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, Amundi Pioneer Asset 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, 2017 through July 31, 2018
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 --
Balanced Fund
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Annual Report | July 31, 2018
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Ticker Symbols:
Class A PIALX
Class C PIDCX
Class R BALRX
Class Y IMOYX
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 20
Schedule of Investments 22
Financial Statements 24
Notes to Financial Statements 33
Report of Independent Registered Public Accounting Firm 51
Additional Information 53
Trustees, Officers and Service Providers 55
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 1
President's Letter
Over the first half of 2018, the U.S. stock market, as measured by the
Standard & Poor's 500 Index (the S&P 500), has returned 2.65%, while bond
markets, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, have
been negative, returning -1.62%. While the markets have delivered somewhat
mixed and tepid returns, we have observed the U.S. Federal Reserve System (the
Fed) continuing to tighten monetary policy by increasing interest rates in both
March and June, and moving forward with the tapering of its balance sheet, a
process which began in October 2017. The Fed also signaled the potential for
two additional rate hikes before the end of this year, given robust economic
growth and the potential for rising inflation.
Although domestic equities gained ground during the first six months of the
year, the investment backdrop proved more challenging compared to the favorable
conditions of the past two years. On the positive side, stocks continued to
benefit from the underpinnings of robust domestic economic growth, lower tax
rates, and rising corporate earnings. At the same time, however, day-to-day
market volatility began to pick up in response to worries about rising interest
rates and uncertainty regarding U.S. trade policy. In fact, while the S&P 500
Index was positive for the first half of the year, the majority of its gain
occurred in January, as stocks suffered a steep sell-off in early February and
spent the rest of the six months ended June 30, 2018, regaining lost ground.
Across the fixed-income space, rising interest rates have helped drive down
returns of most asset classes, though the floating-rate sector, which includes
bank loans, has fared well in the rising-rate environment. In addition,
structured sectors, such as asset-backed securities (ABS) and mortgage-backed
securities (MBS), have generally outperformed Treasuries. Agency MBS, in
particular, have performed well as the housing market has continued to show
strength, despite rising interest rates and rising home prices.
Although we have experienced an increase in volatility in the equity markets,
looking ahead, we have not changed our outlook and still have a constructive
view of U.S. stocks, especially given other investment alternatives. Economic
growth continues to improve and overall equity valuations -- while elevated in
the growth segment of the market -- in our view, are not excessive. In
addition, U.S. gross domestic product (GDP) growth remains strong, coming in at
above 2% for the first quarter of 2018, with projections of a continued, if not
increasing growth rate for the second quarter.
2 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
In fixed income, we believe that attractive investment opportunities still
exist, even with interest rates on the rise. In general, our core fixed-income
portfolios remain underweight to nominal U.S. Treasuries, which are sensitive
to the rising-rate environment. We have, however, allocated assets to Treasury
inflation-protected securities, or TIPS, which are indexed to inflation in
order to protect against its negative effects. In addition, we believe
investors should be selective when investing in the investment-grade bond
sector, as the use of leverage by corporations to fund mergers and acquisitions
as well as stock buybacks and dividend increases has risen significantly. We
continue to see more attractive valuations within structured investment
vehicles, such as residential MBS, as fundamentals within the U.S. housing
market are solid and U.S. consumer sentiment remains positive.
We believe this year's market fluctuations have served to remind investors of
the importance of active management. Since 1928, active management has been the
foundation of Amundi Pioneer's investment approach. We believe active
management is especially important during periods of volatility, and that our
shareowners can benefit from the experience and tenure of our investment teams,
who work collaboratively to make active and informed decisions across our
funds.
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.
/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, 2018
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 -- Balanced Fund | Annual Report | 7/31/18 3
Portfolio Management Discussion | 7/31/18
In the following interview, portfolio managers Kenneth Taubes and Marco
Pirondini discuss the market environment over the 12-month period ended
July 31, 2018, and the investment strategies applied to Pioneer Solutions --
Balanced Fund during the period. Mr. Taubes, Executive Vice President, Chief
Investment Officer, U.S., and a portfolio manager at Amundi Pioneer Asset
Management, Inc. ("Amundi Pioneer"), and Mr. Pirondini, Senior Managing
Director, Head of Equities, U.S., and a portfolio manager at Amundi Pioneer,
assumed responsibility for the day-to-day management of the Fund on January 26,
2018. Prior to January 26, 2018, the Fund's management team was comprised of
Paul Weber, John O'Toole, and Salvatore Buono, working out of Amundi Pioneer's
offices in Dublin, Ireland.
Q How did the Fund perform over the 12-month period ended July 31, 2018?
A The Fund's Class A shares returned 3.79% at net asset value during the
12-month period ended July 31, 2018, while the Fund's current blended
benchmark returned 6.74% and the Fund's previous blended benchmark
returned 5.47% *. During the same period, the Fund's market benchmarks,
the Bloomberg Barclays U.S. Aggregate Bond Index and the Morgan Stanley
Capital International Index (MSCI) World ND Index1, returned -0.80% and
11.88%, respectively, while the average return of the 462 mutual funds in
Morningstar's World Allocation Funds category was 5.05%.
Q Could you characterize the economic and market backdrop during the
12-month period ended July 31, 2018?
A Entering the period, market sentiment for riskier investments was buoyed
by continued improvement in the domestic economy. Conditions overseas were
likewise strong, and U.S. corporate profits continued to soar against a
backdrop of globally synchronized economic growth. With the U.S.
unemployment rate on the verge of falling below 4%, companies were
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.
* Effective January 26, 2018, the Fund's blended benchmark is comprised of
60% MSCI World ND Index/40% Bloomberg Barclays U.S. Aggregate Bond Index.
Prior to January 26, 2018, the blended benchmark represented a 50%/50%
split between the MSCI World ND Index and the Bloomberg Barclays U.S.
Aggregate Bond Index.
4 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
experiencing a shortage of skilled labor and voluntary worker departures
were on the rise, raising hopes that meaningful wage increases would be
forthcoming. The developments were reflected in consumer confidence
surveys, which hovered at historically strong levels in late 2017.
On the policy front, in October of 2017 the Federal Reserve (the Fed)
began tapering its reinvestment of maturing principal into the agency debt
and mortgage-backed security (MBS) markets. The plan to taper the Fed's
balance sheet had been well communicated in advance, and so the actual
implementation caused little stir with respect to long-term interest
rates. Similarly, the Fed's December 2017 increase in the federal funds
rate, its benchmark overnight lending rate, was well absorbed by the
markets.
As 2017 drew to a close, Congress passed a tax bill that lowered the
statutory corporate tax rate from 35% to 21%, permitted a one-time
repatriation of corporate cash at a favorable tax rate, and expanded the
ability of companies to expense capital investment. The bill's provisions
were viewed by investors as likely to further boost economic growth,
corporate profits, and credit-market fundamentals.
Markets started 2018 on a positive note, with solid performance driven in
part by upgraded corporate earnings estimates based on the recent tax cuts
as well as strong economic activity. However, stocks plummeted in early
February as a strong January employment report raised inflation
expectations and drove long-term Treasury yields higher, with the closely
watched 10-year Treasury bond yield threatening to hit 3%. Stocks would
recover much of the lost ground before dipping again in March, as the
White House announced tariffs on aluminum and steel and ratcheted up trade
rhetoric, while revelations about Facebook's handling of user data
resulted in calls by some for increased regulation of technology
companies.
The broad stock indices would eventually retrace their highs attained in
the immediate wake of tax reform, as the market generally trended upward
over the last four months of the 12-month period, supported by the
continued economic expansion. In June, the Fed raised the federal funds
rate for the second time in 2018, and projected a total of four increases
for the calendar year rather than three. Trade tensions continued to put
something of a ceiling on investor sentiment, however, as after months of
harsh rhetoric, July saw the U.S. and China unveil matching plans for
tariffs totaling in the billions. Stocks also faced a headwind from higher
bond yields, as the early 2018 upward shift in the Treasury yield curve
was sustained through the end of July.
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 5
For the 12 months ended July 31, 2018, global equities in aggregate
returned 11.88%, as measured by the MSCI World Index (the MSCI Index). The
U.S. equity market returned 16.24%, as measured by the Standard & Poor's
500 Index, while developed market international equities returned 6.40%,
as gauged by the MSCI Europe, Australasia, Far East Index. Meanwhile,
emerging markets equities returned 4.36%, as indicated by the MSCI
Emerging Markets Index.
Fixed-income markets did not fare nearly as well, as the Bloomberg
Barclays U.S. Aggregate Bond Index, a widely used measure of the
performance of the investment-grade U.S. bond market, returned -0.80%.
Q What were the considerations and tactical shifts that were applied to the
Fund in allocating assets during the 12-month period ended July 31, 2018,
and how did your investment decisions affect benchmark-relative
performance?
A In broad terms, we positioned the Fund with a constructive view on riskier
assets over the 12-months, though the extent of the portfolio's overweight
risk posture fluctuated during the period. We conducted a modest portfolio
repositioning toward greater equity exposure over the second half of the
period, resulting in an equity weighting of approximately 60% of the
Fund's invested assets.
Security selection results within the Fund's equity allocation detracted
from performance during the period. Specifically, among U.S. equities, the
Fund's allocation was tilted toward value stocks, which lagged their
growth counterparts over the 12 months. In addition, we emphasized
European and Japanese equities over U.S. equities for most of the period,
which resulted in modest underperformance as mounting trade tensions had a
greater effect on foreign markets.
With respect to fixed-income investments, we maintained a portfolio
overweight to credit-sensitive securities (versus interest-rate sensitive
investments) early in the period, as we found the incremental income
attractive relative to other asset classes. We ultimately reduced the
overweight exposure to credit over the second half of the period, in favor
of an increased equity allocation as well as short-term cash equivalents
to maintain portfolio liquidity.
Security selection results in the U.S. fixed-income allocation were a
positive contributor to the Fund's returns, as both our core and flexible
bond strategies outperformed. In terms of the Fund's currency exposures, a
long position in the Malaysian ringgit versus the U.S. dollar aided
performance, while a long position in the U.S. dollar versus the euro
detracted.
6 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
Q Did you invest the Fund in any derivative securities during the 12-month
period ended July 31, 2018? If so, did the derivatives have an effect on
the Fund's benchmark-relative performance?
A The Fund historically employed the use of forwards, futures, and options
-- where the underlying instruments included fixed-income indices, equity
indices, and currency pairs. The primary objective of investing in such
derivatives was to help mitigate portfolio risk. Upon the transition to
the new portfolio management team in late-January 2018, tactical
derivative usage no longer constitutes a regular component of the Fund's
investment strategy. (However, the Fund is still permitted to invest in
derivatives.)
Q What is your outlook as we move deeper into the second half of 2018?
A As of July 31, 2018, the new portfolio management team completed its
restructuring of the Fund's portfolio, which began after the team assumed
management responsibilities in January. Political rhetoric aside, our
assessment of the macroeconomic picture supports anticipation of further
expansion. Consequently, we have a preference for stocks over bonds.
U.S. real gross domestic product (GDP) growth came in at 4.1% for the
second quarter of 2018, and corporate profit growth has remained healthy,
fueled by tempered unit-labor costs relative to productivity. Meanwhile,
the Fed continues to implement a tightening regimen with regard to
monetary policy, which has led short-term Treasury yields to rise even as
longer rates remain compressed. While many strategists and economists
point to historical experience -- where flat-to-inverted yield curves have
portended upcoming recessions -- we remain unconvinced of that conclusion.
A paucity of supply, coupled with fixed (and growing) demand sources for
longer-dated paper (securities) has impaired price action at the far, or
longer end of the yield curve, thus limiting forecasting capacity, in our
opinion.
Accordingly, the absence of evidence suggesting a weakening of economic
growth or eroding support, plus recognition of the fact that fixed-income
markets continue to offer underwhelming value, have motivated our decision
to shift the Fund's allocation toward greater equity exposure.
While recent negative headlines with regard to trade policy have succeeded
in somewhat dampening investor enthusiasm and raising the spectre of
recession, we expect that agreements among key trade partners will
eventually be reached. In the absence of persistent uncertainty, we
believe the present state of the global economy warrants maintenance of a
constructive attitude, and so equities remain attractive relative to other
available asset classes, in our view.
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 7
Please refer to the Schedule of Investments on pages 22-23 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.
Pioneer Solutions -- Balanced Fund is a "fund-of-funds" which seeks to achieve
its investment objectives by investing primarily in funds managed by Amundi
Pioneer or one of its affiliates, rather than direct position in securities.
The Fund's performance depends 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 Fund's 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 Fund's 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 Fund
will generally fall. Conversely, when interest rates fall, the prices of fixed
income securities in the Fund will generally rise.
Investments in the Fund 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.
The portfolios invests in real estate investment trust (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 Fund 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.
8 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
The Fund 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 Fund 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.
Some of the underlying funds employ leverage, which increases the volatility of
investment returns and subjects the Fund to magnified losses if an underlying
fund's investments decline in value. 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 Fund 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 Fund holds cash
uninvested, the Fund will not earn income on the cash and the Fund's yield will
go down. These risks may increase share price volatility.
There is no assurance that these and other strategies used by the Fund will be
successful. Please see the prospectus for a more complete discussion of the
Fund's risks.
Before making an investment in any fund, you should consider all the risks
associated with it.
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 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 -- Balanced Fund | Annual Report | 7/31/18 9
Portfolio Summary | 7/31/18
Asset Allocations
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(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Balanced/Flexible 40.7%
International Equities 25.6%
Fixed Income 21.7%
U.S. Equities 12.0%
Actual Portfolio Holdings
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(As a percentage of total investments)*
Balanced/Flexible
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Pioneer Multi-Asset Income Fund Class K 25.18%
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Pioneer Flexible Opportunities Fund
Class K 15.54
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International Equities
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Pioneer International Equity Fund
Class Y 14.34%
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Pioneer Global Equity Fund Class K 11.23
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Fixed Income
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Pioneer Multi-Asset Ultrashort Income
Fund Class K 11.52%
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Pioneer Strategic Income Fund
Class K 3.61
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Pioneer ILS Interval Fund 3.06
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Pioneer Dynamic Credit Fund Class Y 2.00
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Pioneer Floating Rate Fund Class Y 1.00
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Pioneer Bond Fund Class K 0.50
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U.S. Equities
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Pioneer Core Equity Fund Class K 9.99%
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Pioneer Disciplined Value Fund Class Y 1.02
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Pioneer Equity Income Fund Class K 1.01
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Annual and semiannual reports for the underlying Pioneer funds may be obtained
on the funds' web page(s) at amundipioneer.com.
* Excludes temporary cash investments and all derivative contracts except
for options purchased. The Fund is actively managed, and current holdings
may be different. The holdings listed should not be considered
recommendations to buy or sell any securities listed.
10 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
Prices and Distributions | 7/31/18
Net Asset Value per Share
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Class 7/31/18 7/31/17
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A $12.12 $11.89
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C $11.12 $10.92
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R $12.04 $11.83
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Y $12.29 $12.06
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Distributions per Share: 8/1/17-7/31/18
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Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
-------------------------------------------------------------------
A $0.2221 $ -- $ --
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C $0.1393 $ -- $ --
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R $0.2056 $ -- $ --
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Y $0.2472 $ -- $ --
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Index Definitions
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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 12-19.
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 11
Performance Update | 7/31/18 Class A Shares
Investment Returns
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The mountain chart below 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, and the Fund's current and
former blended benchmarks**.
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
60% MSCI 50% MSCI
World ND World ND
Index and Index and
40% BBG 50% BBG
Barclays Barclays
U.S. U.S.
Bloomberg Aggregate Aggregate
Pioneer Barclays (BBG) Bond Index Bond Index
Solutions - U.S. (Current (Former
Balanced Aggregate MSCI World Blended Blended
Fund Bond Index ND Index Benchmark) Benchmark)
7/08 $ 9,425 $10,000 $10,000 $10,000 $10,000
7/09 $ 8,369 $10,785 $ 7,839 $ 9,014 $ 9,310
7/10 $ 9,479 $11,745 $ 8,610 $ 9,903 $10,221
7/11 $10,703 $12,266 $10,206 $11,190 $11,406
7/12 $10,673 $13,156 $10,004 $11,431 $11,760
7/13 $12,201 $12,906 $12,328 $12,873 $12,944
7/14 $13,480 $13,418 $14,296 $14,305 $14,229
7/15 $13,929 $13,797 $15,000 $14,904 $14,795
7/16 $13,635 $14,616 $14,931 $15,253 $15,238
7/17 $14,595 $14,540 $17,338 $16,657 $16,386
7/18 $15,147 $14,424 $19,398 $17,779 $17,282
Average Annual Total Returns
(As of July 31, 2018)
-------------------------------------------------------------------------------------------------------------------
Current Blended Former Blended
Benchmark Benchmark
Public Bloomberg (60% MSCI World ND (50% MSCI World ND
Net Asset Offering Barclays Index/40% Bloomberg Index/50% Bloomberg
Value Price U.S. Aggregate MSCI World Barclays Aggregate Barclays U.S. Aggregate
Period (NAV) (POP) Bond Index ND Index Bond Index) Bond Index)
-------------------------------------------------------------------------------------------------------------------
10 years 4.86% 4.24% 3.73% 6.85% 5.92% 5.62%
5 years 4.42 3.19 2.25 9.49 6.67 5.95
1 year 3.79 -2.18 -0.80 11.88 6.74 5.47
-------------------------------------------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2018)
-------------------------------------------
Gross
-------------------------------------------
1.23%
-------------------------------------------
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.
** From January 31, 2008 through January 25, 2018, the Fund's former blended
benchmark represented a 50%/50% split between the MSCI World ND Index and
the Bloomberg Barclays Aggregate Bond Index. On January 26, 2018, the
Fund's current blended benchmark changed to a mix of 60% MSCI World ND
Index/40% Bloomberg Barclays Aggregate Bond Index.
(Please see the following page for additional performance and expense
disclosure)
12 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
NAV results represent the percent change in net asset value per share. NAV
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.
Effective January 26, 2018, the Fund compares its performance to a blended
benchmark consisting of 60% MSCI World ND Index and 40% Bloomberg Barclays U.S.
Aggregate Bond Index (the "current blended benchmark" shown in the performance
table on the previous page). Prior to January 26, 2018, the Fund compared its
performance to a blended benchmark consisting of 50% MSCI World ND Index and
50% Bloomberg Barclays U.S. Aggregate Bond Index (the "former blended
benchmark" shown in the performance table on the previous page). Amundi Pioneer
believes that the current blended benchmark better reflects the Fund's
investment strategies.
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 -- Balanced Fund | Annual Report | 7/31/18 13
Performance Update | 7/31/18 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart below 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, and the Fund's current and former blended
benchmarks**.
Value of $10,000 Investment
60% MSCI 50% MSCI
World ND World ND
Index and Index and
40% BBG 50% BBG
Barclays Barclays
U.S. U.S.
Bloomberg Aggregate Aggregate
Pioneer Barclays (BBG) Bond Index Bond Index
Solutions - U.S. (Current (Former
Balanced Aggregate MSCI World Blended Blended
Fund Bond Index ND Index Benchmark) Benchmark)
7/08 $10,000 $10,000 $10,000 $10,000 $10,000
7/09 $ 8,815 $10,785 $ 7,839 $ 9,014 $ 9,310
7/10 $ 9,911 $11,745 $ 8,610 $ 9,903 $10,221
7/11 $11,112 $12,266 $10,206 $11,190 $11,406
7/12 $10,992 $13,156 $10,004 $11,431 $11,760
7/13 $12,483 $12,906 $12,328 $12,873 $12,944
7/14 $13,694 $13,418 $14,296 $14,305 $14,229
7/15 $14,056 $13,797 $15,000 $14,904 $14,795
7/16 $13,661 $14,616 $14,931 $15,253 $15,238
7/17 $14,517 $14,540 $17,338 $16,657 $16,386
7/18 $14,965 $14,424 $19,398 $17,779 $17,282
Average Annual Total Returns
(As of July 31, 2018)
---------------------------------------------------------------------------------------------------------------
Current Blended Former Blended
Benchmark Benchmark
Bloomberg (60% MSCI World ND (50% MSCI World ND
Barclays Index/40% Bloomberg Index/50% Bloomberg
If If U.S. Aggregate MSCI World Barclays Aggregate Barclays U.S. Aggregate
Period Held Redeemed Bond Index ND Index Bond Index) Bond Index)
---------------------------------------------------------------------------------------------------------------
10 years 4.11% 4.11% 3.73% 6.85% 5.92% 5.62%
5 years 3.69 3.69 2.25 9.49 6.67 5.95
1 year 3.09 3.09 -0.80 11.88 6.74 5.47
---------------------------------------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2018)
---------------------------------------
Gross
---------------------------------------
1.93%
---------------------------------------
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.
** From January 31, 2008 through January 25, 2018, the Fund's former blended
benchmark represented a 50%/50% split between the MSCI World ND Index and
the Bloomberg Barclays Aggregate Bond Index. On January 26, 2018, the
Fund's current blended benchmark changed to a mix of 60% MSCI World ND
Index/40% Bloomberg Barclays Aggregate Bond Index.
(Please see the following page for additional performance and expense
disclosure)
14 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
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.
Effective January 26, 2018, the Fund compares its performance to a blended
benchmark consisting of 60% MSCI World ND Index and 40% Bloomberg Barclays U.S.
Aggregate Bond Index (the "current blended benchmark" shown in the performance
table on the previous page). Prior to January 26, 2018, the Fund compared its
performance to a blended benchmark consisting of 50% MSCI World ND Index and
50% Bloomberg Barclays U.S. Aggregate Bond Index (the "former blended
benchmark" shown in the performance table on the previous page). Amundi Pioneer
believes that the current blended benchmark better reflects the Fund's
investment strategies.
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 -- Balanced Fund | Annual Report | 7/31/18 15
Performance Update | 7/31/18 Class R Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart below 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, and the Fund's current and former blended
benchmarks**.
Value of $10,000 Investment
60% MSCI 50% MSCI
World ND World ND
Index and Index and
40% BBG 50% BBG
Barclays Barclays
U.S. U.S.
Bloomberg Aggregate Aggregate
Pioneer Barclays (BBG) Bond Index Bond Index
Solutions - U.S. (Current (Former
Balanced Aggregate MSCI World Blended Blended
Fund Bond Index ND Index Benchmark) Benchmark)
7/08 $10,000 $10,000 $10,000 $10,000 $10,000
7/09 $ 8,880 $10,785 $ 7,839 $ 9,014 $ 9,310
7/10 $10,057 $11,745 $ 8,610 $ 9,903 $10,221
7/11 $11,356 $12,266 $10,206 $11,190 $11,406
7/12 $11,324 $13,156 $10,004 $11,431 $11,760
7/13 $12,946 $12,906 $12,328 $12,873 $12,944
7/14 $14,303 $13,418 $14,296 $14,305 $14,229
7/15 $14,779 $13,797 $15,000 $14,904 $14,795
7/16 $14,433 $14,616 $14,931 $15,253 $15,238
7/17 $15,427 $14,540 $17,338 $16,657 $16,386
7/18 $15,966 $14,424 $19,398 $17,779 $17,282
Average Annual Total Returns
(As of July 31, 2018)
---------------------------------------------------------------------------------------------------------
Current Blended Former Blended
Benchmark Benchmark
Bloomberg (60% MSCI World ND (50% MSCI World ND
Barclays Index/40% Bloomberg Index/50% Bloomberg
Net Asset U.S. Aggregate MSCI World Barclays Aggregate Barclays U.S. Aggregate
Period Value (NAV) Bond Index ND Index Bond Index) Bond Index)
---------------------------------------------------------------------------------------------------------
10 years 4.79% 3.73% 6.85% 5.92% 5.62%
5 years 4.28 2.25 9.49 6.67 5.95
1 year 3.49 -0.80 11.88 6.74 5.47
---------------------------------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2018)
-------------------------------------------------------
Gross Net
-------------------------------------------------------
1.89% 1.46%
-------------------------------------------------------
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.
** From January 31, 2008 through January 25, 2018, the Fund's former blended
benchmark represented a 50%/50% split between the MSCI World ND Index and
the Bloomberg Barclays Aggregate Bond Index. On January 26, 2018, the
Fund's current blended benchmark changed to a mix of 60% MSCI World ND
Index/40% Bloomberg Barclays Aggregate Bond Index.
(Please see the following page for additional performance and expense
disclosure)
16 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
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.
Effective January 26, 2018, the Fund compares its performance to a blended
benchmark consisting of 60% MSCI World ND Index and 40% Bloomberg Barclays U.S.
Aggregate Bond Index (the "current blended benchmark" shown in the performance
table on the previous page). Prior to January 26, 2018, the Fund compared its
performance to a blended benchmark consisting of 50% MSCI World ND Index and
50% Bloomberg Barclays U.S. Aggregate Bond Index (the "former blended
benchmark" shown in the performance table on the previous page). Amundi Pioneer
believes that the current blended benchmark better reflects the Fund's
investment strategies.
The net expense ratio reflects the contractual expense limitation currently in
effect through December 1, 2019, 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 -- Balanced Fund | Annual Report | 7/31/18 17
Performance Update | 7/31/18 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart below 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, and the Fund's current and former blended
benchmarks**.
Value of $5 Million Investment
60% MSCI 50% MSCI
World ND World ND
Index and Index and
40% BBG 50% BBG
Barclays Barclays
U.S. U.S.
Bloomberg Aggregate Aggregate
Pioneer Barclays (BBG) Bond Index Bond Index
Solutions - U.S. (Current (Former
Balanced Aggregate MSCI World Blended Blended
Fund Bond Index ND Index Benchmark) Benchmark)
7/08 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000
7/09 $4,495,334 $5,392,258 $3,919,498 $4,507,006 $4,655,102
7/10 $5,113,475 $5,872,715 $4,304,940 $4,951,563 $5,110,683
7/11 $5,797,118 $6,133,218 $5,102,977 $5,595,064 $5,702,895
7/12 $5,797,031 $6,578,126 $5,001,771 $5,715,698 $5,879,798
7/13 $6,647,932 $6,452,813 $6,164,048 $6,436,326 $6,472,058
7/14 $7,358,248 $6,708,935 $7,148,101 $7,152,684 $7,114,614
7/15 $7,625,105 $6,898,400 $7,500,117 $7,451,948 $7,397,635
7/16 $7,483,709 $7,307,823 $7,465,702 $7,626,542 $7,619,130
7/17 $8,031,907 $7,270,206 $8,669,065 $8,328,546 $8,192,967
7/18 $8,348,392 $7,212,035 $9,698,899 $8,889,641 $8,640,771
Average Annual Total Returns
(As of July 31, 2018)
---------------------------------------------------------------------------------------------------------
Current Blended Former Blended
Benchmark Benchmark
Bloomberg (60% MSCI World ND (50% MSCI World ND
Barclays Index/40% Bloomberg Index/50% Bloomberg
Net Asset U.S. Aggregate MSCI World Barclays Aggregate Barclays U.S. Aggregate
Period Value (NAV) Bond Index ND Index Bond Index) Bond Index)
---------------------------------------------------------------------------------------------------------
10 years 5.26% 3.73% 6.85% 5.92% 5.62%
5 years 4.66 2.25 9.49 6.67 5.95
1 year 3.94 -0.80 11.88 6.74 5.47
---------------------------------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2018)
----------------------------------
Gross
----------------------------------
1.02%
----------------------------------
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.
** From January 31, 2008 through January 25, 2018, the Fund's former blended
benchmark represented a 50%/50% split between the MSCI World ND Index and
the Bloomberg Barclays Aggregate Bond Index. On January 26, 2018, the
Fund's current blended benchmark changed to a mix of 60% MSCI World ND
Index/40% Bloomberg Barclays Aggregate Bond Index.
(Please see the following page for additional performance and expense
disclosure)
18 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
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.
Effective January 26, 2018, the Fund compares its performance to a blended
benchmark consisting of 60% MSCI World ND Index and 40% Bloomberg Barclays U.S.
Aggregate Bond Index (the "current blended benchmark" shown in the performance
table on the previous page). Prior to January 26, 2018, the Fund compared its
performance to a blended benchmark consisting of 50% MSCI World ND Index and
50% Bloomberg Barclays U.S. Aggregate Bond Index (the "former blended
benchmark" shown in the performance table on the previous page). Amundi Pioneer
believes that the current blended benchmark better reflects the Fund's
investment strategies.
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 -- Balanced Fund | Annual Report | 7/31/18 19
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Solutions Balanced Fund
Based on actual returns from February 1, 2018 through July 31, 2018.
----------------------------------------------------------------------------
Share Class A C R Y
----------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 2/1/18
----------------------------------------------------------------------------
Ending Account Value $944.58 $941.29 $942.27 $945.08
(after expenses)
on 7/31/18
----------------------------------------------------------------------------
Expenses Paid $2.75 $6.11 $3.80 $1.93
During Period*
----------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.57%,
1.27%, 0.79% and 0.40% for Class A, Class C, Class R and Class 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 $6.12, $9.48, $7.18 and $5.31 for Class A, Class C, Class
R and Class Y shares, respectively, based on the respective expense ratio
for each class of 1.27%, 1.97%, 1.49% and 1.10%.
20 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
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, 2018 through July 31, 2018.
----------------------------------------------------------------------------
Share Class A C R Y
----------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 2/1/18
----------------------------------------------------------------------------
Ending Account Value $1,021.97 $1,018.50 $1,020.88 $1,022.81
(after expenses)
on 7/31/18
----------------------------------------------------------------------------
Expenses Paid $2.86 $6.36 $3.96 $2.01
During Period*
----------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.57%,
1.27%, 0.79% and 0.40% for Class A, Class C, Class R and Class 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 $6.36, $9.84, $7.45 and $5.51 for Class A, Class C, Class
R and Class Y shares, respectively, based on the respective expense ratio
for each class of 1.27%, 1.97%, 1.49% and 1.10%.
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 21
Schedule of Investments | 7/31/18
---------------------------------------------------------------------------------------------------------------------------
Change
in Net
Net Unrealized Capital
Realized Appreciation Gain Dividend
Shares Gain (Loss) (Depreciation) Distributions Income Value
---------------------------------------------------------------------------------------------------------------------------
AFFILIATED ISSUERS -- 99.8%*
MUTUAL FUNDS -- 99.8%
264,472 Pioneer Bond Fund $ (1,279,817) $ 81,809 $ -- $ 423,773 $ 2,496,616
Class K
2,275,016 Pioneer Core Equity Fund (342) 691,888 -- -- 49,800,095
Class K
311,105 Pioneer Disciplined Value 1,209,681 (744,026) 1,090,887 116,607 5,061,678
Fund Class Y
1,094,602 Pioneer Dynamic Credit (29,620) (248,491) -- 271,017 9,982,774
Fund Class Y
136,451 Pioneer Equity Income 31,262 263,428 -- 73,255 5,026,855
Fund Class K
5,659,581 Pioneer Flexible (17,674) 1,245,109 -- -- 77,423,066
Opportunities Fund
Class K
737,280 Pioneer Floating Rate (186) (4,450) -- 37,945 4,998,758
Fund Class Y
3,467,439 Pioneer Global Equity 329,644 6,637,251 896,471 317,175 55,964,465
Fund Class K
1,554,404 Pioneer ILS Interval Fund -- 233,161 -- -- 15,233,161
2,916,911 Pioneer International 3,171,623 19,409,291 -- 611,196 71,464,317
Equity Fund Class Y
10,493,475 Pioneer Multi-Asset (67,101) (2,671,591) -- 2,985,259 125,397,026
Income Fund Class K
5,763,145 Pioneer Multi-Asset (13,313) (39,772) -- 607,258 57,400,924
Ultrashort Income Fund
Class K
1,716,235 Pioneer Strategic (652,226) (588,789) -- 1,052,924 18,003,305
Income Fund Class K
Other affiliated securities 7,627,836 (3,383,790) 1,716,827 781,258 --
not held at year end
---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED ISSUERS -- 99.8%
(Cost $462,410,205) $ 10,309,767 $20,881,028 $3,704,185 $7,277,667 $498,253,040
---------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 0.2% $ 1,212,322
---------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $499,465,362
===========================================================================================================================
* Affiliated funds managed by Amundi Pioneer Asset Management, Inc.
The accompanying notes are an integral part of these financial statements.
22 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
Purchases and sales of securities (excluding temporary cash investments) for
the year ended July 31, 2018, were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government Securities $ -- $ 3,600,202
Other Long-term Securities 506,006,844 501,128,036
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Amundi Pioneer Asset
Management, Inc., (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,
2018, the Fund did not engage in cross trade activity.
At July 31, 2018, the net unrealized appreciation on investments based on cost
for federal tax purposes of $462,418,009 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $39,276,259
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (3,441,228)
------------
Net unrealized appreciation $35,835,031
============
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 following is a summary of the inputs used as of July 31, 2018, in valuing
the Fund's assets:
----------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------
Mutual Funds $483,019,879 $15,233,161 $ -- $498,253,040
----------------------------------------------------------------------------
Total $483,019,879 $15,233,161 $ -- $498,253,040
============================================================================
During the year ended July 31, 2018, there were no transfers between Levels 1,
2, and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 23
Statements of Assets and Liabilities | 7/31/18
ASSETS:
Investments in securities of affiliated funds, at value (cost $462,410,205) $498,253,040
Cash 382,480
Receivables --
Investment securities sold 5,007,724
Fund shares sold 72,785
Dividends 813,943
Interest 480
Other assets 157
---------------------------------------------------------------------------------------------------
Total assets $504,530,609
===================================================================================================
LIABILITIES:
Payables --
Investment securities purchased 4,536,401
Fund shares repurchased 297,422
Trustees' fees 8,084
Due to affiliates 27,633
Accrued expenses 195,707
---------------------------------------------------------------------------------------------------
Total liabilities $ 5,065,247
===================================================================================================
NET ASSETS:
Paid-in capital $450,640,759
Undistributed net investment income 3,016,149
Accumulated net realized gain on investments 9,965,619
Net unrealized appreciation on investments 35,842,835
---------------------------------------------------------------------------------------------------
Net assets $499,465,362
===================================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $382,264,820/31,532,653 shares) $ 12.12
Class C (based on $114,266,038/10,278,728 shares) $ 11.12
Class R (based on $1,387,787/115,255 shares) $ 12.04
Class Y (based on $1,546,717/125,810 shares) $ 12.29
MAXIMUM OFFERING PRICE:
Class A ($12.12 [divided by] 94.25%) $ 12.86
===================================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
Statements of Operations
For the Year Ended 7/31/18
INVESTMENT INCOME:
Dividend income from underlying affiliated funds $7,277,667
Dividend income from underlying unaffiliated funds 548,593
Interest 93,901
---------------------------------------------------------------------------------
Total Investment Income $7,920,161
---------------------------------------------------------------------------------
EXPENSES:
Management fees $ 105,618
Administrative expense 161,810
Transfer agent fees
Class A 205,897
Class C 38,866
Class R 670
Class Y 1,199
Distribution fees
Class A 637,472
Class C 844,798
Class R 2,442
Shareowner communications expense 138,995
Custodian fees 29,642
Registration fees 96,990
Professional fees 144,862
Printing expense 55,038
Pricing fees 1,835
Trustees' fees 20,140
Insurance expense 2,021
Miscellaneous 35,528
---------------------------------------------------------------------------------
Total expenses $2,523,823
Less fees waived and expenses reimbursed
by the Adviser $ (375)
---------------------------------------------------------------------------------
Net expenses $2,523,448
---------------------------------------------------------------------------------
Net investment income $5,396,713
=================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 25
Statements of Operations (continued)
For the Year Ended 7/31/18
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Underlying affiliated funds $ 10,309,767
Underlying unaffiliated funds 3,648,006
Capital gain on distributions from underlying affiliated issuers 3,704,185
Capital gain on distributions from underlying unaffiliated issuers 345,371
Forward foreign currency contracts (833,464)
Futures contracts (39,836)
Swap contracts (92,107)
Written options 9,940
Other assets and liabilities denominated in foreign currencies (104,252)
---------------------------------------------------------------------------------------------------
$ 16,947,610
---------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Underlying affiliated funds $(28,888,901)
Underlying unaffiliated funds (4,236,883)
Forward foreign currency contracts 503,032
Futures contracts 22,799
Swap contracts 86,792
Other assets and liabilities denominated in foreign currencies 7,453
---------------------------------------------------------------------------------------------------
$(32,505,708)
---------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $(15,558,098)
---------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $(10,161,385)
===================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------------------
Year Year
Ended Ended
7/31/18 7/31/17
-----------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 5,396,713 $ 2,244,602
Net realized gain (loss) on investments 16,947,610 (1,174,516)
Change in net unrealized appreciation (depreciation)
on investments (32,505,708) 9,956,749
-----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $(10,161,385) $ 11,026,835
-----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.22 and $0.24 per share, respectively) $ (2,088,406) $ (2,480,991)
Class C ($0.14 and $0.16 per share, respectively) (598,301) (853,099)
Class R ($0.21 and $0.23 per share, respectively) (584) (382)
Class Y ($0.25 and $0.27 per share, respectively) (12,551) (20,656)
-----------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (2,699,842) $ (3,355,128)
-----------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sales or exchange of shares $ 33,202,911 $ 22,714,830
Shares issued in reorganization* 384,986,563 --
Reinvestment of distributions 2,600,366 3,207,879
Cost of shares repurchased (72,997,033) (55,233,494)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions 347,792,807 (29,310,785)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $334,931,580 $(21,639,078)
NET ASSETS:
Beginning of year 164,533,782 186,172,860
-----------------------------------------------------------------------------------------------------
End of year $499,465,362 $164,533,782
-----------------------------------------------------------------------------------------------------
Undistributed net investment income $ 3,016,149 $ 559,550
=====================================================================================================
* See Notes to Financial Statements (Note 7).
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 27
Statements of Changes in Net Assets (continued)
----------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
7/31/18 7/31/18 7/31/17 7/31/17
Shares Amount Shares Amount
----------------------------------------------------------------------------------------------------
Class A
Shares sold 1,605,768 $ 19,524,639 1,036,619 $ 11,837,739
Shares issued in
reorganization* 23,831,150 301,225,732 -- --
Reinvestment of distributions 167,690 2,050,850 221,988 2,448,547
Less shares repurchased (3,701,538) (44,937,947) (2,695,716) (30,690,063)
----------------------------------------------------------------------------------------------------
Net increase (decrease) 21,903,070 $277,863,274 (1,437,109) $(16,403,777)
====================================================================================================
Class C
Shares sold 1,034,953 $ 11,582,589 977,713 $ 10,240,742
Shares issued in
reorganization* 7,074,294 82,274,035 -- --
Reinvestment of distributions 48,111 541,725 72,790 741,003
Less shares repurchased (2,389,184) (26,730,777) (2,234,082) (23,459,634)
----------------------------------------------------------------------------------------------------
Net increase (decrease) 5,768,174 $ 67,667,572 (1,183,579) $(12,477,889)
====================================================================================================
Class R
Shares sold 106,115 $ 1,290,381 1,293 $ 14,650
Shares issued in
reorganization* 13,344 167,732 -- --
Reinvestment of distributions 35 423 18 201
Less shares repurchased (6,829) (84,014) (3) (40)
----------------------------------------------------------------------------------------------------
Net increase 112,665 $ 1,374,522 1,308 $ 14,811
====================================================================================================
Class Y
Shares sold 65,237 $ 805,302 53,810 $ 621,699
Shares issued in
reorganization* 102,971 1,319,064 -- --
Reinvestment of distributions 595 7,368 1,623 18,128
Less shares repurchased (100,896) (1,244,295) (93,660) (1,083,757)
----------------------------------------------------------------------------------------------------
Net increase (decrease) 67,907 $ 887,439 (38,227) $ (443,930)
====================================================================================================
* See Notes to Financial Statements (Note 7).
The accompanying notes are an integral part of these financial statements.
28 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
Financial Highlights
---------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/18 7/31/17 7/31/16* 7/31/15* 7/31/14*
---------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 11.89 $ 11.35 $ 12.78 $ 12.73 $ 11.72
---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) (a) $ 0.20 $ 0.17 $ 0.20 $ 0.29 $ 0.19
Net realized and unrealized gain (loss) on
investments 0.25 0.61 (0.50) 0.12 1.03
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.45 $ 0.78 $ (0.30) $ 0.41 $ 1.22
---------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.22) $ (0.24) $ (0.27) $ (0.36) $ (0.21)
Net realized gain -- -- (0.86) -- --
---------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.22) $ (0.24) $ (1.13) $ (0.36) $ (0.21)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.23 $ 0.54 $ (1.43) $ 0.05 $ 1.01
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.12 $ 11.89 $ 11.35 $ 12.78 $ 12.73
=================================================================================================================================
Total return (b) 3.79% 7.04% (2.11)% 3.33% 10.48%
Ratio of net expenses to average net assets+ 0.57% 0.68% 0.67% 0.66% 0.64%
Ratio of net investment income to average net assets+ 1.67% 1.51% 1.77% 2.25% 1.57%
Portfolio turnover rate 146% 27% 16% 89% 10%
Net assets, end of period (in thousands) $382,265 $114,528 $125,608 $140,863 $136,511
=================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
+ 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.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 29
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/18 7/31/17 7/31/16* 7/31/15* 7/31/14*
------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.92 $ 10.44 $ 11.84 $ 11.82 $ 10.92
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) (a) $ 0.15 $ 0.09 $ 0.12 $ 0.17 $ 0.09
Net realized and unrealized gain (loss) on
investments 0.19 0.55 (0.47) 0.14 0.96
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.34 $ 0.64 $ (0.35) $ 0.31 $ 1.05
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.14) $ (0.16) $ (0.19) $ (0.29) $ (0.15)
Net realized gain -- -- (0.86) -- --
------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.14) $ (0.16) $ (1.05) $ (0.29) $ (0.15)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.20 $ 0.48 $ (1.40) $ 0.02 $ 0.90
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.12 $ 10.92 $ 10.44 $ 11.84 $ 11.82
==============================================================================================================================
Total return (b) 3.09% 6.26% (2.81)% 2.64% 9.70%
Ratio of net expenses to average net assets+ 1.27% 1.38% 1.37% 1.35% 1.33%
Ratio of net investment income to average net assets+ 1.33% 0.84% 1.10% 1.44% 0.81%
Portfolio turnover rate 146% 27% 16% 89% 10%
Net assets, end of period (in thousands) $114,266 $49,277 $59,444 $74,720 $75,377
==============================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
+ 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.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
-----------------------------------------------------------------------------------------------------------------------------------
Year Year Year
Ended Ended Ended 7/1/15 to
7/31/18 7/31/17 7/31/16* 7/31/15*
-----------------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $11.83 $11.30 $12.78 $12.74
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) (a) $ 0.05 $ 0.11 $ 0.15 $ 0.01
Net realized and unrealized gain (loss) on investments 0.37 0.65 (0.47) 0.03
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.42 $ 0.76 $(0.32) $ 0.04
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $(0.21) $(0.23) $(0.30) $ --
Net realized gain -- -- (0.86) --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.21) $(0.23) $(1.16) $ --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.21 $ 0.53 $(1.48) $ 0.04
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.04 $11.83 $11.30 $12.78
===================================================================================================================================
Total return (b) 3.49% 6.89% (2.34)% 0.31%(c)
Ratio of net expenses to average net assets+ 0.79% 0.90% 0.90% 0.93%(d)
Ratio of net investment income to average net assets+ 0.42% 0.98% 1.28% 0.66%(d)
Portfolio turnover rate 146% 27% 16% 89%
Net assets, end of period (in thousands) $1,388 $ 31 $ 14 $ 10
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets 0.86% 1.38% 1.58% 1.00%(d)
Net investment income to average net assets 0.35% 0.50% 0.60% 0.58%(d)
===================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
+ 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.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at the end of each period.
(c) Not annualized.
(d) Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 31
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
7/31/18 7/31/17 7/31/16* 7/31/15* 7/31/14*
-----------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $12.06 $11.51 $12.94 $12.88 $11.86
-----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) (a) $ 0.26 $ 0.19 $ 0.26 $ 0.37 $ 0.23
Net realized and unrealized gain (loss) on
investments 0.22 0.63 (0.53) 0.09 1.03
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.48 $ 0.82 $(0.27) $ 0.46 $ 1.26
-----------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $(0.25) $(0.27) $(0.30) $(0.40) $(0.24)
Net realized gain -- -- (0.86) -- --
-----------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.25) $(0.27) $(1.16) $(0.40) $(0.24)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.23 $ 0.55 $(1.43) $ 0.06 $ 1.02
-----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.29 $12.06 $11.51 $12.94 $12.88
=============================================================================================================================
Total return (b) 3.94% 7.33% (1.85)% 3.63% 10.68%
Ratio of net expenses to average net assets+ 0.40% 0.47% 0.40% 0.36% 0.40%
Ratio of net investment income to average net assets+ 2.14% 1.67% 2.22% 2.92% 1.88%
Portfolio turnover rate 146% 27% 16% 89% 10%
Net assets, end of period (in thousands) $1,547 $ 698 $1,107 $1,165 $3,239
=============================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
+ 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.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at the end of each period.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
Notes to Financial Statements | 7/31/18
1. Organization and Significant Accounting Policies
Pioneer Solutions -- Balanced Fund (the "Fund") is the sole series of Pioneer
Asset Allocation Trust (the "Trust") a Delaware statutory trust. The Fund is
registered with the Securities and Exchange Commission under the Investment
Company Act of 1940 as an open-end management investment company. The
investment objective of the Fund is to seek long-term capital growth and
current income.
The Fund is a "fund of funds". The Fund seeks to achieve its investment
objective by investing primarily in other funds ("underlying funds"). The Fund
may also invest directly in securities and use derivatives. The Fund invests
primarily in funds managed by Amundi Pioneer Asset Management, Inc. The Fund
may also invest in securities of unaffiliated mutual funds or exchange-traded
funds ("ETFs"). The Fund indirectly pays a portion of the expenses incurred by
underlying funds. Consequently, an investment in the Fund entails more direct
and indirect expenses than direct investment in the applicable underlying
funds.
The Fund offers five classes of shares designated as Class A, Class C, Class K,
Class R and Class Y shares. Class K shares had not commenced operations as of
July 31, 2018. Each class of shares represents an interest in the same
portfolio of investments of the 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 the 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 the 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.
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
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 33
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.
(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. The Fund's financial statements were prepared in compliance with
the amendments to Regulation S-X.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles ("U.S. GAAP") that require the
management of the Fund to make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
The 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 Fund in the preparation of its financial
statements:
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the
New York Stock Exchange ("NYSE") is open, as of the close of regular
trading on the NYSE.
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. Shares of closed-end interval funds that
offer their shares at net asset value are valued at such funds' net asset
value.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities
for which sale prices are not available, generally are valued using the
mean between the last
34 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
bid and asked prices or, if both last bid and asked prices are not
available, at the last quoted bid price. Last sale and bid and asked
prices are provided by independent third party pricing services. In the
case of equity securities not traded on an exchange, prices are typically
determined by independent third party pricing services using a variety of
techniques and methods.
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.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate and the forward points on a daily basis, in each case
provided by a third party pricing service. Contracts whose forward
settlement date falls between two quoted days are valued by interpolation.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) 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.
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.
Futures contracts are generally valued at the closing settlement price
established by the exchange on which they are traded.
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 35
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 Fund's 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 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 Fund 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 the 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 the Fund's securities may differ significantly from
exchange prices, and such differences could be material.
At July 31, 2018, no securities were valued using fair value methods
(other than 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 is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence.
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 and net of income accrued on defaulted securities.
Interest and dividend income payable by delivery of additional shares is
reclassified as PIK (payment-in-kind) income upon receipt and is included
in interest and dividend income, respectively.
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.
36 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
C. Foreign Currency Translation
The books and records of the Fund 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 on the Statement of
Operations from the effects of changes in the market prices of those
securities, but are included with the net realized and unrealized gain or
loss on investments.
D. Forward Foreign Currency Contracts
The Fund 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 is recorded in the Fund's financial statements. The Fund
records 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 contract
and from unanticipated movements in the value of foreign currencies
relative to the U.S. dollar (see Note 5).
At July 31, 2018, the Fund had entered into various forward foreign
currency contracts that obligated the Fund 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 Fund may close
out such contract by entering into an offsetting contract. The average
market value of forward foreign currency contracts open during the year
ended July 31, 2018, was $(8,988,182). There were no open forward foreign
currency contracts at July 31, 2018.
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income and net realized capital gains,
if any, to shareowners. Therefore, no provision for federal income taxes
is required. As of July 31, 2018, the Fund did not accrue any interest or
penalties with respect to uncertain tax positions, which, if applicable,
would be recorded as an income tax expense on the Statement of Operations.
Tax years for the prior three fiscal years remain subject to examination
by federal and state tax authorities.
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 37
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 over distributions 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, 2018, the Fund reclassified $273,487 to decrease undistributed
net investment income and $273,487 to increase accumulated net realized
gain on investments to reflect permanent book/tax differences. These
adjustments have no impact on net assets or the results of operations.
During the year ended July 31, 2018, a capital loss carryforward of
$5,319,920 was utilized to offset net realized gains by the Fund. Included
in this amount is $539,388 of losses, which resulted from the
reorganization with Pioneer Solutions - Conservative Fund on January 26,
2018.
The tax character of distributions paid during the years ended July 31,
2018 and July 31, 2017 were as follows:
----------------------------------------------------------------------
2018 2017
----------------------------------------------------------------------
Distributions paid from:
Ordinary income $2,699,842 $3,335,128
----------------------------------------------------------------------
Total $2,699,842 $3,335,128
======================================================================
The following shows the components of distributable earnings on a federal
income tax basis at July 31, 2018:
----------------------------------------------------------------------
Distributable earnings:
----------------------------------------------------------------------
Undistributed ordinary income $ 3,001,686
Undistributed long-term capital gains 9,987,886
Other book/tax temporary differences (7,804)
Unrealized appreciation/(depreciation) 35,842,835
----------------------------------------------------------------------
Total $48,824,603
======================================================================
The differences between book-basis and tax-basis net unrealized
appreciation/(depreciation) are attributable to the tax deferral of losses
on wash sales.
38 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Distributor earned $78,836 in underwriting commissions on the sale of
Class A shares during the year ended July 31, 2018.
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, Class C and Class R shares of the Fund,
respectively (see Note 4). Class Y shares do not pay distribution fees.
All expenses and fees paid to the Fund's transfer agent for its services
are allocated among the classes 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 the Fund 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 can reflect different transfer agent and distribution expense
rates.
H. Risks
The value of securities held by the Fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real
or perceived adverse economic, political or regulatory conditions,
inflation, changes in interest rates, lack of liquidity in the bond
markets or adverse investor sentiment. 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.
Interest rates in the U.S. recently have been historically low, so the
Fund faces a heightened risk that interest rates may continue to rise. A
general rise in interest rates 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 Fund's prospectus contains unaudited information
regarding the Fund's principal risks. Please refer to that document when
considering the Fund's principal risks.
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 39
With the increased use of technologies such as the Internet to conduct
business, the Fund is susceptible to operational, information security and
related risks. While the Fund's Adviser has established business
continuity plans in the event of, and risk management systems to prevent,
limit or mitigate, such cyber-attacks, there are inherent limitations in
such plans and systems including the possibility that certain risks have
not been identified. Furthermore, the Fund cannot control the
cybersecurity plans and systems put in place by service providers to the
Fund such as Brown Brothers Harriman & Co., the Fund's custodian and
accounting agent, and DST Asset Manager Solutions, Inc., the Fund's
transfer agent. In addition, many beneficial owners of Fund shares hold
them through accounts at broker-dealers, retirement platforms and other
financial market participants over which neither the Fund nor Amundi
Pioneer exercises control. Each of these may in turn rely on service
providers to them, which are also subject to the risk of cyber-attacks.
Cybersecurity failures or breaches at Amundi Pioneer or the Fund's service
providers or intermediaries have the ability to cause disruptions and
impact business operations, potentially resulting in financial losses,
interference with the Fund's ability to calculate its net asset value,
impediments to trading, the inability of Fund shareowners to effect share
purchases or receive distributions, loss of or unauthorized access to
private shareowners information and violations of applicable privacy and
other laws, regulatory fines, penalties, reputational damage, or
additional compliance costs. Such costs and losses may not be covered
under an insurance. In addition, maintaining vigilance against
cyber-attacks may involve substantial costs over time, and system
enhancements may themselves be subject to cyber-attacks.
I. Futures Contracts
The Fund 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 Fund are traded on
a futures exchange. Upon entering into a futures contract, the Fund is
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, 2018, is recorded as "Futures collateral" on the Statement of
Assets and Liabilities.
Subsequent payments for futures contracts ("variation margin") are paid or
received by the Fund, depending on the daily fluctuation in the value of
the contracts, and are recorded by the Fund as unrealized appreciation or
depreciation. Cash received from or paid to the broker related to previous
margin movement is held in a segregated account at the broker and is
40 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
recorded as either "Due from broker for futures" or "Due to broker for
futures" on the Statement of Assets and Liabilities. When the contract is
closed, the Fund realizes 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. Futures contracts are
subject to market risk, interest rate risk and currency exchange rate
risk. Changes in value of the contracts may not directly correlate to the
changes in value of the underlying securities. With futures, there is
minimal counterparty credit risk to the Fund since futures are
exchange-traded and the exchange's clearinghouse, as counterparty to all
exchange-traded futures, guarantees the futures against default. The
average market value of contracts open during the year ended July 31,
2018, was $(11,420,115). There were no open future contracts at July 31,
2018.
J. Option Writing
The Fund may write put and covered call options to seek to increase total
return. When an option is written, the Fund receives a premium and becomes
obligated to purchase or sell the underlying security at a fixed price,
upon the exercise of the option. When the Fund writes an option, an amount
equal to the premium received by the Fund is recorded as "Written options
outstanding" on the Statement of Assets and Liabilities and is
subsequently adjusted to the current value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Fund on the expiration date as realized gains from investments on the
Statement of Operations. The difference between the premium and the amount
paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain on the Statement of
Operations, or, if the premium is less than the amount paid for the
closing purchase transaction, as a realized loss on the Statement of
Operations. If a call option is exercised, the premium is added to the
proceeds from the sale of the underlying security in determining whether
the Fund has realized a gain or loss. The Fund as writer of an option
bears the market risk of an unfavorable change in the price of the
security underlying the written option. The average market value of
written options for the year ended July 31, 2018 was $(931). There were no
open written options contracts at July 31, 2018.
K. Purchased Options
The Fund may purchase put and call options to seek to increase total
return. Purchased call and put options entitle the Fund to buy and sell a
specified number of shares or units of a particular security, currency or
index at a 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 Fund is included on the Statement of Assets and Liabilities as an
investment. All
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 41
premiums are marked-to-market daily, and any unrealized appreciation or
depreciation is recorded on the Fund's Statement of Operations. As the
purchaser of an index option, the Fund has 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 on the Statement 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. The average market value of purchased options for the year ended
July 31, 2018 was $6,077. There were no open purchased options contracts
at July 31, 2018.
L. Credit Default Swap Contracts
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 Fund may buy or sell credit default swap contracts to
seek to increase the Fund's income, or to attempt to hedge the risk of
default on portfolio 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 Fund 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
Fund. In return, the Fund 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 Fund would keep the stream of payments and would have no
payment obligation. The Fund may also buy credit default swap contracts in
order to hedge against the risk of default of debt securities, in which
case the Fund would function as the counterparty referenced above.
As a buyer of protection, the Fund makes an upfront or periodic payment to
the protection seller in exchange for the right to receive a contingent
payment. An upfront payment made by the Fund, as the protection buyer, is
42 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
recorded within the "Swap contracts, at value" line item on the Statement
of Assets and Liabilities. Periodic payments received or paid by the Fund
are recorded as realized gains or losses on the Statement of Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded within the "Swap contracts, at value" line item on the Statement
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
on the Statement of Operations.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Fund had invested in the referenced debt
instrument directly. Credit default swap contracts are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the
Fund is a protection buyer and no credit event occurs, it will lose its
investment. If the Fund is a protection seller and a credit event occurs,
the value of the referenced debt instrument received by the Fund, together
with the periodic payments received, may be less than the amount the Fund
pays to the protection buyer, resulting in a loss to the Fund.
Certain swap contracts that are cleared through a central clearinghouse
are referred to as centrally cleared swaps. All payments made or received
by the Fund are pursuant to a centrally cleared swap contract with the
central clearing party rather than the original counterparty. Upon
entering into a centrally cleared swap contract, the Fund is 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 for centrally cleared swaps" on the Statement of Assets
and Liabilities. Cash received from or paid to the broker related to
previous margin movement is held in a segregated account at the broker and
is recorded as either "Due from broker for swaps" or "Due to broker for
swaps" on the Statement of Assets and Liabilities.
The amount of cash deposited with a broker as collateral at July 31, 2018,
is recorded as "Swaps collateral" on the Statement of Assets and
Liabilities.
There were no open credit default swap contracts at July 31, 2018.
M. Interest Rate Swap Contracts
The Fund 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 contract, the Fund negotiate with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 43
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 Fund are recorded as realized
gains or losses in the Statements of Operations. Interest rate swap
contracts are marked-to-market daily using valuations supplied by
independent sources and the change in value, if any, is recorded within
"swap contracts, at value" line item on the Statements of Assets and
Liabilities. Interest rate swap contracts 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 Fund are pursuant to a centrally cleared swap contract with the
central clearing party rather than the original counterparty. Upon
entering into a centrally cleared swap contract, the Fund is required to
make an initial margin deposit, either in cash or in securities. The daily
change in value on open centrally cleared swap contracts is recorded as
variation margin on centrally cleared swaps on the Statement of Assets and
Liabilities. Cash received from or paid to the broker related to previous
margin movement, if any, is held in a segregated account at the broker and
is recorded as either "Due from broker for swaps" or "Due to broker for
swaps" on the Statement of Assets and Liabilities. The average market
value of interest rate swap contracts open during the year ended July 31,
2018 was $(28,930). There were no open interest rate swap contracts at
July 31, 2018.
2. Management Agreement
The Adviser manages the Fund's portfolio. Effective January 26, 2018, the Fund
does not pay a direct management fee to the Adviser. The Fund bears a pro rata
portion of the fees and expenses, including management fees, of each underlying
fund in which the Fund invests. The Fund invests primarily in funds managed by
the Adviser.
Prior to January 26, 2018, the Management fee for the Fund was 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.
44 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
For the year ended July 31, 2018, the effective management fee for Fund was
equivalent to 0.03% of the Fund's average daily net assets. Fees waived and
expenses reimbursed during the year ended July 31, 2018 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 Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$1,187 due from the Adviser at July 31, 2018.
The Adviser has contractually agreed to limit ordinary operating expenses
(ordinary operating expenses means all fund expenses other than extraordinary
expenses, such as litigation, taxes, brokerage commissions and acquired fund
fees and expenses) of the Fund to the extent required to reduce fund expenses
to 0.70%, 1.45% and 0.78% of the average daily net assets attributable to Class
A, Class C and Class R shares, respectively. Before January 26, 2018, the
Adviser had agreed to limit the ordinary operating expenses of Class R shares
to 0.90% of the average daily net assets. 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.
3. Transfer Agent
DST Asset Manager Solutions, Inc. serves as the transfer agent to the Fund 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 Fund's omnibus relationship
contracts.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings, and outgoing phone calls. For the year
ended July 31, 2018, such out-of-pocket expenses by class of shares were as
follows:
------------------------------------------------------------------
Shareowner Communications
------------------------------------------------------------------
Class A $117,492
Class C 19,922
Class R 407
Class Y 1,174
------------------------------------------------------------------
Total $138,995
==================================================================
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 45
4. Distribution and Service Plans
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A and Class C
shares. Pursuant to the Plan, Fund 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, the 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.
Included in "Due to affiliates" reflected on the Statements of Assets and
Liabilities is $28,820 in distribution fees payable to the Distributor, at July
31, 2018.
The Fund also has adopted a separate service plan for Class R shares (the
"Service Plan"). The Service Plan authorizes the Fund 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 Fund a service 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 R and 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 R or Class Y shares. Proceeds from the
CDSCs are paid to the Distributor. For the year ended July 31, 2018, CDSCs in
the amount of $17,071 were paid to the Distributor.
5. Additional Disclosures about Derivative Instruments and Hedging Activities
The Fund's use of derivatives may enhance or mitigate the Fund's exposure 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.
46 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
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 Fund.
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 rate 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.
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.
At July 31, 2018, the Fund had no open derivative instruments.
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, 2018 was as follows:
-----------------------------------------------------------------------------------------------
Statement of Operations
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Rate Risk Risk Risk
-----------------------------------------------------------------------------------------------
Net realized gain (loss):
Forward foreign
currency contracts $ -- $ -- $(833,464) $ -- $ --
Futures contracts (80,379) -- -- 40,543 --
Swap contracts (92,107) -- -- -- --
Written options -- -- -- 9,940 --
-----------------------------------------------------------------------------------------------
Total Value $(172,486) $ -- $(833,464) $50,483 $ --
===============================================================================================
Change in net
unrealized appreciation
(depreciation) on:
Forward foreign
currency contracts $ -- $ -- $ 503,032 $ -- $ --
Futures contracts (72,638) -- -- 95,437 --
Swap contracts 86,792 -- -- -- --
-----------------------------------------------------------------------------------------------
Total Value $ 14,154 $ -- $ 503,032 $95,437 $ --
===============================================================================================
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 47
6. 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, the Fund assumes the following to be
affiliated issuers:
--------------------------------------------------------------------------------------------------------
Acquisitions/
Beginning Conversions Dispositions Ending
Underlying Funds (Affiliated) Shares Shares Shares Shares
--------------------------------------------------------------------------------------------------------
Pioneer Bond Fund Class K 1,505,215 4,605,446 (5,846,189) 264,472
Pioneer Core Equity Fund Class K -- 2,281,854 (6,838) 2,275,016
Pioneer Core Equity Fund Class Y 195,351 2,213,725 (2,409,076) --
Pioneer Disciplined Value Fund
Class Y 491,134 2,060,320 (2,240,349) 311,105
Pioneer Dynamic Credit Fund
Class Y 491,341 659,240 (55,979) 1,094,602
Pioneer Equity Income Fund Class K -- 203,486 (67,035) 136,451
Pioneer Flexible Opportunities Fund
Class K -- 5,900,311 (240,730) 5,659,581
Pioneer Flexible Opportunities Fund
Class Y -- 5,874,126 (5,874,126) --
Pioneer Floating Rate Fund Class Y -- 746,590 (9,310) 737,280
Pioneer Fund Class Y 130,055 642,701 (772,756) --
Pioneer Fundamental Growth Fund
Class K 173,510 988,888 (1,162,398) --
Pioneer Global Equity Fund Class K 1,078,851 2,506,740 (118,152) 3,467,439
Pioneer Global High Yield Fund
Class Y 312,079 17,231 (329,310) --
Pioneer High Yield Fund Class Y 1 12,638 (12,639) --
Pioneer ILS Interval Fund -- 1,554,404 -- 1,554,404
Pioneer International Equity Fund
Class Y 1,172,294 2,358,211 (613,594) 2,916,911
Pioneer Mid Cap Value Fund
Class K 228,181 901,902 (1,130,083) --
Pioneer Multi-Asset Income Fund
Class K -- 10,607,206 (113,731) 10,493,475
Pioneer Multi-Asset Ultrashort
Income Fund Class K -- 7,164,682 (1,401,537) 5,763,145
Pioneer Strategic Income
Fund Class K 2,036,411 2,863,690 (3,183,866) 1,716,235
========================================================================================================
7. Reorganization Information
On January 26, 2018 ("Closing Date"), each of Pioneer Solutions --Conservative
Fund ("Conservative Fund") and Pioneer Solutions -- Growth Fund ("Growth Fund")
was reorganized into the (the "Balanced Fund"). The purpose of these
transactions was to combine three funds (managed by the Adviser) with similar
investment objectives and strategies.
48 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
These tax-free reorganizations were accomplished by exchanging the assets and
liabilities of each of Conservative Fund and Growth Fund for shares of Balanced
Fund. Shareowners holding Class A, Class C, Class R and Class Y shares of
Conservative Fund or Growth Fund received Class A, Class C, Class R and Class Y
shares of Balanced Fund, respectively, in the applicable reorganization. The
investment portfolios of Conservative Fund and Growth Fund, with aggregate
values of $54,077,862 and $300,758,764, respectively and identified costs of
$51,906,012 and $249,818,545, respectively at January 26, 2018, were the
principal assets acquired by Balanced Fund.
For financial reporting purposes, assets received and shares issued by Balanced
Fund were recorded at net asset value, however, the cost basis of the
investments received from Conservative Fund and Growth Fund were carried
forward to align ongoing reporting of Balanced Fund's realized and unrealized
gains and losses with amounts distributable to shareowners for tax reporting
purposes.
The following charts show the details of the reorganizations as of the Closing
Date:
-------------------------------------------------------------------------------------------------------------------
Conservative Fund Growth Fund Balanced Fund Balanced Fund
(Pre-Reorganization) (Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
-------------------------------------------------------------------------------------------------------------------
Net Assets
Class A $42,512,512 $258,713,220 $120,717,585 $421,943,317
Class C 13,374,507 68,899,528 49,202,929 131,476,964
Class R 122,830 44,902 92,342 260,074
Class Y 282,732 1,036,332 665,782 1,984,846
-------------------------------------------------------------------------------------------------------------------
Total Net Assets $56,292,581 $328,693,982 $170,678,638 $555,665,201
===================================================================================================================
Shares Outstanding
Class A 3,963,344 18,570,366 9,550,718 33,381,868
Class C 1,285,133 5,269,196 4,229,483 11,303,777
Class R 11,469 3,247 7,345 20,689
Class Y 28,036 72,720 51,992 154,963
-------------------------------------------------------------------------------------------------------------------
Shares Issued Shares Issued
Exchange Ratio Exchange Ratio in Reorganization of in Reorganization of
Conservative Fund Growth Fund Conservative Fund Growth Fund
-------------------------------------------------------------------------------------------------------------------
Class A 0.8486 1.1022 3,363,332 20,467,818
Class C 0.8948 1.1243 1,150,001 5,924,293
Class R 0.8520 1.1001 9,772 3,572
Class Y 0.7873 1.1125 22,071 80,900
-------------------------------------------------------------------------------------------------------------------
Unrealized Accumulated
Appreciation Gain (Loss) on
on Closing Date Closing Date
-------------------------------------------------------------------------------------------------------------------
Balanced $22,087,752 $(5,549,376)
Conservative $ 2,171,849 $(1,464,664)
Growth $50,940,894 $ 9,592,614
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 49
Assuming the reorganizations had been completed on August 1, 2017, the
beginning of the Fund's current fiscal period, the pro forma results of
operations for the year ended July 31, 2018, are as follows:
Net Investment Income (Loss) $26,548,755
Net Realized and Unrealized Gains 56,980,330
--------------------------------------------------------------------------------
Change in Net Assets Resulting from Operations $83,529,085
================================================================================
Because the combined investment portfolios have been managed as a single
integrated portfolio since the reorganizations were completed, it is not
practical to separate the amounts of revenue and earnings of Balanced Fund that
have been included on the Statements of Operations since the Reorganization was
consummated.
50 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Asset Allocation Trust and the Shareowners
of Pioneer Solutions -- Balanced Fund:
--------------------------------------------------------------------------------
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Pioneer
Solutions -- Balanced Fund (the "Fund") (the sole fund constituting Pioneer
Asset Allocation Trust (the "Trust")), including the schedule of investments,
as of July 31, 2018, and the related statements of operations, changes in net
assets and the financial highlights for the year then ended and the related
notes and the statement of changes in net assets and financial highlights for
the year ended July 31, 2017 (collectively referred to as the "financial
statements"). The financial highlights for 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 those financial highlights. In our opinion, the
financial statements present fairly, in all material respects, the financial
position of the Fund at July 31, 2018, the results of its operations, the
changes in its net assets, and the financial highlights for the year ended, and
the statement of changes in net assets and financial highlights for the year
ended July 31, 2017, in conformity with U.S. generally accepted accounting
principles.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our
responsibility is to express an opinion on the Fund's financial statements
based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required
to be independent with respect to the Fund in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Fund is not required to have,
nor were we engaged to perform, an audit of the Fund's internal control over
financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting, but not for the
purpose of expressing an opinion on the effectiveness of the Fund's internal
control over financial reporting. Accordingly, we express no such opinion.
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 51
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures including
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of July 31, 2018, by correspondence with the custodian and brokers.
Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audit provides a
reasonable basis for our opinion.
/s/ Ernst & Young LLP
Boston, Massachusetts
We have served as the Fund's auditor since 2017.
September 28, 2018
52 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
ADDITIONAL INFORMATION
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the "Adviser"), the
Fund's 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 Fund's previous independent registered
public accounting firm, informed the Audit Committee and the Board that it
would no longer be independent with respect to the Fund 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 Fund's
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 Fund's independent
registered public accounting firm, D&T's reports on the Fund's 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
an independent registered public accounting firm, Ernst & Young LLP ("EY").
Prior to its engagement, EY had advised the Fund's 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
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 53
inconsistent with the auditor independence rules set forth by the Securities
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 adviser or
investment banking services). None of the foregoing services involved the Fund,
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 Fund 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 Fund, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
54 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
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
DST Asset Manager Solutions, 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 42 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 -- Balanced Fund | Annual Report | 7/31/18 55
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 (67) Trustee since 2006. Private investor (2004 - 2008 and 2013 - Director, Broadridge Financial
Chairman of the Board Serves until a present); Chairman (2008 - 2013) and Chief Solutions, Inc. (investor
and Trustee successor trustee is Executive Officer (2008 - 2012), Quadriserv, communications and securities
elected or earlier Inc. (technology products for securities processing provider for
retirement or lending industry); and Senior Executive Vice financial services industry)
removal. President, The Bank of New York (financial and (2009 - present); Director,
securities services) (1986 - 2004) Quadriserv, Inc. (2005 - 2013);
and Commissioner, New Jersey
State Civil Service Commission
(2011 - 2015)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (74) Trustee since 2005. Managing Partner, Federal City Capital Director of New York
Trustee Serves until a Advisors (corporate advisory services Mortgage Trust (publicly-
successor trustee is company) (1997 - 2004 and 2008 - present); traded mortgage REIT)
elected or earlier Interim Chief Executive Officer, (2004 - 2009, 2012 -
retirement or Oxford Analytica, Inc. (privately held present); Director
removal. research and consulting company) (2010); of The Swiss Helvetia
Executive Vice President and Chief Financial Fund, Inc. (closed-end
Officer, I-trax, Inc. (publicly traded fund) (2010 - 2017);
health care services company) (2004 - 2007); Director of Oxford
and Executive Vice President and Analytica, Inc. (2008 -
Chief Financial Officer, Pedestal Inc. present); and Director
(internet-based mortgage trading company) of Enterprise Community
(2000 - 2002); Private Consultant (1995 - Investment, Inc.
1997); Managing Director, Lehman (privately-held
Brothers (1992 - 1995); and Executive, affordable housing
The World Bank (1979 - 1992) finance company)
(1985 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (73) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon
Trustee Serves until a Economy, Harvard University (1972 - Institutional Funds
successor trustee is present) Investment Trust and
elected or earlier Mellon Institutional
retirement or Funds Master Portfolio
removal. (oversaw 17 portfolios
in fund complex)
(1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
56 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (71) Trustee since 2005. Founding Director, Vice-President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc.
successor trustee is (consulting firm) (1982 - present); Desautels
elected or earlier Faculty of Management, McGill University (1999 -
retirement or 2017); and Manager of Research Operations and
removal. Organizational Learning, Xerox PARC, Xerox's
advance research center (1990 - 1994)
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (62) Trustee since 2017. Chief Investment Officer, 1199 SEIU Funds None
Trustee (Advisory Trustee (healthcare workers union pension
from 2014 - 2017) funds) (2001 - present); Vice President -
Serves until a International Investments Group, American
successor trustee is International Group, Inc. (insurance
elected or earlier company) (1993 - 2001); Vice President -
retirement Corporate Finance and Treasury Group,
or removal. 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); and
Mortgage Strategies Group, Drexel Burnham
Lambert, Ltd. (investment bank) (1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (70) Trustee since 2005. President and Chief Executive Officer, Director of New America
Trustee Serves until a Newbury Piret Company (investment banking High Income Fund, Inc.
successor trustee is firm) (1981 - present) (closed-end investment
elected or earlier company) (2004 -
retirement or removal. present); and Member,
Board of Governors,
Investment Company
Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (71) Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a (2012 - present); Executive Vice
successor trustee is President, BNY Mellon (financial and
elected or earlier investment company services) (1969 - 2012);
retirement or Director, BNY International Financing Corp.
removal. (financial services) (2002 - 2012); and
Director, Mellon Overseas Investment Corp.
(financial services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 57
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 (56)* Trustee since 2017. Director, CEO and President of Amundi Pioneer None
Trustee, President and Serves until a Asset Management USA, Inc. (since September
Chief Executive Officer successor trustee is 2014); Director, CEO and President of Amundi
elected or earlier Pioneer Asset Management, Inc. (since
retirement or removal September 2014); Director, CEO and President
of Amundi Pioneer Distributor, Inc. (since
September 2014); Director, CEO and President
of Amundi Pioneer Institutional Asset
Management, Inc. (since September 2014);
Chair, Amundi Pioneer Asset Management USA,
Inc., Amundi Pioneer Distributor, Inc. and
Amundi Pioneer Institutional Asset Management,
Inc. (September 2014 - 2018); Managing
Director, Morgan Stanley Investment
Management (2010 - 2013); and Director of
Institutional Business, CEO of International,
Eaton Vance Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (60)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer,
successor trustee is U.S. (since 2010) of Amundi Pioneer Asset
elected or earlier Management USA, Inc.; Executive Vice
retirement or removal President and Chief Investment Officer,
U.S. of Amundi Pioneer (since 2008);
Executive Vice President of Amundi Pioneer
Institutional Asset Management, Inc.
(since 2009); and 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.
58 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
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 (53) Since 2005. Serves Vice President and Associate General Counsel of None
Secretary and at the discretion Amundi Pioneer since January 2008; Secretary
Chief Legal Officer of the Board 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; and Vice President and Senior Counsel
of Amundi Pioneer from July 2002 to December
2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (57) Since 2010. Serves Fund Governance Director of Amundi Pioneer None
Assistant Secretary at the discretion since December 2006 and Assistant Secretary of
of the Board 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 (55) Since 2010. Serves Senior Counsel of Amundi Pioneer since May 2013 None
Assistant Secretary at the discretion and Assistant Secretary of all the Pioneer
of the Board Funds since June 2010; and Counsel of Amundi
Pioneer from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (58) Since 2008. Serves Vice President - Fund Treasury of Amundi None
Treasurer and Chief at the discretion Pioneer; Treasurer of all of the Pioneer Funds
Financial and Accounting of the Board since March 2008; Deputy Treasurer of Amundi
Officer 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 (53) Since 2005. Serves Director - Fund Treasury of Amundi Pioneer; None
Assistant Treasurer at the discretion and Assistant Treasurer of all of the Pioneer
of the Board Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (60) Since 2005. Serves Senior Manager - Fund Treasury of Amundi None
Assistant Treasurer at the discretion Pioneer; and Assistant Treasurer of all of the
of the Board Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (38) Since 2009. Serves Senior Manager - Fund Treasury of Amundi None
Assistant Treasurer at the discretion Pioneer since November 2008; Assistant
of the Board Treasurer of all of the Pioneer Funds since
January 2009; and Client Service Manager -
Institutional Investor Services at State Street
Bank from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18 59
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 (65) Since 2010. Serves Chief Compliance Officer of Amundi Pioneer and None
Chief Compliance Officer at the discretion of all the Pioneer Funds since March 2010;
of the 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; and Senior Compliance Officer for
Columbia Management Advisers, Inc. from October
2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (47) Since 2006. Serves Vice President - Investor Services Group of None
Anti-Money Laundering Officer at the discretion Amundi Pioneer and Anti-Money Laundering
of the Board Officer of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
60 Pioneer Solutions -- Balanced Fund | Annual Report | 7/31/18
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
FactFoneSM 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 us.askamundipioneer@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] 2018 Amundi Pioneer Asset Management 19417-12-0918
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 $20,000
payable to Ernst & Young LLP for the year ended
July 31, 2018 and $78,000
for the year ended July 31, 2017.
(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 2018 or 2017.
(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, 2018 and $24,084
for the year ended July 31, 2017.
(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 2018 or 2017.
(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 Amudi Pioneer Asset Management, Inc, 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 2018 and 2017, 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
July 31, 2018 and $24,084 for the year
ended July 31, 2017.
(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. Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies.
(a) If the registrant is a closed-end management investment company,
provide the following dollar amounts of income and compensation related
to the securities lending activities of the registrant during its most
recent fiscal year:
N/A
(1) Gross income from securities lending activities;
N/A
(2) All fees and/or compensation for each of the following securities
lending activities and related services: any share of revenue generated
by the securities lending program paid to the securities lending agent(s)
(revenue split); fees paid for cash collateral management services
(including fees deducted from a pooled cash collateral reinvestment
vehicle) that are not included in the revenue split; administrative
fees that are not included in the revenue split; fees for
indemnification that are not included in the revenue split; rebates
paid to borrowers; and any other fees relating to the securities lending
program that are not included in the revenue split, including a description
of those other fees;
N/A
(3) The aggregate fees/compensation disclosed pursuant to paragraph (2); and
N/A
(4) Net income from securities lending activities (i.e., the dollar amount in
paragraph (1) minus the dollar amount in paragraph (3)).
If a fee for a service is included in the revenue split, state that the fee
is included in the revenue split.
N/A
(b) If the registrant is a closed-end management investment company, describe
the services provided to the registrant by the securities lending agent in
the registrants most recent fiscal year.
N/A
ITEM 13. 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 October 1, 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 October 1, 2018
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date October 1, 2018
* Print the name and title of each signing officer under his or her signature.