Mid Cap Value Fund Class K 759,197
1,411,045 Pioneer Strategic Income Fund Class K 15,309,838
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost $38,551,471) $ 40,128,845
------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(Cost $52,160,647) $ 54,097,784
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Principal
Amount ($)
------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATION -- 2.2%
1,265,817 U.S. Treasury Inflation Indexed Note, 0.375%, 1/15/27 $ 1,249,164
------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATION
(Cost $1,245,296) $ 1,249,164
------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 37
Schedule of Investments | 7/31/17
Pioneer Solutions - Conservative Fund (continued)
------------------------------------------------------------------------------------------------
Principal
Amount ($) Value
------------------------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATION -- 2.0%
121,069,342 JPY Japanese Government CPI Linked Bond, 0.10%, 3/10/25 $ 1,137,719
------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATION
(Cost $1,174,767) $ 1,137,719
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 98.6%
(Cost $54,580,710) (a) $ 56,484,667
------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.4% $ 813,612
------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 57,298,279
================================================================================================
* Affiliated funds managed by Amundi Pioneer Asset Management, Inc.,
formerly Pioneer Investment Management, Inc. (the Adviser).
(a) At July 31, 2017, the net unrealized appreciation on investments based on
cost for federal tax purposes of $54,721,208 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 2,115,418
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (351,959)
-----------
Net unrealized appreciation $ 1,763,459
===========
Purchases and sales of securities (excluding temporary cash investments) for the
year ended July 31, 2017 were as follows:
-------------------------------------------------------------------------------------
Purchases Sales
-------------------------------------------------------------------------------------
Long-Term U.S. Government $ 1,244,682 $ 1,514,793
Other Long-Term Securities $ 16,874,127 $ 22,695,697
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which the Adviser serves as the
investment adviser, as set forth in Rule 17a-7 under the Investment Company Act
of 1940, pursuant to procedures adopted by the Board of Trustees. Under these
procedures, cross trades are effected at current market prices. During the year
ended July 31, 2017, the Fund did not engage in cross trade activity.
The accompanying notes are an integral part of these financial statements.
38 Pioneer Solutions Funds | Annual Report | 7/31/17
CENTRALLY CLEARED INTEREST RATE SWAP AGREEMENTS
--------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Pay/ Floating Fixed Expiration Appreciation
Principal ($) Exchange Receive Rate Rate Date (Depreciation)
--------------------------------------------------------------------------------------------------------
EUR 323,000 London Pay EURIBOR 0.817% 5/29/27 $ (3,014)
Clearing House 6 Month
EUR 1,880,905 London Pay EURIBOR 0.941% 7/27/27 (895)
Clearing House 6 Month
EUR 1,317,630 London Pay EURIBOR 2.056% 2/16/32 (11,779)
Clearing House 6 Month
EUR 1,281,923 London Pay EURIBOR 1.891% 3/1/32 (22,482)
Clearing House 6 Month
GBP 1,173,744 London Receive LIBOR GBP 2.020% 2/16/32 (1,343)
Clearing House 6 Month
GBP 565,000 London Receive LIBOR GBP 1.838% 3/1/32 5,101
Clearing House 6 Month
GBP 564,532 London Receive LIBOR GBP 1.843% 3/1/32 4,939
Clearing House 6 Month
SEK 18,014,576 London Receive STIBOR SEK 1.245% 7/27/27 9,187
Clearing House 3 Month
-------------------------------------------------------------------------------------------------------
$ (20,286)
=======================================================================================================
INTEREST RATE SWAP AGREEMENT
--------------------------------------------------------------------------------------------------------
Annual
Notional Pay/ Floating Fixed Expiration Unrealized
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
--------------------------------------------------------------------------------------------------------
EUR 281,000 UBS AG Pay EMMI EURO 0.332% 5/9/26 $ (7,009)
OverNight
Index Average
========================================================================================================
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EUR Euro
GBP Great British Pound
JPY Japanese Yen
SEK Swedish Krone
EMMI European Money Markets Institute.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 39
Schedule of Investments | 7/31/17
Pioneer Solutions - Conservative Fund (continued)
The following is a summary of the inputs used as of July 31, 2017, in valuing
the Fund's assets:
---------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------------------
Mutual Funds $ 54,097,784 $ -- $ -- $ 54,097,784
U.S. Government and
Agency Obligation -- 1,249,164 -- 1,249,164
Sovereign Debt
Obligation -- 1,137,719 -- 1,137,719
---------------------------------------------------------------------------------------------------------
Total $ 54,097,784 $ 2,386,883 $ -- $ 56,484,667
=========================================================================================================
Other Financial Instruments
Unrealized Appreciation
on Futures Contracts $ 106,420 $ -- $ -- $ 106,420
Unrealized Depreciation
on Futures Contracts (161,170) -- -- (161,170)
Unrealized Appreciation
on Forward Foreign
Currency Contracts -- 202,476 -- 202,476
Unrealized Depreciation
on Forward Foreign
Currency Contracts -- (259,470) -- (259,470)
Unrealized Appreciation
on Centrally Cleared
Interest Rate Swap
Agreements -- 19,227 -- 19,227
Unrealized Depreciation
on Centrally Cleared
Interest Rate Swap
Agreements -- (39,513) -- (39,513)
Unrealized Depreciation
on Interest Rate Swap
Agreement -- (7,009) -- (7,009)
---------------------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ (54,750) $ (84,289) $ -- $ (139,039)
=========================================================================================================
During the year ended July 31, 2017, there were no transfers between Levels 1,
2, and 3.
The accompanying notes are an integral part of these financial statements.
40 Pioneer Solutions Funds | Annual Report | 7/31/17
Schedule of Investments | 7/31/17
Pioneer Solutions - Balanced Fund
------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------
MUTUAL FUNDS -- 93.7%
UNAFFILIATED FUNDS -- 24.0%
74,636 AMG Managers Fairpointe Mid Cap Fund Class I $ 3,288,456
123,725 Columbia Contrarian Core Fund Class Y 3,205,715
735,648 Doubleline Total Return Bond Fund Class I 7,871,434
16,694 iShares Core MSCI Emerging Markets ETF 881,276
89,985 iShares MSCI Canada ETF 2,510,581
49,534 iShares MSCI China ETF 2,942,815
37,046 iShares MSCI South Korea Capped ETF 2,582,106
594,024 MFS Total Return Bond Fund Class I 6,385,758
166,209 T. Rowe Price International Funds -- European Stock Fund 3,365,732
548,481 Western Asset Core Plus Bond Fund Class IS 6,504,985
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED FUNDS
(Cost $38,545,360) $ 39,538,858
------------------------------------------------------------------------------------------------
AFFILIATED FUNDS* -- 69.7%
1,505,215 Pioneer Bond Fund Class K $ 14,645,742
195,351 Pioneer Core Equity Fund Class Y 3,994,931
491,134 Pioneer Disciplined Value Fund Class Y 8,344,367
491,341 Pioneer Dynamic Credit Fund Class Y 4,687,396
130,055 Pioneer Fund Class Y 4,207,283
173,510 Pioneer Fundamental Growth Fund Class K 3,848,452
1,078,851 Pioneer Global Equity Fund Class K 16,937,961
312,079 Pioneer Global High Yield Fund Class Y 2,783,745
1 Pioneer High Yield Fund Class Y 6
1,172,294 Pioneer International Equity Fund Class Y 27,384,773
228,181 Pioneer Mid Cap Value Fund Class K 5,788,952
2,036,411 Pioneer Strategic Income Fund Class K 22,095,059
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost $99,756,860) $ 114,718,667
------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(Cost $138,302,220) $ 154,257,525
------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 41
Schedule of Investments | 7/31/17
Pioneer Solutions - Balanced Fund (continued)
------------------------------------------------------------------------------------------------
Principal
Amount ($) Value
------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATION -- 2.2%
3,632,917 U.S. Treasury Inflation Indexed Note, 0.375%, 1/15/27 $ 3,585,123
------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATION
(Cost $3,574,021) $ 3,585,123
------------------------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATION -- 2.1%
361,201,906 JPY Japanese Government CPI Linked Bond, 0.10%, 3/10/25 $ 3,394,305
------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATION
(Cost $3,504,836) $ 3,394,305
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 98.0%
(Cost $145,381,077) (a) $ 161,236,953
------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 2.0% $ 3,296,829
------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 164,533,782
================================================================================================
* Affiliated funds managed by the Adviser.
(a) At July 31, 2017, the net unrealized appreciation on investments based on
cost for federal tax purposes of $146,154,856 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 16,670,434
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (1,588,337)
-------------
Net unrealized appreciation $ 15,082,097
=============
Purchases and sales of securities (excluding temporary cash investments) for the
year ended July 31, 2017 were as follows:
------------------------------------------------------------------------------------
Purchases Sales
------------------------------------------------------------------------------------
Long-Term U.S. Government $ 3,572,259 $ 4,387,641
Other Long-Term Securities $ 42,471,568 $71,581,542
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which the Adviser serves as the
investment adviser, as set forth in Rule 17a-7 under the Investment Company Act
of 1940, pursuant to procedures adopted by the Board of Trustees. Under these
procedures, cross trades are effected at current market prices. During the year
ended July 31, 2017, the Fund did not engage in cross trade activity.
The accompanying notes are an integral part of these financial statements.
42 Pioneer Solutions Funds | Annual Report | 7/31/17
CENTRALLY CLEARED INTEREST RATE SWAP AGREEMENTS
--------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Pay/ Floating Fixed Expiration Appreciation
Principal ($) Exchange Receive Rate Rate Date (Depreciation)
--------------------------------------------------------------------------------------------------------
EUR 807,000 London Pay EURIBOR 0.817% 5/29/27 $ (7,530)
Clearing House 6 Month
EUR 8,121,562 London Pay EURIBOR 0.941% 7/27/27 (3,864)
Clearing House 6 Month
EUR 3,664,773 London Pay EURIBOR 2.056% 2/16/32 (32,761)
Clearing House 6 Month
EUR 3,694,441 London Pay EURIBOR 1.891% 3/1/32 (64,792)
Clearing House 6 Month
EUR 3,532,239 London Pay EURIBOR 2.051% 3/17/32 (33,185)
Clearing House 6 Month
GBP 3,264,578 London Receive LIBOR GBP 2.020% 2/16/32 (3,736)
Clearing House 6 Month
GBP 1,630,000 London Receive LIBOR GBP 1.838% 3/1/32 14,716
Clearing House 6 Month
GBP 1,625,257 London Receive LIBOR GBP 1.843% 3/1/32 14,219
Clearing House 6 Month
GBP 3,184,724 London Receive LIBOR GBP 1.935% 3/17/32 11,526
Clearing House 6 Month
SEK 77,785,172 London Receive STIBOR SEK 1.245% 7/27/27 39,668
Clearing House 3 Month
--------------------------------------------------------------------------------------------------------
$ (65,739)
========================================================================================================
INTEREST RATE SWAP AGREEMENT
--------------------------------------------------------------------------------------------------------
Annual
Notional Pay/ Floating Fixed Expiration Unrealized
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
--------------------------------------------------------------------------------------------------------
EUR 844,000 UBS AG Pay EMMI EURO 0.332% 5/9/26 $ (21,053)
OverNight
Index Average
========================================================================================================
EMMI European Money Markets Institute.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
GBP Great British Pound
JPY Japanese Yen
SEK Swedish Krone
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 43
Schedule of Investments | 7/31/17
Pioneer Solutions - Balanced Fund (continued)
The following is a summary of the inputs used as of July 31, 2017, in valuing
the Fund's assets:
---------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------------------
Mutual Funds $ 154,257,525 $ -- $ -- $154,257,525
U.S. Government and
Agency Obligation -- 3,585,123 -- 3,585,123
Sovereign Debt
Obligation -- 3,394,305 -- 3,394,305
---------------------------------------------------------------------------------------------------------
Total $ 154,257,525 $ 6,979,428 $ -- $161,236,953
=========================================================================================================
Other Financial Instruments
Unrealized Appreciation
on Futures Contracts $ 481,846 $ -- $ -- $ 481,846
Unrealized Depreciation
on Futures Contracts (504,645) -- -- (504,645)
Unrealized Appreciation
on Forward Foreign
Currency Contracts -- 876,171 -- 876,171
Unrealized Depreciation
on Forward Foreign
Currency Contracts -- (1,379,203) -- (1,379,203)
Unrealized Appreciation
on Centrally Cleared
Interest Rate Swaps
Agreements -- 80,129 -- 80,129
Unrealized Depreciation
on Centrally Cleared
Interest Rate Swaps
Agreements -- (145,868) -- (145,868)
Unrealized Depreciation
on Interest Rate Swap
Agreement -- (21,053) -- (21,053)
---------------------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ (22,799) $ (589,824) $ -- $ (612,623)
=========================================================================================================
During the year ended July 31, 2017, there were no transfers between Levels 1,
2, and 3.
The accompanying notes are an integral part of these financial statements.
44 Pioneer Solutions Funds | Annual Report | 7/31/17
Schedule of Investments | 7/31/17
Pioneer Solutions - Growth Fund
------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------
MUTUAL FUNDS -- 93.6%
UNAFFILIATED FUNDS -- 25.9%
195,731 AMG Managers Fairpointe Mid Cap Fund Class I $ 8,623,921
401,463 Columbia Contrarian Core Fund Class Y 10,401,906
323,717 Doubleline Total Return Bond Fund Class I 3,463,772
40,760 iShares Core MSCI Emerging Markets ETF 2,151,720
237,003 iShares MSCI Canada ETF 6,612,384
120,827 iShares MSCI China ETF 7,178,332
92,280 iShares MSCI South Korea Capped ETF 6,431,916
386,257 JOHCM Asia Ex-Japan Equity Fund Class IS 4,750,964
441,868 JPMorgan Intrepid European Fund Class L 11,855,319
213,156 Oak Ridge Small Cap Growth Fund Class K 7,756,747
508,467 T. Rowe Price International Funds -- European Stock Fund 10,296,457
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED FUNDS
(Cost $75,274,892) $ 79,523,438
------------------------------------------------------------------------------------------------
AFFILIATED FUNDS* -- 67.7%
1,902,159 Pioneer Bond Fund Class K $ 18,508,007
619,773 Pioneer Core Equity Fund Class Y 12,674,353
1,584,109 Pioneer Disciplined Value Fund Class Y 26,914,012
459,868 Pioneer Fund Class Y 14,876,717
626,568 Pioneer Fundamental Growth Fund Class K 13,897,278
2,341,358 Pioneer Global Equity Fund Class K 36,759,321
262,268 Pioneer Global Multisector Income Fund Class Y 2,848,230
2,322,206 Pioneer International Equity Fund Class Y 54,246,741
693,486 Pioneer Mid Cap Value Fund Class K 17,593,740
870,025 Pioneer Strategic Income Fund Class K 9,439,771
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost $174,807,834) $ 207,758,170
------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(Cost $250,082,726) $ 287,281,608
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Principal
Amount ($)
------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATION -- 2.2%
6,796,244 U.S. Treasury Inflation Indexed Note, 0.375%, 1/15/27 $ 6,706,833
------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATION
(Cost $6,686,064) $ 6,706,833
------------------------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATION -- 1.9%
615,878,840 JPY Japanese Government CPI Linked Bond, 0.10%, 3/10/25 $ 5,787,569
------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATION
(Cost $5,976,033) $ 5,787,569
------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 45
Schedule of Investments | 7/31/17
Pioneer Solutions - Growth Fund (continued)
---------------------------------------------------------------------------------------------------------------
Counterparty/ Strike Expiration
Contracts Description Exchange Price Date Value
---------------------------------------------------------------------------------------------------------------
EXCHANGE-TRADED PUT OPTION PURCHASED -- 0.1%
169 Russell 2000 Chicago Board 1,300 12/15/17 $ 322,790
Index of Options
---------------------------------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED PUT OPTION PURCHASED
(Premiums paid $1,416,651) $ 322,790
---------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 97.8%
(Cost $264,161,474) (a) $ 300,098,800
---------------------------------------------------------------------------------------------------------------
EXCHANGE-TRADED PUT OPTION WRITTEN -- (0.0)%+
(169) Russell 2000 Chicago Board 1,100 12/15/17 $ (70,980)
Index of Options
---------------------------------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED PUT OPTION WRITTEN
(Premiums received $(574,156)) $ (70,980)
---------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 2.2% $ 6,682,977
---------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 306,710,797
===============================================================================================================
* Affiliated funds managed by the Adviser.
+ Amount rounds to greater than (0.1)%.
(a) At July 31, 2017, the net unrealized appreciation on investments based on
cost for federal tax purposes of $264,883,553 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 39,884,658
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (4,669,411)
-------------
Net unrealized appreciation $ 35,215,247
=============
Purchases and sales of securities (excluding temporary cash investments) for the
year ended July 31, 2017 were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government $ 6,682,768 $ 7,452,287
Other Long-Term Securities $70,995,915 $110,440,107
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which the Adviser serves as the
investment adviser, as set forth in Rule 17a-7 under the Investment Company Act
of 1940, pursuant to procedures adopted by the Board of Trustees. Under these
procedures, cross trades are effected at current market prices. During the year
ended July 31, 2017, the Fund did not engage in cross trade activity.
The accompanying notes are an integral part of these financial statements.
46 Pioneer Solutions Funds | Annual Report | 7/31/17
CENTRALLY CLEARED INTEREST RATE SWAP AGREEMENTS
--------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Pay/ Floating Fixed Expiration Appreciation
Principal ($) Exchange Receive Rate Rate Date (Depreciation)
--------------------------------------------------------------------------------------------------------
EUR 1,452,000 London Pay EURIBOR 0.817% 5/29/27 $ (13,549)
Clearing House 6 Month
EUR 20,195,296 London Pay EURIBOR 0.941% 7/27/27 (9,610)
Clearing House 6 Month
EUR 6,634,238 London Pay EURIBOR 2.056% 2/16/32 (59,306)
Clearing House 6 Month
EUR 6,736,701 London Pay EURIBOR 1.891% 3/1/32 (118,146)
Clearing House 6 Month
EUR 12,958,476 London Pay EURIBOR 2.051% 3/17/32 (121,742)
Clearing House 6 Month
GBP 5,909,776 London Receive LIBOR GBP 2.020% 2/16/32 (6,763)
Clearing House 6 Month
GBP 2,965,327 London Receive LIBOR GBP 1.838% 3/1/32 26,771
Clearing House 6 Month
GBP 2,970,537 London Receive LIBOR GBP 1.843% 3/1/32 25,989
Clearing House 6 Month
GBP 11,683,571 London Receive LIBOR GBP 1.935% 3/17/32 42,286
Clearing House 6 Month
SEK 193,422,713 London Receive STIBOR SEK 1.245% 7/27/27 98,640
Clearing House 3 Month
--------------------------------------------------------------------------------------------------------
$ (135,430)
========================================================================================================
INTEREST RATE SWAP AGREEMENT
--------------------------------------------------------------------------------------------------------
Annual
Notional Pay/ Floating Fixed Expiration Unrealized
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
--------------------------------------------------------------------------------------------------------
EUR 1,548,000 UBS AG Pay EMMI EURO 0.332% 5/9/26 $ (38,614)
OverNight
Index Average
========================================================================================================
EMMI European Money Markets Institute.
NOTE : Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
GBP Great British Pound
JPY Japanese Yen
SEK Swedish Krone
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 47
Schedule of Investments | 7/31/17
Pioneer Solutions - Growth Fund (continued)
The following is a summary of the inputs used as of July 31, 2017, in valuing
the Fund's assets:
---------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------------------
Mutual Funds $ 287,281,608 $ -- $ -- $287,281,608
U.S. Government and -- 6,706,833 -- 6,706,833
Agency Obligation
Sovereign Debt -- 5,787,569 -- 5,787,569
Obligation
Exchange-Traded Put
Option Purchased 322,790 -- -- 322,790
---------------------------------------------------------------------------------------------------------
Total $ 287,604,398 $ 12,494,402 $ -- $300,098,800
=========================================================================================================
Other Financial Instruments
Unrealized Appreciation
on Futures Contracts $ 983,372 $ -- $ -- $ 983,372
Unrealized Depreciation
on Futures Contracts (1,193,842) -- -- (1,193,842)
Unrealized Appreciation
on Forward Foreign
Currency Contracts -- 2,152,462 -- 2,152,462
Unrealized Depreciation
on Forward Foreign
Currency Contracts -- (2,418,825) -- (2,418,825)
Unrealized Appreciation
on Centrally Cleared
Interest Rate Swap
Agreements -- 193,686 -- 193,686
Unrealized Depreciation
on Centrally Cleared
Interest Rate Swap
Agreements -- (329,116) -- (329,116)
Unrealized Depreciation
on Interest Rate Swap
Agreement -- (38,614) -- (38,614)
Exchange-Traded Put
Option Written (70,980) -- -- (70,980)
---------------------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ (281,450) $ (440,407) $ -- $ (721,857)
=========================================================================================================
During the year ended July 31, 2017, there were no transfers between Levels 1,
2, and 3.
The accompanying notes are an integral part of these financial statements.
48 Pioneer Solutions Funds | Annual Report | 7/31/17
Statements of Assets and Liabilities | 7/31/17
----------------------------------------------------------------------------------------------------------
Pioneer Pioneer Pioneer
Solutions - Solutions - Solutions -
Conservative Balanced Growth
Fund Fund Fund
----------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities of affiliated funds, at
value (at cost $38,551,471, $99,756,860
and $174,807,834, respectively) $ 40,128,845 $ 114,718,667 $ 207,758,170
Investments in securities of unaffiliated funds,
at value (at cost $16,029,239,
$45,624,217 and $89,353,640,
respectively) 16,355,822 46,518,286 92,340,630
Cash 255,623 1,377,044 1,686,944
Foreign currencies, at value (at cost $17,375,
$14,228 and $53,588, respectively) 16,595 6,991 44,229
Restricted cash* 661,536 2,744,246 6,151,101
Unrealized appreciation on forward
foreign currency contracts 202,476 876,171 2,152,462
Receivables for:
Capital stock sold 9,633 48,361 153,098
Distributions to shareowner -- 1,785 --
Dividends 97,396 157,458 94,937
Interest 653 1,922 3,381
Due from the Adviser 19,323 36 35
Other assets 25,774 23,927 20,817
----------------------------------------------------------------------------------------------------------
Total assets $ 57,773,676 $ 166,474,894 $ 310,405,804
==========================================================================================================
LIABILITIES:
Written options (premiums received $-, $-
and $(574,156), respectively) -- -- 70,980
Unrealized depreciation on interest rate
swap agreements 7,009 21,053 38,614
Unrealized depreciation on forward
foreign currency contracts 259,470 1,379,203 2,418,825
Payables for:
Capital stock redeemed 76,991 272,841 666,120
Distributions to shareowner 2,266 -- 2,126
Professional fees 39,890 35,433 39,287
Custodian fees 11,474 8,739 8,890
Swap payments 1,282 3,866 6,384
Variation margin for centrally cleared
interest rate swap agreements 26,389 81,920 160,834
Variation margin for futures contracts 20,962 65,656 165,005
Due to affiliates 10,086 32,046 50,011
Accrued expenses and other liabilities 19,578 40,355 67,931
----------------------------------------------------------------------------------------------------------
Total liabilities $ 475,397 $ 1,941,112 $ 3,695,007
==========================================================================================================
* Represents restricted cash deposited at the custodian and/or counterparty
for derivative contracts.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 49
Statements of Assets and Liabilities | 7/31/17 (continued)
----------------------------------------------------------------------------------------------------------
Pioneer Pioneer Pioneer
Solutions - Solutions - Solutions -
Conservative Balanced Growth
Fund Fund Fund
----------------------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 56,719,819 $ 154,585,013 $266,065,178
Undistributed net investment income 602,604 559,550 (1,193,533)
Accumulated net realized gain (loss) on
investments, futures contracts, swap
agreements, written options and foreign
currency transactions (1,788,216) (5,846,581) 6,059,220
Net unrealized appreciation on
investments 1,903,957 15,855,876 35,937,326
Net unrealized depreciation on
futures contracts (54,750) (22,799) (210,470)
Net unrealized depreciation on
swap agreements (27,295) (86,792) (174,044)
Net unrealized appreciation on
written options -- -- 503,176
Net unrealized depreciation on forward
foreign currency contracts and other
assets and liabilities denominated in
foreign currencies (57,840) (510,485) (276,056)
----------------------------------------------------------------------------------------------------------
Net assets $ 57,298,279 $ 164,533,782 $306,710,797
==========================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of
shares authorized)
Net Assets of Class A Shares $ 42,698,526 $ 114,528,007 $237,909,576
Net Assets of Class C Shares $ 14,336,044 $ 49,276,765 $ 67,953,880
Net Assets of Class R Shares $ 8,980 $ 30,644 $ 36,642
Net Assets of Class Y Shares $ 254,729 $ 698,366 $ 810,699
Class A Shares Outstanding 4,038,342 9,629,583 17,610,111
Class C Shares Outstanding 1,403,217 4,510,554 5,348,524
Class R Shares Outstanding 852 2,590 2,732
Class Y Shares Outstanding 25,570 57,903 58,736
Net Asset Value - Class A Shares $ 10.57 $ 11.89 $ 13.51
Net Asset Value - Class C Shares $ 10.22 $ 10.92 $ 12.71
Net Asset Value - Class R Shares $ 10.54 $ 11.83 $ 13.41
Net Asset Value - Class Y Shares $ 9.96 $ 12.06 $ 13.80
MAXIMUM OFFERING PRICE:
Class A (100 (divided by) 94.25 x net asset value
per share) $ 11.21 $ 12.62 $ 14.33
==========================================================================================================
The accompanying notes are an integral part of these financial statements.
50 Pioneer Solutions Funds | Annual Report | 7/31/17
Statements of Operations
For the Year Ended 7/31/17
----------------------------------------------------------------------------------------
Pioneer Pioneer Pioneer
Solutions - Solutions - Solutions -
Conservative Balanced Growth
Fund Fund Fund
----------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividend income from underlying
affiliated funds $1,339,298 $2,701,762 $3,335,754
Dividend income from underlying
unaffiliated funds 336,733 1,018,726 1,109,272
Interest 26,662 70,974 130,045
----------------------------------------------------------------------------------------
Total Investment Income $1,702,693 $3,791,462 $4,575,071
----------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 78,289 $ 224,362 $ 399,810
Transfer agent fees
Class A 38,361 112,556 277,325
Class C 12,290 31,038 56,525
Class R 66 117 168
Class Y 310 1,029 1,381
Distribution fees
Class A 110,893 293,331 589,309
Class C 157,339 543,625 707,276
Class R 44 112 134
Shareowner communications expense 6,621 22,975 52,372
Administrative expense 39,314 93,241 172,639
Custodian fees 51,407 50,896 51,384
Registration fees 70,446 75,853 56,292
Professional fees 42,427 42,516 46,724
Printing fees 18,244 33,383 26,391
Pricing fees 1,219 1,615 1,476
Fees and expenses of non-affiliated trustees 7,096 7,379 10,652
Insurance expense 939 2,354 4,141
Miscellaneous 7,209 10,585 11,799
----------------------------------------------------------------------------------------
Total expenses $ 642,514 $1,546,967 $2,465,798
Less fees waived and expenses reimbursed
by the Adviser $ (102,991) $ (107) $ (139)
----------------------------------------------------------------------------------------
Net expenses $ 539,523 $1,546,860 $2,465,659
----------------------------------------------------------------------------------------
Net investment income $1,163,170 $2,244,602 $2,109,412
----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 51
Statements of Operations (continued)
For the Year Ended 7/31/17
-------------------------------------------------------------------------------------------------
Pioneer Pioneer Pioneer
Solutions - Solutions - Solutions -
Conservative Balanced Growth
Fund Fund Fund
-------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, FUTURES CONTRACTS,
SWAP AGREEMENTS, WRITTEN OPTIONS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Underlying affiliated funds $ (83,687) $ 1,898,557 $ 6,961,742
Underlying unaffiliated funds (42,741) (1,558,110) (3,898,915)
Capital gain on distributions from
underlying affiliated funds 312,234 1,165,286 4,162,676
Capital gain on distributions from
underlying unaffiliated funds 35,056 433,965 975,954
Futures contracts (632,170) (3,541,877) (1,853,526)
Swap agreements (126,396) (389,466) (644,667)
Written options 20,724 262,780 1,190,184
Forward foreign currency contracts and
other assets and liabilities denominated
in foreign currencies 207,936 554,349 506,786
-------------------------------------------------------------------------------------------------
$ (309,044) $ (1,174,516) $ 7,400,234
-------------------------------------------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) on:
Underlying affiliated funds $ 943,543 $ 6,974,415 $11,842,079
Underlying unaffiliated funds 100,735 2,624,782 8,911,873
Futures contracts 112,311 506,000 1,275,949
Swap agreements 93,909 288,358 442,592
Written options (17,544) (64,327) 385,539
Forward foreign currency contracts and
other assets and liabilities denominated
in foreign currencies (31,416) (372,479) (66,155)
-------------------------------------------------------------------------------------------------
$1,201,538 $ 9,956,749 $22,791,877
-------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments, futures contracts,
swap agreements, written options
and forward foreign currency contracts
and other assets and liabilities
denominated in foreign currencies $ 892,494 $ 8,782,233 $30,192,111
-------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations $2,055,664 $ 11,026,835 $32,301,523
=================================================================================================
The accompanying notes are an integral part of these financial statements.
52 Pioneer Solutions Funds | Annual Report | 7/31/17
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------------
Pioneer Solutions - Pioneer Solutions -
Conservative Fund Balanced Fund
---------------------------- -----------------------------
Year Year Year Year
Ended Ended Ended Ended
7/31/17 7/31/16* 7/31/17 7/31/16*
------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 1,163,170 $ 1,452,905 $ 2,244,602 $ 3,022,656
Net realized gain (loss) on
investments, futures contracts,
swap agreements, written
options and forward foreign
currency contracts and other
assets and liabilities
denominated in
foreign currencies (309,044) (934,959) (1,174,516) (2,330,784)
Change in net unrealized
appreciation (depreciation) on
investments, futures contracts,
swap agreements, written
options and forward foreign
currency contracts and other
assets and liabilities
denominated in
foreign currencies 1,201,538 (250,550) 9,956,749 (6,511,117)
------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting
from operations $ 2,055,664 $ 267,396 $ 11,026,835 $ (5,819,245)
------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.24, $0.29, $0.24
and $0.27, respectively) $ (1,025,860) $ (1,205,906) $ (2,480,991) $ (2,947,850)
Class C ($0.15, $0.20, $0.16
and $0.19, respectively) (243,573) (335,987) (853,099) (1,111,615)
Class R ($0.21, $0.30, $0.23
and $0.30, respectively) (182) (253) (382) (257)
Class Y ($0.24, $0.27, $0.27
and $0.30, respectively) (2,842) (2,891) (20,656) (34,638)
Net realized gain:
Class A ($0.00, $1.13, $0.00
and $0.86, respectively) -- (4,678,518) -- (9,290,030)
Class C ($0.00, $1.13, $0.00
and $0.86, respectively) -- (1,937,019) -- (5,108,460)
Class R ($0.00, $1.13, $0.00
and $0.86, respectively) -- (964) -- (748)
Class Y ($0.00, $1.13, $0.00
and $0.86, respectively) -- (11,928) -- (99,468)
------------------------------------------------------------------------------------------------
Total distributions
to shareowners $ (1,272,457) $ (8,173,466) $ (3,355,128) $ (18,593,066)
------------------------------------------------------------------------------------------------
* Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 53
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------------
Pioneer Solutions - Pioneer Solutions -
Conservative Fund Balanced Fund
---------------------------- ------------------------------
Year Year Year Year
Ended Ended Ended Ended
7/31/17 7/31/16* 7/31/17 7/31/16*
------------------------------------------------------------------------------------------------
FROM FUND SHARE
TRANSACTIONS:
Net proceeds from sales
of shares $ 9,114,270 $ 11,217,618 $ 22,714,830 $ 25,621,474
Reinvestment of distributions 1,195,197 7,555,353 3,207,879 17,128,419
Cost of shares repurchased (17,980,260) (16,852,509) (55,233,494) (48,922,888)
------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
Fund share transactions (7,670,793) 1,920,462 (29,310,785) (6,172,995)
------------------------------------------------------------------------------------------------
Net decrease in net assets $ (6,887,586) $ (5,985,608) $ (21,639,078) $ (30,585,306)
NET ASSETS:
Beginning of year 64,185,865 70,171,473 186,172,860 216,758,166
------------------------------------------------------------------------------------------------
End of year $ 57,298,279 $ 64,185,865 $ 164,533,782 $ 186,172,860
------------------------------------------------------------------------------------------------
Undistributed net investment
income, end of year $ 602,604 $ 613,677 $ 559,550 $ 1,471,763
================================================================================================
* Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
The accompanying notes are an integral part of these financial statements.
54 Pioneer Solutions Funds | Annual Report | 7/31/17
--------------------------------------------------------------------------------------------------
Pioneer Solutions -
Growth Fund
------------------------------
Year Year
Ended Ended
7/31/17 7/31/16*
--------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 2,109,412 $ 3,091,367
Net realized gain (loss) on investments, futures contracts, swap
agreements, written options and forward foreign currency
contracts and other assets and liabilities denominated in
foreign currencies 7,400,234 1,560,401
Change in net unrealized appreciation (depreciation) on
investments, futures contracts, swap agreements, written options
and forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 22,791,877 (18,517,160)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 32,301,523 $ (13,865,392)
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.16 and $0.18, respectively) $ (2,945,874) $ (3,448,475)
Class C ($0.07 and $0.09, respectively) (430,655) (630,056)
Class R ($0.15 and $0.21, respectively) (303) (150)
Class Y ($0.20 and $0.21, respectively) (13,530) (21,523)
Net realized gain:
Class A ($0.07 and $0.84, respectively) (1,223,872) (16,258,476)
Class C ($0.07 and $0.84, respectively) (395,672) (5,798,035)
Class R ($0.07 and $0.84, respectively) (131) (610)
Class Y ($0.07 and $0.84, respectively) (4,528) (88,090)
--------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (5,014,565) $ (26,245,415)
--------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sales of shares $ 32,109,512 $ 35,429,202
Reinvestment of distributions 4,856,744 24,660,959
Cost of shares repurchased (77,450,776) (68,049,605)
--------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from Fund
share transactions (40,484,520) (7,959,444)
--------------------------------------------------------------------------------------------------
Net decrease in net assets $ (13,197,562) $ (48,070,251)
NET ASSETS:
Beginning of year 319,908,359 367,978,610
--------------------------------------------------------------------------------------------------
End of year $ 306,710,797 $ 319,908,359
--------------------------------------------------------------------------------------------------
Undistributed net investment income, end of year $ (1,193,533) $ 200,200
==================================================================================================
* Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 55
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------------
Pioneer Solutions - Conservative Fund
------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
7/31/17 7/31/17 7/31/16* 7/31/16*
Shares Amount Shares Amount
------------------------------------------------------------------------------------------------
Class A
Shares sold 656,974 $ 6,785,669 604,781 $ 6,405,174
Reinvestment of distributions 96,948 975,297 563,069 5,658,844
Less shares repurchased (1,180,210) (12,148,340) (837,372) (8,731,562)
------------------------------------------------------------------------------------------------
Net increase (decrease) (426,288) $ (4,387,374) 330,478 $ 3,332,456
================================================================================================
Class C
Shares sold 208,451 $ 2,076,396 455,131 $ 4,728,950
Reinvestment of distributions 22,350 218,130 193,437 1,886,018
Less shares repurchased (575,357) (5,737,669) (763,235) (7,953,081)
------------------------------------------------------------------------------------------------
Net decrease (344,556) $ (3,443,143) (114,667) $ (1,338,113)
================================================================================================
Class R
Shares sold -- $ -- -- $ --
Reinvestment of distributions -- -- -- --
Less shares repurchased -- -- -- --
------------------------------------------------------------------------------------------------
Net increase (decrease) -- $ -- -- $ --
================================================================================================
Class Y
Shares sold 25,777 $ 252,205 7,768 $ 83,494
Reinvestment of distributions 187 1,770 1,105 10,491
Less shares repurchased (9,704) (94,251) (15,770) (167,866)
------------------------------------------------------------------------------------------------
Net increase (decrease) 16,260 $ 159,724 (6,897) $ (73,881)
================================================================================================
* Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
The accompanying notes are an integral part of these financial statements.
56 Pioneer Solutions Funds | Annual Report | 7/31/17
------------------------------------------------------------------------------------------------
Pioneer Solutions - Balanced Fund
------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
7/31/17 7/31/17 7/31/16* 7/31/16*
Shares Amount Shares Amount
------------------------------------------------------------------------------------------------
Class A
Shares sold 1,036,619 $ 11,837,739 1,047,166 $ 11,977,456
Reinvestment of distributions 221,988 2,448,547 1,084,238 12,067,537
Less shares repurchased (2,695,716) (30,690,063) (2,084,317) (23,686,989)
------------------------------------------------------------------------------------------------
Net increase (decrease) (1,437,109) $ (16,403,777) 47,087 $ 358,004
================================================================================================
Class C
Shares sold 977,713 $ 10,240,742 1,189,840 $ 12,457,865
Reinvestment of distributions 72,790 741,003 481,229 4,947,038
Less shares repurchased (2,234,082) (23,459,634) (2,287,374) (24,045,545)
------------------------------------------------------------------------------------------------
Net decrease (1,183,579) $ (12,477,889) (616,305) $ (6,640,642)
================================================================================================
Class R
Shares sold 1,293 $ 14,650 748 $ 8,215
Reinvestment of distributions 18 201 9 95
Less shares repurchased (3) (40) (260) (2,797)
------------------------------------------------------------------------------------------------
Net increase 1,308 $ 14,811 497 $ 5,513
================================================================================================
Class Y
Shares sold 53,810 $ 621,699 100,886 $ 1,177,938
Reinvestment of distributions 1,623 18,128 10,102 113,749
Less shares repurchased (93,660) (1,083,757) (104,875) (1,187,557)
------------------------------------------------------------------------------------------------
Net increase (decrease) (38,227) $ (443,930) 6,113 $ 104,130
================================================================================================
* Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 57
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------------
Pioneer Solutions - Growth Fund
------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
7/31/17 7/31/17 7/31/16* 7/31/16*
Shares Amount Shares Amount
------------------------------------------------------------------------------------------------
Class A
Shares sold 1,472,355 $ 18,713,459 1,519,091 $ 18,784,192
Reinvestment of distributions 339,156 4,141,107 1,606,934 19,604,535
Less shares repurchased (3,833,987) (48,643,067) (3,271,985) (40,168,227)
------------------------------------------------------------------------------------------------
Net decrease (2,022,476) $ (25,788,501) (145,960) $ (1,779,500)
================================================================================================
Class C
Shares sold 1,049,181 $ 12,553,690 1,378,968 $ 16,056,831
Reinvestment of distributions 60,918 702,384 431,217 4,971,978
Less shares repurchased (2,299,910) (27,499,669) (2,353,490) (27,028,433)
------------------------------------------------------------------------------------------------
Net decrease (1,189,811) $ (14,243,595) (543,305) $ (5,999,624)
================================================================================================
Class R
Shares sold 1,200 $ 15,124 784 $ 9,204
Reinvestment of distributions 23 276 -- --
Less shares repurchased -- -- -- --
------------------------------------------------------------------------------------------------
Net increase 1,223 $ 15,400 784 $ 9,204
================================================================================================
Class Y
Shares sold 63,628 $ 827,239 45,377 $ 578,975
Reinvestment of distributions 1,041 12,977 6,788 84,446
Less shares repurchased (99,815) (1,308,040) (68,556) (852,945)
------------------------------------------------------------------------------------------------
Net decrease (35,146) $ (467,824) (16,391) $ (189,524)
================================================================================================
* Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
The accompanying notes are an integral part of these financial statements.
58 Pioneer Solutions Funds | Annual Report | 7/31/17
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Conservative Fund
--------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/17 7/31/16** 7/31/15** 7/31/14** 7/31/13
------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of year $ 10.41 $ 11.78 $ 11.86 $ 11.42 $ 10.73
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.22 $ 0.26 $ 0.30 $ 0.25 $ 0.28
Net realized and unrealized gain (loss) on investments 0.18 (0.21) (0.07) 0.55 0.64
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.40 $ 0.05 $ 0.23 $ 0.80 $ 0.92
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.24) $ (0.29) $ (0.31) $ (0.36) $ (0.23)
Net realized gain -- (1.13) -- -- --
------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.24) $ (1.42) $ (0.31) $ (0.36) $ (0.23)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.16 $ (1.37) $ (0.08) $ 0.44 $ 0.69
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 10.57 $ 10.41 $ 11.78 $ 11.86 $ 11.42
==============================================================================================================================
Total return* 3.91% 0.89% 2.01% 7.10% 8.72%
Ratio of net expenses to average net assets+ 0.70% 0.70% 0.71% 0.76% 0.77%
Ratio of net investment income to average net assets+ 2.13% 2.43% 2.53% 2.15% 2.51%
Portfolio turnover rate 31% 23% 108% 12% 17%
Net assets, end of year (in thousands) $42,699 $46,499 $48,721 $46,873 $44,239
Ratios with no waivers of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.87% 0.86% 0.79% 0.76% 0.77%
Net investment income to average net assets 1.96% 2.27% 2.45% 2.15% 2.51%
==============================================================================================================================
(a) Calculated using average shares outstanding for the year.
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each year.
** Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
+ 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.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 59
Financial Highlights (continued)
--------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Conservative Fund
----------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/17 7/31/16** 7/31/15** 7/31/14** 7/31/13
--------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of year $ 10.06 $ 11.41 $ 11.51 $ 11.09 $ 10.44
--------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.14 $ 0.17 $ 0.19 $ 0.16 $ 0.18
Net realized and unrealized gain (loss) on investments 0.17 (0.19) (0.06) 0.54 0.63
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.31 $ (0.02) $ 0.13 $ 0.70 $ 0.81
--------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.15) $ (0.20) $ (0.23) $ (0.28) $ (0.16)
Net realized gain -- (1.13) -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.15) $ (1.33) $ (0.23) $ (0.28) $ (0.16)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.16 $ (1.35) $ (0.10) $ 0.42 $ 0.65
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 10.22 $ 10.06 $ 11.41 $ 11.51 $ 11.09
================================================================================================================================
Total return* 3.18% 0.18% 1.15% 6.42% 7.83%
Ratio of net expenses to average net assets+ 1.45% 1.45% 1.45% 1.49% 1.51%
Ratio of net investment income to average net assets+ 1.37% 1.69% 1.69% 1.40% 1.70%
Portfolio turnover rate 31% 23% 108% 12% 17%
Net assets, end of year (in thousands) $14,336 $17,586 $21,260 $22,290 $20,542
Ratios with no waivers of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 1.61% 1.59% 1.53% 1.49% 1.51%
Net investment income to average net assets 1.21% 1.55% 1.61% 1.40% 1.70%
================================================================================================================================
(a) Calculated using average shares outstanding for the year.
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each year.
** Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
+ 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.
The accompanying notes are an integral part of these financial statements.
60 Pioneer Solutions Funds | Annual Report | 7/31/17
------------------------------------------------------------------------------------------------------------------
Pioneer Solutions -
Conservative Fund
----------------------------------------------
Year Year
Ended Ended 7/1/15 to
7/31/17 7/31/16**** 7/31/15****
------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of year $ 10.38 $ 11.78 $ 11.74
------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.20 $ 0.25 $ 0.02
Net realized and unrealized gain (loss)
on investments 0.17 (0.22) 0.02
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.37 $ 0.03 $ 0.04
------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.21) $ (0.30) $ --
Net realized gain -- (1.13) --
------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.21) $ (1.43) $ --
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.16 $ (1.40) $ 0.04
------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 10.54 $ 10.38 $ 11.78
==================================================================================================================
Total return* 3.71% 0.66% 0.34%**
Ratio of net expenses to average net assets+ 0.90% 0.90% 0.93%***
Ratio of net investment income to average
net assets+ 1.89% 2.30% 1.58%***
Portfolio turnover rate 31% 23% 108%
Net assets, end of year (in thousands) $ 9 $ 9 $ 10
Ratios with no waivers of fees and assumption
of expenses by the Adviser and no reduction
for fees paid indirectly:
Total expenses to average net assets 1.89% 1.50% 1.41%***
Net investment income to average net assets 0.90% 1.70% 1.10%***
==================================================================================================================
(a) Calculated using average shares outstanding for the year.
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each year.
** Not 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.
*** Annualized.
**** Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 61
Financial Highlights (continued)
-------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Conservative Fund
---------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/17 7/31/16** 7/31/15** 7/31/14** 7/31/13
-------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of year $ 9.83 $ 11.18 $ 11.32 $ 10.86 $ 10.21
-------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.19 $ 0.24 $ 0.21 $ 0.24 $ 0.20
Net realized and unrealized gain (loss) on investments 0.18 (0.19) (0.01) 0.49 0.61
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.37 $ 0.05 $ 0.20 $ 0.73 $ 0.81
-------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.24) $ (0.27) $ (0.34) $ (0.27) $ (0.16)
Net realized gain -- (1.13) -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.24) $ (1.40) $ (0.34) $ (0.27) $ (0.16)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.13 $ (1.35) $ (0.14) $ 0.46 $ 0.65
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 9.96 $ 9.83 $ 11.18 $ 11.32 $ 10.86
===============================================================================================================================
Total return* 3.93% 0.95% 1.81% 6.83% 8.00%
Ratio of net expenses to average net assets+ 0.65% 0.65% 0.98% 0.98% 1.43%
Ratio of net investment income to average net assets+ 1.92% 2.37% 1.84% 2.13% 1.88%
Portfolio turnover rate 31% 23% 108% 12% 17%
Net assets, end of year (in thousands) $ 255 $ 92 $ 181 $ 123 $ 141
Ratios with no waivers of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.81% 0.82% 0.98% 0.98% 1.43%
Net investment income to average net assets 1.76% 2.19% 1.84% 2.13% 1.88%
===============================================================================================================================
(a) Calculated using average shares outstanding for the year.
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each year.
** Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
+ 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.
The accompanying notes are an integral part of these financial statements.
62 Pioneer Solutions Funds | Annual Report | 7/31/17
-------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Balanced Fund
------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/17 7/31/16** 7/31/15** 7/31/14** 7/31/13
-------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of year $ 11.35 $ 12.78 $ 12.73 $ 11.72 $ 10.46
-------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.17 $ 0.20 $ 0.29 $ 0.19 $ 0.21
Net realized and unrealized gain (loss) on investments 0.61 (0.50) 0.12 1.03 1.27
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.78 $ (0.30) $ 0.41 $ 1.22 $ 1.48
-------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.24) $ (0.27) $ (0.36) $ (0.21) $ (0.22)
Net realized gain -- (0.86) -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.24) $ (1.13) $ (0.36) $ (0.21) $ (0.22)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.54 $ (1.43) $ 0.05 $ 1.01 $ 1.26
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 11.89 $ 11.35 $ 12.78 $ 12.73 $ 11.72
===============================================================================================================================
Total return* 7.04% (2.11)% 3.33% 10.48% 14.32%
Ratio of net expenses to average net assets+ 0.68% 0.67% 0.66% 0.64% 0.66%
Ratio of net investment income to average net assets+ 1.51% 1.77% 2.25% 1.57% 1.85%
Portfolio turnover rate 27% 16% 89% 10% 9%
Net assets, end of year (in thousands) $114,528 $125,608 $140,863 $136,511 $128,425
Ratios with no waivers of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.68% 0.67% 0.66% 0.64% 0.66%
Net investment income to average net assets 1.51% 1.77% 2.25% 1.57% 1.85%
===============================================================================================================================
(a) Calculated using average shares outstanding for the year.
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each year.
** Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
+ 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.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 63
Financial Highlights (continued)
-------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Balanced Fund
-----------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/17 7/31/16** 7/31/15** 7/31/14** 7/31/13
-------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of year $ 10.44 $ 11.84 $ 11.82 $ 10.92 $ 9.77
-------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.09 $ 0.12 $ 0.17 $ 0.09 $ 0.12
Net realized and unrealized gain (loss) on investments 0.55 (0.47) 0.14 0.96 1.19
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.64 $ (0.35) $ 0.31 $ 1.05 $ 1.31
-------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.16) $ (0.19) $ (0.29) $ (0.15) $ (0.16)
Net realized gain -- $ (0.86) -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.16) $ (1.05) $ (0.29) $ (0.15) $ (0.16)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.48 $ (1.40) $ 0.02 $ 0.90 $ 1.15
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 10.92 $ 10.44 $ 11.84 $ 11.82 $ 10.92
===============================================================================================================================
Total return* 6.26% (2.81)% 2.64% 9.70% 13.56%
Ratio of net expenses to average net assets+ 1.38% 1.37% 1.35% 1.33% 1.34%
Ratio of net investment income to average net assets+ 0.84% 1.10% 1.44% 0.81% 1.15%
Portfolio turnover rate 27% 16% 89% 10% 9%
Net assets, end of year (in thousands) $49,277 $59,444 $74,720 $75,377 $64,989
Ratios with no waivers of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 1.38% 1.37% 1.35% 1.33% 1.34%
Net investment income to average net assets 0.84% 1.10% 1.44% 1.44% 1.15%
===============================================================================================================================
(a) Calculated using average shares outstanding for the year.
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each year.
** Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
+ 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.
The accompanying notes are an integral part of these financial statements.
64 Pioneer Solutions Funds | Annual Report | 7/31/17
------------------------------------------------------------------------------------------------------------------
Pioneer Solutions -
Balanced Fund
-----------------------------------------------
Year Year
Ended Ended 7/1/15 to
7/31/17 7/31/16**** 7/31/15****
------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of year $ 11.30 $ 12.78 $ 12.74
------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.11 $ 0.15 $ 0.01
Net realized and unrealized gain (loss)
on investments 0.65 (0.47) 0.03
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.76 $ (0.32) $ 0.04
------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.23) $ (0.30) $ --
Net realized gain -- (0.86) --
------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.23) $ (1.16) $ --
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.53 $ (1.48) $ 0.04
------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 11.83 $ 11.30 $ 12.78
==================================================================================================================
Total return* 6.89% (2.34)% 0.31%**
Ratio of net expenses to average net assets+ 0.90% 0.90% 0.93%***
Ratio of net investment income to average
net assets+ 0.98% 1.28% 0.66%***
Portfolio turnover rate 27% 16% 89%
Net assets, end of year (in thousands) $ 31 $ 14 $ 10
Ratios with no waivers of fees and assumption
of expenses by the Adviser and no reduction
for fees paid indirectly:
Total expenses to average net assets 1.38% 1.58% 1.00%***
Net investment income to average net assets 0.50% 0.60% 0.58%***
==================================================================================================================
(a) Calculated using average shares outstanding for the year.
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each year.
** Not 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.
*** Annualized.
**** Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 65
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Balanced Fund
----------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/17 7/31/16** 7/31/15** 7/31/14** 7/31/13
------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of year $ 11.51 $ 12.94 $ 12.88 $ 11.86 $ 10.58
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.19 $ 0.26 $ 0.37 $ 0.23 $ 0.25
Net realized and unrealized gain (loss) on investments 0.63 (0.53) 0.09 1.03 1.28
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.82 $ (0.27) $ 0.46 $ 1.26 $ 1.53
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.27) $ (0.30) $ (0.40) $ (0.24) $ (0.25)
Net realized gain -- (0.86) -- -- --
------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.27) $ (1.16) $ (0.40) $ (0.24) $ (0.25)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.55 $ (1.43) $ 0.06 $ 1.02 $ 1.28
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 12.06 $ 11.51 $ 12.94 $ 12.88 $ 11.86
==============================================================================================================================
Total return* 7.33% (1.85)% 3.63% 10.68% 14.68%
Ratio of net expenses to average net assets+ 0.47% 0.40% 0.36% 0.40% 0.36%
Ratio of net investment income to average net assets+ 1.67% 2.22% 2.92% 1.88% 2.26%
Portfolio turnover rate 27% 16% 89% 10% 9%
Net assets, end of year (in thousands) $ 698 $ 1,107 $ 1,165 $ 3,239 $ 4,134
Ratios with no waivers of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.47% 0.40% 0.36% 0.40% 0.36%
Net investment income to average net assets 1.67% 2.22% 2.92% 1.88% 2.26%
==============================================================================================================================
(a) Calculated using average shares outstanding for the year.
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each year.
** Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
+ 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.
The accompanying notes are an integral part of these financial statements.
66 Pioneer Solutions Funds | Annual Report | 7/31/17
------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Growth Fund
-----------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/17 7/31/16** 7/31/15** 7/31/14** 7/31/13
------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of year $ 12.36 $ 13.84 $ 13.60 $ 12.32 $ 10.75
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.11 $ 0.13 $ 0.29 $ 0.16 $ 0.17
Net realized and unrealized gain (loss) on investments 1.27 (0.59) 0.38 1.31 1.57
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.38 $ (0.46) $ 0.67 $ 1.47 $ 1.74
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.16) $ (0.18) $ (0.43) $ (0.19) $ (0.17)
Net realized gain (0.07) (0.84) -- -- --
------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.23) $ (1.02) $ (0.43) $ (0.19) $ (0.17)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.15 $ (1.48) $ 0.24 $ 1.28 $ 1.57
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 13.51 $ 12.36 $ 13.84 $ 13.60 $ 12.32
==============================================================================================================================
Total return* 11.30% (3.23)% 5.08% 11.96% 16.40%
Ratio of net expenses to average net assets+ 0.64% 0.65% 0.69% 0.68% 0.69%
Ratio of net investment income to average net assets+ 0.84% 1.08% 2.15% 1.24% 1.50%
Portfolio turnover rate 26% 10% 98% 8% 6%
Net assets, end of year (in thousands) $237,910 $242,649 $273,763 $163,349 $149,586
Ratios with no waivers of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.64% 0.65% 0.69% 0.68% 0.69%
Net investment income to average net assets 0.84% 1.08% 2.15% 1.24% 1.50%
==============================================================================================================================
(a) Calculated using average shares outstanding for the year.
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each year.
** Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
+ 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.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 67
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Growth Fund
----------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/17 7/31/16** 7/31/15** 7/31/14** 7/31/13
------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of year $ 11.63 $ 13.08 $ 12.82 $ 11.65 $ 10.18
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.02 $ 0.05 $ 0.12 $ 0.06 $ 0.09
Net realized and unrealized gain (loss) on investments 1.20 (0.57) 0.43 1.23 1.48
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.22 $ (0.52) $ 0.55 $ 1.29 $ 1.57
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.07) $ (0.09) $ (0.29) $ (0.12) $ (0.10)
Net realized gain (0.07) (0.84) -- -- --
------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.14) $ (0.93) $ (0.29) $ (0.12) $ (0.10)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.08 $ (1.45) $ 0.26 $ 1.17 $ 1.47
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 12.71 $ 11.63 $ 13.08 $ 12.82 $ 11.65
==============================================================================================================================
Total return* 10.58% (3.89)% 4.36% 11.09% 15.58%
Ratio of net expenses to average net assets+ 1.35% 1.35% 1.38% 1.37% 1.40%
Ratio of net investment income to average net assets+ 0.16% 0.47% 0.95% 0.46% 0.78%
Portfolio turnover rate 26% 10% 98% 8% 6%
Net assets, end of year (in thousands) $67,954 $76,055 $92,650 $63,333 $53,032
Ratios with no waivers of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 1.35% 1.35% 1.38% 1.37% 1.40%
Net investment income to average net assets 0.16% 0.47% 0.95% 0.46% 0.78%
==============================================================================================================================
(a) Calculated using average shares outstanding for the year.
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each year.
** Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
+ 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.
The accompanying notes are an integral part of these financial statements.
68 Pioneer Solutions Funds | Annual Report | 7/31/17
----------------------------------------------------------------------------------------------------------
Pioneer Solutions -
Growth Fund
--------------------------------------------
Year Year
Ended Ended 7/1/15 to
7/31/17 7/31/16**** 7/31/15****
----------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of year $ 12.30 $ 13.84 $ 13.78
----------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.04 $ 0.02 $ (0.00)(b)
Net realized and unrealized gain (loss)
on investments 1.29 (0.51) 0.06
----------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.33 $ (0.49) $ 0.06
----------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.15) $ (0.21) $ --
Net realized gain (0.07) (0.84) --
----------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.22) $ (1.05) $ --
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.11 $ (1.54) $ 0.06
----------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 13.41 $ 12.30 $ 13.84
==========================================================================================================
Total return* 10.97% (3.47)% 0.44%**
Ratio of net expenses to average net assets+ 0.90% 0.90% 0.89%***
Ratio of net investment income to average
net assets+ 0.30% 0.18% (0.38)%***
Portfolio turnover rate 26% 10% 98%
Net assets, end of year (in thousands) $ 37 $ 19 $ 10
Ratios with no waivers of fees and assumption of
expenses by the Adviser and no reduction for
fees paid indirectly:
Total expenses to average net assets 1.41% 1.22% 0.89%***
Net investment income to average net assets (0.21)% (0.14)% (0.38)%***
==========================================================================================================
(a) Calculated using average shares outstanding for the year.
(b) Amount rounds to greater then $(0.005) per share.
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each year.
** Not 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.
*** Annualized.
**** Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Annual Report | 7/31/17 69
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Growth Fund
----------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/17 7/31/16** 7/31/15** 7/31/14** 7/31/13
------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of year $ 12.63 $ 14.11 $ 13.88 $ 12.56 $ 10.95
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.08 $ 0.19 $ 0.26 $ 0.28 $ 0.20
Net realized and unrealized gain (loss) on investments 1.36 (0.62) 0.46 1.25 1.61
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.44 $ (0.43) $ 0.72 $ 1.53 $ 1.81
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.20) $ (0.21) $ (0.49) $ (0.21) $ (0.20)
Net realized gain (0.07) (0.84) -- -- --
------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.27) $ (1.05) $ (0.49) $ (0.21) $ (0.20)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.17 $ (1.48) $ 0.23 $ 1.32 $ 1.61
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 13.80 $ 12.63 $ 14.11 $ 13.88 $ 12.56
==============================================================================================================================
Total return* 11.56% (2.96)% 5.30% 12.25% 16.70%
Ratio of net expenses to average net assets+ 0.41% 0.37% 0.47% 0.40% 0.44%
Ratio of net investment income to average net assets+ 0.64% 1.53% 1.87% 2.10% 1.71%
Portfolio turnover rate 26% 10% 98% 8% 6%
Net assets, end of year (in thousands) $ 811 $ 1,186 $ 1,556 $ 1,031 $ 1,314
Ratios with no waivers of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.41% 0.37% 0.47% 0.40% 0.44%
Net investment income to average net assets 0.64% 1.53% 1.87% 2.10% 1.71%
==============================================================================================================================
(a) Calculated using average shares outstanding for the year.
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each year.
** Beginning with the fiscal year ended July 31, 2017, the Fund was audited by
Ernst & Young LLP. The previous year was audited by another independent
registered public accounting firm.
+ 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.
The accompanying notes are an integral part of these financial statements.
70 Pioneer Solutions Funds | Annual Report | 7/31/17
Notes to Financial Statements | 7/31/17
1. Organization and Significant Accounting Policies
Pioneer Asset Allocation Trust (the "Trust") is organized as a Delaware
statutory trust and is registered with the Securities and Exchange Commission
under the Investment Company Act of 1940 (the 1940 Act) as an open-end
management investment company. The Trust consists of three separate funds (each,
a "Fund," and collectively, the "Funds"), each issuing four classes of shares as
follows:
Pioneer Solutions - Conservative Fund ("Conservative Fund")
Pioneer Solutions - Growth Fund ("Growth Fund")
Pioneer Solutions - Balanced Fund ("Balanced Fund").
The investment objective of each of the Conservative Fund, the Growth Fund and
the Balanced Fund is to seek long-term capital growth and current income.
Each Fund is a "fund of funds". Each Fund seeks to achieve its investment
objective by investing primarily in other funds ("underlying funds"). Each Fund
may also invest directly in securities and use derivatives. Each Fund invests
mainly in funds managed by Amundi Pioneer Asset Management, Inc. (the Adviser),
formerly Pioneer Investment Management, Inc. Each Fund may also invest in
unaffiliated mutual funds or exchange-traded funds (ETFs). The Funds indirectly
pay a portion of the expenses incurred by underlying funds. Consequently, an
investment in the Funds entails more direct and indirect expenses than direct
investment in the applicable underlying funds.
Each Fund offers four classes of shares designated as Class A, Class C, Class R
and Class Y shares. Each class of shares represents an interest in the same
portfolio of investments of each Fund and has identical rights (based on
relative net asset values) to assets and liquidation proceeds. Share classes can
bear different rates of class-specific fees and expenses such as transfer agent
and distribution fees. Differences in class specific fees and expenses will
result in differences in net investment income and, therefore, the payment of
different dividends from net investment income earned by each class. The Amended
and Restated Declaration of Trust of each Fund gives the Board of Trustees the
flexibility to specify either per-share voting or dollar-weighted voting when
submitting matters for shareowner approval. Under per-share voting, each share
of a class of a Fund is entitled to one vote. Under dollar-weighted voting, a
shareowner's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
Pioneer Solutions Funds | Annual Report | 7/31/17 71
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world. Amundi, one of the world's
largest asset managers, is headquartered in Paris, France. As a result of the
transaction, Pioneer Investment Management, Inc., the Funds' investment adviser,
became an indirect wholly owned subsidiary of Amundi and Amundi's wholly owned
subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer Investments was
owned by Pioneer Global Asset Management S.p.A., a wholly owned subsidiary of
UniCredit S.p.A.
In connection with the transaction, the names of the Funds' investment adviser
and principal underwriter changed. Effective July 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc.
(the Adviser) and the name of Pioneer Funds Distributor, Inc. changed to Amundi
Pioneer Distributor, Inc. (the Distributor).
In October 2016, the Securities and Exchange Commission (SEC) released its Final
Rule on Investment Company Reporting Modernization. In addition to introducing
two new regulatory reporting forms (Form N-PORT and Form N-CEN), the Final Rule
amends Regulation S-X, which impacts financial statement presentation,
particularly related to the presentation of derivative investments. Financial
statements filed with the SEC with a period end date on or after August 1, 2017
are required to be in compliance with the amendments to Regulation S-X. Although
still evaluating the impact of these amendments, management expects the Fund's
adoption to be limited to additional financial statement disclosures.
The financial statements have been prepared in conformity with U.S. generally
accepted accounting principles (U.S. GAAP) that require the management of the
Funds to 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.
Each Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Funds in the preparation of their financial
statements:
A. Security Valuation
The net asset value of the Funds are computed once daily, on each day the
New York Stock Exchange (NYSE) is open, as of the close of regular trading
on the NYSE.
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such funds' net asset value. Repurchase
agreements are valued at par. Cash may include overnight time deposits at
approved financial institutions.
72 Pioneer Solutions Funds | Annual Report | 7/31/17
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to supply
prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Swap agreements, including interest rate swaps, caps and floors (other than
centrally cleared swap agreements) are valued at the dealer quotations
obtained from reputable International Swap Dealers Association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Futures contracts are generally valued at the closing settlement price
established by the exchange on which they are traded.
Options contracts are generally valued at the mean between the last bid and
ask prices on the principal exchange where they are traded.
Over-the-counter ("OTC") options and options on swaps ("swaptions") are
valued using prices supplied by independent pricing services, which
consider such factors as market prices, market events, quotations from one
or more brokers, Treasury spreads, yields, maturities and ratings, or may
use a pricing matrix or other fair value methods or techniques to provide
an estimated value of the security or instrument.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate, in each case provided by a third party pricing service.
Contracts whose forward settlement date falls between two quoted days are
valued by interpolation.
Securities for which independent pricing services or broker-dealers are
unable to supply prices or for which market prices and/or quotations are
not readily available or are considered to be unreliable are valued by a
fair valuation team comprised of certain personnel of the Adviser, pursuant
to procedures adopted by the Funds' Board of Trustees. The Adviser's fair
valuation team uses fair value methods approved by the Valuation Committee
of the Board of Trustees. The Adviser's fair valuation team is responsible
for
Pioneer Solutions Funds | Annual Report | 7/31/17 73
monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Funds may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of each Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of each Fund's securities may differ significantly from exchange prices and
such differences could be material.
At July 31, 2017, the Funds held no securities valued using fair value
methods (other than to securities valued using prices supplied by
independent pricing services, broker-dealers or using a third party
insurance industry pricing model).
B. Investment Income and Transactions
Dividend income and realized capital gain distributions from investment
company shares held are recorded on the ex-dividend date. Interest income,
including interest on income bearing cash accounts, is recorded on the
accrual basis. Dividend and interest income are reported net of
unrecoverable foreign taxes withheld at the applicable country rates.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Funds are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the Statement of Operations from
the effects of changes in the market price of those securities but are
included with the net realized and unrealized gain or loss on investments.
74 Pioneer Solutions Funds | Annual Report | 7/31/17
D. Forward Foreign Currency Contracts
The Funds may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
are recorded in the Funds' financial statements. The Funds record realized
gains and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contracts and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 5).
E. Federal Income Taxes
It is the Funds' policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all taxable income and net realized capital gains, if any, to shareowners.
Therefore, no federal income tax provisions are required. Tax years for the
prior three fiscal years remain subject to examination by federal and state
tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary overdistributions for financial
statement purposes resulting from differences in the recognition or
classification of income or distributions for financial statement and tax
purposes. Capital accounts within the financial statements are adjusted for
permanent book/tax differences to reflect tax character, but are not
adjusted for temporary differences.
At July 31, 2017, the Funds reclassified the following amounts to reflect
permanent book/tax differences. These adjustments have no impact on the net
assets or results of operations.
---------------------------------------------------------------------------
Conservative Fund Balanced Fund Growth Fund
---------------------------------------------------------------------------
Undistributed net
investment income $ 98,214 $ 198,313 $ (112,783)
Accumulated net
realized gain on
investments (98,214) (198,313) 112,783
At July 31, 2017, Conservative Fund was permitted to carry forward
$1,125,215 of short-term capital losses and $505,213 of long-term capital
losses without limitations.
At July 31, 2017, Balanced Fund was permitted to carry forward $4,426,631
of short-term capital losses and $353,901 of long-term capital losses
without limitations.
Pioneer Solutions Funds | Annual Report | 7/31/17 75
Growth Fund has elected to defer $1,427,838 of long-term capital losses
recognized between August 1, 2016 and July 31, 2017, to its fiscal year
ending July 31, 2018.
The tax character of current year distributions paid will be determined at
the end of the current taxable year. The tax character of distributions
paid during the year ended years ended July 31, 2017 and July 31, 2016 were
as follows:
---------------------------------------------------------------------------
2017 2016
---------------------------------------------------------------------------
Conservative Fund
Distributions paid from:
Ordinary income $1,272,457 $ 1,550,713
Long-term capital gains -- 6,622,753
---------------------------------------------------------------------------
Total $1,272,457 $ 8,173,466
===========================================================================
Balanced Fund
Distributions paid from:
Ordinary income $3,355,128 $ 4,100,023
Long-term capital gains -- 14,493,043
---------------------------------------------------------------------------
Total $3,355,128 $18,593,066
===========================================================================
Growth Fund
Distributions paid from:
Ordinary income $3,390,362 $ 3,637,690
Long-term capital gains 1,624,203 22,607,725
---------------------------------------------------------------------------
Total $5,014,565 $26,245,415
===========================================================================
The following table shows the components of distributable earnings on a
federal income tax basis at July 31, 2017:
------------------------------------------------------------------------------
Conservative Fund Balanced Fund Growth Fund
------------------------------------------------------------------------------
Undistributed ordinary
income $ 549,667 $ 69,192 $ --
Undistributed long-term
capital gains -- -- 6,752,156
Current year late
loss deferral -- -- (1,427,838)
Capital loss carryforward (1,630,428) (4,780,532) --
Unrealized appreciation/
(depreciation) 1,659,221 14,660,109 35,321,301
------------------------------------------------------------------------------
Total $ 578,460 $ 9,948,769 $ 40,645,619
==============================================================================
The differences between book-basis and tax-basis net unrealized
appreciation/(depreciation) are attributable to the tax deferral of losses
on wash sales.
76 Pioneer Solutions Funds | Annual Report | 7/31/17
F. Fund Shares
The Funds record sales and repurchases of Fund shares as of trade date. The
Distributor earned the following in underwriting commissions on the sale of
Class A shares during the year ended July 31, 2017:
---------------------------------------------------------------------------
Fund Amount
---------------------------------------------------------------------------
Conservative Fund $10,370
Balanced Fund 25,241
Growth Fund 59,136
G. Class Allocations
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 its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of each Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the Funds' transfer agent, for its services are allocated among the
class of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
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 and at the same time, except that
net investment income dividends to Class A, Class C, Class R and Class Y
shares of each Fund can reflect different transfer agent and distribution
expense rates.
H. Risks
Interest rates in the U.S. recently have been historically low, so the Fund
faces a heightened risk that interest rates may rise. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions from
the Fund.
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. The Funds' prospectus contains unaudited information
regarding the Funds' principal risks. Please refer to that document when
considering the Funds' principal risks.
Pioneer Solutions Funds | Annual Report | 7/31/17 77
I. Futures Contracts
The Funds may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Funds are traded on
a futures
exchange. Upon entering into a futures contract, the Funds are required to
deposit with a broker an amount of cash or securities equal to the minimum
"initial margin" requirements of the associated futures exchange.
The amount of cash deposited with the broker as collateral at July 31,
2017, and is included in "Restricted Cash" in the Statement of Assets and
Liabilities, was as follows:
---------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
---------------------------------------------------------------------------
Futures Collateral $372,743 $1,341,036 $2,995,903
Subsequent payments for futures contracts ("variation margin") are paid or
received by the Funds, depending on the daily fluctuation in the value of
the contracts, and are recorded by the Funds as unrealized appreciation or
depreciation. When the contract is closed, the Funds realize a gain or loss
equal to the difference between the opening and closing value of the
contract as well as any fluctuation in foreign currency exchange rates
where applicable. The use of futures contracts involves, to varying
degrees, elements of market, interest rate, current exchange rate and
counterparty risk, which may exceed the amounts recognized by the Fund.
Changes in value of the contracts may not directly correlate to the changes
in value of the underlying securities. The average value of contracts open
during the year ended July 31, 2017, was as follows:
---------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
---------------------------------------------------------------------------
$(1,677,233) $(8,943,397) $(9,067,358)
78 Pioneer Solutions Funds | Annual Report | 7/31/17
At July 31, 2017, open futures contracts were as follows:
Pioneer Solutions - Conservative Fund
-------------------------------------------------------------------------------------------
Number of Net
Contracts Unrealized
Long/ Settlement Appreciation
Type Counterparty (Short) Month Value (Depreciation)
-------------------------------------------------------------------------------------------
CAC40 10 Euro Morgan Stanley 20 8/17 $ 1,204,345 $(34,042)
& Co.
Hang Seng Morgan Stanley (2) 8/17 (348,601) (5,427)
& Co.
IBEX 35 Morgan Stanley 2 8/17 248,421 97
& Co.
DAX Morgan Stanley (2) 9/17 (716,307) 7,894
& Co.
E-Mini Russell 2000 Merrill Lynch (11) 9/17 (783,420) (1,459)
E-Muni S&P 500 Merrill Lynch 2 9/17 246,800 1,850
Euro Stoxx Credit Suisse (28) 9/17 (619,445) 16,563
Euro Stoxx 50 Merrill Lynch 27 9/17 1,101,053 (31,765)
Euro Stoxx Bank Societe 58 9/17 465,566 13,861
Generale
Euro-Bund Morgan Stanley (4) 9/17 (766,380) 11,576
& Co.
Euro-Schatz Morgan Stanley (66) 9/17 (8,750,571) 5,478
& Co.
FTSE MIB Morgan Stanley (2) 9/17 (254,119) 82
& Co.
H-Shares Index UBS AG (9) 9/17 (623,034) (34,626)
Japan 10 Year Bond UBS AG (1) 9/17 (1,362,057) 2,087
Nikkei 225 (SGX) Morgan Stanley 12 9/17 1,085,491 11,453
& Co.
Stoxx 600 AUTO Morgan Stanley 26 9/17 812,353 (48,338)
& Co.
Stoxx Europe 600 Goldman Sachs (56) 9/17 (1,247,171) 34,517
International
U.S. 10 Year Note Citigroup 8 9/17 1,007,125 (563)
XAF Financial UBS AG 7 9/17 539,175 962
XAU Utilities UBS AG 7 9/17 374,920 (1,050)
MSCI World IX Goldman Sachs (3) 12/17 (165,570) (3,900)
International
-------------------------------------------------------------------------------------------
$(8,551,426) $(54,750)
===========================================================================================
Pioneer Solutions Funds | Annual Report | 7/31/17 79
Pioneer Solutions - Balanced Fund
-----------------------------------------------------------------------------------------------
Number of Net
Contracts Unrealized
Long/ Settlement Appreciation
Type Counterparty (Short) Month Value (Depreciation)
-----------------------------------------------------------------------------------------------
CAC40 10 Euro Morgan Stanley 85 8/17 $ 5,118,466 $(144,679)
& Co.
Hang Seng Morgan Stanley (9) 8/17 (1,568,704) (24,633)
& Co.
IBEX 35 Morgan Stanley 6 8/17 745,265 292
& Co.
DAX Morgan Stanley (10) 9/17 (3,581,536) 39,469
& Co.
E-Mini Russell 2000 Merrill Lynch (47) 9/17 (3,347,340) (6,233)
E-Muni S&P 500 Morgan Stanley 42 9/17 5,182,800 41,261
& Co.
Euro Stoxx Credit Suisse (121) 9/17 (2,676,887) 71,575
Euro Stoxx 50 Merrill Lynch (45) 9/17 (1,835,088) 52,941
Euro Stoxx Bank Societe 251 9/17 2,014,776 59,983
Generale
Euro-Bund Morgan Stanley (11) 9/17 (2,107,544) 31,835
& Co.
EURO-Oat UBS AG (38) 9/17 (6,688,539) 26,074
Euro-Schatz Morgan Stanley (130) 9/17 (17,235,974) 10,790
& Co.
FTSE MIB Morgan Stanley (6) 9/17 (762,358) 247
& Co.
H-Shares Index UBS AG (39) 9/17 (2,699,814) (148,728)
Japan 10 Year Bond UBS AG (3) 9/17 (4,086,172) 6,259
Nikkei 225 (SGX) Morgan Stanley 38 9/17 3,437,389 34,403
& Co.
Stoxx 600 AUTO Morgan Stanley 82 9/17 2,562,037 (152,452)
& Co.
Stoxx Europe 600 Goldman Sachs (166) 9/17 (3,696,972) 102,317
International
U.S. 10 Year Note Citigroup 33 9/17 4,154,391 (2,320)
XAF Financial UBS AG 32 9/17 2,464,800 4,400
XAU Utilities UBS AG 32 9/17 1,713,920 (4,800)
MSCI World IX Goldman Sachs (16) 12/17 (883,040) (20,800)
International
-----------------------------------------------------------------------------------------------
$(23,776,124) $ (22,799)
===============================================================================================
80 Pioneer Solutions Funds | Annual Report | 7/31/17
Pioneer Solutions - Growth Fund
-----------------------------------------------------------------------------------------------
Number of Net
Contracts Unrealized
Long/ Settlement Appreciation
Type Counterparty (Short) Month Value (Depreciation)
-----------------------------------------------------------------------------------------------
CAC40 10 Euro Morgan Stanley 210 8/17 $ 12,645,621 $(357,443)
& Co.
Hang Seng Morgan Stanley (21) 8/17 (3,660,310) (56,765)
& Co.
IBEX 35 Morgan Stanley 15 8/17 1,863,162 730
& Co.
DAX Morgan Stanley (26) 9/17 (9,311,993) 102,619
& Co.
E-Mini Russell 2000 Merrill Lynch (114) 9/17 (8,119,080) (15,118)
E-Muni S&P 500 Credit Suisse 80 9/17 9,872,000 74,562
Euro Stoxx Credit Suisse (293) 9/17 (6,482,049) 173,317
Euro Stoxx 50 Merrill Lynch 47 9/17 1,916,647 (55,295)
Euro Stoxx Bank Societe 606 9/17 4,864,358 144,820
Generale
Euro-Bund Morgan Stanley (20) 9/17 (3,831,899) 57,882
& Co.
Euro-Schatz Morgan Stanley (218) 9/17 (28,903,402) 18,094
& Co.
FTSE MIB Morgan Stanley (15) 9/17 (1,905,893) 617
& Co.
H-Shares Index UBS AG (95) 9/17 (6,576,469) (362,861)
Japan 10 Year Bond UBS AG (5) 9/17 (6,810,286) 10,431
Nikkei 225 (SGX) Morgan Stanley 182 9/17 16,463,286 185,282
& Co.
Stoxx 600 AUTO Morgan Stanley 151 9/17 4,717,897 (280,735)
& Co.
Stoxx Europe 600 Goldman Sachs (331) 9/17 (7,371,673) 204,018
International
U.S. 10 Year Note Citigroup 48 9/17 6,042,750 (3,375)
XAF Financial UBS AG 80 9/17 6,162,000 11,000
XAU Utilities UBS AG 77 9/17 4,124,120 (11,550)
MSCI World IX Goldman Sachs (39) 12/17 (2,152,410) (50,700)
International
-----------------------------------------------------------------------------------------------
$(16,453,623) $(210,470)
===============================================================================================
J. Option Writing
The Funds may write put and covered call options to seek to increase total
return. When an option is written, the Funds receive a premium and become
obligated to purchase or sell the underlying security at a fixed price upon
the exercise of the option. When the Funds write an option, an amount equal
to the premium received by the Funds is recorded as a liability and is
subsequently adjusted to the current value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Funds on the expiration date as realized gains from investments. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
Pioneer Solutions Funds | Annual Report | 7/31/17 81
realized gain or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the
underlying security in determining whether the Funds have realized a gain
or loss. The Funds, as writer of an option, bear the market risk of an
unfavorable change in the price of the security underlying the written
option.
Written call and put option contracts outstanding at year end, if any, are
listed at the end of each Fund's Schedule of Investments. The average value
of written option contracts open during the year ended July 31, 2017 was as
follows:
------------------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
------------------------------------------------------------------------------------
$(17,933) $(59,264) $(276,455)
Transactions in written options for the year ended July 31, 2017 are
summarized as follows:
Pioneer Solutions - Conservative Fund
-------------------------------------------------------------------------------------
Number of Premium
Contracts Received
-------------------------------------------------------------------------------------
Options open at beginning of year (12) $ (17,964)
Options opened (4,200,644) (184,707)
Options closed 483 105,944
Options expired 4,200,173 96,727
-------------------------------------------------------------------------------------
Options open at end of year -- $ --
Pioneer Solutions - Balanced Fund
-------------------------------------------------------------------------------------
Number of Premium
Contracts Received
-------------------------------------------------------------------------------------
Options open at beginning of year (44) $ (65,867)
Options opened (24,001,828) (713,285)
Options closed 1,371 300,724
Options expired 24,000,501 478,428
-------------------------------------------------------------------------------------
Options open at end of year -- $ --
Pioneer Solutions - Growth Fund
--------------------------------------------------------------------------------------
Number of Premium
Contracts Received
--------------------------------------------------------------------------------------
Options open at beginning of year (47) $ (195,892)
Options opened (85,503,329) (2,513,994)
Options closed 2,428 734,773
Options expired 85,500,779 1,400,957
--------------------------------------------------------------------------------------
Options open at end of year (169) $ (574,156)
K. Purchased Options
The Funds may purchase put and call options to seek increased total return.
Purchased call and put options entitle the Funds to buy and sell a
specified number of shares or units of a particular security, currency or
index at a
82 Pioneer Solutions Funds | Annual Report | 7/31/17
specified price at a specific date or within a specific period of time.
Upon the purchase of a call or put option, the premium paid by the Funds is
included in the Statements of Assets and Liabilities as an investment. All
premiums are marked-to-market daily, and any unrealized gains or losses are
recorded in the Funds' financial statements. As the purchaser of an index
option, the Funds have the right to receive a cash payment equal to any
depreciation in the value of the index below the strike price of the option
(in the case of a put) or equal to any appreciation in the value of the
index over the strike price of the option (in the case of a call) as of the
valuation date of the option. Premiums paid for purchased call and put
options which have expired are treated as realized losses on investments in
the Statements of Operations. Upon the exercise or closing of a purchased
put option, the premium is offset against the proceeds on the sale of the
underlying security or financial instrument in order to determine the
realized gain or loss on investments. Upon the exercise or closing of a
purchased call option, the premium is added to the cost of the security or
financial instrument. The risk associated with purchasing options is
limited to the premium originally paid.
Purchased option contracts outstanding at year end, if any, are listed at
the end of each Fund's Schedule of Investments. The average value of
purchased options open during the year ended July 31, 2017 was as follows:
---------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
---------------------------------------------------------------------------
$19,248 $79,765 $994,020
L. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event on an underlying
reference obligation, which may be a single security or a basket or index
of securities. The Funds may sell or buy credit default swap agreements to
seek to increase the Funds' income, or to attempt to hedge the risk of
default on Fund securities. A credit default swap index is used to hedge
risk or take a position on a basket of credit entities or indices. As a
seller of protection, the Funds would be required to pay the notional (or
other agreed-upon) value of the referenced debt obligation to the
counterparty in the event of a default by a U.S. or foreign corporate
issuer of a debt obligation, which would likely result in a loss to the
Funds. In return, the Funds would receive from the counterparty a periodic
stream of payments during the term of the contract provided that no event
of default occurred. The maximum exposure of loss to the seller would be
the notional value of the credit default swaps outstanding. If no default
occurs, the Funds would keep the stream of payments and would have no
payment obligation. The Funds may also buy credit default swap agreements
in order to hedge against the risk of default of debt securities, in which
case the Funds would function as the counterparty referenced above.
Pioneer Solutions Funds | Annual Report | 7/31/17 83
When the Funds enter into a credit default swap agreement, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the rights to receive a contingent payment. An upfront payment
made by the Funds, as the protection buyer, is recorded as an asset in the
Statements of Assets and Liabilities. Periodic payments received or paid by
the Funds are recorded as realized gains or losses in the Statements of
Operations.
Credit default swap agreements are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statements of
Assets and Liabilities. Payments received or made as a result of a credit
event or upon termination of the contract are recognized, net of the
appropriate amount of the upfront payment, as realized gains or losses in
the Statements of Operations.
Certain swap agreements that are cleared through a central clearinghouse
are referred to as centrally cleared swaps. All payments made or received
by the Funds are pursuant to a centrally cleared swap agreement with the
central clearing party rather than the original counterparty. Upon entering
into a centrally cleared swap agreement, the Funds are required to make an
initial margin deposit, either in cash or in securities. The daily change
in value on open centrally cleared contracts is recorded as variation
margin on centrally cleared swaps on the Statements of Assets and
Liabilities.
Credit default swap agreements involving the sale of protection may involve
greater risks than if the Funds had invested in the referenced debt
instrument directly. Credit default swap agreements are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If a Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If a Fund is a protection seller and a credit event occurs, the
value of the referenced debt instrument received by that Fund, together
with the periodic payments received, may be less than the amount that Fund
pays to the protection buyer, resulting in a loss to that Fund.
There were no open credit default swap agreements at July 31, 2017.
M. Inflation Rate Swap Agreements
The Funds may enter into inflation rate swap agreements to attempt to hedge
against inflation. Pursuant to the inflation rate swap agreement, the Funds
negotiate with a counterparty to exchange a periodic stream of payments,
based on a benchmark inflation index. One cash flow stream will typically
be a floating rate payment linked to the specified inflation index while
the other is typically a fixed interest rate.
84 Pioneer Solutions Funds | Annual Report | 7/31/17
Inflation rate swap agreements are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statements of
Assets and Liabilities. Inflation rate swaps are normally issued on a zero
coupon basis where all payments compound during the life of the contract
and are netted upon the termination or maturity of the contract. Final
payments received or paid by the Funds are recorded as realized gains or
losses in the Statements of Operations. Inflation rate swap agreements are
subject to movements in interest rates.
There were no open inflation rate swap agreements at July 31, 2017. The
average value of inflation rate swap agreements open during the year ended
July 31, 2017 was as follows:
---------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
---------------------------------------------------------------------------
$(29,602) $(91,273) $(151,710)
N. Interest Rate Swap Agreements
The Funds may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance their income. Pursuant to the
interest rate swap agreement, the Funds negotiate with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is typically
a fixed interest rate. Payment flows are usually netted against each other,
with the difference being paid by one party to the other on a monthly
basis.
Periodic payments received or paid by the Funds are recorded as realized
gains or losses in the Statements of Operations. Interest rate swap
agreements are marked-to-market daily using valuations supplied by
independent sources and the change in value, if any, is recorded as
unrealized appreciation or depreciation in the Statements of Assets and
Liabilities. Interest rate swap agreements are subject to counterparty risk
and movements in interest rates.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Funds are pursuant to a centrally cleared swap agreement with the
central clearing party rather than the original counterparty. Upon entering
into a centrally cleared swap agreement, the Funds are required to make an
initial margin deposit, either in cash or in securities. The daily change
in value on open centrally cleared swap agreements is recorded as variation
margin on centrally cleared swaps on the Statement of Assets and
Liabilities.
Pioneer Solutions Funds | Annual Report | 7/31/17 85
Open interest rate swap agreements at period end are listed at the end of
each Fund's Schedule of Investments. The average value of interest rate
swap agreements open during the year ended July 31, 2017 was as follows:
---------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
---------------------------------------------------------------------------
$(7,822) $(26,406) $ (55,855)
The amount of cash deposited with the broker as collateral at July 31,
2017, and is included in "Restricted Cash" in the statement of Assets and
Liabilities, was as follows:
---------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
---------------------------------------------------------------------------
$103,857 $434,100 $1,224,441
2. Management Agreement
The Adviser, manages the Funds' portfolios. Management fees for each Fund are
calculated daily at an annual rate equal to 0.13% of the Fund's average daily
net assets up to $2.5 billion; 0.11% of the Fund's average daily net assets over
$2.5 billion up to $4 billion; 0.10% of the Fund's average daily net assets over
$4 billion up to $5.5 billion; and 0.08% of the Fund's average daily net assets
over $5.5 billion.
For the year ended July 31, 2017, the effective management fee for each Fund was
equivalent to 0.13% of the Fund's average daily net assets. Fees waived and
expenses reimbursed during the year ended July 31, 2017 are reflected in the
Statements of Operations.
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 as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statements of Assets and Liabilities are
the following amounts payable to the Adviser, at July 31, 2017:
--------------------------------------------------------------------------------
Fund Amount
--------------------------------------------------------------------------------
Conservative Fund $1,792
Balanced Fund 6,331
Growth Fund 7,868
86 Pioneer Solutions Funds | Annual Report | 7/31/17
The Adviser has 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 in effect through December
1, 2019. There can be no assurance that the Adviser will extend the expense
limitation agreement for a class of shares beyond the date referred to above:
--------------------------------------------------------------------------------
Fund Class A Class C Class R Class Y
--------------------------------------------------------------------------------
Conservative Fund 0.70% 1.45% 0.90% 0.65%
Balanced Fund 0.70% 1.45% 0.90% --
Growth Fund 0.70% 1.45% 0.90% --
3. Transfer Agent
Boston Financial Data Services, Inc. serves as the transfer agent to the Funds
at negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Funds' omnibus relationship
contracts.
In addition, the Funds reimburses the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities,
such as proxy and statement mailings, outgoing phone calls. For the year ended
July 31, 2017, such out-of-pocket expenses by class of shares were as follows:
--------------------------------------------------------------------------------
Conservative Balanced Growth
Shareowner Communications Fund Fund Fund
--------------------------------------------------------------------------------
Class A $5,284 $17,375 $43,575
Class C 1,296 5,287 8,557
Class R 11 11 10
Class Y 30 302 230
--------------------------------------------------------------------------------
Total $6,621 $22,975 $52,372
================================================================================
4. Distribution and Service Plans
The Funds have adopted a Distribution Plan (the Plan) pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to Class A and Class C shares.
Pursuant to the Plan, each Fund pays the Distributor 0.25% of the Fund's average
daily net assets attributable to Class A shares as compensation for personal
services and/or account maintenance services or distribution services with
respect to Class A shares. Pursuant to the Plan, each Fund also pays the
Distributor 1.00% of the average daily net assets attributable to Class C
shares. The fee for Class C shares 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 C shares.
Pioneer Solutions Funds | Annual Report | 7/31/17 87
Included in "Due to affiliates" reflected on the Statements of Assets and
Liabilities are the following amounts in distribution fees payable to the
Distributor at July 31, 2017:
--------------------------------------------------------------------------------
Fund Amount
--------------------------------------------------------------------------------
Conservative Fund $ 8,294
Balanced Fund 25,715
Growth Fund 42,143
The Funds also have adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Funds to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Funds a
distribution fee of up to 0.50% of the Fund's average daily net assets
attributable to Class R shares held by such plans.
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 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00% based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to the
Distributor.
For the year ended July 31, 2017, the following CDSCs were paid to the
Distributor:
--------------------------------------------------------------------------------
Fund Amount
--------------------------------------------------------------------------------
Conservative Fund $ 2,226
Balanced Fund 6,609
Growth Fund 14,592
5. Forward Foreign Currency Contracts
During the year ended July 31, 2017, the Funds had entered into various forward
foreign currency contracts that obligate the Funds to deliver or take delivery
of currencies at specified future maturity dates. Alternatively, prior to the
settlement date of a forward foreign currency contract, the Funds may close out
such contract by entering into an offsetting contract.
The average value of contracts open during the year ended July 31, 2017, were
as follows:
--------------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
--------------------------------------------------------------------------------
$(2,754,480) $(15,173,809) $(17,464,106)
88 Pioneer Solutions Funds | Annual Report | 7/31/17
Open forward foreign currency contracts at July 31, 2017, were as follows:
Pioneer Solutions - Conservative Fund
----------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
----------------------------------------------------------------------------------------------
CZK 8,871,654 EUR 340,000 Goldman Sachs 10/24/17 $ 18,652
International
EUR 340,000 CZK 9,077,320 Goldman Sachs 10/24/17 57,324
International
EUR 490,000 SEK 4,715,585 Goldman Sachs 10/19/17 31,833
International
GBP 225,433 EUR 256,248 Goldman Sachs 10/19/17 13,975
International
ILS 1,691,557 USD 480,000 Goldman Sachs 10/19/17 3,417
International
NOK 1,450,000 SEK 1,460,687 Goldman Sachs 10/19/17 8,106
International
SEK 2,132,091 EUR 220,000 Goldman Sachs 10/19/17 11,316
International
SEK 3,448,138 NOK 3,420,000 Goldman Sachs 10/19/17 28,376
International
USD 328,546 AUD 425,000 Morgan Stanley 10/19/17 10,997
& Co.
USD 115,000 BRL 382,824 Goldman Sachs 10/18/17 6,181
International
USD 115,000 COP 355,580,000 Morgan Stanley 10/18/17 3,003
& Co.
USD 115,000 IDR 1,561,125,000 Morgan Stanley 10/18/17 1,173
& Co.
USD 111,472 MXN 2,081,471 Goldman Sachs 10/19/17 3,928
International
USD 108,335 TRY 405,093 Barclays Bank 10/19/17 4,195
----------------------------------------------------------------------------------------------
Total $ 202,476
==============================================================================================
Pioneer Solutions Funds | Annual Report | 7/31/17 89
----------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
----------------------------------------------------------------------------------------------
AUD 1,055,000 USD 800,574 Barclays Bank 10/19/17 $ (42,293)
CZK 8,871,654 EUR 340,000 Goldman Sachs 10/24/17 (19,539)
International
EUR 340,000 CZK 9,077,320 Goldman Sachs 10/24/17 (47,049)
International
EUR 490,000 SEK 4,715,585 Goldman Sachs 10/19/17 (27,630)
International
EUR 33,358 USD 38,083 Goldman Sachs 10/19/17 (1,550)
International
GBP 225,433 EUR 256,248 Goldman Sachs 10/19/17 (7,798)
International
GBP 815,000 USD 1,057,335 Goldman Sachs 10/19/17 (20,985)
International
JPY 96,506,639 USD 855,265 Goldman Sachs 10/19/17 (23,334)
International
KRW 330,610,625 USD 287,500 Barclays Bank 10/18/17 (7,776)
KRW 396,612,000 USD 345,000 Goldman Sachs 10/18/17 (9,223)
International
NOK 1,450,000 SEK 1,460,687 Goldman Sachs 10/19/17 (10,989)
International
SEK 2,132,091 EUR 220,000 Goldman Sachs 10/19/17 (15,055)
International
SEK 3,448,138 NOK 3,420,000 Goldman Sachs 10/19/17 (21,941)
International
TWD 8,787,438 USD 287,500 Goldman Sachs 10/18/17 (4,308)
International
----------------------------------------------------------------------------------------------
Total $(259,470)
==============================================================================================
AUD Australian Dollar
BRL Brazilian Real
COP Colombian Peso
CZK Czech Koruna
EUR Euro
GBP Great British Pound
IDR Indonesian Rupiah
ILS Israeli New Shekel
JPY Japanese Yen
KRW Korean Won
MXN Mexican Peso
NOK Norwegian Krone
SEK Swedish Krona
TRY Turkish Lira
TWD Taiwan New Dollar
90 Pioneer Solutions Funds | Annual Report | 7/31/17
Pioneer Solutions - Balanced Fund
----------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
----------------------------------------------------------------------------------------------
CZK 38,356,858 EUR 1,470,000 Goldman Sachs 10/24/17 $ 80,641
International
EUR 1,470,000 CZK 39,335,240 Goldman Sachs 10/24/17 247,518
International
EUR 2,145,000 SEK 20,642,715 Goldman Sachs 10/19/17 139,350
International
GBP 971,866 EUR 1,104,714 Goldman Sachs 10/19/17 60,250
International
ILS 7,330,079 USD 2,080,000 Goldman Sachs 10/19/17 14,809
International
NOK 6,300,000 SEK 6,346,431 Goldman Sachs 10/19/17 35,217
International
SEK 9,012,932 EUR 930,000 Goldman Sachs 10/19/17 47,838
International
SEK 15,022,591 NOK 14,900,000 Goldman Sachs 10/19/17 123,628
International
USD 1,391,490 AUD 1,800,000 Morgan Stanley 10/19/17 46,577
& Co.
USD 500,000 BRL 1,664,450 Goldman Sachs 10/18/17 26,872
International
USD 500,000 COP 1,546,000,000 Morgan Stanley 10/18/17 13,055
& Co.
USD 500,000 IDR 6,787,500,000 Morgan Stanley 10/18/17 5,102
& Co.
USD 484,660 MXN 9,049,875 Goldman Sachs 10/19/17 17,076
International
USD 471,020 TRY 1,761,275 Barclays Bank 10/19/17 18,238
----------------------------------------------------------------------------------------------
Total $ 876,171
==============================================================================================
Pioneer Solutions Funds | Annual Report | 7/31/17 91
----------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
----------------------------------------------------------------------------------------------
AUD 4,535,000 USD 3,441,331 Barclays Bank 10/19/17 $ (181,799)
CZK 38,356,858 EUR 1,470,000 Goldman Sachs 10/24/17 (84,477)
International
EUR 1,470,000 CZK 39,335,240 Goldman Sachs 10/24/17 (199,024)
International
EUR 2,145,000 SEK 20,642,715 Goldman Sachs 10/19/17 (120,952)
International
EUR 6,226,227 USD 7,108,047 Goldman Sachs 10/19/17 (289,263)
International
GBP 971,866 EUR 1,104,714 Goldman Sachs 10/19/17 (33,620)
International
GBP 3,085,000 USD 4,002,305 Goldman Sachs 10/19/17 (79,435)
International
JPY 377,541,058 USD 3,345,859 Goldman Sachs 10/19/17 (91,285)
International
KRW 1,437,437,500 USD 1,250,000 Barclays Bank 10/18/17 (33,809)
KRW 1,712,904,000 USD 1,490,000 Goldman Sachs 10/18/17 (39,834)
International
NOK 6,300,000 SEK 6,346,431 Goldman Sachs 10/19/17 (47,744)
International
SEK 9,012,932 EUR 930,000 Goldman Sachs 10/19/17 (63,642)
International
SEK 15,022,591 NOK 14,900,000 Goldman Sachs 10/19/17 (95,589)
International
TWD 38,206,250 USD 1,250,000 Goldman Sachs 10/18/17 (18,730)
International
----------------------------------------------------------------------------------------------
Total $(1,379,203)
==============================================================================================
AUD Australian Dollar
BRL Brazilian Real
COP Colombian Peso
CZK Czech Koruna
EUR Euro
GBP Great British Pound
IDR Indonesian Rupiah
ILS Israeli New Shekel
JPY Japanese Yen
KRW Korean Won
MXN Mexican Peso
NOK Norwegian Krone
SEK Swedish Krona
TRY Turkish Lira
TWD Taiwan New Dollar
92 Pioneer Solutions Funds | Annual Report | 7/31/17
Pioneer Solutions - Growth Fund
----------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
----------------------------------------------------------------------------------------------
CAD 103,525 EUR 70,048 Goldman Sachs 10/19/17 $ 3,820
International
CZK 89,760,267 EUR 3,440,000 Goldman Sachs 10/24/17 188,711
International
EUR 3,440,000 CZK 92,150,520 Goldman Sachs 10/24/17 578,860
International
EUR 5,215,000 SEK 50,187,300 Goldman Sachs 10/19/17 338,793
International
GBP 2,404,617 EUR 2,733,313 Goldman Sachs 10/19/17 149,071
International
ILS 18,043,272 USD 5,120,000 Goldman Sachs 10/19/17 36,453
International
NOK 15,600,000 SEK 15,714,972 Goldman Sachs 10/19/17 87,204
International
SEK 22,193,133 EUR 2,290,000 Goldman Sachs 10/19/17 117,795
International
SEK 37,001,953 NOK 36,700,000 Goldman Sachs 10/19/17 304,505
International
USD 3,277,732 AUD 4,240,000 Morgan Stanley 10/19/17 109,715
& Co.
USD 1,245,000 BRL 4,144,481 Goldman Sachs 10/18/17 66,912
International
USD 1,245,000 COP 3,849,540,000 Morgan Stanley 10/18/17 32,508
& Co.
USD 1,245,000 IDR 16,900,875,000 Morgan Stanley 10/18/17 12,704
& Co.
USD 1,458,158 JPY 164,515,781 Barclays Bank 10/19/17 39,598
USD 1,177,725 MXN 21,991,196 Goldman Sachs 10/19/17 41,496
International
USD 1,144,578 TRY 4,279,898 Barclays Bank 10/19/17 44,317
----------------------------------------------------------------------------------------------
Total $ 2,152,462
==============================================================================================
Pioneer Solutions Funds | Annual Report | 7/31/17 93
----------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
----------------------------------------------------------------------------------------------
AUD 10,325,000 USD 7,835,004 Barclays Bank 10/19/17 $ (413,909)
CAD 103,525 EUR 70,048 Goldman Sachs 10/19/17 (3,794)
International
CZK 89,760,267 EUR 3,440,000 Goldman Sachs 10/24/17 (197,689)
International
EUR 3,440,000 CZK 92,150,520 Goldman Sachs 10/24/17 (460,779)
International
EUR 5,215,000 SEK 50,187,300 Goldman Sachs 10/19/17 (294,063)
International
EUR 798,672 USD 911,788 Goldman Sachs 10/19/17 (37,105)
International
GBP 2,404,617 EUR 2,733,313 Goldman Sachs 10/19/17 (83,184)
International
GBP 7,375,000 USD 9,567,910 Goldman Sachs 10/19/17 (189,898)
International
KRW 3,579,219,375 USD 3,112,500 Barclays Bank 10/18/17 (84,183)
KRW 4,179,945,600 USD 3,636,000 Goldman Sachs 10/18/17 (97,205)
International
NOK 15,600,000 SEK 15,714,972 Goldman Sachs 10/19/17 (118,224)
International
SEK 22,193,133 EUR 2,290,000 Goldman Sachs 10/19/17 (156,709)
International
SEK 37,001,953 NOK 36,700,000 Goldman Sachs 10/19/17 (235,444)
International
TWD 95,133,563 USD 3,112,500 Goldman Sachs 10/18/17 (46,639)
International
----------------------------------------------------------------------------------------------
Total $(2,418,825)
==============================================================================================
AUD Australian Dollar
BRL Brazilian Real
CAD Canadian Dollar
COP Colombian Peso
CZK Czech Koruna
EUR Euro
GBP Great British Pound
IDR Indonesian Rupiah
ILS Israeli New Shekel
JPY Japanese Yen
KRW Korean Won
MXN Mexican Peso
NOK Norwegian Krone
SEK Swedish Krona
TRY Turkish Lira
TWD Taiwan New Dollar
94 Pioneer Solutions Funds | Annual Report | 7/31/17
6. Assets and Liabilities Offsetting
The Funds have entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all their derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Funds and a counterparty that governs the
trading of certain OTC derivatives and typically contains, among other things,
close-out and set-off provisions which apply upon the occurrence of event of a
default and/or termination event as defined under the relevant ISDA Master
Agreement. The ISDA Master Agreement may also give a party the right to
terminate all transactions traded under such agreement if, among other things,
there is deterioration in the credit quality of the other party. Upon an event
of default or a termination of the ISDA Master Agreement, the non-defaulting
party has the right to close out all transactions under such agreement and to
net amounts owed under each transaction to determine one net amount payable by
one party to the other. The right to close out and net payments across all
transactions under the ISDA Master Agreement could result in a reduction of the
Funds' credit risk to their counterparty equal to any amounts payable by the
Funds under the applicable transactions, if any. However, the Funds' right to
setoff may be restricted or prohibited by the bankruptcy or insolvency laws of
the particular jurisdiction to which a specific ISDA counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collaterals pledged for the benefit of the Funds and/or
counterparty are held in segregated accounts by the Funds' custodian and cannot
be sold, re-pledged, assigned or otherwise used while pledged. Cash that has
been segregated to cover the Funds' collateral obligations, if any, will be
reported separately in the Statements of Assets and Liabilities as "Restricted
Cash." Securities pledged by the Funds as collateral, if any, are identified as
such in the Schedules of Investments.
Financial instruments subject to an enforceable master netting agreement such as
an ISDA Master Agreement have been offset on the Statements of Assets and
Liabilities. The following charts show gross assets and liabilities of the Funds
as of July 31, 2017.
Pioneer Solutions Funds | Annual Report | 7/31/17 95
Pioneer Solutions - Conservative Fund
---------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
---------------------------------------------------------------------------------------------
Barclays Bank $ 4,195 $ (4,195) $ -- $ -- $ --
Goldman Sachs
International 183,108 (183,108) -- -- --
Morgan
Stanley & Co. 15,173 -- -- -- 15,173
---------------------------------------------------------------------------------------------
Total $202,476 $ (187,303) $ -- $ -- $ 15,173
=============================================================================================
-----------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Liabilities (c)
-----------------------------------------------------------------------------------------------
Barclays Bank $ 50,069 $ (4,195) $ -- $ -- $45,874
Goldman Sachs
International 209,401 (183,108) -- -- 26,293
UBS AG 7,009 -- -- (7,009) --
-----------------------------------------------------------------------------------------------
Total $266,479 $ (187,303) $ -- $ (7,009) $72,167
===============================================================================================
Pioneer Solutions - Balanced Fund
---------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
---------------------------------------------------------------------------------------------
Barclays Bank $ 18,238 $ (18,238) $ -- $ -- $ --
Goldman Sachs
International 793,199 (793,199) -- -- --
Morgan
Stanley & Co. 64,734 -- -- -- 64,734
---------------------------------------------------------------------------------------------
Total $876,171 $ (811,437) $ -- $ -- $ 64,734
=============================================================================================
-----------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Liabilities (c)
-----------------------------------------------------------------------------------------------
Barclays Bank $ 215,608 $ (18,238) $ -- $ -- $197,370
Goldman Sachs
International 1,163,595 (793,199) -- -- 370,396
UBS AG 21,053 -- -- (21,053) --
-----------------------------------------------------------------------------------------------
Total $1,400,256 $ (811,437) $ -- $ (21,053) $567,766
===============================================================================================
96 Pioneer Solutions Funds | Annual Report | 7/31/17
Pioneer Solutions - Growth Fund
----------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
----------------------------------------------------------------------------------------------
Barclays Bank $ 83,915 $ (83,915) $ -- $ -- $ --
Goldman Sachs
International 1,913,620 (1,913,620) -- -- --
Morgan
Stanley & Co. 154,927 -- -- -- 154,927
----------------------------------------------------------------------------------------------
Total $2,152,462 $(1,997,535) $ -- $ -- $154,927
==============================================================================================
-----------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Liabilities (c)
-----------------------------------------------------------------------------------------------
Barclays Bank $ 498,092 $ (83,915) $ -- $ -- $414,177
Goldman Sachs
International 1,920,733 (1,913,620) -- -- 7,113
UBS AG 38,614 -- -- (38,614) --
-----------------------------------------------------------------------------------------------
Total $2,457,439 $(1,997,535) $ -- $(38,614) $421,290
===============================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
7. Additional Disclosures about Derivative Instruments and Hedging Activities
The Funds' use of derivatives subjects them to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Funds.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Pioneer Solutions Funds | Annual Report | 7/31/17 97
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at July 31,
2017 was as follows:
Pioneer Solutions - Conservative Fund
--------------------------------------------------------------------------------------
Statement of Assets and Liabilities
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
--------------------------------------------------------------------------------------
Assets:
Unrealized appreciation
on futures contracts* $19,141 $ -- $ -- $ 87,279 $ --
Unrealized appreciation
on centrally cleared
interest rate swap
agreements 19,227 -- -- -- --
Unrealized appreciation
on forward foreign
currency contracts -- -- 202,476 -- --
--------------------------------------------------------------------------------------
Total Value $38,368 $ -- $202,476 $ 87,279 $ --
======================================================================================
Liabilities:
Unrealized depreciation
on futures contracts* $ 563 $ -- $ -- $160,607 $ --
Unrealized depreciation
on centrally cleared
interest rate swap
agreements 39,513 -- -- -- --
Unrealized depreciation
on interest rate swap
agreement 7,009 -- -- -- --
Unrealized depreciation
on forward foreign
currency contracts -- -- 259,470 -- --
--------------------------------------------------------------------------------------
Total Value $47,085 $ -- $259,470 $160,607 $ --
======================================================================================
* Reflects unrealized appreciation/depreciation on futures contracts (see
Note 1I). The current day's variation margin is disclosed on the Statement
of Assets and Liabilities.
98 Pioneer Solutions Funds | Annual Report | 7/31/17
Pioneer Solutions - Balanced Fund
--------------------------------------------------------------------------------------
Statement of Assets and Liabilities
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
--------------------------------------------------------------------------------------
Assets:
Unrealized appreciation
on futures contracts* $ 74,958 $ -- $ -- $406,888 $ --
Unrealized appreciation
on centrally cleared
interest rate swap
agreements 80,129 -- -- -- --
Unrealized appreciation
on forward foreign
currency contracts -- -- 876,171 -- --
--------------------------------------------------------------------------------------
Total Value $ 155,087 $ -- $ 876,171 $406,888 $ --
======================================================================================
Liabilities:
Unrealized depreciation
on futures contracts* $ 2,320 $ -- $ -- $502,325 $ --
Unrealized depreciation
on centrally cleared
interest rate swap
agreements 145,868 -- -- -- --
Unrealized depreciation
on interest rate swap
agreement 21,053 -- -- -- --
Unrealized depreciation
on forward foreign
currency contracts -- -- 1,379,203 -- --
--------------------------------------------------------------------------------------
Total Value $ 169,241 $ -- $1,379,203 $502,325 $ --
======================================================================================
* Reflects unrealized appreciation/depreciation on futures contracts (see
Note 1I). The current day's variation margin is disclosed on the Statement
of Assets and Liabilities.
Pioneer Solutions Funds | Annual Report | 7/31/17 99
Pioneer Solutions - Growth Fund
----------------------------------------------------------------------------------------
Statement of Assets and Liabilities
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
----------------------------------------------------------------------------------------
Assets:
Unrealized appreciation
on futures contracts* $ 86,407 $ -- $ -- $ 896,965 $ --
Unrealized appreciation
on centrally cleared
interest rate swap
agreements 193,686 -- -- -- --
Unrealized appreciation
on forward foreign
currency contracts -- -- 2,152,462 -- --
----------------------------------------------------------------------------------------
Total Value $280,093 $ -- $2,152,462 $ 896,965 $ --
========================================================================================
Liabilities:
Unrealized depreciation
on futures contracts* $ 3,375 $ -- $ -- $1,190,467 $ --
Unrealized depreciation
on centrally cleared
interest rate swap
agreements 329,116 -- -- -- --
Unrealized depreciation
on interest rate swap
agreement 38,614 -- -- -- --
Written options -- -- -- 70,980 --
Unrealized depreciation
on forward foreign
currency contracts -- -- 2,418,825 -- --
----------------------------------------------------------------------------------------
Total Value $371,105 $ -- $2,418,825 $1,261,447 $ --
========================================================================================
* Reflects unrealized appreciation/depreciation on futures contracts (see
Note 1I). The current day's variation margin is disclosed on the Statement
of Assets and Liabilities.
100 Pioneer Solutions Funds | Annual Report | 7/31/17
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at July 31, 2017 was as follows:
Pioneer Solutions - Conservative Fund
-----------------------------------------------------------------------------------------
Statement of Operations
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
-----------------------------------------------------------------------------------------
Net realized gain (loss):
Futures contracts $ (466,192) $ -- $ -- $ (165,978) $ --
Swap agreements (125,892) (504) -- -- --
Written options -- -- 65,751 (45,027) --
Forward foreign
currency contracts* -- -- 196,312 -- --
-----------------------------------------------------------------------------------------
Total Value $ (592,084) $ (504) $ 262,063 $ (211,005) $ --
=========================================================================================
Change in net
unrealized appreciation
(depreciation) on:
Futures contracts $ 8,154 $ -- $ -- $ 104,157 $ --
Swap agreements 93,909 -- -- -- --
Written options -- -- -- (17,544) --
Forward foreign
currency contracts* -- -- (22,456) -- --
-----------------------------------------------------------------------------------------
Total Value $ 102,063 $ -- $ (22,456) $ 86,613 $ --
=========================================================================================
* Included in the amount shown on the Statement of Operations as forward
foreign currency contracts and other assets and liabilities denominated in
foreign currencies.
Pioneer Solutions - Balanced Fund
------------------------------------------------------------------------------------------
Statement of Operations
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
------------------------------------------------------------------------------------------
Net realized gain (loss):
Futures contracts $ (1,505,982) $ -- $ -- $ (2,035,895) $ --
Swap agreements (389,069) (397) -- -- --
Written options -- -- 375,722 (112,942) --
Forward foreign
currency contracts* -- -- 527,379 -- --
------------------------------------------------------------------------------------------
Total Value $ (1,895,051) $ (397) $ 903,101 $ (2,148,837) $ --
==========================================================================================
Change in net
unrealized appreciation
(depreciation) on:
Futures contracts $ 57,267 $ -- $ -- $ 448,733 $ --
Swap agreements 288,358 -- -- -- --
Written options -- -- -- (64,327) --
Forward foreign
currency contracts* -- -- (340,871) -- --
------------------------------------------------------------------------------------------
Total Value $ 345,625 $ -- $ (340,871) $ 384,406 $ --
==========================================================================================
* Included in the amount shown on the Statement of Operations as forward
foreign currency contracts and other assets and liabilities denominated in
foreign currencies.
Pioneer Solutions Funds | Annual Report | 7/31/17 101
Pioneer Solutions - Growth Fund
------------------------------------------------------------------------------------------
Statement of Operations
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
------------------------------------------------------------------------------------------
Net realized gain (loss):
Futures contracts $ (956,125) $ -- $ -- $ (897,401) $ --
Swap agreements (644,384) (283) -- -- --
Written options -- -- 1,338,510 (148,326) --
Forward foreign
currency contracts* -- -- 515,689 -- --
------------------------------------------------------------------------------------------
Total Value $ (1,600,509) $ (283) $ 1,854,199 $ (1,045,727) $ --
==========================================================================================
Change in net
unrealized appreciation
(depreciation) on:
Futures contracts $ 408,506 $ -- $ -- $ 867,443 $ --
Swap agreements 442,592 -- -- -- --
Written options -- -- -- 385,539 --
Forward foreign
currency contracts* -- -- 5,107 -- --
------------------------------------------------------------------------------------------
Total Value $ 851,098 $ -- $ 5,107 $ 1,252,982 $ --
==========================================================================================
* Included in the amount shown on the Statement of Operations as forward
foreign currency contracts and other assets and liabilities denominated in
foreign currencies.
8. Transactions in Underlying Funds
An affiliated issuer may be considered one in which a Fund owns 5% or more of
the outstanding voting securities, or a company which is under common control.
For the purposes of this report, each Fund assumes the following to be
affiliated issuers:
----------------------------------------------------------------------------------------------
Pioneer Solutions - Conservative Fund
Beginning Acquisitions Dispositions Ending
Underlying Funds (Affiliated) Shares Shares Shares Shares
----------------------------------------------------------------------------------------------
Pioneer Bond Fund Class K 1,689,767 6,502 (108,547) 1,587,722
Pioneer Core Equity Fund Class Y -- 39,563 (10,722) 28,841
Pioneer Disciplined Value Fund Class Y -- 88,233 (25,433) 62,800
Pioneer Dynamic Credit Fund Class Y 289,182 -- (244,764) 44,418
Pioneer Equity Income Fund Class K 77,024 -- (77,024) --
Pioneer Floating Rate Fund Class K 102,850 -- (76,680) 26,170
Pioneer Fund Class Y -- 25,566 (7,367) 18,199
Pioneer Fundamental Growth Fund Class K 64,833 13,617 (53,533) 24,917
Pioneer Global Equity Fund Class K 165,382 -- -- 165,382
Pioneer Global High Yield Fund Class Y 23,959 -- (6,728) 17,231
Pioneer Global Multisector Income Fund
Class Y 108,596 -- (108,596) --
Pioneer High Yield Fund Class Y 36,395 -- (23,757) 12,638
Pioneer International Equity Fund Class Y 100,030 -- -- 100,030
Pioneer Long/Short Bond Fund Class Y 17,146 -- (17,146) --
Pioneer Mid Cap Value Fund Class K -- 66,127 (36,202) 29,925
Pioneer Opportunistic Long/Short Credit
Fund Class Y 17,516 -- (17,516) --
Pioneer Real Estate Shares Class Y 42,184 -- (42,184) --
Pioneer Short Term Income Fund Class K 209,963 -- (209,963) --
Pioneer Strategic Income Fund Class K 878,149 532,896 -- 1,411,045
102 Pioneer Solutions Funds | Annual Report | 7/31/17
----------------------------------------------------------------------------------------------
Realized Capital Gain Dividend Ending
Underlying Funds (Affiliated) Gain (Loss) Distributions Income Value
----------------------------------------------------------------------------------------------
Pioneer Bond Fund Class K $ (14,666) $ -- $ 541,376 $15,448,535
Pioneer Core Equity Fund Class Y 7,343 -- 8,593 589,798
Pioneer Disciplined Value Fund Class Y 16,152 -- 16,427 1,066,972
Pioneer Dynamic Credit Fund Class Y (99,140) -- 82,140 423,748
Pioneer Equity Income Fund Class K (124,008) 284,604 15,405 --
Pioneer Floating Rate Fund Class K -- -- 17,940 178,218
Pioneer Fund Class Y 11,429 -- 5,841 588,738
Pioneer Fundamental Growth Fund
Class K 37,910 27,630 4,142 552,659
Pioneer Global Equity Fund Class K -- -- 39,427 2,596,497
Pioneer Global High Yield Fund Class Y 14,310 -- 10,797 153,703
Pioneer Global Multisector Income
Fund Class Y (75,094) -- 16,107 --
Pioneer High Yield Fund Class Y 85,982 -- 16,252 124,233
Pioneer International Equity Fund Class Y -- -- 25,048 2,336,709
Pioneer Long/Short Bond Fund Class Y (15,562) -- -- --
Pioneer Mid Cap Value Fund Class K 2,834 -- 11,747 759,197
Pioneer Opportunistic Long/Short Credit
Fund Class Y (19,364) -- -- --
Pioneer Real Estate Shares Class Y 97,210 -- 3,252 --
Pioneer Short Term Income Fund Class K (9,023) -- 16,477 --
Pioneer Strategic Income Fund Class K -- -- 508,327 15,309,838
---------- --------- ---------- -----------
$ (83,687) $ 312,234 $1,339,298 $40,128,845
========== ========= ========== ===========
Pioneer Solutions - Balanced Fund
-----------------------------------------------------------------------------------------
Beginning Acquisitions Dispositions Ending
Underlying Funds (Affiliated) Shares Shares Shares Shares
-----------------------------------------------------------------------------------------
Pioneer Bond Fund Class K 1,881,011 107,449 (483,245) 1,505,215
Pioneer Core Equity Fund Class Y 462,331 9,343 (276,323) 195,351
Pioneer Disciplined Value Fund Class Y -- 645,082 (153,948) 491,134
Pioneer Dynamic Credit Fund Class Y 623,412 -- (132,071) 491,341
Pioneer Fund Class Y 111,677 77,735 (59,357) 130,055
Pioneer Fundamental Growth Fund
Class K 464,327 -- (290,817) 173,510
Pioneer Global Equity Fund Class K 1,200,077 -- (121,226) 1,078,851
Pioneer Global High Yield Fund Class Y 356,705 -- (44,626) 312,079
Pioneer Global Multisector Income
Fund Class Y 337,381 -- (337,381) --
Pioneer High Yield Fund Class Y 1 -- -- 1
Pioneer International Equity Fund
Class Y 1,204,839 -- (32,545) 1,172,294
Pioneer Long/Short Bond Fund Class Y 136,314 -- (136,314) --
Pioneer Mid Cap Value Fund Class K 75,246 266,025 (113,090) 228,181
Pioneer Opportunistic Long/Short Credit
Fund Class Y 140,030 -- (140,030) --
Pioneer Real Estate Shares Class Y 149,770 -- (149,770) --
Pioneer Select Mid Cap Growth Fund
Class K 82,865 -- (82,865) --
Pioneer Strategic Income Fund Class K 968,450 1,067,961 -- 2,036,411
Pioneer Solutions Funds | Annual Report | 7/31/17 103
--------------------------------------------------------------------------------------------
Realized Capital Gain Dividend Ending
Underlying Funds (Affiliated) Gain (Loss) Distributions Income Value
--------------------------------------------------------------------------------------------
Pioneer Bond Fund Class K $ (65,459) $ -- $ 577,364 $ 14,645,742
Pioneer Core Equity Fund Class Y 345,362 -- 66,830 3,994,931
Pioneer Disciplined Value Fund Class Y 174,508 -- 127,974 8,344,367
Pioneer Dynamic Credit Fund Class Y (56,854) -- 330,850 4,687,396
Pioneer Fund Class Y (70,831) 775,813 65,023 4,207,283
Pioneer Fundamental Growth Fund
Class K 292,767 169,479 32,218 3,848,452
Pioneer Global Equity Fund Class K 72,556 -- 286,098 16,937,961
Pioneer Global High Yield Fund Class Y 37,992 -- 169,424 2,783,745
Pioneer Global Multisector Income
Fund Class Y (228,519) -- 61,029 --
Pioneer High Yield Fund Class Y -- -- -- 6
Pioneer International Equity Fund
Class Y (41,720) -- 301,692 27,384,773
Pioneer Long/Short Bond Fund
Class Y (123,719) -- -- --
Pioneer Mid Cap Value Fund Class K (115,725) 112,478 64,381 5,788,952
Pioneer Opportunistic Long/Short
Credit Fund Class Y (154,803) -- -- --
Pioneer Real Estate Shares Class Y 1,967,243 58,270 22,543 --
Pioneer Select Mid Cap Growth Fund
Class K (134,241) 49,246 -- --
Pioneer Strategic Income Fund Class K -- -- 596,336 22,095,059
----------- ----------- ---------- ------------
$1,898,557 $ 1,165,286 $2,701,762 $114,718,667
=========== =========== ========== ============
Pioneer Solutions - Growth Fund
-----------------------------------------------------------------------------------------
Beginning Acquisitions Dispositions Ending
Underlying Funds (Affiliated) Shares Shares Shares Shares
-----------------------------------------------------------------------------------------
Pioneer Bond Fund Class K 2,250,273 -- (348,114) 1,902,159
Pioneer Core Equity Fund Class Y 1,247,982 21,258 (649,467) 619,773
Pioneer Disciplined Value Fund Class Y -- 1,708,557 (124,448) 1,584,109
Pioneer Fund Class Y 485,961 15,428 (41,521) 459,868
Pioneer Fundamental Growth Fund
Class K 1,179,883 20,251 (573,566) 626,568
Pioneer Global Equity Fund Class K 2,510,481 -- (169,123) 2,341,358
Pioneer Global Multisector Income
Fund Class Y 308,606 -- (46,338) 262,268
Pioneer International Equity Fund
Class Y 2,336,636 -- (14,430) 2,322,206
Pioneer Long/Short Bond Fund Class Y 93,457 -- (93,457) --
Pioneer Mid Cap Value Fund Class K 559,470 419,563 (285,547) 693,486
Pioneer Opportunistic Long/Short
Credit Fund Class Y 95,114 -- (95,114) --
Pioneer Real Estate Shares Class Y 363,171 -- (363,171) --
Pioneer Select Mid Cap Growth Fund
Class K 234,082 -- (234,082) --
Pioneer Strategic Income Fund Class K 311,871 558,154 -- 870,025
104 Pioneer Solutions Funds | Annual Report | 7/31/17
--------------------------------------------------------------------------------------------
Realized Capital Gain Dividend Ending
Underlying Funds (Affiliated) Gain (Loss) Distributions Income Value
--------------------------------------------------------------------------------------------
Pioneer Bond Fund Class K $ (17,406) $ -- $ 721,072 $ 18,508,007
Pioneer Core Equity Fund Class Y 1,431,228 -- 180,279 12,674,353
Pioneer Disciplined Value Fund Class Y 172,862 -- 344,958 26,914,012
Pioneer Fund Class Y (291,619) 2,715,208 199,124 14,876,717
Pioneer Fundamental Growth Fund
Class K 396,374 430,657 86,905 13,897,278
Pioneer Global Equity Fund Class K 155,196 -- 598,499 36,759,321
Pioneer Global Multisector Income
Fund Class Y (32,177) -- 94,956 2,848,230
Pioneer International Equity Fund
Class Y (16,618) -- 585,094 54,246,741
Pioneer Long/Short Bond Fund Class Y (84,821) -- -- --
Pioneer Mid Cap Value Fund Class K (475,999) 687,574 169,399 17,593,740
Pioneer Opportunistic Long/Short
Credit Fund Class Y (105,148) -- -- --
Pioneer Real Estate Shares Class Y 6,209,083 190,122 58,038 --
Pioneer Select Mid Cap Growth Fund
Class K (379,213) 139,115 -- --
Pioneer Strategic Income Fund Class K -- -- 297,430 9,439,771
---------- ----------- ---------- ------------
$6,961,742 $ 4,162,676 $3,335,754 $207,758,170
========== =========== ========== ============
Pioneer Solutions Funds | Annual Report | 7/31/17 105
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of Pioneer Asset Allocation Trust:
--------------------------------------------------------------------------------
We have audited the accompanying statements of assets and liabilities, including
the schedule of investments, of Pioneer Asset Allocation Trust (comprising,
respectively, the Pioneer Solutions - Conservative, Pioneer Solutions - Balanced
and Pioneer Solutions - Growth Funds) (the "Funds") as of July 31, 2017, and the
related statements of operations, changes in net assets and the financial
highlights for the year then ended and the financial highlights for the year
ended July 31, 2013. 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. The statements of changes in net assets for the year ended July 31, 2016
and the financial highlights for the periods ended July 31, 2014, July 31, 2015
and July 31, 2016 were audited by another independent registered public
accounting firm whose report, dated September 28, 2016, expressed an unqualified
opinion on the statements of changes in net assets and those financial
highlights.
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, 2017, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
and others were not received. We believe that our audits provide a reasonable
basis for our opinion.
106 Pioneer Solutions Funds | Annual Report | 7/31/17
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 Pioneer Asset Allocation Trust at July 31,
2017, the results of their operations, the changes in their net assets and the
financial highlights for the year then ended and the financial highlights for
the year ended July 31, 2013 in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
September 27, 2017
Pioneer Solutions Funds | Annual Report | 7/31/17 107
ADDITIONAL INFORMATION
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the "Adviser"), the
Funds' investment adviser, was an indirect, wholly owned subsidiary of UniCredit
S.p.A. ("UniCredit"). On that date, UniCredit completed the sale of its Pioneer
Investments business, which includes the Adviser, to Amundi (the "Transaction").
As a result of the Transaction, the Adviser became an indirect, wholly-owned
subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A. Amundi is
headquartered in Paris, France, and, as of September 30, 2016, had more than
$1.1 trillion in assets under management worldwide.
Deloitte & Touche LLP ("D&T"), the Funds' previous independent registered public
accounting firm, informed the Audit Committee and the Board that it would no
longer be independent with respect to the Funds upon the completion of the
Transaction as a result of certain services being provided to Amundi and Credit
Agricole, and, accordingly, that it intended to resign as the Funds' independent
registered public accounting firm upon the completion of the Transaction. D&T's
resignation was effective on July 3, 2017, when the Transaction was completed.
During the periods as to which D&T has served as the Funds' independent
registered public accounting firm, including the Funds' two most recent fiscal
years preceding the fiscal year ended July 31, 2017, D&T's reports on the Funds'
financial statements have not contained an adverse opinion or disclaimer of
opinion and have not been qualified or modified as to uncertainty, audit scope
or accounting principles. Further, there have been no disagreements with D&T on
any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which, if not resolved to the
satisfaction of D&T, would have caused D&T to make reference to the subject
matter of the disagreement in connection with its report on the financial
statements. In addition, there have been no reportable events of the kind
described in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange
Act of 1934.
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
a new independent registered public accounting firm, Ernst & Young LLP ("EY"),
for the Funds' fiscal year ended July 31, 2017.
Prior to its engagement, EY had advised the Funds' Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be inconsistent with
the auditor independence rules set forth by the Securities
108 Pioneer Solutions Funds | Annual Report | 7/31/17
and Exchange Commission ("SEC"): (a) project management support services to
UniCredit in the Czech Republic, Germany, Italy, Serbia and Slovenia in relation
to twenty-two projects, that were determined to be inconsistent with Rule
2-01(c)(4)(vi) of Regulation S-X (management functions); (b) two engagements for
UniCredit in Italy where fees were contingent/success based and that were
determined to be inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent
fees); (c) four engagements where legal and expert services were provided to
UniCredit in the Czech Republic and Germany, and twenty engagements where the
legal advisory services were provided to UniCredit in Austria, Czech Republic,
Italy and Poland, that were determined to be inconsistent with Rule
2-01(c)(4)(ix) and (x) of Regulation S-X (legal and expert services); and (d)
two engagements for UniCredit in Italy involving assistance in the sale of
certain assets, that were determined to be inconsistent with Rule
2-01(c)(4)(viii) of Regulation S-X (broker-dealer, investment advisor or
investment banking services). None of the foregoing services involved the Funds,
any of the other funds in the Pioneer Family of Funds or any other Pioneer
entity sold by UniCredit in the Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Funds under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of the Funds, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
Pioneer Solutions Funds | Annual Report | 7/31/17 109
Pioneer Solutions - Conservative Fund
Approval of New and Interim Management Agreements
Amundi Pioneer Asset Management, Inc. (Amundi Pioneer), formerly Pioneer
Investment Management, Inc., serves as the investment adviser to Pioneer
Solutions - Conservative Fund (the Fund) pursuant to an investment management
agreement between Amundi Pioneer and the Fund.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world (the "Transaction"). As a
result of the Transaction, Amundi Pioneer became an indirect wholly-owned
subsidiary of Amundi and Amundi's wholly-owned subsidiary, Amundi USA, Inc.
Prior to July 3, 2017, Pioneer Investments was owned by Pioneer Global Asset
Management S.p.A. ("PGAM"), a wholly-owned subsidiary of UniCredit S.p.A.
("UniCredit").
Under the Investment Company Act of 1940, the Fund's current investment
management agreement (the "Current Management Agreement") terminated
automatically upon the consummation of the Transaction. In order for Amundi
Pioneer to continue to manage the Fund after the consummation of the
Transaction, the Trustees and shareholders of the Fund were required to approve
a new investment management agreement for the Fund (the "New Management
Agreement"). As discussed below, the Board of Trustees of the Fund approved the
New Management Agreement at a meeting held on March 6-7, 2017. The New
Management Agreement was approved by the shareholders of the Fund at a meeting
held on June 13, 2017. The Board of Trustees of the Fund also approved an
interim investment management agreement between Amundi Pioneer and the Fund (the
"Interim Management Agreement") at the March 6-7, 2017 meeting. The Interim
Management Agreement would have taken effect upon the closing of the Transaction
in the event that the shareholders of the Fund did not approve the New
Management Agreement.
Board Evaluation of the New and Interim Management Agreements
The Board evaluated the Transaction and the New Management Agreement and Interim
Management Agreement for the Fund. In connection with their evaluation of the
Transaction and the New Management Agreement for the Fund, the Trustees
requested such information as they deemed reasonably necessary, including: (a)
the structure of the Transaction and the strategy underlying the Transaction;
(b) the anticipated benefits of the Transaction to the Fund and its
shareholders; (c) the post-Transaction plans for Amundi Pioneer, including
Amundi's plans for integration of Pioneer Investments and Amundi Pioneer with
its existing asset management businesses and plans for the future development of
Amundi Pioneer; (d) the effect of the Transaction on the ongoing services
provided to the Fund, including the need to select a
110 Pioneer Solutions Funds | Annual Report | 7/31/17
new independent registered public accounting firm for the Fund, and any plans to
modify the operations of the Fund; (e) the stability and continuity of Amundi
Pioneer's management and key employees, including compensation and benefits to
Amundi Pioneer's key employees, and retention plans and incentive plan
structure; (f) the post-Transaction indebtedness and financial resources of
Amundi Pioneer; (g) Amundi's legal and operational structure, its principal
shareholders and senior management, its investment management, risk management,
administrative, legal and compliance functions; (h) certain regulatory matters
relating to Amundi's affiliates; and (i) Amundi's commitment to the United
States, including the role of Amundi Pioneer in the larger Amundi business.
The Trustees also requested and obtained the following information in connection
with their evaluation of the Transaction and the New Management Agreement for
the Fund: (i) memoranda provided by Fund counsel that summarized the legal
standards and other considerations that are relevant to the Trustees in their
deliberations regarding the New Management Agreement; (ii) the qualifications of
the investment management teams for the Fund, as well as the level of investment
by the Fund's portfolio managers in the Fund; (iii) the Fund's management fees
and total expense ratios, the financial statements of Amundi Pioneer and its
pre- and post-Transaction parent companies, profitability analyses from Amundi
Pioneer, and analyses from Amundi Pioneer as to possible economies of scale;
(iv) the profitability of the institutional business of Amundi Pioneer and
Amundi Pioneer's affiliate, Amundi Pioneer Institutional Asset Management, Inc.
("Amundi Pioneer Institutional") as compared to that of Amundi Pioneer's fund
management business; and (v) the differences between the fees and expenses of
the Fund and the fees and expenses of Amundi Pioneer's and Amundi Pioneer
Institutional's institutional accounts, as well as the different services
provided by Adviser to the Fund and by Amundi Pioneer and Amundi Pioneer
Institutional to the institutional accounts. In addition, the Trustees
considered the information provided at regularly scheduled meetings throughout
the year regarding the Fund's performance and risk attributes, including through
meetings with investment management personnel, and took into account other
information related to the Fund provided to the Trustees at regularly scheduled
meetings. The Trustees also considered information they had received in their
review of the continuance of the Current Management Agreement for the Fund in
September 2016.
At meetings held on January 9, 2017 and January 10, 2017, the Trustees met with
representatives of Amundi and PGAM, including separate meetings of the Trustees
who are not "interested persons" of the Fund Complex ("Independent Trustees")
and counsel with representatives of Amundi and PGAM, and subsequently with
representatives of Amundi. In those meetings, they received an extensive
presentation from the representatives of Amundi,
Pioneer Solutions Funds | Annual Report | 7/31/17 111
including the chief executive officer of Amundi, describing Amundi's background
and history, its global asset management activities, the growth of its business,
and its status as the largest asset management firm in Europe and one of the
largest globally; its capital structure and financial resources, including
information as to the financing of the Transaction; its principal investors,
including its majority investor Credit Agricole S.A., and Credit Agricole's
long-term commitment to the asset management business; the philosophy and
strategy underlying the Transaction and the complementarity of Amundi's and
Pioneer Investments' respective asset management businesses; Amundi's various
operating and investment committees and how they would likely interact with
Amundi Pioneer; the proposed integration process, including the progress to date
and the establishment of various integration work streams; Amundi's plans for
management of Amundi Pioneer; Amundi's philosophy as to compensation of key
employees and its general intentions with respect to incentive plans for key
employees of Amundi Pioneer; Amundi's preliminary plans to achieve cost and
other synergies; and opportunities to further develop the business of Amundi
Pioneer and Amundi Pioneer Institutional, including in the area of institutional
asset management, and how that would benefit shareholders of the Pioneer Funds.
In those meetings, the representatives of Amundi confirmed their intention that
the Chief Executive Officer and Chief Investment Officer of Amundi Pioneer would
remain in their current positions, and confirmed that they do not currently
foresee major changes in the day-to-day investment management operations of
Amundi Pioneer with respect to the Fund as a direct result of the Transaction.
They discussed incentive arrangements for key personnel that would continue
after the closing of the Transaction and their plans to establish a new
long-term incentive plan following the closing. They also generally discussed
ways in which Amundi Pioneer could potentially draw on the expanded global
resources of Amundi post-Transaction. At those meetings, the Independent
Trustees identified certain areas to which they requested further information,
including as to trading and execution of securities transactions, research and
portfolio management and potential changes in investment process, particularly
where asset classes managed by Amundi Pioneer would overlap with asset classes
managed by Amundi, the continued availability of resources currently at Pioneer
Investments or elsewhere within Amundi to assist in management of certain Funds,
and any anticipated significant changes in operations. The Independent Trustees
considered the uncertainty as to whether the Fund's independent registered
public accounting firm could continue to act in that capacity after the closing
of the Transaction. The Independent Trustees also met with counsel to review the
information they had received to date and to discuss next steps.
112 Pioneer Solutions Funds | Annual Report | 7/31/17
Subsequently, the Trustees received further information from Amundi, including
written responses to questions raised by the Independent Trustees, and received
from Amundi Pioneer the information requested of it. The Independent Trustees
reviewed the information provided with counsel at telephonic meetings held on
February 16, 2017 and February 27, 2017. The Trustees held a special in-person
Board meeting on March 6-7, 2017 for further consideration of the New Management
Agreements, the Interim Management Agreements and the Transaction. The Trustees
met again with senior executives of Amundi at the March 6-7, 2017 meeting.
At the March 6-7, 2017 meeting, based on their evaluation of the information
provided by Amundi Pioneer and Amundi, the Trustees including the Independent
Trustees voting separately, approved the New Management Agreement and the
Interim Management Agreement for the Fund. In considering the New Management
Agreement for the Fund, the Trustees considered various factors that they
determined were relevant, including the factors described below. The Trustees
did not identify any single factor as the controlling factor in their
determinations. The Trustees considered the same factors with respect to the
Interim Management Agreement for the Fund.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by Amundi Pioneer to the Fund and that are expected to be provided
by Amundi Pioneer to the Fund following the consummation of the Transaction. The
Trustees reviewed the terms of the New Management Agreement, and noted that such
terms are substantially similar to the terms of the Current Management
Agreement, except for different execution dates, effective dates and termination
dates. The Trustees reviewed Amundi Pioneer's investment approach for the Fund
and its research process. The Trustees considered the resources of Amundi
Pioneer and the personnel of Amundi Pioneer who provide investment management
services to the Fund. They also reviewed the amount of non-investment resources
and personnel of Amundi Pioneer that are involved in Amundi Pioneer's services
to the Fund, including Amundi Pioneer's compliance and legal resources and
personnel. The Trustees noted the substantial attention and high priority given
by Amundi Pioneer's senior management to the Pioneer Fund complex.
The Trustees considered that Amundi Pioneer supervises and monitors the
performance of the Fund's service providers and provides the Fund with personnel
(including Fund officers) and other resources that are necessary for the Fund's
business management and operations and that Amundi Pioneer would continue to
provide those investment management and research services and resources to the
Fund following the consummation of the Transaction. The Trustees also considered
that, as administrator, Amundi
Pioneer Solutions Funds | Annual Report | 7/31/17 113
Pioneer would continue to be responsible for the administration of the Fund's
business and other affairs. The Trustees considered the fees to be paid to
Amundi Pioneer for the provision of administration services.
The Trustees considered that Deloitte & Touche LLP informed the Board that it
would no longer be independent with respect to the Fund upon the completion of
the Transaction and, accordingly, that it would be necessary for the Board to
engage a new independent registered public accounting firm for the Fund.
The Trustees considered that the Transaction was not expected to have a material
adverse impact on the nature, scope and overall quality of services provided to
the Fund and its shareholders, including investment management, risk management,
administrative, compliance, legal and other services, as a result of the
Transaction.
In that regard, the Trustees considered that Amundi is one of the largest asset
managers globally, and that Amundi Pioneer may have access to additional
research and portfolio management capabilities as a result of the Transaction
and that Amundi Pioneer, as part of Amundi, is expected to have an enhanced
global presence that may contribute to an increase in the overall scale and
resources of Amundi Pioneer. Furthermore, in considering whether the Transaction
would be expected to have a material adverse impact on the nature, scope and
overall quality of services provided to the Fund and its shareholders, the
Trustees considered the statements by representatives of Amundi that they expect
the Chief Executive Officer and Chief Investment Officer of Amundi Pioneer to
remain in their current positions and that they do not currently foresee major
changes in the day-to-day investment management operations of Amundi Pioneer as
a direct result of the Transaction, or the risk management, legal or compliance
services provided by Amundi Pioneer, with respect to the Fund. They further
considered the current incentive arrangements for key personnel of Amundi
Pioneer that would continue after the closing of the Transaction. They also
noted Amundi's stated intention to establish a new long-term incentive plan
following the closing.
The Trustees also took into account their experience in evaluating the proposed
combination of Pioneer Investments and Santander Asset Management, which was
announced in September, 2014 and abandoned in July, 2016. In light of, among
other things, this experience, the Trustees determined that they were not able
to identify any realistic alternatives to approving the New Management Agreement
that would provide the level of services to the Fund and its shareholders that
are expected to be provided by Amundi Pioneer after the closing of the
Transaction.
114 Pioneer Solutions Funds | Annual Report | 7/31/17
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that Amundi Pioneer would continue to provide to the
Fund under the New Management Agreement would be satisfactory and consistent
with the terms of the New Management Agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly reviewed and
discussed throughout the year data prepared by Amundi Pioneer and information
comparing the Fund's performance with the performance of its peer group of
funds, as classified by each of Morningstar, Inc. (Morningstar) and Lipper, and
the performance of the Fund's benchmark index. They also discussed the Fund's
performance with Amundi Pioneer on a regular basis.
The Trustees' regular reviews and discussions were factored into the Trustees'
deliberations concerning the approval of the New Management Agreement.
Management Fee and Expenses
The Trustees noted that the stated management fees to be paid by the Fund are
identical under the Current Management Agreement and the New Management
Agreement. The Trustees considered information showing the fees and expenses of
the Fund in comparison to the management fees and expense ratios of its peer
group of funds as classified by Morningstar and also to the expense ratios of a
peer group of funds selected on the basis of criteria determined by the
Independent Trustees for this purpose using data provided by Strategic Insight
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners. To the extent applicable, the Trustees also
considered the impact of transfer agency, sub-transfer agency, and other
non-management fee expenses on the expense ratios of the Fund. The Trustees
noted that they separately review the Fund's transfer agency, sub-transfer
agency and intermediary arrangements and that the results of the most recent
such review were considered in the consideration of the Fund's expense ratio.
The Trustees considered that the Fund's management fee as of September 30, 2016
was in the second quintile relative to the management fees paid by other funds
in its Morningstar category for the comparable period. The Trustees also
considered the breakpoints in the management fee schedule and the reduced fee
rates above certain asset levels. The Trustees considered that the expense ratio
of the Fund's Class A shares as of September 30, 2016 was in the fourth quintile
relative to its Morningstar category and in the fourth quintile relative to its
Strategic Insight peer group, in each case for the comparable period. The
Trustees noted that Amundi Pioneer had agreed to waive fees and/or reimburse
expenses in order to limit the ordinary operating expenses of the Fund. The
Trustees noted the Fund's relatively small asset size compared to
Pioneer Solutions Funds | Annual Report | 7/31/17 115
most of the other funds in its peer groups. The Trustees noted the impact of
expenses relating to small accounts and omnibus accounts on transfer and sub-
transfer agency expenses generally. The Trustees considered that non-management
fee operating expenses generally are spread over a smaller asset base than the
other funds in the peer group, which results in these fees being significantly
higher as a percentage of assets. The Trustees also considered information
showing significant expense reimbursements by the sponsors of the other funds in
the peer groups.
The Trustees reviewed management fees charged by Amundi Pioneer and Amundi
Pioneer Institutional to institutional and other clients, including publicly
offered European funds sponsored by Amundi Pioneer's affiliates, unaffiliated
U.S. registered investment companies (in a sub-advisory capacity), and
unaffiliated foreign and domestic separate accounts. The Trustees also
considered Amundi Pioneer's costs in providing services to the Fund and Amundi
Pioneer's and Amundi Pioneer Institutional's costs in providing services to the
other clients and considered the differences in management fees and profit
margins for fund and non-fund services. In evaluating the fees associated with
Amundi Pioneer's and Amundi Pioneer Institutional's client accounts, the
Trustees took into account the respective demands, resources and complexity
associated with the Fund and other client accounts. The Trustees noted that in
some instances the fee rates for those clients were lower than the management
fee for the Fund and considered that, under both the Current Management
Agreement and the New Management Agreement, Amundi Pioneer would perform
additional services for the Fund that it does not provide to those other clients
or services that are broader in scope, including oversight of the Fund's other
service providers and activities related to compliance and the extensive
regulatory and tax regimes to which the Fund is subject. The Trustees also
considered the different risks associated with Amundi Pioneer's management of
the Fund and Amundi Pioneer's and Amundi Pioneer Institutional's management of
the other client accounts.
The Trustees concluded that the management fee payable by the Fund to Amundi
Pioneer was reasonable in relation to the nature and quality of the services to
be provided by Amundi Pioneer.
Profitability
The Trustees considered information provided by Amundi Pioneer regarding the
profitability of Amundi Pioneer with respect to the advisory services provided
by Amundi Pioneer to the Fund, including the methodology used by Amundi Pioneer
in allocating certain of its costs to the management of the Fund. The Trustees
also considered Amundi Pioneer's profit margin in connection with the overall
operation of the Fund. They further reviewed the financial results, including
the profit margins, realized by Amundi Pioneer and Amundi Pioneer Institutional
from non-fund businesses. The Trustees
116 Pioneer Solutions Funds | Annual Report | 7/31/17
considered Amundi Pioneer's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that Amundi Pioneer's profitability with respect to the management of
the Fund was not unreasonable.
Economies of Scale
The Trustees considered Amundi Pioneer's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with the Fund and Fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify, and that, among other factors that may be relevant, are the following:
fee levels, expense subsidization, investment by Amundi Pioneer in research and
analytical capabilities and Amundi Pioneer's commitment and resource allocation
to the Fund. The Trustees noted that profitability also may be an indicator of
the availability of any economies of scale, although profitability may vary for
other reasons including due to reductions in expenses. The Trustees concluded
that economies of scale, if any, were being appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits that Amundi Pioneer enjoys from its
relationship with the Fund. The Trustees considered the character and amount of
fees paid or to be paid by the Fund, other than under the Current Management
Agreement or the New Management Agreement, for services provided by Amundi
Pioneer and its affiliates. The Trustees further considered the revenues and
profitability of Amundi Pioneer's businesses other than the Fund business. To
the extent applicable, the Trustees also considered the benefits to the Fund and
to Amundi Pioneer and its affiliates from the use of "soft" commission dollars
generated by the Fund to pay for research and brokerage services.
The Trustees considered that following the completion of the Transaction, Amundi
Pioneer will be the principal U.S. asset management business of Amundi, and that
Amundi's worldwide asset management business will manage over $1.38 trillion in
assets (including the Pioneer Funds). This may create opportunities for Amundi
Pioneer, Amundi Pioneer Institutional and Amundi that derive from Amundi
Pioneer's relationships with the Fund, including Amundi's ability to market the
services of Amundi Pioneer globally. The Trustees noted that Amundi Pioneer may
have access to additional research capabilities as a result of the Transaction
and Amundi's enhanced global presence that may contribute to an increase of the
overall scale of Amundi Pioneer. The Trustees considered that Amundi Pioneer and
the Fund
Pioneer Solutions Funds | Annual Report | 7/31/17 117
are expected to receive reciprocal intangible benefits from the relationship,
including mutual brand recognition and, for the Fund, direct and indirect access
to the resources of a large global asset manager. The Trustees concluded that
any such benefits received by Amundi Pioneer as a result of its relationship
with the Fund were reasonable.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including the Independent Trustees, concluded that the New Management
Agreement and the Interim Management Agreement for the Fund, including the fees
payable thereunder, were fair and reasonable and voted to approve the New
Management Agreement and the Interim Management Agreement, and to recommend that
shareholders approve the New Management Agreement.
118 Pioneer Solutions Funds | Annual Report | 7/31/17
Pioneer Solutions - Balanced Fund
Approval of New and Interim Management Agreements
Amundi Pioneer Asset Management, Inc. (Amundi Pioneer), formerly Pioneer
Investment Management, Inc., serves as the investment adviser to Pioneer
Solutions - Balanced Fund (the Fund) pursuant to an investment management
agreement between Amundi Pioneer and the Fund.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world (the "Transaction"). As a
result of the Transaction, Amundi Pioneer became an indirect wholly-owned
subsidiary of Amundi and Amundi's wholly-owned subsidiary, Amundi USA, Inc.
Prior to July 3, 2017, Pioneer Investments was owned by Pioneer Global Asset
Management S.p.A. ("PGAM"), a wholly-owned subsidiary of UniCredit S.p.A.
("UniCredit").
Under the Investment Company Act of 1940, the Fund's current investment
management agreement (the "Current Management Agreement") terminated
automatically upon the consummation of the Transaction. In order for Amundi
Pioneer to continue to manage the Fund after the consummation of the
Transaction, the Trustees and shareholders of the Fund were required to approve
a new investment management agreement for the Fund (the "New Management
Agreement"). As discussed below, the Board of Trustees of the Fund approved the
New Management Agreement at a meeting held on March 6-7, 2017. The New
Management Agreement was approved by the shareholders of the Fund at a meeting
held on June 13, 2017. The Board of Trustees of the Fund also approved an
interim investment management agreement between Amundi Pioneer and the Fund (the
"Interim Management Agreement") at the March 6-7, 2017 meeting. The Interim
Management Agreement would have taken effect upon the closing of the Transaction
in the event that the shareholders of the Fund did not approve the New
Management Agreement.
Board Evaluation of the New and Interim Management Agreements
The Board evaluated the Transaction and the New Management Agreement and Interim
Management Agreement for the Fund. In connection with their evaluation of the
Transaction and the New Management Agreement for the Fund, the Trustees
requested such information as they deemed reasonably necessary, including: (a)
the structure of the Transaction and the strategy underlying the Transaction;
(b) the anticipated benefits of the Transaction to the Fund and its
shareholders; (c) the post-Transaction plans for Amundi Pioneer, including
Amundi's plans for integration of Pioneer Investments and Amundi Pioneer with
its existing asset management businesses and plans for the future development of
Amundi Pioneer; (d) the effect of the Transaction
Pioneer Solutions Funds | Annual Report | 7/31/17 119
on the ongoing services provided to the Fund, including the need to select a new
independent registered public accounting firm for the Fund, and any plans to
modify the operations of the Fund; (e) the stability and continuity of Amundi
Pioneer's management and key employees, including compensation and benefits to
Amundi Pioneer's key employees, and retention plans and incentive plan
structure; (f) the post-Transaction indebtedness and financial resources of
Amundi Pioneer; (g) Amundi's legal and operational structure, its principal
shareholders and senior management, its investment management, risk management,
administrative, legal and compliance functions; (h) certain regulatory matters
relating to Amundi's affiliates; and (i) Amundi's commitment to the United
States, including the role of Amundi Pioneer in the larger Amundi business.
The Trustees also requested and obtained the following information in connection
with their evaluation of the Transaction and the New Management Agreement for
the Fund: (i) memoranda provided by Fund counsel that summarized the legal
standards and other considerations that are relevant to the Trustees in their
deliberations regarding the New Management Agreement; (ii) the qualifications of
the investment management teams for the Fund, as well as the level of investment
by the Fund's portfolio managers in the Fund; (iii) the Fund's management fees
and total expense ratios, the financial statements of Amundi Pioneer and its
pre- and post-Transaction parent companies, profitability analyses from Amundi
Pioneer, and analyses from Amundi Pioneer as to possible economies of scale;
(iv) the profitability of the institutional business of Amundi Pioneer and
Amundi Pioneer's affiliate, Amundi Pioneer Institutional Asset Management, Inc.
("Amundi Pioneer Institutional") as compared to that of Amundi Pioneer's fund
management business; and (v) the differences between the fees and expenses of
the Fund and the fees and expenses of Amundi Pioneer's and Amundi Pioneer
Institutional's institutional accounts, as well as the different services
provided by Adviser to the Fund and by Amundi Pioneer and Amundi Pioneer
Institutional to the institutional accounts. In addition, the Trustees
considered the information provided at regularly scheduled meetings throughout
the year regarding the Fund's performance and risk attributes, including through
meetings with investment management personnel, and took into account other
information related to the Fund provided to the Trustees at regularly scheduled
meetings. The Trustees also considered information they had received in their
review of the continuance of the Current Management Agreement for the Fund in
September 2016.
At meetings held on January 9, 2017 and January 10, 2017, the Trustees met with
representatives of Amundi and PGAM, including separate meetings of the Trustees
who are not "interested persons" of the Fund Complex ("Independent Trustees")
and counsel with representatives of Amundi and
120 Pioneer Solutions Funds | Annual Report | 7/31/17
PGAM, and subsequently with representatives of Amundi. In those meetings, they
received an extensive presentation from the representatives of Amundi, including
the chief executive officer of Amundi, describing Amundi's background and
history, its global asset management activities, the growth of its business, and
its status as the largest asset management firm in Europe and one of the largest
globally; its capital structure and financial resources, including information
as to the financing of the Transaction; its principal investors, including its
majority investor Credit Agricole S.A., and Credit Agricole's long-term
commitment to the asset management business; the philosophy and strategy
underlying the Transaction and the complementarity of Amundi's and Pioneer
Investments' respective asset management businesses; Amundi's various operating
and investment committees and how they would likely interact with Amundi
Pioneer; the proposed integration process, including the progress to date and
the establishment of various integration work streams; Amundi's plans for
management of Amundi Pioneer; Amundi's philosophy as to compensation of key
employees and its general intentions with respect to incentive plans for key
employees of Amundi Pioneer; Amundi's preliminary plans to achieve cost and
other synergies; and opportunities to further develop the business of Amundi
Pioneer and Amundi Pioneer Institutional, including in the area of institutional
asset management, and how that would benefit shareholders of the Pioneer Funds.
In those meetings, the representatives of Amundi confirmed their intention that
the Chief Executive Officer and Chief Investment Officer of Amundi Pioneer would
remain in their current positions, and confirmed that they do not currently
foresee major changes in the day-to-day investment management operations of
Amundi Pioneer with respect to the Fund as a direct result of the Transaction.
They discussed incentive arrangements for key personnel that would continue
after the closing of the Transaction and their plans to establish a new
long-term incentive plan following the closing. They also generally discussed
ways in which Amundi Pioneer could potentially draw on the expanded global
resources of Amundi post-Transaction. At those meetings, the Independent
Trustees identified certain areas to which they requested further information,
including as to trading and execution of securities transactions, research and
portfolio management and potential changes in investment process, particularly
where asset classes managed by Amundi Pioneer would overlap with asset classes
managed by Amundi, the continued availability of resources currently at Pioneer
Investments or elsewhere within Amundi to assist in management of certain Funds,
and any anticipated significant changes in operations. The Independent Trustees
considered the uncertainty as to whether the Fund's independent registered
public accounting firm could continue to act in that capacity after the closing
of the Transaction. The Independent Trustees also met with counsel to review
the information they had received to date and to discuss next steps.
Pioneer Solutions Funds | Annual Report | 7/31/17 121
Subsequently, the Trustees received further information from Amundi, including
written responses to questions raised by the Independent Trustees, and received
from Amundi Pioneer the information requested of it. The Independent Trustees
reviewed the information provided with counsel at telephonic meetings held on
February 16, 2017 and February 27, 2017. The Trustees held a special in-person
Board meeting on March 6-7, 2017 for further consideration of the New Management
Agreements, the Interim Management Agreements and the Transaction. The Trustees
met again with senior executives of Amundi at the March 6-7, 2017 meeting.
At the March 6-7, 2017 meeting, based on their evaluation of the information
provided by Amundi Pioneer and Amundi, the Trustees including the Independent
Trustees voting separately, approved the New Management Agreement and the
Interim Management Agreement for the Fund. In considering the New Management
Agreement for the Fund, the Trustees considered various factors that they
determined were relevant, including the factors described below. The Trustees
did not identify any single factor as the controlling factor in their
determinations. The Trustees considered the same factors with respect to the
Interim Management Agreement for the Fund.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by Amundi Pioneer to the Fund and that are expected to be provided
by Amundi Pioneer to the Fund following the consummation of the Transaction. The
Trustees reviewed the terms of the New Management Agreement, and noted that such
terms are substantially similar to the terms of the Current Management
Agreement, except for different execution dates, effective dates and termination
dates. The Trustees reviewed Amundi Pioneer's investment approach for the Fund
and its research process. The Trustees considered the resources of Amundi
Pioneer and the personnel of Amundi Pioneer who provide investment management
services to the Fund. They also reviewed the amount of non-investment resources
and personnel of Amundi Pioneer that are involved in Amundi Pioneer's services
to the Fund, including Amundi Pioneer's compliance and legal resources and
personnel. The Trustees noted the substantial attention and high priority given
by Amundi Pioneer's senior management to the Pioneer Fund complex.
The Trustees considered that Amundi Pioneer supervises and monitors the
performance of the Fund's service providers and provides the Fund with personnel
(including Fund officers) and other resources that are necessary for the Fund's
business management and operations and that Amundi Pioneer would continue to
provide those investment management and research services and resources to the
Fund following the consummation of the Transaction. The Trustees also considered
that, as administrator, Amundi
122 Pioneer Solutions Funds | Annual Report | 7/31/17
Pioneer would continue to be responsible for the administration of the Fund's
business and other affairs. The Trustees considered the fees to be paid to
Amundi Pioneer for the provision of administration services.
The Trustees considered that Deloitte & Touche LLP informed the Board that it
would no longer be independent with respect to the Fund upon the completion of
the Transaction and, accordingly, that it would be necessary for the Board to
engage a new independent registered public accounting firm for the Fund.
The Trustees considered that the Transaction was not expected to have a material
adverse impact on the nature, scope and overall quality of services provided to
the Fund and its shareholders, including investment management, risk management,
administrative, compliance, legal and other services, as a result of the
Transaction.
In that regard, the Trustees considered that Amundi is one of the largest asset
managers globally, and that Amundi Pioneer may have access to additional
research and portfolio management capabilities as a result of the Transaction
and that Amundi Pioneer, as part of Amundi, is expected to have an enhanced
global presence that may contribute to an increase in the overall scale and
resources of Amundi Pioneer. Furthermore, in considering whether the Transaction
would be expected to have a material adverse impact on the nature, scope and
overall quality of services provided to the Fund and its shareholders, the
Trustees considered the statements by representatives of Amundi that they expect
the Chief Executive Officer and Chief Investment Officer of Amundi Pioneer to
remain in their current positions and that they do not currently foresee major
changes in the day-to-day investment management operations of Amundi Pioneer as
a direct result of the Transaction, or the risk management, legal or compliance
services provided by Amundi Pioneer, with respect to the Fund. They further
considered the current incentive arrangements for key personnel of Amundi
Pioneer that would continue after the closing of the Transaction. They also
noted Amundi's stated intention to establish a new long-term incentive plan
following the closing.
The Trustees also took into account their experience in evaluating the proposed
combination of Pioneer Investments and Santander Asset Management, which was
announced in September, 2014 and abandoned in July, 2016. In light of, among
other things, this experience, the Trustees determined that they were not able
to identify any realistic alternatives to approving the New Management Agreement
that would provide the level of services to the Fund and its shareholders that
are expected to be provided by Amundi Pioneer after the closing of the
Transaction.
Pioneer Solutions Funds | Annual Report | 7/31/17 123
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that Amundi Pioneer would continue to provide to the
Fund under the New Management Agreement would be satisfactory and consistent
with the terms of the New Management Agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly reviewed and
discussed throughout the year data prepared by Amundi Pioneer and information
comparing the Fund's performance with the performance of its peer group of
funds, as classified by each of Morningstar, Inc. (Morningstar) and Lipper, and
the performance of the Fund's benchmark index. They also discussed the Fund's
performance with Amundi Pioneer on a regular basis.
The Trustees' regular reviews and discussions were factored into the Trustees'
deliberations concerning the approval of the New Management Agreement.
Management Fee and Expenses
The Trustees noted that the stated management fees to be paid by the Fund are
identical under the Current Management Agreement and the New Management
Agreement. The Trustees considered information showing the fees and expenses of
the Fund in comparison to the management fees and expense ratios of its peer
group of funds as classified by Morningstar and also to the expense ratios of a
peer group of funds selected on the basis of criteria determined by the
Independent Trustees for this purpose using data provided by Strategic Insight
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners. To the extent applicable, the Trustees also
considered the impact of transfer agency, sub-transfer agency, and other
non-management fee expenses on the expense ratios of the Fund. The Trustees
noted that they separately review the Fund's transfer agency, sub-transfer
agency and intermediary arrangements and that the results of the most recent
such review were considered in the consideration of the Fund's expense ratio.
The Trustees considered that the Fund's management fee as of September 30, 2016
was in the third quintile relative to the management fees paid by other funds in
its Morningstar category for the comparable period. The Trustees also considered
the breakpoints in the management fee schedule and the reduced fee rates above
certain asset levels. The Trustees considered that the expense ratio of the
Fund's Class A shares as of September 30, 2016 was in the fourth quintile
relative to its Morningstar category and in the third quintile relative to its
Strategic Insight peer group, in each case for the comparable period. The
Trustees noted that Amundi Pioneer had agreed to waive fees and/or reimburse
expenses in order to limit the ordinary operating expenses of the
124 Pioneer Solutions Funds | Annual Report | 7/31/17
Fund. The Trustees noted the Fund's relatively small asset size compared to most
of the other funds in its peer groups. The Trustees noted the impact of expenses
relating to small accounts and omnibus accounts on transfer and sub-transfer
agency expenses generally. The Trustees considered that non-management fee
operating expenses generally are spread over a smaller asset base than the other
funds in the peer group, which results in these fees being significantly higher
as a percentage of assets. The Trustees also considered information showing
significant expense reimbursements by the sponsors of the other funds in the
peer groups.
The Trustees reviewed management fees charged by Amundi Pioneer and Amundi
Pioneer Institutional to institutional and other clients, including publicly
offered European funds sponsored by Amundi Pioneer's affiliates, unaffiliated
U.S. registered investment companies (in a sub-advisory capacity), and
unaffiliated foreign and domestic separate accounts. The Trustees also
considered Amundi Pioneer's costs in providing services to the Fund and Amundi
Pioneer's and Amundi Pioneer Institutional's costs in providing services to the
other clients and considered the differences in management fees and profit
margins for fund and non-fund services. In evaluating the fees associated with
Amundi Pioneer's and Amundi Pioneer Institutional's client accounts, the
Trustees took into account the respective demands, resources and complexity
associated with the Fund and other client accounts. The Trustees noted that in
some instances the fee rates for those clients were lower than the management
fee for the Fund and considered that, under both the Current Management
Agreement and the New Management Agreement, Amundi Pioneer would perform
additional services for the Fund that it does not provide to those other clients
or services that are broader in scope, including oversight of the Fund's other
service providers and activities related to compliance and the extensive
regulatory and tax regimes to which the Fund is subject. The Trustees also
considered the different risks associated with Amundi Pioneer's management of
the Fund and Amundi Pioneer's and Amundi Pioneer Institutional's management of
the other client accounts.
The Trustees concluded that the management fee payable by the Fund to Amundi
Pioneer was reasonable in relation to the nature and quality of the services to
be provided by Amundi Pioneer.
Profitability
The Trustees considered information provided by Amundi Pioneer regarding the
profitability of Amundi Pioneer with respect to the advisory services provided
by Amundi Pioneer to the Fund, including the methodology used by Amundi Pioneer
in allocating certain of its costs to the management of the Fund. The Trustees
also considered Amundi Pioneer's profit margin in connection with the overall
operation of the Fund. They further reviewed the
Pioneer Solutions Funds | Annual Report | 7/31/17 125
financial results, including the profit margins, realized by Amundi Pioneer and
Amundi Pioneer Institutional from non-fund businesses. The Trustees considered
Amundi Pioneer's profit margins with respect to the Fund in comparison to the
limited industry data available and noted that the profitability of any adviser
was affected by numerous factors, including its organizational structure and
method for allocating expenses. The Trustees concluded that Amundi Pioneer's
profitability with respect to the management of the Fund was not unreasonable.
Economies of Scale
The Trustees considered Amundi Pioneer's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with the Fund and Fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify, and that, among other factors that may be relevant, are the following:
fee levels, expense subsidization, investment by Amundi Pioneer in research and
analytical capabilities and Amundi Pioneer's commitment and resource allocation
to the Fund. The Trustees noted that profitability also may be an indicator of
the availability of any economies of scale, although profitability may vary for
other reasons including due to reductions in expenses. The Trustees concluded
that economies of scale, if any, were being appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits that Amundi Pioneer enjoys from its
relationship with the Fund. The Trustees considered the character and amount of
fees paid or to be paid by the Fund, other than under the Current Management
Agreement or the New Management Agreement, for services provided by Amundi
Pioneer and its affiliates. The Trustees further considered the revenues and
profitability of Amundi Pioneer's businesses other than the Fund business. To
the extent applicable, the Trustees also considered the benefits to the Fund and
to Amundi Pioneer and its affiliates from the use of "soft" commission dollars
generated by the Fund to pay for research and brokerage services.
The Trustees considered that following the completion of the Transaction, Amundi
Pioneer will be the principal U.S. asset management business of Amundi, and that
Amundi's worldwide asset management business will manage over $1.38 trillion in
assets (including the Pioneer Funds). This may create opportunities for Amundi
Pioneer, Amundi Pioneer Institutional and Amundi that derive from Amundi
Pioneer's relationships with the Fund, including Amundi's ability to market the
services of Amundi Pioneer globally. The Trustees noted that Amundi Pioneer may
have access to additional research capabilities as a result of the Transaction
and Amundi's enhanced
126 Pioneer Solutions Funds | Annual Report | 7/31/17
global presence that may contribute to an increase of the overall scale of
Amundi Pioneer. The Trustees considered that Amundi Pioneer and the Fund are
expected to receive reciprocal intangible benefits from the relationship,
including mutual brand recognition and, for the Fund, direct and indirect access
to the resources of a large global asset manager. The Trustees concluded that
any such benefits received by Amundi Pioneer as a result of its relationship
with the Fund were reasonable.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including the Independent Trustees, concluded that the New Management
Agreement and the Interim Management Agreement for the Fund, including the fees
payable thereunder, were fair and reasonable and voted to approve the New
Management Agreement and the Interim Management Agreement, and to recommend that
shareholders approve the New Management Agreement.
Pioneer Solutions Funds | Annual Report | 7/31/17 127
Pioneer Solutions - Growth Fund
Approval of New and Interim Management Agreements
Amundi Pioneer Asset Management, Inc. (Amundi Pioneer), formerly Pioneer
Investment Management, Inc., serves as the investment adviser to Pioneer
Solutions - Growth Fund (the Fund) pursuant to an investment management
agreement between Amundi Pioneer and the Fund.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world (the "Transaction"). As a
result of the Transaction, Amundi Pioneer became an indirect wholly-owned
subsidiary of Amundi and Amundi's wholly-owned subsidiary, Amundi USA, Inc.
Prior to July 3, 2017, Pioneer Investments was owned by Pioneer Global Asset
Management S.p.A. ("PGAM"), a wholly-owned subsidiary of UniCredit S.p.A.
("UniCredit").
Under the Investment Company Act of 1940, the Fund's current investment
management agreement (the "Current Management Agreement") terminated
automatically upon the consummation of the Transaction. In order for Amundi
Pioneer to continue to manage the Fund after the consummation of the
Transaction, the Trustees and shareholders of the Fund were required to approve
a new investment management agreement for the Fund (the "New Management
Agreement"). As discussed below, the Board of Trustees of the Fund approved the
New Management Agreement at a meeting held on March 6-7, 2017. The New
Management Agreement was approved by the shareholders of the Fund at a meeting
held on June 13, 2017. The Board of Trustees of the Fund also approved an
interim investment management agreement between Amundi Pioneer and the Fund (the
"Interim Management Agreement") at the March 6-7, 2017 meeting. The Interim
Management Agreement would have taken effect upon the closing of the Transaction
in the event that the shareholders of the Fund did not approve the New
Management Agreement.
Board Evaluation of the New and Interim Management Agreements
The Board evaluated the Transaction and the New Management Agreement and Interim
Management Agreement for the Fund. In connection with their evaluation of the
Transaction and the New Management Agreement for the Fund, the Trustees
requested such information as they deemed reasonably necessary, including: (a)
the structure of the Transaction and the strategy underlying the Transaction;
(b) the anticipated benefits of the Transaction to the Fund and its
shareholders; (c) the post-Transaction plans for Amundi Pioneer, including
Amundi's plans for integration of Pioneer Investments and Amundi Pioneer with
its existing asset management businesses and plans for the future development of
Amundi Pioneer; (d) the effect of the Transaction
128 Pioneer Solutions Funds | Annual Report | 7/31/17
on the ongoing services provided to the Fund, including the need to select a new
independent registered public accounting firm for the Fund, and any plans to
modify the operations of the Fund; (e) the stability and continuity of Amundi
Pioneer's management and key employees, including compensation and benefits to
Amundi Pioneer's key employees, and retention plans and incentive plan
structure; (f) the post-Transaction indebtedness and financial resources of
Amundi Pioneer; (g) Amundi's legal and operational structure, its principal
shareholders and senior management, its investment management, risk management,
administrative, legal and compliance functions; (h) certain regulatory matters
relating to Amundi's affiliates; and (i) Amundi's commitment to the United
States, including the role of Amundi Pioneer in the larger Amundi business.
The Trustees also requested and obtained the following information in connection
with their evaluation of the Transaction and the New Management Agreement for
the Fund: (i) memoranda provided by Fund counsel that summarized the legal
standards and other considerations that are relevant to the Trustees in their
deliberations regarding the New Management Agreement; (ii) the qualifications of
the investment management teams for the Fund, as well as the level of investment
by the Fund's portfolio managers in the Fund; (iii) the Fund's management fees
and total expense ratios, the financial statements of Amundi Pioneer and its
pre- and post-Transaction parent companies, profitability analyses from Amundi
Pioneer, and analyses from Amundi Pioneer as to possible economies of scale;
(iv) the profitability of the institutional business of Amundi Pioneer and
Amundi Pioneer's affiliate, Amundi Pioneer Institutional Asset Management, Inc.
("Amundi Pioneer Institutional") as compared to that of Amundi Pioneer's fund
management business; and (v) the differences between the fees and expenses of
the Fund and the fees and expenses of Amundi Pioneer's and Amundi Pioneer
Institutional's institutional accounts, as well as the different services
provided by Adviser to the Fund and by Amundi Pioneer and Amundi Pioneer
Institutional to the institutional accounts. In addition, the Trustees
considered the information provided at regularly scheduled meetings throughout
the year regarding the Fund's performance and risk attributes, including through
meetings with investment management personnel, and took into account other
information related to the Fund provided to the Trustees at regularly scheduled
meetings. The Trustees also considered information they had received in their
review of the continuance of the Current Management Agreement for the Fund in
September 2016.
At meetings held on January 9, 2017 and January 10, 2017, the Trustees met with
representatives of Amundi and PGAM, including separate meetings of the Trustees
who are not "interested persons" of the Fund Complex ("Independent Trustees")
and counsel with representatives of Amundi and
Pioneer Solutions Funds | Annual Report | 7/31/17 129
PGAM, and subsequently with representatives of Amundi. In those meetings, they
received an extensive presentation from the representatives of Amundi, including
the chief executive officer of Amundi, describing Amundi's background and
history, its global asset management activities, the growth of its business, and
its status as the largest asset management firm in Europe and one of the largest
globally; its capital structure and financial resources, including information
as to the financing of the Transaction; its principal investors, including its
majority investor Credit Agricole S.A., and Credit Agricole's long-term
commitment to the asset management business; the philosophy and strategy
underlying the Transaction and the complementarity of Amundi's and Pioneer
Investments' respective asset management businesses; Amundi's various operating
and investment committees and how they would likely interact with Amundi
Pioneer; the proposed integration process, including the progress to date and
the establishment of various integration work streams; Amundi's plans for
management of Amundi Pioneer; Amundi's philosophy as to compensation of key
employees and its general intentions with respect to incentive plans for key
employees of Amundi Pioneer; Amundi's preliminary plans to achieve cost and
other synergies; and opportunities to further develop the business of Amundi
Pioneer and Amundi Pioneer Institutional, including in the area of institutional
asset management, and how that would benefit shareholders of the Pioneer Funds.
In those meetings, the representatives of Amundi confirmed their intention that
the Chief Executive Officer and Chief Investment Officer of Amundi Pioneer would
remain in their current positions, and confirmed that they do not currently
foresee major changes in the day-to-day investment management operations of
Amundi Pioneer with respect to the Fund as a direct result of the Transaction.
They discussed incentive arrangements for key personnel that would continue
after the closing of the Transaction and their plans to establish a new
long-term incentive plan following the closing. They also generally discussed
ways in which Amundi Pioneer could potentially draw on the expanded global
resources of Amundi post-Transaction. At those meetings, the Independent
Trustees identified certain areas to which they requested further information,
including as to trading and execution of securities transactions, research and
portfolio management and potential changes in investment process, particularly
where asset classes managed by Amundi Pioneer would overlap with asset classes
managed by Amundi, the continued availability of resources currently at Pioneer
Investments or elsewhere within Amundi to assist in management of certain Funds,
and any anticipated significant changes in operations. The Independent Trustees
considered the uncertainty as to whether the Fund's independent registered
public accounting firm could continue to act in that capacity after the closing
of the Transaction. The Independent Trustees also met with counsel to review
the information they had received to date and to discuss next steps.
130 Pioneer Solutions Funds | Annual Report | 7/31/17
Subsequently, the Trustees received further information from Amundi, including
written responses to questions raised by the Independent Trustees, and received
from Amundi Pioneer the information requested of it. The Independent Trustees
reviewed the information provided with counsel at telephonic meetings held on
February 16, 2017 and February 27, 2017. The Trustees held a special in-person
Board meeting on March 6-7, 2017 for further consideration of the New Management
Agreements, the Interim Management Agreements and the Transaction. The Trustees
met again with senior executives of Amundi at the March 6-7, 2017 meeting.
At the March 6-7, 2017 meeting, based on their evaluation of the information
provided by Amundi Pioneer and Amundi, the Trustees including the Independent
Trustees voting separately, approved the New Management Agreement and the
Interim Management Agreement for the Fund. In considering the New Management
Agreement for the Fund, the Trustees considered various factors that they
determined were relevant, including the factors described below. The Trustees
did not identify any single factor as the controlling factor in their
determinations. The Trustees considered the same factors with respect to the
Interim Management Agreement for the Fund.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by Amundi Pioneer to the Fund and that are expected to be provided
by Amundi Pioneer to the Fund following the consummation of the Transaction. The
Trustees reviewed the terms of the New Management Agreement, and noted that such
terms are substantially similar to the terms of the Current Management
Agreement, except for different execution dates, effective dates and termination
dates. The Trustees reviewed Amundi Pioneer's investment approach for the Fund
and its research process. The Trustees considered the resources of Amundi
Pioneer and the personnel of Amundi Pioneer who provide investment management
services to the Fund. They also reviewed the amount of non-investment resources
and personnel of Amundi Pioneer that are involved in Amundi Pioneer's services
to the Fund, including Amundi Pioneer's compliance and legal resources and
personnel. The Trustees noted the substantial attention and high priority given
by Amundi Pioneer's senior management to the Pioneer Fund complex.
The Trustees considered that Amundi Pioneer supervises and monitors the
performance of the Fund's service providers and provides the Fund with personnel
(including Fund officers) and other resources that are necessary for the Fund's
business management and operations and that Amundi Pioneer would continue to
provide those investment management and research services and resources to the
Fund following the consummation of the Transaction. The Trustees also considered
that, as administrator, Amundi
Pioneer Solutions Funds | Annual Report | 7/31/17 131
Pioneer would continue to be responsible for the administration of the Fund's
business and other affairs. The Trustees considered the fees to be paid to
Amundi Pioneer for the provision of administration services.
The Trustees considered that Deloitte & Touche LLP informed the Board that it
would no longer be independent with respect to the Fund upon the completion of
the Transaction and, accordingly, that it would be necessary for the Board to
engage a new independent registered public accounting firm for the Fund.
The Trustees considered that the Transaction was not expected to have a material
adverse impact on the nature, scope and overall quality of services provided to
the Fund and its shareholders, including investment management, risk management,
administrative, compliance, legal and other services, as a result of the
Transaction.
In that regard, the Trustees considered that Amundi is one of the largest asset
managers globally, and that Amundi Pioneer may have access to additional
research and portfolio management capabilities as a result of the Transaction
and that Amundi Pioneer, as part of Amundi, is expected to have an enhanced
global presence that may contribute to an increase in the overall scale and
resources of Amundi Pioneer. Furthermore, in considering whether the Transaction
would be expected to have a material adverse impact on the nature, scope and
overall quality of services provided to the Fund and its shareholders, the
Trustees considered the statements by representatives of Amundi that they expect
the Chief Executive Officer and Chief Investment Officer of Amundi Pioneer to
remain in their current positions and that they do not currently foresee major
changes in the day-to-day investment management operations of Amundi Pioneer as
a direct result of the Transaction, or the risk management, legal or compliance
services provided by Amundi Pioneer, with respect to the Fund. They further
considered the current incentive arrangements for key personnel of Amundi
Pioneer that would continue after the closing of the Transaction. They also
noted Amundi's stated intention to establish a new long-term incentive plan
following the closing.
The Trustees also took into account their experience in evaluating the proposed
combination of Pioneer Investments and Santander Asset Management, which was
announced in September, 2014 and abandoned in July, 2016. In light of, among
other things, this experience, the Trustees determined that they were not able
to identify any realistic alternatives to approving the New Management Agreement
that would provide the level of services to the Fund and its shareholders that
are expected to be provided by Amundi Pioneer after the closing of the
Transaction.
132 Pioneer Solutions Funds | Annual Report | 7/31/17
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that Amundi Pioneer would continue to provide to the
Fund under the New Management Agreement would be satisfactory and consistent
with the terms of the New Management Agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly reviewed and
discussed throughout the year data prepared by Amundi Pioneer and information
comparing the Fund's performance with the performance of its peer group of
funds, as classified by each of Morningstar, Inc. (Morningstar) and Lipper, and
the performance of the Fund's benchmark index. They also discussed the Fund's
performance with Amundi Pioneer on a regular basis.
The Trustees' regular reviews and discussions were factored into the Trustees'
deliberations concerning the approval of the New Management Agreement.
Management Fee and Expenses
The Trustees noted that the stated management fees to be paid by the Fund are
identical under the Current Management Agreement and the New Management
Agreement. The Trustees considered information showing the fees and expenses of
the Fund in comparison to the management fees and expense ratios of its peer
group of funds as classified by Morningstar and also to the expense ratios of a
peer group of funds selected on the basis of criteria determined by the
Independent Trustees for this purpose using data provided by Strategic Insight
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners. To the extent applicable, the Trustees also
considered the impact of transfer agency, sub-transfer agency, and other
non-management fee expenses on the expense ratios of the Fund. The Trustees
noted that they separately review the Fund's transfer agency, sub-transfer
agency and intermediary arrangements and that the results of the most recent
such review were considered in the consideration of the Fund's expense ratio.
The Trustees considered that the Fund's management fee as of September 30, 2016
was in the third quintile relative to the management fees paid by other funds in
its Morningstar category for the comparable period. The Trustees also considered
the breakpoints in the management fee schedule and the reduced fee rates above
certain asset levels. The Trustees considered that the expense ratio of the
Fund's Class A shares as of September 30, 2016 was in the fourth quintile
relative to its Morningstar category and in the fifth quintile relative to its
Strategic Insight peer group, in each case for the comparable period. The
Trustees noted that Amundi Pioneer had agreed to waive fees and/or reimburse
expenses in order to limit the ordinary operating expenses of the
Pioneer Solutions Funds | Annual Report | 7/31/17 133
Fund. The Trustees noted the Fund's relatively small asset size compared to most
of the other funds in its peer groups. The Trustees noted the impact of expenses
relating to small accounts and omnibus accounts on transfer and sub-transfer
agency expenses generally. The Trustees considered that non-management fee
operating expenses generally are spread over a smaller asset base than the other
funds in the peer group, which results in these fees being significantly higher
as a percentage of assets. The Trustees also considered information showing
significant expense reimbursements by the sponsors of the other funds in the
peer groups.
The Trustees reviewed management fees charged by Amundi Pioneer and Amundi
Pioneer Institutional to institutional and other clients, including publicly
offered European funds sponsored by Amundi Pioneer's affiliates, unaffiliated
U.S. registered investment companies (in a sub-advisory capacity), and
unaffiliated foreign and domestic separate accounts. The Trustees also
considered Amundi Pioneer's costs in providing services to the Fund and Amundi
Pioneer's and Amundi Pioneer Institutional's costs in providing services to the
other clients and considered the differences in management fees and profit
margins for fund and non-fund services. In evaluating the fees associated with
Amundi Pioneer's and Amundi Pioneer Institutional's client accounts, the
Trustees took into account the respective demands, resources and complexity
associated with the Fund and other client accounts. The Trustees noted that in
some instances the fee rates for those clients were lower than the management
fee for the Fund and considered that, under both the Current Management
Agreement and the New Management Agreement, Amundi Pioneer would perform
additional services for the Fund that it does not provide to those other clients
or services that are broader in scope, including oversight of the Fund's other
service providers and activities related to compliance and the extensive
regulatory and tax regimes to which the Fund is subject. The Trustees also
considered the different risks associated with Amundi Pioneer's management of
the Fund and Amundi Pioneer's and Amundi Pioneer Institutional's management of
the other client accounts.
The Trustees concluded that the management fee payable by the Fund to Amundi
Pioneer was reasonable in relation to the nature and quality of the services to
be provided by Amundi Pioneer.
Profitability
The Trustees considered information provided by Amundi Pioneer regarding the
profitability of Amundi Pioneer with respect to the advisory services provided
by Amundi Pioneer to the Fund, including the methodology used by Amundi Pioneer
in allocating certain of its costs to the management of the Fund. The Trustees
also considered Amundi Pioneer's profit margin in connection with the overall
operation of the Fund. They further reviewed the
134 Pioneer Solutions Funds | Annual Report | 7/31/17
financial results, including the profit margins, realized by Amundi Pioneer and
Amundi Pioneer Institutional from non-fund businesses. The Trustees considered
Amundi Pioneer's profit margins with respect to the Fund in comparison to the
limited industry data available and noted that the profitability of any adviser
was affected by numerous factors, including its organizational structure and
method for allocating expenses. The Trustees concluded that Amundi Pioneer's
profitability with respect to the management of the Fund was not unreasonable.
Economies of Scale
The Trustees considered Amundi Pioneer's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with the Fund and Fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify, and that, among other factors that may be relevant, are the following:
fee levels, expense subsidization, investment by Amundi Pioneer in research and
analytical capabilities and Amundi Pioneer's commitment and resource allocation
to the Fund. The Trustees noted that profitability also may be an indicator of
the availability of any economies of scale, although profitability may vary for
other reasons including due to reductions in expenses. The Trustees concluded
that economies of scale, if any, were being appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits that Amundi Pioneer enjoys from its
relationship with the Fund. The Trustees considered the character and amount of
fees paid or to be paid by the Fund, other than under the Current Management
Agreement or the New Management Agreement, for services provided by Amundi
Pioneer and its affiliates. The Trustees further considered the revenues and
profitability of Amundi Pioneer's businesses other than the Fund business. To
the extent applicable, the Trustees also considered the benefits to the Fund and
to Amundi Pioneer and its affiliates from the use of "soft" commission dollars
generated by the Fund to pay for research and brokerage services.
The Trustees considered that following the completion of the Transaction, Amundi
Pioneer will be the principal U.S. asset management business of Amundi, and that
Amundi's worldwide asset management business will manage over $1.38 trillion in
assets (including the Pioneer Funds). This may create opportunities for Amundi
Pioneer, Amundi Pioneer Institutional and Amundi that derive from Amundi
Pioneer's relationships with the Fund, including Amundi's ability to market the
services of Amundi Pioneer globally. The Trustees noted that Amundi Pioneer may
have access to additional
Pioneer Solutions Funds | Annual Report | 7/31/17 135
research capabilities as a result of the Transaction and Amundi's enhanced
global presence that may contribute to an increase of the overall scale of
Amundi Pioneer. The Trustees considered that Amundi Pioneer and the Fund are
expected to receive reciprocal intangible benefits from the relationship,
including mutual brand recognition and, for the Fund, direct and indirect access
to the resources of a large global asset manager. The Trustees concluded that
any such benefits received by Amundi Pioneer as a result of its relationship
with the Fund were reasonable.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including the Independent Trustees, concluded that the New Management
Agreement and the Interim Management Agreement for the Fund, including the fees
payable thereunder, were fair and reasonable and voted to approve the New
Management Agreement and the Interim Management Agreement, and to recommend that
shareholders approve the New Management Agreement.
136 Pioneer Solutions Funds | Annual Report | 7/31/17
Trustees, Officers and Service Providers
Investment Adviser
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at www.amundipioneer.com. This information is also available on the Securities
and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations and other directorships they have held during at least the past five
years. Trustees who are interested persons of the Fund within the meaning of the
1940 Act are referred to as Interested Trustees. Trustees who are not interested
persons of the Fund are referred to as Independent Trustees. Each of the
Trustees serves as a Trustee of each of the 46 U.S. registered investment
portfolios for which Amundi Pioneer serves as investment adviser (the "Pioneer
Funds"). The address for all Trustees and all officers of the Fund is 60 State
Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Solutions Funds | Annual Report | 7/31/17 137
Independent Trustees
-----------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
-----------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (66) Trustee since 2006. Private investor (2004 - 2008 and 2013 - Director, Broadridge
Chairman of the Board Serves until a present); Chairman (2008 - 2013) and Chief Financial Solutions, Inc.
and Trustee successor trustee is Executive Officer (2008 - 2012), Quadriserv, (investor communications
elected or earlier Inc. (technology products for securities and securities processing
retirement or removal. lending industry); and Senior Executive Vice provider for financial
President, The Bank of New York (financial and services industry) (2009 -
securities services) (1986 - 2004) present); Director,
Quadriserv, Inc. (2005 -
2013); and Commissioner,
New Jersey State Civil
Service Commission (2011 -
2015)
-----------------------------------------------------------------------------------------------------------------------------------
David R. Bock (73) Trustee since 2005. Managing Partner, Federal City Capital Director of New York
Trustee Serves until a Advisors (corporate advisory services company) Mortgage Trust
successor trustee is (1997 - 2004 and 2008 - present); Interim (publicly-traded mortgage
elected or earlier Chief Executive Officer, Oxford Analytica, REIT) (2004 - 2009, 2012 -
retirement or removal. Inc. (privately held research and consulting present); Director of The
company) (2010); Executive Vice President and Swiss Helvetia Fund, Inc.
Chief Financial Officer, I-trax, Inc. (closed-end fund) (2010 -
(publicly traded health care services company) present); Director of
(2004 - 2007); and Executive Vice President Oxford Analytica, Inc.
and Chief Financial Officer, Pedestal Inc. (2008 - present); and
(internet-based mortgage trading company) Director of Enterprise
(2000 - 2002); Private Consultant (1995 - Community Investment, Inc.
1997); Managing Director, Lehman Brothers (privately-held affordable
(1992 - 1995); Executive, The World Bank (1979 housing finance company)
- 1992) (1985 - 2010)
-----------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (72) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon
Trustee Serves until a Economy, Harvard University (1972 - present) Institutional Funds
successor trustee is Investment Trust and
elected or earlier Mellon Institutional Funds
retirement or removal. Master Portfolio (oversaw
17 portfolios in fund
complex) (1989 - 2008)
-----------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (70) Trustee since 2004. Founding Director, Vice-President and None
Trustee Serves until a Corporate Secretary, The Winthrop Group, Inc.
successor trustee is (consulting firm) (1982 - present); Desautels
elected or earlier Faculty of Management, McGill University (1999
retirement or removal. - present); and Manager of Research Operations
and Organizational Learning, Xerox PARC,
Xerox's advance research center (1990-1994)
-----------------------------------------------------------------------------------------------------------------------------------
138 Pioneer Solutions Funds | Annual Report | 7/31/17
-----------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
-----------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (61) Trustee since 2017. Chief Investment Officer, 1199 SEIU Funds None
Trustee (Advisory Trustee from (healthcare workers union pension funds) (2001
2014 - 2017) Serves - present); Vice President - International
until a successor Investments Group, American International
trustee is elected or Group, Inc. (insurance company) (1993 - 2001);
earlier retirement or Vice President, Corporate Finance and Treasury
removal. Group, Citibank, N.A. (1980 - 1986 and 1990 -
1993); Vice President - Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer of
debt securities) (1988 - 1990); Mortgage
Strategies Group, Shearson Lehman Hutton, Inc.
(investment bank) (1987 - 1988); Mortgage
Strategies Group, Drexel Burnham Lambert, Ltd.
(investment bank) (1986 - 1987)
-----------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (69) Trustee since 2004. President and Chief Executive Officer, Newbury Director of New America
Trustee Serves until a Piret Company (investment banking firm) (1981 High Income Fund, Inc.
successor trustee is - present) (closed-end investment
elected or earlier company) (2004 - present);
retirement or removal. and Member, Board of
Governors, Investment
Company Institute (2000 -
2006)
-----------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (70) Trustee since 2014. Consultant (investment company services) (2012 None
Trustee Serves until a - present); Executive Vice President, BNY
successor trustee is Mellon (financial and investment company
elected or earlier services) (1969 - 2012); Director, BNY
retirement or removal. International Financing Corp. (financial
services) (2002 - 2012); Director, Mellon
Overseas Investment Corp. (financial services)
(2009 - 2012)
-----------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions Funds | Annual Report | 7/31/17 139
Interested Trustees
-----------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
-----------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (55)* Trustee since 2017. Chair, Director, CEO and President of Amundi None
Trustee, President and Serves until a Pioneer Asset Management USA, Inc. (since
Chief Executive Officer successor trustee is September 2014); Chair, Director and CEO of
elected or earlier Amundi Pioneer Asset Management, Inc. (since
retirement or removal September 2014); Chair, Director and CEO of
Amundi Pioneer Distributor, Inc. (since
September 2014); Chair, Director, CEO and
President of Amundi Pioneer Institutional
Asset Management, Inc. (since September 2014);
Managing Director, Morgan Stanley Investment
Management (2010 - 2013); Director of
Institutional Business, CEO of International,
Eaton Vance Management (2005 - 2010)
-----------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (59)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer, U.S.
successor trustee is (since 2010) of Amundi Pioneer Asset
elected or earlier Management USA, Inc.; Executive Vice President
retirement or removal and Chief Investment Officer, U.S. of Amundi
Pioneer (since 2008); Executive Vice President
of Amundi Pioneer Institutional Asset
Management, Inc. (since 2009); Portfolio
Manager of Amundi Pioneer (since 1999)
-----------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers
or directors of the Fund's investment adviser and certain of its
affiliates.
140 Pioneer Solutions Funds | Annual Report | 7/31/17
Fund Officers
-----------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
-----------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (52) Since 2004. Serves at Vice President and Associate General Counsel None
Secretary and the discretion of the of Amundi Pioneer since January 2008;
Chief Legal Officer Board. Secretary and Chief Legal Officer of all of
the Pioneer Funds since June 2010; Assistant
Secretary of all of the Pioneer Funds from
September 2003 to May 2010; Vice President
and Senior Counsel of Amundi Pioneer from
July 2002 to December 2007
-----------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (56) Since 2010. Serves at Fund Governance Director of Amundi Pioneer None
Assistant Secretary the discretion of the since December 2006 and Assistant Secretary
Board. of all the Pioneer Funds since June 2010;
Manager - Fund Governance of Amundi Pioneer
from December 2003 to November 2006; and
Senior Paralegal of Amundi Pioneer from
January 2000 to November 2003
-----------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (54) Since 2010. Serves at Senior Counsel of Amundi Pioneer since May None
Assistant Secretary the discretion of the 2013 and Assistant Secretary of all the
Board. Pioneer Funds since June 2010; Counsel of
Amundi Pioneer from June 2007 to May 2013
-----------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (57) Since 2008. Serves at Vice President - Fund Treasury of Amundi None
Treasurer and Chief the discretion of the Pioneer; Treasurer of all of the Pioneer
Financial and Board. Funds since March 2008; Deputy Treasurer of
Accounting Officer Amundi Pioneer from March 2004 to February
2008; and Assistant Treasurer of all of the
Pioneer Funds from March 2004 to February
2008
-----------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (52) Since 2004. Serves at Director - Fund Treasury of Amundi Pioneer; None
Assistant Treasurer the discretion of the and Assistant Treasurer of all of the Pioneer
Board. Funds
-----------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (59) Since 2004. Serves at Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer the discretion of the Amundi Pioneer; and Assistant Treasurer of
Board. all of the Pioneer Funds
-----------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (37) Since 2009. Serves at Fund Administration Manager - Fund Treasury None
Assistant Treasurer the discretion of the of Amundi Pioneer since November 2008;
Board. Assistant Treasurer of all of the Pioneer
Funds since January 2009; Client Service
Manager - Institutional Investor Services at
State Street Bank from March 2003 to March
2007
-----------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions Funds | Annual Report | 7/31/17 141
Fund Officers (continued)
-----------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
-----------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (64) Since 2010. Serves at Chief Compliance Officer of Amundi Pioneer and None
Chief Compliance Officer the discretion of the of all the Pioneer Funds since March 2010;
Board. Chief Compliance Officer of Amundi Pioneer
Institutional Asset Management, Inc. since
January 2012; Chief Compliance Officer of
Vanderbilt Capital Advisors, LLC since July
2012: Director of Adviser and Portfolio
Compliance at Amundi Pioneer since October
2005; Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to
October 2005
-----------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (46) Since 2006. Serves at Director - Transfer Agency Compliance of None
Anti-Money Laundering Officer the discretion of the Amundi Pioneer and Anti-Money Laundering
Board. Officer of all the Pioneer Funds since 2006
-----------------------------------------------------------------------------------------------------------------------------------
142 Pioneer Solutions Funds | Annual Report | 7/31/17
This page is for your notes.
Pioneer Solutions Funds | Annual Report | 7/31/17 143
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144 Pioneer Solutions Funds | Annual Report | 7/31/17
This page is for your notes.
Pioneer Solutions Funds | Annual Report | 7/31/17 145
This page is for your notes.
146 Pioneer Solutions Funds | Annual Report | 7/31/17
This page is for your notes.
Pioneer Solutions Funds | Annual Report | 7/31/17 147
This page is for your notes.
148 Pioneer Solutions Funds | Annual Report | 7/31/17
How to Contact Amundi 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
Write to us:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.amundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule 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 http://www.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.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2017 Amundi Pioneer Asset Management 19417-11-0917
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 12(a)(1), 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 (see attachment);
(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.
The audit fees for the Trust were $78,000
payable to Ernst & Young LLP for the year ended
July 31, 2017 and $106,661 payable to Deloitte & Touche LLP
for the year ended July 31, 2016.
(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.
There were no audit-related services in 2017 or 2016.
(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.
The tax fees for the Trust were $24,084
payable to Ernst & Young LLP for the year ended
July 31, 2017 and $16,884 payable to Deloitte & Touche LLP
for the year ended July 31, 2016.
(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.
There were no other fees in 2017 or 2016.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Trust'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 Trust. For the
years ended July 31 2017 and 2016, there were no
services provided to an affiliate that required the
Trust's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants 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 registrants accountant
for services rendered to the registrant, and rendered to the registrants
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 Trust were $24,084
payable to Ernst & Young LLP for the year ended
July 31, 2017 and $16,884 payable to Deloitte & Touche LLP
for the year ended July 31, 2016.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants 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 registrant's 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 of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
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 registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's 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 registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
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 registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
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 registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R 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 and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
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.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) 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.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
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 Asset Allocation Trust
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date January 3, 2018
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/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date January 3, 2018
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date January 3, 2018
* Print the name and title of each signing officer under his or her signature.