UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21569
Pioneer Asset Allocation Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: July 31
Date of reporting period: August 1, 2016 through January 31, 2017
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Solutions - Conservative Fund
Pioneer Solutions - Balanced Fund
Pioneer Solutions - Growth Fund
--------------------------------------------------------------------------------
Semiannual Report | January 31, 2017
--------------------------------------------------------------------------------
Ticker Symbols:
Conservative Balanced Growth
Class Fund Fund Fund
----- ---- ---- ----
A PIAVX PIALX GRAAX
C PICVX PIDCX GRACX
R PSMRX BALRX SOGRX
Y IBBCX IMOYX IBGYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Fund Reviews 11
Comparing Ongoing Fund Expenses 12
Prices and Distributions 18
Portfolio Summary & Performance Update 21
Schedule of Investments 36
Financial Statements 48
Notes to Financial Statements 70
Approval of Investment Advisory Agreement 104
Trustees, Officers and Service Providers 119
Pioneer Solutions Funds | Semiannual Report | 1/31/17 1
President's Letter
Dear Shareowner,
The 2016 calendar year featured many swings in market sentiment, both in the
equity and fixed-income markets. After a slow start to the year, the markets
began to rally in mid-February 2016 with a recovery in the prices of oil and
other commodities, as well as slow, positive progress in U.S. employment
figures. The rally persisted throughout much of the remaining 10 months of 2016,
gaining further momentum in the second half of the year when U.S. gross domestic
product (GDP) growth showed solid improvement during the third quarter and
unemployment continued to decline. Finally, in November, the election of Donald
Trump as the 45th President of the United States sparked a dramatic late-year
market upturn that saw U.S. equities briefly climb to all-time highs.
Speculation that the new Trump administration's policies would stimulate the
U.S. economy through reduced taxes, less regulation, and increased government
spending on infrastructure, fueled the year-end rally. For the full 12 months
ended December 31, 2016, the Standard & Poor's 500 Index, a broad measure of
U.S. stock market performance, returned a strong 11.9%.
In bond markets, the Federal Reserve Board's (the Fed's) 0.25% hike in the
Federal funds rate in December 2016, its first rate increase in a year,
contributed to a sell-off in U.S. Treasuries. The pullback from Treasuries also
derived from the market's increased inflation and growth expectations under the
incoming Trump administration. Elsewhere within fixed income, corporate credit,
particularly in the high-yield segment of the market, performed well over the
fourth quarter and the full calendar year. U.S. high-yield securities, as
measured by the Bank of America Merrill Lynch U.S. High Yield Index, returned a
robust 17.5% for the 12 months ended December 31, 2016, with a rally in the
energy sector following the recovery in oil and other commodity prices last
February bolstering the high-yield market's performance. Meanwhile, the
Bloomberg Barclays U.S. Aggregate Bond Index, which tracks the performance of
Treasury and agency issues, corporate bond issues, and mortgage-backed
securities, returned 2.7% for the same 12-month period, reflecting the relative
weakness in government bonds.
The U.S. economy's underlying fundamentals seem solid, and growth prospects for
2017 appear healthy. However, we remain concerned about risks to the economy of
potentially disruptive trade policies pursued by the Trump administration.
Barring a damaging trade war, though, we anticipate the Fed will continue to
hike short-term interest rates gradually during 2017. In addition, we expect the
Fed to consider carefully the potential economic effects of any fiscal policies
enacted by the new Trump administration and the Republican-controlled Congress.
In that regard, we believe President Trump's economic policies, if they come to
fruition, could help boost real GDP growth. However, the impact of Trump's
policies on U.S. GDP may be greater in 2018 rather than in 2017. Still, even
prior to the late-year "Trump rally," U.S. GDP growth appeared to be settling in
at a sustainable annual pace of more than 2% as 2016 drew to a close, following
some weaker performance in the first half of the year. Continued improvement in
the employment market driven in part by gains in manufacturing output were among
the factors behind the bounce-back in GDP.
2 Pioneer Solutions Funds | Semiannual Report | 1/31/17
While economic conditions inside the U.S. appear solid, many economies around
the world continue to experience slow growth rates. Moreover, several countries
in various regions face a number of challenges in 2017 and beyond, including the
shifting geopolitics driving "Brexit" - the United Kingdom's pending exit from
the European Union - as well as related populist movements in Europe, limited
productivity gains, aging populations, and transitioning economic models in
China and other emerging markets. In recent years, global central banks have
kept interest rates at close to zero in an effort to stimulate economic growth.
While financial markets often benefited from the low rates, it now appears that
those policies may be losing their effectiveness, leaving central banks little
room to maneuver going forward. Moreover, the low interest rates have caused
government bond yields to plummet, presenting a dilemma for the income-oriented
investor.
Against this backdrop of still-low global interest rates, shifting priorities of
central banks, evolving demographics, and numerous geopolitical concerns, we
believe investors are likely to face ongoing challenges and much uncertainty
when it comes to finding opportunities for both income and capital appreciation.
While much has been made of passive investing as a possible source of stability
in this uncertain environment, it is our view that all investment decisions are
active choices. Throughout Pioneer's history, we have believed in the importance
of active management. During challenging market conditions, we view the value of
active management as even more compelling. Our experienced and tenured
investment teams focus on identifying value across global markets using
proprietary research, careful risk management, and a long-term perspective. We
believe our shareowners can benefit from the experience and tenure of our
investment teams as well as the insights generated from our extensive research
process.
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
January 31, 2017
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 3
Portfolio Management Discussion | 1/31/17
In the following interview, portfolio managers John O'Toole and Paul Weber
discuss the market environment and investment strategies that applied to the
Pioneer Solutions Funds for the six-month period ended January 31, 2017.
Working out of Pioneer's Dublin, Ireland office, Mr. O'Toole, Head of
Multi-Asset Portfolio Management at Pioneer, Mr. Weber, Head of Fund Research &
Manager Selection at Pioneer, and Salvatore Buono, Head of Strategy Alignment
and Structured Products at Pioneer, are responsible for the day-to-day
management of the portfolios.
Q How did the Funds perform during the six-month period ended January 31,
2017?
A During the six-month period ended January 31, 2017, Pioneer Solutions -
Conservative Fund's Class A shares returned -0.22% at net asset value,
while the Morgan Stanley Capital International (MSCI) World ND Index(1)
returned 4.95% and the Bloomberg Barclays U.S. Aggregate Bond Index
returned -2.95%. During the same period, the average return of the 373
mutual funds in Lipper's Mixed-Asset Target Allocation Conservative Funds
category was 0.94%, and the average return of the 207 mutual funds in
Morningstar's 15% to 30% Equity Allocation Funds category was 0.63%.
Pioneer Solutions - Balanced Fund's Class A shares returned 1.01% at net
asset value during the six-month period, while the MSCI World ND Index
returned 4.95% and the Bloomberg Barclays U.S. Aggregate Bond Index
returned -2.95%. During the same period, the average return of the 589
mutual funds in Lipper's Mixed-Asset Target Allocation Moderate Funds
category was 2.50%, and the average return of the 839 mutual funds in
Morningstar's 50% to 70% Equity Allocation Funds category was 2.96%.
Pioneer Solutions - Growth Fund's Class A shares returned 2.90% at net
asset value during the six-month period, while the MSCI World ND Index
returned 4.95% and the Bloomberg Barclays U.S. Aggregate Bond Index
returned -2.95%. During the same period, the average return of the 518
1 The MSCI information may only be used for your internal use, may not be
reproduced or redisseminated in any form and may not be used as a basis
for or a component of any financial instruments or products or indices.
None of the MSCI information is intended to constitute investment advice or
a recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis
should not be taken as an indication or guarantee of any future performance
analysis, forecast or prediction. The MSCI information is provided on an
"as is" basis and the user of this information assumes the entire risk of
any use made of this information. MSCI, each of its affiliates and each
other person involved in or related to compiling, computing or creating any
MSCI information (collectively, the "MSCI Parties") expressly disclaims all
warranties (including, without limitation, any warranties of originality,
accuracy, completeness, timeliness, non-infringement, merchantability and
fitness for a particular purpose) with respect to this information. Without
limiting any of the foregoing, in no event shall any MSCI Party have any
liability for any direct, indirect, special, incidental, punitive,
consequential (including, without limitation, lost profits) or any other
damages.
4 Pioneer Solutions Funds | Semiannual Report | 1/31/17
mutual funds in Lipper's Mixed-Asset Target Allocation Growth Funds
category was 3.37%, and the average return of the 416 mutual funds in
Morningstar's 70% to 85% Equity Allocation Funds category was 3.92%.
Q How would you characterize the economic and market backdrop during the
six-month period ended January 31, 2017?
A The reaction of investors to the November 8th U.S. presidential election
result was the principal driver of the performance of risk-based asset
classes such as equities and corporate bonds over the six-month period. The
period opened against a backdrop of central banks in Europe, Japan, and
China all pursuing aggressive policies to support economic growth. Activity
in the developed markets was relatively flat as economic data continued to
be indecisive with respect to the state of the global economy. As the
period progressed, markets saw a pick-up in volatility as data indicated
continued strengthening of the U.S. economy and speculation increased that
the U.S. Federal Reserve (the Fed) would raise its benchmark interest rate
before the end of 2016. The Fed eventually did increase rates by 0.25% in
the middle of December.
Equity markets as well as interest rates would rise sharply in the wake of
the unanticipated U.S. election outcome, which resulted in Republican
control of the White House and both houses of Congress. The results of the
election led to speculation that economic growth would strengthen going
forward based on the new Trump administration's expressed goals of cutting
taxes, reducing regulations, and increasing infrastructure spending.
In late November, the OPEC (Organization of Petroleum Exporting Countries)
cartel announced an agreement to limit oil production, thus stabilizing the
outlooks for the energy sector and for a number of emerging markets
economies. Global sentiment towards riskier assets dampened somewhat in
early December, though, when a referendum on Italian constitutional reform
failed, leading the Prime Minister Renzi to resign. Viewed in conjunction
with the results of the earlier "Brexit" referendum in the United Kingdom
last June, the defeat of the Italian referendum renewed broader market
concerns about the effects of rising populist movements on the future of
the euro zone, which is the world's second-largest economic bloc. As noted
earlier, in the middle of the December the Fed implemented a 0.25%
interest-rate hike, as expected, which raised the influential Federal funds
rate's target to a range of 0.50% to 0.75%. The Fed also signalled that it
might enact as many as three more, very similar rate increases in 2017.
Over the full six months, global equities in aggregate returned 4.95%, as
measured by the MSCI World ND Index. The U.S. equity market returned 5.96%,
as measured by the Standard & Poor's 500 Index, outperforming international
equities, which returned 3.49%, as gauged by the MSCI
Pioneer Solutions Funds | Semiannual Report | 1/31/17 5
Europe, Australasia, Far East Index. Emerging markets, as measured by the
MSCI Emerging Markets Index, returned 4.92% during the six-month period.
Within the U.S., small-cap stocks outperformed their large-cap
counterparts, while value stocks outperformed growth-oriented stocks. Based
largely on the post-U.S. election spike in interest rates, fixed-income
markets finished in negative territory, returning -2.95% as measured by the
Bloomberg Barclays U.S. Aggregate Bond Index, the most popular measure of
the performance of the U.S. bond market.
Q Can you review your overall investment approach taken with respect to
management of the Funds?
A We allocate the assets of each Fund within broad strategic guidelines
designed to address a particular investor risk profile. In seeking to gain
the desired exposures in the portfolios to U.S. equities, international
equities, bonds, and cash, we utilize a broad selection of mutual funds.
Under this approach, we typically incorporate into the portfolios a
substantial representation of carefully selected mutual funds managed by
Pioneer, and by other, third-party managers. In addition, we use derivative
positions, which we discuss in more detail later in this report, to help
manage exposures and the overall risk/reward profile for each Fund.
Importantly, we manage each Fund with an eye toward the allocation of a
"risk budget," rather than under a straightforward asset allocation
approach. This reflects the fact that the majority of the risk embedded in
an equally weighted bond and equity portfolio is concentrated within the
equity component.
Q What considerations and tactical shifts did you apply to the Funds' asset
allocations during the six-month period ended January 31, 2017?
A For most of the period, we maintained the Funds' allocations to equities at
a neutral level. Within the Funds' equity allocations, we maintained a bias
toward the U.S. and Japan relative to Europe. After the U.S. presidential
election, we decided to tilt the portfolios toward value within U.S.
equities. With respect to the Funds' fixed-income allocations, toward the
end of the period we trimmed the portfolios' overweights to
below-investment-grade, high-yield corporate bonds, while increasing
exposures to U.S. bond funds with flexible investment approaches.
Q How did your allocations and investment strategies for the Funds affect
their performance during the six-month period ended January 31, 2017?
A On the whole, security selection results within the Funds' U.S. equity
allocations detracted from returns, with the earlier tilt in the portfolios
toward growth-oriented issues the main negative factor. Underweights to
European equities as well as stock selection results in that segment of the
6 Pioneer Solutions Funds | Semiannual Report | 1/31/17
market also detracted from the Funds' performance. Finally, overweight
allocations to U.S. real estate investment trusts (REITs) had a negative
impact on each Fund's performance during the period.
Across the portfolios, positive contributions to performance came from
security selection within the fixed-income allocations and from overweight
exposures to both high-yield and inflation-protected bonds. In addition,
the shorter-duration positioning within each Fund's fixed-income
allocations helped to buffer performance as Treasury yields spiked
following the U.S. election. (Duration is a measure of the sensitivity of
the price, or the value of principal, of a fixed-income investment to a
change in interest rates, expressed as a number of years.) In addition,
overweighting both U.S. and Japanese equities aided the Funds' performance
during the period.
In the Conservative Fund, the portfolio's macroeconomic-based asset
allocation strategy detracted from relative performance. In addition, our
relative-value trades across the different asset classes was a small
detractor from the Fund's performance during the period. On the positive
side, the Conservative Fund's performance benefited from a core position in
Pioneer Strategic Income Fund, along with allocations to a number of other
flexible bond portfolios. Short-duration positioning and long credit-spread
exposure in the fixed-income portion of the portfolio also added value.
(Credit spreads are commonly defined as the differences in yield between
Treasuries and other types of fixed-income securities with similar
maturities.) Also within the Conservative Fund, we saw positive performance
from an overweight to Japanese equities and a long stance on U.S.
inflation, combined with an underweight to European equities.
In the Balanced Fund, the Fund's relative performance was constrained by an
underweight position in European equities and by weak overall selection
results, particularly with respect to U.S. mutual funds, where our earlier
tilt toward growth relative to value detracted from relative returns.
Positive performance contributors included exposures to Pioneer Strategic
Income Fund and Pioneer Dynamic Credit Fund. In addition, overweight
allocations to U.S. and Japanese equities, both of which rallied in the
wake of the U.S. election results, aided the Fund's returns. The Balanced
Fund's overweights to U.S. inflation-linked securities and high-yield bonds
were also beneficial for relative returns.
In the Growth Fund, the portfolio's exposures to U.S. and European equity
funds detracted from the Fund's results during the period, as did our
overall asset allocation decisions based on macroeconomic factors. The
Fund's underperformance in that segment derived largely from an overweight
portfolio exposure to real estate-oriented investments such as REITs. On
the positive side, security selection results - mainly in the fixed-income
portion of the portfolio - benefited the Growth Fund's relative
Pioneer Solutions Funds | Semiannual Report | 1/31/17 7
performance. Meanwhile, allocations to Pioneer International Equity Fund
and Pioneer Global Equity Fund also contributed to the Fund's returns.
Finally, from an asset allocation perspective, the principal positive
contributor to the Growth Fund's relative performance during the period was
an overweight to Japanese equities.
Q The Funds have the ability to invest in derivatives. Did you use
derivatives as part of your investment strategy during the six-month period
ended January 31, 2017, and did those positions have a material effect on
performance?
A We will use derivatives regularly in an effort to execute our investment
strategies for each fund in an efficient manner, including to gain or trim
market exposures in the portfolios and to implement relative-value trades.
In particular, during the six-month period, we used derivatives such as
futures, foreign forward currency contracts, options, and swaps to manage
the portfolios' overlay durations and corresponding interest-rate
sensitivity. As noted earlier, the Funds' shorter-duration positioning
contributed positively to relative performance.
Q What factors are you watching most closely as you determine strategy for
the Funds going forward?
A Our base-case scenario is for reasonable economic growth and moderate
consumer price inflation. Concerns about U.S. monetary, budgetary, and
trade policies will likely garner the most attention in the financial
markets over the next several months, together with the heavy political
calendar in Europe. In the U.S., the main questions are how much of
President Trump's proposed supply-and-demand-side economic policies will
become law, and how will they affect economic growth and U.S. inflation
rates? We expect the Fed to monitor the evolution of economic policies and
consumer prices, given that the U.S. has now achieved what is considered
full employment status. While financial markets seem to expect a very
gradual tightening of monetary conditions, U.S. policymakers could surprise
on the upside if they feel that inflationary pressure is building.
In Europe, there are major elections scheduled in the countries
representing the two largest European Union economies: France over the
course of April and May, and Germany in September of 2017. The rising
support for extremist parties on both sides of the political spectrum in
Europe has increased the level of uncertainty about the election outcomes
in both countries.
8 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Please refer to the Schedule of Investments on pages 36-47 for a full listing of
fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Each portfolio in Pioneer Solutions Funds is a "fund-of-funds" which seeks to
achieve its investment objectives by investing primarily in other funds ("the
underlying funds") managed by Pioneer or one of its affiliates, rather than by
taking direct positions in securities. The Solutions Funds' performance depend
on the adviser's skill in determining the strategic asset allocations, the mix
of underlying funds, as well as the performance of those underlying funds. The
underlying funds' performance may be lower than the performance of the asset
class that they were selected to represent. In addition to the Funds' operating
expenses, investors will indirectly bear the operating expenses of investments
in any underlying funds. Each of the underlying funds has its own investment
risks.
At times, the Funds' investments may represent industries or sectors that are
interrelated or have common risks, making them more susceptible to any economic,
political, or regulatory developments or other risks affecting those industries
and sectors.
Investments in equity securities are subject to price fluctuation.
When interest rates rise, the prices of fixed income securities in the funds
will generally fall. Conversely, when interest rates fall, the prices of fixed
income securities in the funds will generally rise.
Investments in the Funds are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The portfolios may invest in underlying funds with exposure to REIT securities,
the value of which can fall for a variety of reasons, such as declines in rental
income, fluctuating interest rates, poor property management, environmental
liabilities, uninsured damage, increased competition, or changes in real estate
tax laws.
The Funds may invest in underlying funds with exposure to commodities. The value
of commodity-linked derivatives may be affected by changes in overall market
movements, commodity index volatility, changes in interest rates, factors
affecting a particular industry or commodity, international economic, political
and regulatory developments, supply and demand, and governmental regulatory
policies.
The Funds may use derivatives, such as options, futures, inverse floating rate
obligations, swaps, and others, which can be illiquid, may disproportionately
increase losses, and have a potentially large impact on fund performance.
Derivatives may have a leveraging effect on the Fund.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 9
The Funds may invest in credit default swaps, which may in some cases be
illiquid, and they increase credit risk since the fund has exposure to both the
issuer of the referenced obligation and the counterparty to the credit default
swap.
The Funds and some of the underlying funds employ leverage, which increases the
volatility of investment returns and subjects the Funds to magnified losses if
an underlying fund's investments decline in value.
The Funds and some of the underlying funds may employ short selling, a
speculative strategy. Unlike the possible loss on a security that is purchased,
there is no limit on the amount of loss on an appreciating security that is sold
short.
The value of the investments held by the Funds for cash management or temporary
defensive purposes may be affected by market risks, changing interest rates, and
by changes in credit ratings of the investments. If the Funds hold cash that is
uninvested, the Funds will not earn income on the cash and the Funds' yields
will go down.
These risks may increase share price volatility.
There is no assurance that these and other strategies used by the Funds will be
successful. Please see the prospectus for a more complete discussion of the
Funds' risks.
Before making an investment in any fund, you should consider all the risks
associated with it. Please see the Fund Reviews beginning on page 11 for
information on specific weightings and performance for each of the funds.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareowner report regarding market or economic trends or
the factors influencing each fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
10 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Fund Reviews | 1/31/17
Portfolio Allocations
Pioneer Solutions - Conservative Fund
As of January 31, 2017, the Fund had an allocation of 19.9% equities and 80.1%
fixed income. Within the fixed-income portion of the Fund, the largest holding
at the end of the period was in Pioneer Bond Fund, at 28.2% of assets, followed
by Pioneer Strategic Income Fund, at 26.0% of assets. The largest equity
positions in the portfolio at period end were in Pioneer Disciplined Value Fund,
at 2.1% of assets, followed by Pioneer Mid Cap Value Fund, at 1.6% of assets.
Pioneer Solutions - Balanced Fund
As of January 31, 2017, the Fund had an allocation of 54.4% equities, 45.5%
fixed income, with the rest in option contracts. Within the fixed-income portion
of the Fund, the largest holding at the end of the period was in Pioneer Bond
Fund, at 11.0% of assets, followed by Pioneer Strategic Income Fund, at 8.0% of
assets. The largest equity positions in the portfolio at period end were in
Pioneer Disciplined Value Fund, at 6.0% of assets, followed by Pioneer Mid Cap
Value Fund, at 4.4% of assets.
Pioneer Solutions - Growth Fund
As of January 31, 2017, the Fund had an allocation of 77.9% equities, 21.3%
fixed income, with the rest in option contracts. Within the fixed-income portion
of the Fund, the largest holding at the end of the period was in Pioneer Bond
Fund, at 7.4% of assets, followed by Columbia Contrarian Core Fund, at 4.0% of
assets. The largest equity positions in the portfolio at period end were in
Pioneer Disciplined Value Fund, at 9.1% of assets, followed by Pioneer Mid Cap
Value Fund, at 6.6% of assets.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 11
Comparing Ongoing Fund Expenses
Pioneer Solutions - Conservative Fund
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Solutions Conservative Fund
Based on actual returns from August 1, 2016 through January 31, 2017.
------------------------------------------------------------------------------------
Share Class A C R Y
------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 8/1/16
------------------------------------------------------------------------------------
Ending Account Value $ 997.80 $ 994.40 $ 996.70 $ 997.60
(after expenses)
on 1/31/17
------------------------------------------------------------------------------------
Expenses Paid $ 3.52 $ 7.29 $ 4.53 $ 3.27
During Period*
------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.70%,
1.45%, 0.90% and 0.65% for Class A, C, R and Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 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
$6.60, $10.36, $7.60 and $6.34 for Class A, C, R and Y shares,
respectively, based on the respective expense ratio for each class of
1.31%, 2.06%, 1.51% and 1.26%.
12 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Solutions Conservative Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from August 1, 2016 through January 31, 2017.
------------------------------------------------------------------------------------
Share Class A C R Y
------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 8/1/16
------------------------------------------------------------------------------------
Ending Account Value $ 1,021.68 $ 1,017.90 $ 1,020.67 $ 1,021.93
(after expenses)
on 1/31/17
------------------------------------------------------------------------------------
Expenses Paid $ 3.57 $ 7.37 $ 4.58 $ 3.31
During Period*
------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.70%,
1.45%, 0.90% and 0.65% for Class A, C, R and Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 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
$6.67, $10.46, $7.68 and $6.41 for Class A, C, R and Y shares,
respectively, based on the respective expense ratio for each class of
1.31%, 2.06%, 1.51% and 1.26%.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 13
Comparing Ongoing Fund Expenses
Pioneer Solutions - Balanced Fund
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Solutions Balanced Fund
Based on actual returns from August 1, 2016 through January 31, 2017.
------------------------------------------------------------------------------------
Share Class A C R Y
------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 8/1/16
------------------------------------------------------------------------------------
Ending Account Value $ 1,010.10 $ 1,007.10 $ 1,010.20 $ 1,011.90
(after expenses)
on 1/31/17
------------------------------------------------------------------------------------
Expenses Paid $ 3.34 $ 6.93 $ 4.56 $ 2.43
During Period*
------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.66%,
1.37%, 0.90% and 0.48% for Class A, C, R and Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 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
$6.99, $10.57, $8.21 and $6.09 for Class A, C, R and Y shares,
respectively, based on the respective expense ratio for each class of
1.38%, 2.09%, 1.62% and 1.20%.
14 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Solutions Balanced Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from August 1, 2016 through January 31, 2017.
------------------------------------------------------------------------------------
Share Class A C R Y
------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 8/1/16
------------------------------------------------------------------------------------
Ending Account Value $ 1,021.88 $ 1,018.30 $ 1,020.67 $ 1,022.79
(after expenses)
on 1/31/17
------------------------------------------------------------------------------------
Expenses Paid $ 3.36 $ 6.97 $ 4.58 $ 2.45
During Period*
------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.66%,
1.37%, 0.90% and 0.48% for Class A, C, R and Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 to reflect the one half-year period. Fund expense ratios do not
include estimates for acquired fund fees and expenses (AFFE). If AFFE
estimates were included, expenses paid during the period would have been
$7.02, $10.61, $8.24 and $6.11 for Class A, C, R and Y shares,
respectively, based on the respective expense ratio for each class of
1.38%, 2.09%, 1.62% and 1.20%.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 15
Comparing Ongoing Fund Expenses
Pioneer Solutions - Growth Fund
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Solutions Growth Fund
Based on actual returns from August 1, 2016 through January 31, 2017.
------------------------------------------------------------------------------------
Share Class A C R Y
------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 8/1/16
------------------------------------------------------------------------------------
Ending Account Value $ 1,029.00 $ 1,035.90 $ 1,027.80 $ 1,029.90
(after expenses)
on 1/31/17
------------------------------------------------------------------------------------
Expenses Paid $ 3.27 $ 6.93 $ 4.60 $ 2.25
During Period*
------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.64%,
1.35%, 0.90% and 0.44% for Class A, C, R and Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 to reflect the one half-year period. Fund expense ratios do not
include estimates for acquired fund fees and expenses (AFFE). If AFFE
estimates were included, expenses paid during the period would have been
$7.11, $10.78, $8.43 and $6.09 for Class A, C, R and Y shares,
respectively, based on the respective expense ratio for each class of
1.39%, 2.10%, 1.65% and 1.19%.
16 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Solutions Growth Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from August 1, 2016 through January 31, 2017.
------------------------------------------------------------------------------------
Share Class A C R Y
------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 8/1/16
------------------------------------------------------------------------------------
Ending Account Value $ 1,021.98 $ 1,018.40 $ 1,020.67 $ 1,022.99
(after expenses)
on 1/31/17
------------------------------------------------------------------------------------
Expenses Paid $ 3.26 $ 6.87 $ 4.58 $ 2.24
During Period*
------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 0.64%,
1.35%, 0.90% and 0.44% for Class A, C, R and Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 to reflect the one half-year period. Fund expense ratios do not
include estimates for acquired fund fees and expenses (AFFE). If AFFE
estimates were included, expenses paid during the period would have been
$7.07, $10.66, $8.39 and $6.06 for Class A, C, R and Y shares,
respectively, based on the respective expense ratio for each class of
1.39%, 2.10%, 1.65% and 1.19%.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 17
Prices and Distributions | 1/31/17
Net Asset Value per Share
--------------------------------------------------------------------------------
Conservative Fund
--------------------------------------------------------------------------------
Class 1/31/17 7/31/16
--------------------------------------------------------------------------------
A $ 10.15 $ 10.41
--------------------------------------------------------------------------------
C $ 9.85 $ 10.06
--------------------------------------------------------------------------------
R $ 10.13 $ 10.38
--------------------------------------------------------------------------------
Y $ 9.56 $ 9.83
--------------------------------------------------------------------------------
Balanced Fund
--------------------------------------------------------------------------------
Class 1/31/17 7/31/16
--------------------------------------------------------------------------------
A $ 11.22 $ 11.35
--------------------------------------------------------------------------------
C $ 10.35 $ 10.44
--------------------------------------------------------------------------------
R $ 11.18 $ 11.30
--------------------------------------------------------------------------------
Y $ 11.37 $ 11.51
--------------------------------------------------------------------------------
Growth Fund
--------------------------------------------------------------------------------
Class 1/31/17 7/31/16
--------------------------------------------------------------------------------
A $ 12.49 $ 12.36
--------------------------------------------------------------------------------
C $ 11.78 $ 11.63
--------------------------------------------------------------------------------
R $ 12.42 $ 12.30
--------------------------------------------------------------------------------
Y $ 12.74 $ 12.63
--------------------------------------------------------------------------------
18 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Distributions per Share: 8/1/16-1/31/17
--------------------------------------------------------------------------------
Conservative Fund
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ 0.2350 $ -- $ --
--------------------------------------------------------------------------------
C $ 0.1527 $ -- $ --
--------------------------------------------------------------------------------
R $ 0.2142 $ -- $ --
--------------------------------------------------------------------------------
Y $ 0.2444 $ -- $ --
--------------------------------------------------------------------------------
Balanced Fund
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ 0.2400 $ -- $ --
--------------------------------------------------------------------------------
C $ 0.1619 $ -- $ --
--------------------------------------------------------------------------------
R $ 0.2307 $ -- $ --
--------------------------------------------------------------------------------
Y $ 0.2715 $ -- $ --
--------------------------------------------------------------------------------
Growth Fund
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ 0.1579 $ -- $ 0.0656
--------------------------------------------------------------------------------
C $ 0.0714 $ -- $ 0.0656
--------------------------------------------------------------------------------
R $ 0.1515 $ -- $ 0.0656
--------------------------------------------------------------------------------
Y $ 0.1960 $ -- $ 0.0656
--------------------------------------------------------------------------------
Pioneer Solutions Funds | Semiannual Report | 1/31/17 19
Prices and Distributions | 1/31/17 (continued)
Index Definitions
--------------------------------------------------------------------------------
The Morgan Stanley Capital International (MSCI) World ND Index is an unmanaged
measure of the performance of stock markets in the developed world. The
Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged measure of the U.S.
bond market. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. It is not possible to invest directly in an index.
The indices defined here pertain to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 22-25, 27-30 and 32-35.
20 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Portfolio Summary | 1/31/17
Pioneer Solutions - Conservative Fund
Asset Allocations
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Fixed Income 75.6%
International Equity 10.6%
U.S. Equity 9.2%
U.S. Government and Agency Obligation 2.6%
Sovereign Debt Obligation 1.9%
Purchased Put Options 0.1%
Actual Portfolio Holdings
(based on total portfolio)*
--------------------------------------------------------------------------------
U.S. Stocks
--------------------------------------------------------------------------------
Pioneer Disciplined Value Fund Class Y 2.11%
--------------------------------------------------------------------------------
Pioneer Mid Cap Value Fund Class K 1.61
--------------------------------------------------------------------------------
Pioneer Fund Class Y 1.17
--------------------------------------------------------------------------------
Pioneer Fundamental Growth Fund
Class K 1.06
--------------------------------------------------------------------------------
Pioneer Core Equity Fund Class Y 1.05
--------------------------------------------------------------------------------
AMG Managers Fairpointe Mid Cap Fund
Class I 0.96
--------------------------------------------------------------------------------
Oak Ridge Small Cap Growth Fund
Class K 0.66
--------------------------------------------------------------------------------
iShares US Aerospace & Defense ETF 0.58
--------------------------------------------------------------------------------
International Stocks
--------------------------------------------------------------------------------
Pioneer Global Equity Fund Class K 4.00%
--------------------------------------------------------------------------------
Pioneer International Equity Fund Class Y 3.52
--------------------------------------------------------------------------------
iShares MSCI China ETF 1.29
--------------------------------------------------------------------------------
iShares MSCI Canada ETF 0.67
--------------------------------------------------------------------------------
iShares Core MSCI Emerging Markets ETF 0.54
--------------------------------------------------------------------------------
JOHCM Asia Ex-Japan Equity Fund
Class IS 0.39
--------------------------------------------------------------------------------
T. Rowe Price International Funds -
European Stock Fund 0.21
--------------------------------------------------------------------------------
Bonds
--------------------------------------------------------------------------------
Pioneer Bond Fund Class K 28.16%
--------------------------------------------------------------------------------
Pioneer Strategic Income Fund Class K 26.03
--------------------------------------------------------------------------------
MFS Total Return Bond Fund Class I 4.96
--------------------------------------------------------------------------------
Doubleline Total Return Bond Fund
Class I 4.93
--------------------------------------------------------------------------------
Western Asset Core Plus Bond Fund
Class IS 4.91
--------------------------------------------------------------------------------
Pioneer Dynamic Credit Fund Class Y 2.17
--------------------------------------------------------------------------------
Pioneer Short Term Income Fund Class K 1.08
--------------------------------------------------------------------------------
Columbia Contrarian Core Fund Class Y 0.93
--------------------------------------------------------------------------------
Pioneer Floating Rate Fund Class K 0.80
--------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund
Class Y 0.64
--------------------------------------------------------------------------------
Pioneer High Yield Fund Class Y 0.61
--------------------------------------------------------------------------------
Pioneer Global High Yield Fund Class Y 0.36
--------------------------------------------------------------------------------
U.S. Government and Agency Obligations
--------------------------------------------------------------------------------
U.S. Treasury Inflation Indexed Note 2.60%
--------------------------------------------------------------------------------
Sovereign Debt Obligation
--------------------------------------------------------------------------------
Japanese Government CPI Linked Bond 1.94%
--------------------------------------------------------------------------------
Purchased Put Options
--------------------------------------------------------------------------------
Put EUR Call JPY 0.06%
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 21
Performance Update | 1/31/17 Class A Shares
Pioneer Solutions - Conservative Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Solutions - Conservative Fund at
public offering price during the periods shown, compared to that of the MSCI
World ND Index and the Bloomberg Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of January 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net Public U.S. MSCI
Asset Offering Aggregate World
Value Price Bond ND
Period (NAV) (POP) Index Index
--------------------------------------------------------------------------------
10 years 3.52% 2.91% 4.37% 3.95%
5 years 4.05 2.83 2.09 9.86
1 year 5.13 -0.89 1.45 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.47% 1.31%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Solutions - Bloomberg Barclays
Conservative Fund U.S. Aggregate Bond Index MSCI World ND Index
1/07 $ 9,425 $10,000 $10,000
1/08 $ 9,675 $10,881 $ 9,953
1/09 $ 7,705 $11,162 $ 5,829
1/10 $ 9,674 $12,112 $ 7,962
1/11 $10,744 $12,725 $ 9,492
1/12 $10,920 $13,827 $ 9,208
1/13 $11,823 $14,185 $10,673
1/14 $12,488 $14,202 $12,388
1/15 $13,038 $15,141 $13,255
1/16 $12,667 $15,117 $12,581
1/17 $13,317 $15,337 $14,734
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results shown reflect any applicable expense waivers in effect
during the periods shown. Without such waivers Fund performance would be lower.
Waivers may not be in effect for all funds. Certain fee waivers are contractual
through a specified period. Otherwise, fee waivers can be rescinded at any time.
See the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through December 1, 2018, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus for more information. Please see the financial highlights for more
recent expense ratios. Expense ratios in the financial highlights, unlike those
shown in the prospectus, do not reflect acquired fund fees and expenses.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Effective November 17, 2014, 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.
22 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Performance Update | 1/31/17 Class C Shares
Pioneer Solutions - Conservative Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Solutions - Conservative Fund
during the periods shown, compared to that of the MSCI World ND Index and the
Bloomberg Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of January 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
U.S. MSCI
Aggregate World
If If Bond ND
Period Held Redeemed Index Index
--------------------------------------------------------------------------------
10 years 2.69% 2.69% 4.37% 3.95%
5 years 3.29 3.29 2.09 9.86
1 year 4.43 4.43 1.45 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.20% 2.06%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Solutions - Bloomberg Barclays MSCI World
Conservative Fund U.S. Aggregate Bond Index ND Index
1/07 $10,000 $10,000 $10,000
1/08 $10,175 $10,881 $ 9,953
1/09 $ 8,017 $11,162 $ 5,829
1/10 $ 9,960 $12,112 $ 7,962
1/11 $10,996 $12,725 $ 9,492
1/12 $11,089 $13,827 $ 9,208
1/13 $11,903 $14,185 $10,673
1/14 $12,497 $14,202 $12,388
1/15 $12,947 $15,141 $13,255
1/16 $12,482 $15,117 $12,581
1/17 $13,035 $15,337 $14,734
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results shown reflect any applicable expense waivers in effect
during the periods shown. Without such waivers Fund performance would be lower.
Waivers may not be in effect for all funds. Certain fee waivers are contractual
through a specified period. Otherwise, fee waivers can be rescinded at any time.
See the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through December 1, 2018, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus for more information. Please see the financial highlights for more
recent expense ratios. Expense ratios in the financial highlights, unlike those
shown in the prospectus, do not reflect acquired fund fees and expenses.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Effective November 17, 2014, Pioneer became directly responsible for portfolio
management of the Fund. The performance shown for periods prior to November 17,
2014, reflects the investment strategies employed during those periods.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 23
Performance Update | 1/31/17 Class R Shares
Pioneer Solutions - Conservative Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class R shares of Pioneer Solutions - Conservative Fund
during the periods shown, compared to that of the MSCI World ND Index and the
Bloomberg Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of January 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net U.S. MSCI
Asset Aggregate World
Value Bond ND
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 3.48% 4.37% 3.95%
5 years 3.98 2.09 9.86
1 year 4.93 1.45 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.11% 1.51%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Solutions - Bloomberg Barclays MSCI World
Conservative Fund U.S. Aggregate Bond Index ND Index
1/07 $10,000 $10,000 $10,000
1/08 $10,264 $10,881 $ 9,953
1/09 $ 8,174 $11,162 $ 5,829
1/10 $10,263 $12,112 $ 7,962
1/11 $11,398 $12,725 $ 9,492
1/12 $11,584 $13,827 $ 9,208
1/13 $12,543 $14,185 $10,673
1/14 $13,248 $14,202 $12,388
1/15 $13,831 $15,141 $13,255
1/16 $13,419 $15,117 $12,581
1/17 $14,081 $15,337 $14,734
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class R shares for the period prior to the
commencement of operations of Class R shares on July 1, 2015, is the net asset
value performance of the Fund's Class A shares, which has not been restated to
reflect any differences in expenses, including Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares generally are higher than those of
Class R shares, the performance of Class R shares prior to their inception would
have been higher than the performance shown. For the period beginning July 1,
2015, the actual performance of Class R shares is reflected. Class R shares are
not subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through December 1, 2018, for Class R shares. There can be no assurance
that 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, Pioneer became directly responsible for portfolio
management of the Fund. The performance shown for periods prior to November 17,
2014, reflects the investment strategies employed during those periods.
24 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Performance Update | 1/31/17 Class Y Shares
Pioneer Solutions - Conservative Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Solutions - Conservative Fund
during the periods shown, compared to that of the MSCI World ND Index and the
Bloomberg Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of January 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net U.S. MSCI
Asset Aggregate World
Value Bond ND
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 2.53% 4.37% 3.95%
5 years 3.62 2.09 9.86
1 year 5.22 1.45 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.43% 1.26%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Solutions - Bloomberg Barclays MSCI World
Conservative Fund U.S. Aggregate Bond Index ND Index
1/07 $5,000,000 $5,000,000 $5,000,000
1/08 $5,121,189 $5,440,411 $4,976,401
1/09 $3,956,250 $5,581,213 $2,914,645
1/10 $4,766,670 $6,055,972 $3,980,851
1/11 $5,309,730 $6,362,436 $4,745,794
1/12 $5,373,470 $6,913,559 $4,603,817
1/13 $5,753,075 $7,092,310 $5,336,255
1/14 $6,051,333 $7,101,101 $6,193,899
1/15 $6,294,834 $7,570,672 $6,627,377
1/16 $6,101,435 $7,558,552 $6,290,599
1/17 $6,419,902 $7,668,374 $7,367,005
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results shown reflect any applicable expense waivers in effect
during the periods shown. Without such waivers Fund performance would be lower.
Waivers may not be in effect for all funds. Certain fee waivers are contractual
through a specified period. Otherwise, fee waivers can be rescinded at any time.
See the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through December 1, 2018, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus for more information. Please see the financial highlights for more
recent expense ratios. Expense ratios in the financial highlights, unlike those
shown in the prospectus, do not reflect acquired fund fees and expenses.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Effective November 17, 2014, Pioneer became directly responsible for portfolio
management of the Fund. The performance shown for periods prior to November 17,
2014, reflects the investment strategies employed during those periods.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 25
Portfolio Summary | 1/31/17
Pioneer Solutions - Balanced Fund
Asset Allocations
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Fixed Income 40.9%
International Equity 29.5%
U.S. Equity 24.9%
U.S. Government and Agency Obligation 2.6%
Sovereign Debt Obligation 2.0%
Purchased Put Options 0.1%
Actual Portfolio Holdings
(based on total portfolio)*
--------------------------------------------------------------------------------
U.S. Stocks
--------------------------------------------------------------------------------
Pioneer Disciplined Value Fund Class Y 5.97%
--------------------------------------------------------------------------------
Pioneer Mid Cap Value Fund Class K 4.44
--------------------------------------------------------------------------------
Pioneer Fund Class Y 3.37
--------------------------------------------------------------------------------
Pioneer Core Equity Fund Class Y 3.03
--------------------------------------------------------------------------------
Pioneer Fundamental Growth Fund
Class K 2.94
--------------------------------------------------------------------------------
AMG Managers Fairpointe Mid Cap
Fund Class I 2.62
--------------------------------------------------------------------------------
Oak Ridge Small Cap Growth Fund
Class K 1.95
--------------------------------------------------------------------------------
iShares US Aerospace & Defense ETF 0.53
--------------------------------------------------------------------------------
International Stocks
--------------------------------------------------------------------------------
Pioneer International Equity Fund
Class Y 14.43%
--------------------------------------------------------------------------------
Pioneer Global Equity Fund Class K 9.40
--------------------------------------------------------------------------------
T. Rowe Price International Funds -
European Stock Fund 1.92
--------------------------------------------------------------------------------
iShares MSCI Canada ETF 1.66
--------------------------------------------------------------------------------
iShares MSCI China ETF 1.29
--------------------------------------------------------------------------------
iShares Core MSCI Emerging
Markets ETF 0.53
--------------------------------------------------------------------------------
JOHCM Asia Ex-Japan Equity Fund
Class IS 0.29
--------------------------------------------------------------------------------
Bonds
--------------------------------------------------------------------------------
Pioneer Bond Fund Class K 10.98%
--------------------------------------------------------------------------------
Pioneer Strategic Income Fund Class K 7.99
--------------------------------------------------------------------------------
Doubleline Total Return Bond Fund
Class I 5.05
--------------------------------------------------------------------------------
MFS Total Return Bond Fund Class I 3.95
--------------------------------------------------------------------------------
Western Asset Core Plus Bond Fund
Class IS 3.94
--------------------------------------------------------------------------------
Pioneer Dynamic Credit Fund Class Y 3.07
--------------------------------------------------------------------------------
Columbia Contrarian Core Fund Class Y 2.59
--------------------------------------------------------------------------------
Pioneer Global High Yield Fund Class Y 1.83
--------------------------------------------------------------------------------
Pioneer Global Multisector Income Fund
Class Y 1.53
--------------------------------------------------------------------------------
Pioneer High Yield Fund Class Y 0.00+
--------------------------------------------------------------------------------
U.S. Government and Agency Obligations
--------------------------------------------------------------------------------
U.S. Treasury Inflation Indexed Note 2.59%
--------------------------------------------------------------------------------
Sovereign Debt Obligation
--------------------------------------------------------------------------------
Japanese Government CPI Linked Bond 2.00%
--------------------------------------------------------------------------------
Purchased Put Options
--------------------------------------------------------------------------------
Put EUR Call JPY 0.11%
--------------------------------------------------------------------------------
+Amount rounds to less than 0.1%.
*This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
26 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Performance Update | 1/31/17 Class A Shares
Pioneer Solutions - Balanced Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Solutions - Balanced Fund at public
offering price during the periods shown, compared to that of the MSCI World ND
Index and the Bloomberg Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of January 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net Public U.S. MSCI
Asset Offering Aggregate World
Value Price Bond ND
Period (NAV) (POP) Index Index
--------------------------------------------------------------------------------
10 years 3.32% 2.72% 4.37% 3.95%
5 years 5.45 4.21 2.09 9.86
1 year 7.34 1.09 1.45 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.39%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Solutions - Bloomberg Barclays MSCI World
Balanced Fund U.S. Aggregate Bond Index ND Index
1/07 $ 9,425 $10,000 $10,000
1/08 $ 9,389 $10,881 $ 9,953
1/09 $ 6,543 $11,162 $ 5,829
1/10 $ 8,634 $12,112 $ 7,962
1/11 $ 9,969 $12,725 $ 9,492
1/12 $10,024 $13,827 $ 9,208
1/13 $10,988 $14,185 $10,673
1/14 $12,121 $14,202 $12,388
1/15 $12,756 $15,141 $13,255
1/16 $12,178 $15,117 $12,581
1/17 $13,072 $15,337 $14,734
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of the maximum 5.75% sales charge. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results shown reflect any applicable expense waivers in effect
during the periods shown. Without such waivers Fund performance would be lower.
Waivers may not be in effect for all funds. Certain fee waivers are contractual
through a specified period. Otherwise, fee waivers can be rescinded at any time.
See the prospectus and financial statements for more information.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Effective November 17, 2014, Pioneer became directly responsible for portfolio
management of the Fund. The performance shown for periods prior to November 17,
2014, reflects the investment strategies employed during those periods.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 27
Performance Update | 1/31/17 Class C Shares
Pioneer Solutions - Balanced Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Solutions - Balanced Fund during
the periods shown, compared to that of the MSCI World ND Index and the Bloomberg
Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of January 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
U.S. MSCI
Aggregate World
If If Bond ND
Period Held Redeemed Index Index
--------------------------------------------------------------------------------
10 years 2.59% 2.59% 4.37% 3.95%
5 years 4.74 4.74 2.09 9.86
1 year 6.64 6.64 1.45 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.09%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Solutions - Bloomberg Barclays MSCI World
Balanced Fund U.S. Aggregate Bond Index ND Index
1/07 $10,000 $10,000 $10,000
1/08 $ 9,888 $10,881 $ 9,953
1/09 $ 6,837 $11,162 $ 5,829
1/10 $ 8,956 $12,112 $ 7,962
1/11 $10,265 $12,725 $ 9,492
1/12 $10,244 $13,827 $ 9,208
1/13 $11,149 $14,185 $10,673
1/14 $12,224 $14,202 $12,388
1/15 $12,770 $15,141 $13,255
1/16 $12,111 $15,117 $12,581
1/17 $12,915 $15,337 $14,734
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results shown reflect any applicable expense waivers in effect
during the periods shown. Without such waivers Fund performance would be lower.
Waivers may not be in effect for all funds. Certain fee waivers are contractual
through a specified period. Otherwise, fee waivers can be rescinded at any time.
See the prospectus and financial statements for more information.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Effective November 17, 2014, Pioneer became directly responsible for portfolio
management of the Fund. The performance shown for periods prior to November 17,
2014, reflects the investment strategies employed during those periods.
28 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Performance Update | 1/31/17 Class R Shares
Pioneer Solutions - Balanced Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class R shares of Pioneer Solutions - Balanced Fund during
the periods shown, compared to that of the MSCI World ND Index and the Bloomberg
Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of January 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net U.S. MSCI
Asset Aggregate World
Value Bond ND
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 3.30% 4.37% 3.95%
5 years 5.41 2.09 9.86
1 year 7.08 1.45 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.30% 1.62%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Solutions - Bloomberg Barclays MSCI World
Balanced Fund U.S. Aggregate Bond Index ND Index
1/07 $10,000 $10,000 $10,000
1/08 $ 9,959 $10,881 $ 9,953
1/09 $ 6,940 $11,162 $ 5,829
1/10 $ 9,159 $12,112 $ 7,962
1/11 $10,574 $12,725 $ 9,492
1/12 $10,632 $13,827 $ 9,208
1/13 $11,655 $14,185 $10,673
1/14 $12,857 $14,202 $12,388
1/15 $13,530 $15,141 $13,255
1/16 $12,919 $15,117 $12,581
1/17 $13,834 $15,337 $14,734
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class R shares for the period prior to the
commencement of operations of Class R shares on July 1, 2015, is the net asset
value performance of the Fund's Class A shares, which has not been restated to
reflect any differences in expenses, including Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares generally are higher than those of
Class R shares, the performance of Class R shares prior to their inception would
have been higher than the performance shown. For the period beginning July 1,
2015, the actual performance of Class R shares is reflected. Class R shares are
not subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through December 1, 2018, for Class R shares. There can be no assurance
that 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, Pioneer became directly responsible for portfolio
management of the Fund. The performance shown for periods prior to November 17,
2014, reflects the investment strategies employed during those periods.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 29
Performance Update | 1/31/17 Class Y Shares
Pioneer Solutions - Balanced Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Solutions - Balanced Fund during
the periods shown, compared to that of the MSCI World ND Index and the Bloomberg
Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of January 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net U.S. MSCI
Asset Aggregate World
Value Bond ND
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 3.75% 4.37% 3.95%
5 years 5.75 2.09 9.86
1 year 7.64 1.45 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.12%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Solutions - Bloomberg Barclays MSCI World
Balanced Fund U.S. Aggregate Bond Index ND Index
1/07 $5,000,000 $5,000,000 $5,000,000
1/08 $4,997,322 $5,440,411 $4,976,401
1/09 $3,512,300 $5,581,213 $2,914,645
1/10 $4,669,742 $6,055,972 $3,980,851
1/11 $5,414,182 $6,362,436 $4,745,794
1/12 $5,463,063 $6,913,559 $4,603,817
1/13 $6,005,949 $7,092,310 $5,336,255
1/14 $6,644,499 $7,101,101 $6,193,899
1/15 $7,010,968 $7,570,672 $6,627,377
1/16 $6,712,261 $7,558,552 $6,290,599
1/17 $7,224,900 $7,668,374 $7,367,005
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results shown reflect any applicable expense waivers in effect
during the periods shown. Without such waivers Fund performance would be lower.
Waivers may not be in effect for all funds. Certain fee waivers are contractual
through a specified period. Otherwise, fee waivers can be rescinded at any time.
See the prospectus and financial statements for more information.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Effective November 17, 2014, Pioneer became directly responsible for portfolio
management of the Fund. The performance shown for periods prior to November 17,
2014, reflects the investment strategies employed during those periods.
30 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Portfolio Summary | 1/31/17
Pioneer Solutions - Growth Fund
Asset Allocations
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
International Equity 40.7%
U.S. Equity 37.2%
Fixed Income 16.8%
U.S. Government and Agency Obligation 2.5%
Sovereign Debt Obligation 2.0%
Purchased Put Options 0.7%
Purchased Call Options 0.1%
Actual Portfolio Holdings
(based on total portfolio)*
--------------------------------------------------------------------------------
U.S. Stocks
--------------------------------------------------------------------------------
Pioneer Disciplined Value Fund Class Y 9.05%
--------------------------------------------------------------------------------
Pioneer Mid Cap Value Fund Class K 6.63
--------------------------------------------------------------------------------
Pioneer Fund Class Y 5.05
--------------------------------------------------------------------------------
Pioneer Fundamental Growth Fund
Class K 4.54
--------------------------------------------------------------------------------
Pioneer Core Equity Fund Class Y 4.52
--------------------------------------------------------------------------------
AMG Managers Fairpointe Mid Cap
Fund Class I 3.99
--------------------------------------------------------------------------------
Oak Ridge Small Cap Growth Fund
Class K 2.86
--------------------------------------------------------------------------------
iShares US Aerospace & Defense ETF 0.53
--------------------------------------------------------------------------------
International Stocks
--------------------------------------------------------------------------------
Pioneer International Equity Fund Class Y 16.26%
--------------------------------------------------------------------------------
Pioneer Global Equity Fund Class K 12.00
--------------------------------------------------------------------------------
JPMorgan Intrepid European Fund
Class IS 3.56
--------------------------------------------------------------------------------
T. Rowe Price International Funds -
European Stock Fund 3.00
--------------------------------------------------------------------------------
iShares MSCI Canada ETF 2.74
--------------------------------------------------------------------------------
JOHCM Asia Ex-Japan Equity Fund
Class IS 1.37
--------------------------------------------------------------------------------
iShares MSCI China ETF 1.26
--------------------------------------------------------------------------------
iShares Core MSCI Emerging Markets ETF 0.51
--------------------------------------------------------------------------------
Bonds
--------------------------------------------------------------------------------
Pioneer Bond Fund Class K 7.39%
--------------------------------------------------------------------------------
Columbia Contrarian Core Fund Class Y 4.00
--------------------------------------------------------------------------------
Pioneer Strategic Income Fund Class K 3.17
--------------------------------------------------------------------------------
Doubleline Total Return Bond Fund
Class I 1.17
--------------------------------------------------------------------------------
Pioneer Global Multisector Income
Fund Class Y 1.10
--------------------------------------------------------------------------------
U.S. Government and Agency Obligations
--------------------------------------------------------------------------------
U.S. Treasury Inflation Indexed Note 2.52%
--------------------------------------------------------------------------------
Sovereign Debt Obligation
--------------------------------------------------------------------------------
Japanese Government CPI Linked Bond 1.96%
--------------------------------------------------------------------------------
Purchased Put Options
--------------------------------------------------------------------------------
Russell 2000 Index 0.48%
--------------------------------------------------------------------------------
Put EUR Call JPY 0.23
--------------------------------------------------------------------------------
S&P 500 Index 0.00+
--------------------------------------------------------------------------------
Purchased Call Options
--------------------------------------------------------------------------------
S&P 500 Index 0.11%
--------------------------------------------------------------------------------
+Amount rounds to less than 0.1%.
*This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 31
Performance Update | 1/31/17 Class A Shares
Pioneer Solutions - Growth Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Solutions - Growth Fund at public
offering price during the periods shown, compared to that of the MSCI World ND
Index and the Bloomberg Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of January 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net Public U.S. MSCI
Asset Offering Aggregate World
Value Price Bond ND
Period (NAV) (POP) Index Index
--------------------------------------------------------------------------------
10 years 3.28% 2.67% 4.37% 3.95%
5 years 6.56 5.30 2.09 9.86
1 year 10.12 3.74 1.45 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.40%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Solutions - Bloomberg Barclays MSCI World
Growth Fund U.S. Aggregate Bond Index ND Index
1/07 $ 9,425 $10,000 $10,000
1/08 $ 9,270 $10,881 $ 9,953
1/09 $ 5,962 $11,162 $ 5,829
1/10 $ 8,047 $12,112 $ 7,962
1/11 $ 9,485 $12,725 $ 9,492
1/12 $ 9,470 $13,827 $ 9,208
1/13 $10,439 $14,185 $10,673
1/14 $11,684 $14,202 $12,388
1/15 $12,404 $15,141 $13,255
1/16 $11,814 $15,117 $12,581
1/17 $13,009 $15,337 $14,734
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of the maximum 5.75% sales charge. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results shown reflect any applicable expense waivers in effect
during the periods shown. Without such waivers Fund performance would be lower.
Waivers may not be in effect for all funds. Certain fee waivers are contractual
through a specified period. Otherwise, fee waivers can be rescinded at any time.
See the prospectus and financial statements for more information.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Effective November 17, 2014, 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.
32 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Performance Update | 1/31/17 Class C Shares
Pioneer Solutions - Growth Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Solutions - Growth Fund during the
periods shown, compared to that of the MSCI World ND Index and the Bloomberg
Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of January 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
U.S. MSCI
Aggregate World
If If Bond ND
Period Held Redeemed Index Index
--------------------------------------------------------------------------------
10 years 2.56% 2.56% 4.37% 3.95%
5 years 5.81 5.81 2.09 9.86
1 year 9.26 9.26 1.45 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.10%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Solutions - Bloomberg Barclays MSCI World
Growth Fund U.S. Aggregate Bond Index ND Index
1/07 $10,000 $10,000 $10,000
1/08 $ 9,769 $10,881 $ 9,953
1/09 $ 6,249 $11,162 $ 5,829
1/10 $ 8,357 $12,112 $ 7,962
1/11 $ 9,783 $12,725 $ 9,492
1/12 $ 9,707 $13,827 $ 9,208
1/13 $10,636 $14,185 $10,673
1/14 $11,822 $14,202 $12,388
1/15 $12,462 $15,141 $13,255
1/16 $11,784 $15,117 $12,581
1/17 $12,875 $15,337 $14,734
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results shown reflect any applicable expense waivers in effect
during the periods shown. Without such waivers Fund performance would be lower.
Waivers may not be in effect for all funds. Certain fee waivers are contractual
through a specified period. Otherwise, fee waivers can be rescinded at any time.
See the prospectus and financial statements for more information.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Effective November 17, 2014, Pioneer became directly responsible for portfolio
management of the Fund. The performance shown for periods prior to November 17,
2014, reflects the investment strategies employed during those periods.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 33
Performance Update | 1/31/17 Class R Shares
Pioneer Solutions - Growth Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class R shares of Pioneer Solutions - Growth Fund during the
periods shown, compared to that of the MSCI World ND Index and the Bloomberg
Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of January 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net U.S. MSCI
Asset Aggregate World
Value Bond ND
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 3.24% 4.37% 3.95%
5 years 6.48 2.09 9.86
1 year 9.74 1.45 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.97% 1.65%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Solutions - Bloomberg Barclays MSCI World
Growth Fund U.S. Aggregate Bond Index ND Index
1/07 $5,000,000 $5,000,000 $5,000,000
1/08 $4,947,810 $5,440,411 $4,976,401
1/09 $3,260,217 $5,581,213 $2,914,645
1/10 $4,409,500 $6,055,972 $3,980,851
1/11 $5,215,291 $6,362,436 $4,745,794
1/12 $5,167,339 $6,913,559 $4,603,817
1/13 $5,712,260 $7,092,310 $5,336,255
1/14 $6,407,069 $7,101,101 $6,193,899
1/15 $6,819,883 $7,570,672 $6,627,377
1/16 $6,510,168 $7,558,552 $6,290,599
1/17 $7,182,432 $7,668,374 $7,367,005
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class R shares for the period prior to the
commencement of operations of Class R shares on July 1, 2015, is the net asset
value performance of the Fund's Class A shares, which has not been restated to
reflect any differences in expenses, including Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares generally are higher than those of
Class R shares, the performance of Class R shares prior to their inception would
have been higher than the performance shown. For the period beginning July 1,
2015, the actual performance of Class R shares is reflected. Class R shares are
not subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through December 1, 2018, for Class R shares. There can be no assurance
that 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, Pioneer became directly responsible for portfolio
management of the Fund. The performance shown for periods prior to November 17,
2014, reflects the investment strategies employed during those periods.
34 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Performance Update | 1/31/17 Class Y Shares
Pioneer Solutions - Growth Fund
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Solutions - Growth Fund during the
periods shown, compared to that of the MSCI World ND Index and the Bloomberg
Barclays U.S. Aggregate Bond Index.
Average Annual Total Returns
(As of January 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Net U.S. MSCI
Asset Aggregate World
Value Bond ND
Period (NAV) Index Index
--------------------------------------------------------------------------------
10 years 3.69% 4.37% 3.95%
5 years 6.81 2.09 9.86
1 year 10.33 1.45 17.11
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.12%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Solutions - Bloomberg Barclays MSCI World
Growth Fund U.S. Aggregate Bond Index ND Index
1/07 $10,000 $10,000 $10,000
1/08 $ 9,837 $10,881 $ 9,953
1/09 $ 6,326 $11,162 $ 5,829
1/10 $ 8,540 $12,112 $ 7,962
1/11 $10,065 $12,725 $ 9,492
1/12 $10,049 $13,827 $ 9,208
1/13 $11,077 $14,185 $10,673
1/14 $12,398 $14,202 $12,388
1/15 $13,163 $15,141 $13,255
1/16 $12,534 $15,117 $12,581
1/17 $13,755 $15,337 $14,734
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results shown reflect any applicable expense waivers in effect
during the periods shown. Without such waivers Fund performance would be lower.
Waivers may not be in effect for all funds. Certain fee waivers are contractual
through a specified period. Otherwise, fee waivers can be rescinded at any time.
See the prospectus and financial statements for more information.
Please see the financial highlights for more recent expense ratios. Expense
ratios in the financial highlights, unlike those shown in the prospectus, do not
reflect acquired fund fees and expenses.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Effective November 17, 2014, Pioneer became directly responsible for portfolio
management of the Fund. The performance shown for periods prior to November 17,
2014, reflects the investment strategies employed during those periods.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 35
Schedule of Investments | 1/31/17 (unaudited)
Pioneer Solutions - Conservative Fund
------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------
MUTUAL FUNDS -- 94.0%
UNAFFILIATED FUNDS -- 20.7%
12,926 AMG Managers Fairpointe Mid Cap Fund Class I $ 555,558
23,165 Columbia Contrarian Core Fund Class Y 539,050
269,095 Doubleline Total Return Bond Fund Class I 2,857,789
6,907 iShares Core MSCI Emerging Markets ETF 312,473
14,350 iShares MSCI Canada ETF 390,033
15,887 iShares MSCI China ETF 746,848
2,346 iShares US Aerospace & Defense ETF 334,047
21,683 JOHCM Asia Ex-Japan Equity Fund Class IS 225,718
271,289 MFS Total Return Bond Fund Class I 2,872,950
11,361 Oak Ridge Small Cap Growth Fund Class K 383,093
7,092 T. Rowe Price International Funds -- European Stock Fund 122,621
248,787 Western Asset Core Plus Bond Fund Class IS 2,848,611
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED FUNDS
(Cost $12,317,742) $ 12,188,791
------------------------------------------------------------------------------------------------
AFFILIATED FUNDS* -- 73.3%
1,696,269 Pioneer Bond Fund Class K $ 16,318,108
32,689 Pioneer Core Equity Fund Class Y 609,977
78,611 Pioneer Disciplined Value Fund Class Y 1,220,829
133,782 Pioneer Dynamic Credit Fund Class Y 1,254,875
68,371 Pioneer Floating Rate Fund Class K 464,923
22,781 Pioneer Fund Class Y 680,013
31,190 Pioneer Fundamental Growth Fund Class K 612,883
165,382 Pioneer Global Equity Fund Class K 2,317,002
23,959 Pioneer Global High Yield Fund Class Y 207,008
35,608 Pioneer Global Multisector Income Fund Class Y 372,100
36,395 Pioneer High Yield Fund Class Y 350,485
100,030 Pioneer International Equity Fund Class Y 2,039,619
37,459 Pioneer Mid Cap Value Fund Class K 933,478
65,634 Pioneer Short Term Income Fund Class K 625,492
1,411,045 Pioneer Strategic Income Fund Class K 15,084,071
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost $42,743,051) $ 43,090,863
------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(Cost $55,060,793) $ 55,279,654
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Principal
Amount ($)
------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATION -- 2.5%
1,495,075 U.S. Treasury Inflation Indexed Note, 0.375%, 7/15/25 $ 1,502,942
------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATION
(Cost $1,463,944) $ 1,502,942
------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
36 Pioneer Solutions Funds | Semiannual Report | 1/31/17
------------------------------------------------------------------------------------------------
Principal
Amount ($) Value
------------------------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATION -- 1.9%
120,465,842 JPY Japanese Government CPI Linked Bond, 0.10%, 3/10/25 $ 1,126,113
------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATION
(Cost $1,172,735) $ 1,126,113
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Counterparty/ Strike Expiration
Description Exchange Price Date
------------------------------------------------------------------------------------------------
CURRENCY PUT OPTION PURCHASED -- 0.1%
1,400,000 EUR Put EUR Call JPY Morgan Stanley & Co. 120 5/12/17 $ 32,620
------------------------------------------------------------------------------------------------
TOTAL CURRENCY PUT OPTION PURCHASED
(Premiums paid $27,953) $ 32,620
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 98.5%
(Cost $57,725,425) (a) $ 57,941,329
------------------------------------------------------------------------------------------------
CURRENCY PUT OPTION WRITTEN -- (0.0)%+
(1,400,000) EUR Put EUR Call JPY Morgan Stanley & Co. 112 5/12/17 $ (9,578)
------------------------------------------------------------------------------------------------
TOTAL CURRENCY PUT OPTION WRITTEN
(Premiums received $(6,809)) $ (9,578)
------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.5% $ 878,707
------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 58,810,458
================================================================================================
* Affiliated funds managed by Pioneer Investment Management, Inc.
+ Amount rounds to greater than (0.1)%.
(a) At January 31, 2017, the net unrealized depreciation on investments based
on cost for federal tax purposes of $57,986,157 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of tax cost over value $ 895,697
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (940,525)
----------
Net unrealized depreciation $ (44,828)
----------
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended January 31, 2017 were as follows:
Purchases Sales
Long-Term U.S. Government $ -- $ --
Other Long-Term Securities $ 12,521,350 $15,245,034
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Pioneer Investment
Management, Inc. (PIM) serves as the investment adviser, as set forth in Rule
17a-7 under the Investment Company Act of 1940, pursuant to procedures adopted
by the Board of Trustees. Under these procedures, cross trades are effected at
current market prices. During the six months ended January 31, 2017, the Trust
did not engage in cross trade activity.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 37
Schedule of Investments | 1/31/17 (unaudited)
Pioneer Solutions - Conservative Fund (continued)
CENTRALLY CLEARED INTEREST RATE SWAP AGREEMENTS
--------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Pay/ Floating Fixed Expiration Appreciation
Principal ($) Exchange Receive Rate Rate Date (Depreciation)
--------------------------------------------------------------------------------------------------------
EUR 224,029 London Receive EURIBOR 0.694% 2/10/25 $(3,874)
Clearing House 6 Month
SEK 2,127,723 London Pay LIBOR SEK 0.981% 2/10/25 2,549
Clearing House 3 Month
--------------------------------------------------------------------------------------------------------
$(1,325)
========================================================================================================
INTEREST RATE SWAP AGREEMENT
--------------------------------------------------------------------------------------------------------
Annual
Notional Pay/ Floating Fixed Expiration Unrealized
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
--------------------------------------------------------------------------------------------------------
EUR 281,000 Deutsche Bank Pay EMMI EURO 0.332% 5/9/26 $(3,846)
OverNight
Index Average
========================================================================================================
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
JPY Japanese Yen
SEK Swedish Krone
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of January 31, 2017, in valuing
the Fund's assets:
-------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------------
Mutual Funds $ 55,279,654 $ -- $ -- $ 55,279,654
U.S. Government and
Agency Obligation -- 1,502,942 -- 1,502,942
Sovereign Debt
Obligation -- 1,126,113 -- 1,126,113
Currency Put Option
Purchased -- 32,620 -- 32,620
-------------------------------------------------------------------------------------------------
Total $ 55,279,654 $ 2,661,675 $ -- $ 57,941,329
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
38 Pioneer Solutions Funds | Semiannual Report | 1/31/17
-------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------------
Other Financial Instruments
Unrealized Appreciation
on Futures Contracts $ 87,555 $ -- $ -- $ 87,555
Unrealized Depreciation
on Futures Contracts (89,019) -- -- (89,019)
Unrealized Appreciation
on Forward Foreign
Currency Contracts -- 60,695 -- 60,695
Unrealized Depreciation
on Forward Foreign
Currency Contracts -- (81,834) -- (81,834)
Unrealized Appreciation
on Centrally Cleared
Interest Rate Swap
Agreements -- 2,549 -- 2,549
Unrealized Depreciation
on Centrally Cleared
Interest Rate Swap
Agreements -- (3,874) -- (3,874)
Unrealized Depreciation
on Interest Rate Swap
Agreement -- (3,846) -- (3,846)
Currency Put Option Written -- (9,578) -- (9,578)
-------------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ (1,464) $ (35,888) $ -- $ (37,352)
=================================================================================================
During the six months ended January 31, 2017, there were no transfers between
Levels 1, 2, and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 39
Schedule of Investments | 1/31/17 (unaudited)
Pioneer Solutions - Balanced Fund
----------------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------------
MUTUAL FUNDS -- 93.9%
UNAFFILIATED FUNDS -- 25.9%
102,480 AMG Managers Fairpointe Mid Cap Fund Class I $ 4,404,584
187,029 Columbia Contrarian Core Fund Class Y 4,352,165
798,304 Doubleline Total Return Bond Fund Class I 8,477,988
19,641 iShares Core MSCI Emerging Markets ETF 888,559
102,604 iShares MSCI Canada ETF 2,788,777
46,113 iShares MSCI China ETF 2,167,772
6,254 iShares US Aerospace & Defense ETF 890,507
46,855 JOHCM Asia Ex-Japan Equity Fund Class IS 487,762
625,958 MFS Total Return Bond Fund Class I 6,628,895
97,072 Oak Ridge Small Cap Growth Fund Class K 3,273,268
186,713 T. Rowe Price International Funds -- European Stock Fund 3,228,268
577,807 Western Asset Core Plus Bond Fund Class IS 6,615,890
----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED FUNDS
(Cost $46,173,551) $ 44,204,435
----------------------------------------------------------------------------------------------------
AFFILIATED FUNDS* -- 68.0%
1,917,203 Pioneer Bond Fund Class K $ 18,443,493
272,454 Pioneer Core Equity Fund Class Y 5,083,991
645,082 Pioneer Disciplined Value Fund Class Y 10,018,123
550,178 Pioneer Dynamic Credit Fund Class Y 5,160,673
189,412 Pioneer Fund Class Y 5,653,946
251,114 Pioneer Fundamental Growth Fund Class K 4,934,390
1,126,396 Pioneer Global Equity Fund Class K 15,780,808
356,705 Pioneer Global High Yield Fund Class Y 3,081,931
246,639 Pioneer Global Multisector Income Fund Class Y 2,577,377
1 Pioneer High Yield Fund Class Y 6
1,188,148 Pioneer International Equity Fund Class Y 24,226,345
299,074 Pioneer Mid Cap Value Fund Class K 7,452,924
1,255,956 Pioneer Strategic Income Fund Class K 13,426,170
----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost $108,985,466) $ 115,840,177
----------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(Cost $155,159,017) $ 160,044,612
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
Principal
Amount ($)
----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATION -- 2.5%
4,330,526 U.S. Treasury Inflation Indexed Note, 0.375%, 7/15/25 $ 4,353,313
----------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATION
(Cost $4,240,356) $ 4,353,313
----------------------------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATION -- 2.0%
359,401,406 JPY Japanese Government CPI Linked Bond, 0.10%, 3/10/25 $ 3,359,681
----------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATION
(Cost $3,498,773) $ 3,359,681
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
40 Pioneer Solutions Funds | Semiannual Report | 1/31/17
-----------------------------------------------------------------------------------------------------
Counterparty/ Strike Expiration
Description Exchange Price Date Value
-----------------------------------------------------------------------------------------------------
CURRENCY PUT OPTION PURCHASED -- 0.1%
8,000,000 EUR Put EUR Call JPY Morgan Stanley & Co. 120 5/12/17 $ 186,402
-----------------------------------------------------------------------------------------------------
TOTAL CURRENCY PUT OPTION PURCHASED
(Premiums paid $159,730) $ 186,402
-----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 98.5%
(Cost $163,057,876) (a) $ 167,944,008
-----------------------------------------------------------------------------------------------------
CURRENCY PUT OPTION WRITTEN -- (0.0)%+
(8,000,000) EUR Put EUR Call JPY Morgan Stanley & Co. 112 5/12/17 $ (54,731)
----------------------------------------------------------------------------------------------------
TOTAL CURRENCY PUT OPTION WRITTEN
(Premiums received $(38,911)) $ (54,731)
-----------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.5% $ 2,620,949
-----------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 170,510,226
=====================================================================================================
* Affiliated funds managed by Pioneer Investment Management, Inc.
+ Amount rounds to greater than (0.1)%.
(a) At January 31, 2017, the net unrealized appreciation on investments based
on cost for federal tax purposes of $164,246,965 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of tax cost over value $ 8,398,271
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (4,701,228)
-----------
Net unrealized appreciation $ 3,697,043
===========
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended January 31, 2017 were as follows:
-------------------------------------------------------------------------------------------
Purchases Sales
-------------------------------------------------------------------------------------------
Long-Term U.S. Government $ -- $ --
Other Long-Term Securities $ 27,121,218 $ 39,469,822
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Pioneer Investment
Management, Inc. (PIM) 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 six months ended January 31, 2017, the Trust
did not engage in cross trade activity.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 41
Schedule of Investments | 1/31/17 (unaudited)
Pioneer Solutions - Balanced Fund (continued)
CENTRALLY CLEARED INTEREST RATE SWAP AGREEMENTS
-----------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Pay/ Floating Fixed Expiration Appreciation
Principal ($) Exchange Receive Rate Rate Date (Depreciation)
-----------------------------------------------------------------------------------------------------------
EUR 677,667 London Receive EURIBOR 0.694% 2/10/25 $ (11,718)
Clearing House 6 Month
SEK 6,482,000 London Pay LIBOR SEK 0.981% 2/10/25 6,953
Clearing House 3 Month
-----------------------------------------------------------------------------------------------------------
$ (4,765)
===========================================================================================================
INTEREST RATE SWAP AGREEMENT
-----------------------------------------------------------------------------------------------------------
Annual
Notional Pay/ Floating Fixed Expiration Unrealized
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
-----------------------------------------------------------------------------------------------------------
EUR 844,000 Deutsche Bank Pay EMMI EURO 0.332% 5/9/26 $ (11,553)
OverNight
Index Average
===========================================================================================================
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
JPY Japanese Yen
SEK Swedish Krone
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
42 Pioneer Solutions Funds | Semiannual Report | 1/31/17
The following is a summary of the inputs used as of January 31, 2017, in valuing
the Fund's assets:
--------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------------
Mutual Funds $160,044,612 $ -- $ -- $160,044,612
U.S. Government and
Agency Obligation -- 4,353,313 -- 4,353,313
Sovereign Debt
Obligation -- 3,359,681 -- 3,359,681
Currency Put Option
Purchased -- 186,402 -- 186,402
--------------------------------------------------------------------------------------------------
Total $160,044,612 $ 7,899,396 $ -- $167,944,008
--------------------------------------------------------------------------------------------------
Other Financial Instruments
Unrealized Appreciation
on Futures Contracts $ 244,321 $ -- $ -- $ 244,321
Unrealized Depreciation
on Futures Contracts (329,145) -- -- (329,145)
Unrealized Appreciation
on Forward Foreign
Currency Contracts -- 171,445 -- 171,445
Unrealized Depreciation
on Forward Foreign
Currency Contracts -- (261,792) -- (261,792)
Unrealized Appreciation
on Centrally Cleared
Interest Rate Swap
Agreements -- 6,953 -- 6,953
Unrealized Depreciation
on Centrally Cleared
Interest Rate Swap
Agreements -- (11,718) -- (11,718)
Unrealized Depreciation
on Interest Rate Swap
Agreement -- (11,553) -- (11,553)
Currency Put Option Written -- (54,731) -- (54,731)
--------------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ (84,824) $ (161,396) $ -- $ (246,220)
==================================================================================================
During the six months ended January 31, 2017, there were no transfers between
Levels 1, 2, and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 43
Schedule of Investments | 1/31/17 (unaudited)
Pioneer Solutions - Growth Fund
--------------------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------------------
MUTUAL FUNDS -- 90.5%
UNAFFILIATED FUNDS -- 23.9%
271,844 AMG Managers Fairpointe Mid Cap Fund Class I $ 11,683,868
503,451 Columbia Contrarian Core Fund Class Y 11,715,305
323,717 Doubleline Total Return Bond Fund Class I 3,437,875
33,331 iShares Core MSCI Emerging Markets ETF 1,507,894
295,280 iShares MSCI Canada ETF 8,025,710
78,237 iShares MSCI China ETF 3,677,921
10,927 iShares US Aerospace & Defense ETF 1,555,896
386,257 JOHCM Asia Ex-Japan Equity Fund Class IS 4,020,938
441,868 JPMorgan Intrepid European Fund Class L 10,441,341
248,811 Oak Ridge Small Cap Growth Fund Class K 8,389,907
508,467 T. Rowe Price International Funds -- European Stock Fund 8,791,394
--------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED FUNDS
(Cost $77,098,721) $ 73,248,049
--------------------------------------------------------------------------------------------------------
AFFILIATED FUNDS* -- 66.6%
2,250,273 Pioneer Bond Fund Class K $ 21,647,626
709,759 Pioneer Core Equity Fund Class Y 13,244,098
1,708,557 Pioneer Disciplined Value Fund Class Y 26,533,890
495,573 Pioneer Fund Class Y 14,792,842
677,359 Pioneer Fundamental Growth Fund Class K 13,310,105
2,510,481 Pioneer Global Equity Fund Class K 35,171,839
308,606 Pioneer Global Multisector Income Fund Class Y 3,224,933
2,336,636 Pioneer International Equity Fund Class Y 47,644,016
779,974 Pioneer Mid Cap Value Fund Class K 19,436,952
870,025 Pioneer Strategic Income Fund Class K 9,300,567
--------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED FUNDS
(Cost $188,845,210) $ 204,306,868
--------------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(Cost $265,943,931) $ 277,554,917
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
Principal
Amount ($)
--------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATION -- 2.4%
7,355,279 U.S. Treasury Inflation Indexed Note, 0.375%, 7/15/25 $ 7,393,983
--------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATION
(Cost $7,202,127) $ 7,393,983
--------------------------------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATION -- 1.9%
612,808,840 JPY Japanese Government CPI Linked Bond, 0.10%, 3/10/25 $ 5,728,531
--------------------------------------------------------------------------------------------------------
TOTAL SOVEREIGN DEBT OBLIGATION
(Cost $5,965,694) $ 5,728,531
========================================================================================================
The accompanying notes are an integral part of these financial statements.
44 Pioneer Solutions Funds | Semiannual Report | 1/31/17
---------------------------------------------------------------------------------------------------------
Principal Counterparty/ Strike Expiration
Amount ($) Description Exchange Price Date Value
---------------------------------------------------------------------------------------------------------
CURRENCY PUT OPTION PURCHASED -- 0.2%
28,500,000 EUR Put EUR Call JPY Morgan Stanley & Co. 120 5/12/17 $ 664,056
---------------------------------------------------------------------------------------------------------
TOTAL CURRENCY PUT OPTION PURCHASED
(Premiums paid $569,039) $ 664,056
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Contracts
---------------------------------------------------------------------------------------------------------
EXCHANGE-TRADED PUT OPTIONS PURCHASED -- 0.5%
169 Russell 2000 Index Chicago Board of Options 1,300 12/15/17 $ 1,383,434
47 S&P 500 Index Chicago Board of Options 1,950 3/17/17 10,340
---------------------------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED PUT OPTIONS PURCHASED
(Premiums paid $1,901,409) $ 1,393,774
---------------------------------------------------------------------------------------------------------
EXCHANGE-TRADED CALL OPTION PURCHASED -- 0.1%
69 S&P 500 Index Chicago Board of Options 2,250 3/17/17 $ 333,270
---------------------------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED CALL OPTION PURCHASED
(Premiums paid $254,816) $ 333,270
---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 95.6%
(Cost $281,837,016) (a) $ 293,068,531
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Principal
Amount ($)
---------------------------------------------------------------------------------------------------------
CURRENCY PUT OPTION WRITTEN -- (0.1)%
(28,500,000) EUR Put EUR Call JPY Morgan Stanley & Co. 112 5/12/17 $ (194,978)
---------------------------------------------------------------------------------------------------------
TOTAL CURRENCY PUT OPTION WRITTEN
(Premiums paid $(138,622)) $ (194,978)
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Contracts
---------------------------------------------------------------------------------------------------------
EXCHANGE-TRADED PUT OPTION WRITTEN -- (0.2)%
(169) Russell 2000 Index Chicago Board of Options 1,100 12/15/17 $ (522,210)
---------------------------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED PUT OPTION WRITTEN
(Premiums received $(574,156)) $ (522,210)
---------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 4.7% $ 14,294,008
---------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 306,645,351
=========================================================================================================
* Affiliated funds managed by Pioneer Investment Management, Inc.
(a) At January 31, 2017, the net unrealized appreciation on investments
based on cost for federal tax purposes of $282,857,560 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of tax cost over value $ 20,487,286
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (10,276,315)
------------
Net unrealized appreciation $ 10,210,971
============
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 45
Schedule of Investments | 1/31/17 (unaudited)
Pioneer Solutions - Growth Fund (continued)
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended January 31, 2017 were as follows:
--------------------------------------------------------------------------------
Purchases Sales
--------------------------------------------------------------------------------
Long-Term U.S. Government $ -- $ --
Other Long-Term Securities $ 52,639,303 $ 72,715,266
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Pioneer Investment
Management, Inc. (PIM) 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 six months ended January 31, 2017, the Trust
did not engage in cross trade activity.
CENTRALLY CLEARED INTEREST RATE SWAP AGREEMENTS
---------------------------------------------------------------------------------------------------------
Net
Annual Unrealized
Notional Pay/ Floating Fixed Expiration Appreciation
Principal ($) Exchange Receive Rate Rate Date (Depreciation)
---------------------------------------------------------------------------------------------------------
EUR 1,116,002 London Receive EURIBOR 0.694% 2/10/25 $ (19,298)
Clearing House 6 Month
SEK 10,599,294 London Pay LIBOR SEK 0.981% 2/10/25 12,699
Clearing House 3 Month
---------------------------------------------------------------------------------------------------------
$ (6,599)
=========================================================================================================
INTEREST RATE SWAP AGREEMENT
--------------------------------------------------------------------------------------------------------
Annual
Notional Pay/ Floating Fixed Expiration Unrealized
Principal ($) Counterparty Receive Rate Rate Date (Depreciation)
---------------------------------------------------------------------------------------------------------
EUR 1,548,000 Deutsche Bank Pay EMMI EURO 0.332% 5/09/26 $(21,189)
OverNight
Index
Average
=========================================================================================================
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EUR Euro
JPY Japanese Yen
SEK Swedish Krone
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
46 Pioneer Solutions Funds | Semiannual Report | 1/31/17
The following is a summary of the inputs used as of January 31, 2017, in valuing
the Fund's assets:
--------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------------
Mutual Funds $ 277,554,917 $ -- $ -- $277,554,917
U.S. Government and
Agency Obligation -- 7,393,983 -- 7,393,983
Sovereign Debt
Obligation -- 5,728,531 -- 5,728,531
Currency Put Option
Purchased -- 664,056 -- 664,056
Exchange-Traded Put
Options Purchased 1,393,774 -- -- 1,393,774
Exchange-Traded Call
Option Purchased 333,270 -- -- 333,270
--------------------------------------------------------------------------------------------------
Total $ 279,281,961 $13,786,570 $ -- $293,068,531
--------------------------------------------------------------------------------------------------
Other Financial Instruments
Unrealized Appreciation
on Futures Contracts $ 593,834 $ -- $ -- $ 593,834
Unrealized Depreciation
on Futures Contracts (448,223) -- -- (448,223)
Unrealized Appreciation
on Forward Foreign
Currency Contracts -- 306,923 -- 306,923
Unrealized Depreciation
on Forward Foreign
Currency Contracts -- (420,748) -- (420,748)
Unrealized Appreciation
on Centrally Cleared
Interest Rate Swap
Agreements -- 12,699 -- 12,699
Unrealized Depreciation
on Centrally Cleared
Interest Rate Swap
Agreements -- (19,298) -- (19,298)
Unrealized Depreciation
on Interest Rate Swap
Agreement -- (21,189) -- (21,189)
Currency Put Option Written -- (194,978) -- (194,978)
Exchange-Traded Put
Option Written (522,210) -- -- (522,210)
--------------------------------------------------------------------------------------------------
Total Other
Financial Instruments $ (376,599) $ (336,591) $ -- $ (713,190)
==================================================================================================
During the six months ended January 31, 2017, there were no transfers between
Levels 1, 2, and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 47
Statements of Assets and Liabilities | 1/31/17 (unaudited)
-------------------------------------------------------------------------------------------------------
Pioneer Pioneer Pioneer
Solutions - Solutions - Solutions -
Conservative Balanced Growth
Fund Fund Fund
-------------------------------------------------------------------------------------------------------
ASSETS:
Investments in securities of affiliated funds, at
value (at cost $42,743,051, $108,985,466
and $188,845,210, respectively) $43,090,863 $ 115,840,177 $ 204,306,868
Investments in securities of unaffiliated funds,
at value (at cost $14,982,374, $54,072,410
and $92,991,806, respectively) 14,850,466 52,103,831 88,761,663
Cash 302,279 659,574 13,131,623
Foreign currencies, at value (at cost $6,521,
$178,674 and $934,393, respectively) 7,898 170,207 948,725
Restricted cash* 411,335 1,897,975 1,639,215
Unrealized appreciation on forward
foreign currency contracts 60,695 171,445 306,923
Receivables for:
Investment funds sold 53,386 170,366 --
Capital stock sold 85,132 401,778 83,139
Distributions to shareowners -- 1,758 --
Dividends 113,269 167,421 104,516
Interest 685 2,020 3,439
Due from Pioneer Investment
Management, Inc. 40,556 42 67
Variation margin for centrally cleared
interest rate swap agreements 9,347 26,220 33,274
Other assets 21,360 21,628 17,731
-------------------------------------------------------------------------------------------------------
Total assets $59,047,271 $ 171,634,442 $ 309,337,183
=======================================================================================================
LIABILITIES:
Written options (premiums received $(6,809),
$(38,911) and $(712,778), respectively) 9,578 54,731 717,188
Unrealized depreciation on interest rate swaps 3,846 11,553 21,189
Unrealized depreciation on forward
foreign currency contracts 81,834 261,792 420,748
Payables for:
Investment Funds purchased 28,079 330,657 571,606
Capital stock redeemed 8,158 276,128 485,448
Distributions to shareowners 2,262 -- 2,583
Variation margin for futures contracts 16,844 19,930 197,249
Due to affiliates 31,835 96,937 150,607
Accrued expenses and other liabilities 54,377 72,488 125,214
-------------------------------------------------------------------------------------------------------
Total liabilities $ 236,813 $ 1,124,216 $ 2,691,832
=======================================================================================================
* Represents restricted cash deposited at the custodian and/or counterparty
for derivative contracts.
The accompanying notes are an integral part of these financial statements.
48 Pioneer Solutions Funds | Semiannual Report | 1/31/17
-------------------------------------------------------------------------------------------------------
Pioneer Pioneer Pioneer
Solutions - Solutions - Solutions -
Conservative Balanced Growth
Fund Fund Fund
-------------------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $60,533,180 $170,089,717 $ 289,956,024
Undistributed (distributions in excess of)
net investment income 25,110 (152,807) (770,953)
Accumulated net realized gain (loss) on
investments, futures contracts, swap
contracts, written options and foreign
currency transactions (1,935,286) (4,096,237) 6,214,977
Net unrealized appreciation on investments 215,904 4,886,132 11,231,515
Net unrealized appreciation (depreciation) on
futures contracts (1,464) (84,824) 145,611
Net unrealized depreciation on swap
contracts (5,171) (16,318) (27,788)
Net unrealized depreciation on
written options (2,769) (15,820) (4,410)
Net unrealized depreciation on forward foreign
currency contracts and other assets and
liabilities denominated in foreign currencies (19,046) (99,617) (99,625)
-------------------------------------------------------------------------------------------------------
Total net assets $58,810,458 $170,510,226 $ 306,645,351
=======================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of
shares authorized)
Net Assets of Class A Shares $43,363,663 $115,981,899 $ 234,937,710
Net Assets of Class C Shares $15,330,188 $ 53,745,290 $ 70,714,837
Net Assets of Class R Shares $ 8,631 $ 19,481 $ 26,137
Net Assets of Class Y Shares $ 107,976 $ 763,556 $ 966,667
Class A Shares Outstanding 4,271,246 10,333,806 18,814,551
Class C Shares Outstanding 1,556,941 5,195,193 6,000,736
Class R Shares Outstanding 852 1,743 2,105
Class Y Shares Outstanding 11,290 67,180 75,867
Net Asset Value - Class A Shares $ 10.15 $ 11.22 $ 12.49
Net Asset Value - Class C Shares $ 9.85 $ 10.35 $ 11.78
Net Asset Value - Class R Shares $ 10.13 $ 11.18 $ 12.42
Net Asset Value - Class Y Shares $ 9.56 $ 11.37 $ 12.74
MAXIMUM OFFERING PRICE:
Class A (100 (divided by) 94.25 x net asset value
per share) $ 10.77 $ 11.90 $ 13.25
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 49
Statements of Operations (unaudited)
For the Six Months Ended 1/31/17
-------------------------------------------------------------------------------------------------------
Pioneer Pioneer Pioneer
Solutions - Solutions - Solutions -
Conservative Balanced Growth
Fund Fund Fund
-------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividend income from underlying
affiliated funds $ 772,752 $ 1,865,682 $ 2,689,408
Dividend income from underlying
unaffiliated funds 184,757 637,770 933,141
Interest 9,743 24,279 45,342
-------------------------------------------------------------------------------------------------------
Total Investment Income $ 967,252 $ 2,527,731 $ 3,667,891
-------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 40,945 $ 116,775 $ 201,597
Transfer agent fees
Class A 17,661 52,946 131,930
Class C 6,544 16,097 30,068
Class R 26 58 98
Class Y 146 552 802
Distribution fees
Class A 57,647 151,550 295,607
Class C 83,873 287,265 363,146
Class R 22 43 55
Shareholder communications expense 6,621 22,975 52,372
Administrative expense 20,345 47,506 83,783
Custodian fees 21,033 25,811 17,365
Registration fees 31,538 35,141 19,223
Professional fees 19,726 21,018 28,894
Printing fees 6,696 8,853 8,891
Pricing fees 748 931 791
Fees and expenses of non-affiliated trustees 3,553 3,663 5,098
Insurance expense 362 1,192 2,011
Miscellaneous 4,116 4,856 7,041
-------------------------------------------------------------------------------------------------------
Total expenses $ 321,602 $ 797,232 $ 1,248,772
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. $ (38,240) $ (59) $ (91)
-------------------------------------------------------------------------------------------------------
Net expenses $ 283,362 $ 797,173 $ 1,248,681
-------------------------------------------------------------------------------------------------------
Net investment income $ 683,890 $ 1,730,558 $ 2,419,210
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
50 Pioneer Solutions Funds | Semiannual Report | 1/31/17
For the Six Months Ended 1/31/17
-------------------------------------------------------------------------------------------------------
Pioneer Pioneer Pioneer
Solutions - Solutions - Solutions -
Conservative Balanced Growth
Fund Fund Fund
-------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, FUTURES CONTRACTS,
SWAP CONTRACTS, WRITTEN OPTIONS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Underlying affiliated funds $ (159,814) $ 1,631,526 $ 6,026,671
Underlying unaffiliated funds (137,135) (923,975) (2,371,185)
Capital gain on distributions from
underlying affiliated funds 312,234 1,165,286 4,162,676
Capital gain on distributions from
underlying unaffiliated funds 35,056 433,965 975,954
Futures contracts (593,708) (2,234,233) (784,862)
Swap contracts (128,341) (394,595) (655,496)
Written options (45,078) (113,230) (149,351)
Forward foreign currency contracts and
other assets and liabilities denominated
in foreign currencies 162,458 812,771 464,367
-------------------------------------------------------------------------------------------------------
$ (554,328) $ 377,515 $ 7,668,774
-------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation
(depreciation) on:
Underlying affiliated funds $ (286,019) $ (1,132,681) $ (5,646,599)
Underlying unaffiliated funds (357,756) (237,866) 1,694,740
Futures contracts 165,597 443,975 1,632,030
Swap contracts 116,033 358,832 588,848
Written options (20,313) (80,147) (122,047)
Forward foreign currency contracts and
other assets and liabilities denominated
in foreign currencies 7,378 38,389 110,276
-------------------------------------------------------------------------------------------------------
$ (375,080) $ (609,498) $ (1,742,752)
-------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments, futures contracts,
swap contracts, written options
and forward foreign currency contracts
and other assets and liabilities
denominated in foreign currencies $ (929,408) $ (231,983) $ 5,926,022
-------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $ (245,518) $ 1,498,575 $ 8,345,232
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 51
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------------------
Pioneer Solutions - Pioneer Solutions -
Conservative Fund Balanced Fund
---------------------------------------------------------------
Six Months Six Months
Ended Year Ended Year
1/31/17 Ended 1/31/17 Ended
(unaudited) 7/31/16 (unaudited) 7/31/16
-------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 683,890 $ 1,452,905 $ 1,730,558 $ 3,022,656
Net realized gain (loss) on
investments, futures contracts,
swap contracts, written options
and forward foreign currency
contracts and other assets
and liabilities denominated
in foreign currencies (554,328) (934,959) 377,515 (2,330,784)
Change in net unrealized
appreciation (depreciation) on
investments, futures contracts,
swap contracts, written options
and forward foreign currency
contracts and other assets
and liabilities denominated
in foreign currencies (375,080) (250,550) (609,498) (6,511,117)
-------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting
from operations $ (245,518) $ 267,396 $ 1,498,575 $ (5,819,245)
-------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.24, $0.29, $0.24
and $0.27, respectively) $(1,025,860) $(1,205,906) $(2,480,991) $ (2,947,850)
Class C ($0.15, $0.20, $0.16
and $0.19, respectively) (243,573) (335,987) (853,099) (1,111,615)
Class R ($0.21, $0.30, $0.23
and $0.30, respectively) (182) (253) (382) (257)
Class Y ($0.24, $0.27, $0.27
and $0.30, respectively) (2,842) (2,891) (20,656) (34,638)
Net realized gain:
Class A ($0.00, $1.13, $0.00
and $0.86, respectively) -- (4,678,518) -- (9,290,030)
Class C ($0.00, $1.13, $0.00
and $0.86, respectively) -- (1,937,019) -- (5,108,460)
Class R ($0.00, $1.13, $0.00
and $0.86, respectively) -- (964) -- (748)
Class Y ($0.00, $1.13, $0.00
and $0.86, respectively) -- (11,928) -- (99,468)
-------------------------------------------------------------------------------------------------------
Total distributions
to shareowners $(1,272,457) $(8,173,466) $(3,355,128) $ (18,593,066)
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
52 Pioneer Solutions Funds | Semiannual Report | 1/31/17
-------------------------------------------------------------------------------------------------------
Pioneer Solutions - Pioneer Solutions -
Conservative Fund Balanced Fund
---------------------------------------------------------------
Six Months Six Months
Ended Year Ended Year
1/31/17 Ended 1/31/17 Ended
(unaudited) 7/31/16 (unaudited) 7/31/16
-------------------------------------------------------------------------------------------------------
FROM FUND SHARE
TRANSACTIONS:
Net proceeds from sales or
exchange of shares $ 6,168,103 $ 11,217,618 $ 10,902,997 $ 25,621,474
Reinvestment of distributions 1,195,200 7,555,353 3,207,398 17,128,419
Cost of shares repurchased (11,220,735) (16,852,509) (27,916,476) (48,922,888)
-------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
Fund share transactions (3,857,432) 1,920,462 (13,806,081) (6,172,995)
-------------------------------------------------------------------------------------------------------
Net decrease in net assets $(5,375,407) $ (5,985,608) $(15,662,634) $(30,585,306)
NET ASSETS:
Beginning of period 64,185,865 70,171,473 186,172,860 216,758,166
-------------------------------------------------------------------------------------------------------
End of period $58,810,458 $ 64,185,865 $170,510,226 $186,172,860
-------------------------------------------------------------------------------------------------------
Undistributed (distributions in
excess of) net investment
income, end of period $ 25,110 $ 613,677 $ (152,807) $ 1,471,763
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 53
Statements of Changes in Net Assets (continued)
-------------------------------------------------------------------------------------------------------
Pioneer Solutions -
Growth Fund
-----------------------------
Six Months
Ended Year
1/31/17 Ended
(unaudited) 7/31/16
-------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 2,419,210 $ 3,091,367
Net realized gain (loss) on investments, futures contracts, swap
contracts, written options and forward foreign currency
contracts and other assets and liabilities denominated in
foreign currencies 7,668,774 1,560,401
Change in net unrealized appreciation (depreciation) on
investments, futures contracts, swap contracts, written options
and forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (1,742,752) (18,517,160)
-------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 8,345,232 $(13,865,392)
-------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.16 and $0.18, respectively) $ (2,945,875) $ (3,448,475)
Class C ($0.07 and $0.09, respectively) (430,655) (630,056)
Class R ($0.15 and $0.21, respectively) (303) (150)
Class Y ($0.20 and $0.21, respectively) (13,530) (21,523)
Net realized gain:
Class A ($0.07 and $0.84, respectively) (1,223,872) (16,258,476)
Class C ($0.07 and $0.84, respectively) (395,672) (5,798,035)
Class R ($0.07 and $0.84, respectively) (131) (610)
Class Y ($0.07 and $0.84, respectively) (4,528) (88,090)
-------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (5,014,566) $(26,245,415)
-------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sales or exchange of shares $ 14,247,253 $ 35,429,202
Reinvestment of distributions 4,856,065 24,660,959
Cost of shares repurchased (35,696,992) (68,049,605)
-------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from Fund
share transactions (16,593,674) (7,959,444)
-------------------------------------------------------------------------------------------------------
Net decrease in net assets $ (13,263,008) $(48,070,251)
NET ASSETS:
Beginning of period 319,908,359 367,978,610
-------------------------------------------------------------------------------------------------------
End of period $ 306,645,351 $319,908,359
-------------------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net investment income,
end of period $ (770,953) $ 200,200
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
54 Pioneer Solutions Funds | Semiannual Report | 1/31/17
-----------------------------------------------------------------------------------------------------
Pioneer Solutions - Conservative Fund
-------------------------------------------------------------------
Six Months Six Months
Ended Ended
1/31/17 1/31/17 Year Ended Year Ended
Shares Amount 7/31/16 7/31/16
(unaudited) (unaudited) Shares Amount
-----------------------------------------------------------------------------------------------------
Class A
Shares sold 476,275 $ 4,911,092 604,781 $ 6,405,174
Reinvestment of distributions 96,948 975,296 563,069 5,658,844
Less shares repurchased (766,607) (7,863,626) (837,372) (8,731,562)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) (193,384) $(1,977,238) 330,478 $ 3,332,456
-----------------------------------------------------------------------------------------------------
Class C
Shares sold 122,490 $ 1,213,749 455,131 $ 4,728,950
Reinvestment of distributions 22,350 218,134 193,437 1,886,018
Less shares repurchased (335,672) (3,331,057) (763,235) (7,953,081)
-----------------------------------------------------------------------------------------------------
Net decrease (190,832) $(1,899,174) (114,667) $(1,338,113)
=====================================================================================================
Class Y
Shares sold 4,491 $ 43,262 7,768 $ 83,494
Reinvestment of distributions 187 1,770 1,105 10,491
Less shares repurchased (2,698) (26,052) (15,770) (167,866)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) 1,980 $ 18,980 (6,897) $ (73,881)
=====================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 55
Statements of Changes in Net Assets (continued)
-----------------------------------------------------------------------------------------------------
Pioneer Solutions - Balanced Fund
--------------------------------------------------------------------
Six Months Six Months
Ended Ended
1/31/17 1/31/17 Year Ended Year Ended
Shares Amount 7/31/16 7/31/16
(unaudited) (unaudited) Shares Amount
-----------------------------------------------------------------------------------------------------
Class A
Shares sold 502,106 $ 5,645,050 1,047,166 $ 11,977,456
Reinvestment of distributions 221,950 2,448,106 1,084,238 12,067,537
Less shares repurchased (1,456,942) (16,402,751) (2,084,317) (23,686,989)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) (732,886) $ (8,309,595) 47,087 $ 358,004
=====================================================================================================
Class C
Shares sold 484,977 $ 5,003,978 1,189,840 $ 12,457,865
Reinvestment of distributions 72,786 740,963 481,229 4,947,038
Less shares repurchased (1,056,703) (10,915,444) (2,287,374) (24,045,545)
-----------------------------------------------------------------------------------------------------
Net decrease (498,940) $ (5,170,503) (616,305) $ (6,640,642)
=====================================================================================================
Class R
Shares sold 443 $ 4,965 748 $ 8,215
Reinvestment of distributions 18 201 9 95
Less shares repurchased -- -- (260) (2,797)
-----------------------------------------------------------------------------------------------------
Net increase 461 $ 5,166 497 $ 5,513
=====================================================================================================
Class Y
Shares sold 21,785 $ 249,004 100,886 $ 1,177,938
Reinvestment of distributions 1,623 18,128 10,102 113,749
Less shares repurchased (52,358) (598,281) (104,875) (1,187,557)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) (28,950) $ (331,149) 6,113 $ 104,130
=====================================================================================================
The accompanying notes are an integral part of these financial statements.
56 Pioneer Solutions Funds | Semiannual Report | 1/31/17
-------------------------------------------------------------------------------------------------------
Pioneer Solutions - Growth Fund
-------------------------------------------------------------------
Six Months Six Months
Ended Ended
1/31/17 1/31/17 Year Ended Year Ended
Shares Amount 7/31/16 7/31/16
(unaudited) (unaudited) Shares Amount
-------------------------------------------------------------------------------------------------------
Class A
Shares sold 688,614 $ 8,488,405 1,519,091 $ 18,784,192
Reinvestment of distributions 339,137 4,140,870 1,606,934 19,604,535
Less shares repurchased (1,845,787) (22,762,058) (3,271,985) (40,168,227)
-------------------------------------------------------------------------------------------------------
Net decrease (818,036) $(10,132,783) (145,960) $ (1,779,500)
-------------------------------------------------------------------------------------------------------
Class C
Shares sold 467,531 $ 5,428,142 1,378,968 $ 16,056,831
Reinvestment of distributions 60,880 701,942 431,217 4,971,978
Less shares repurchased (1,066,010) (12,375,211) (2,353,490) (27,028,433)
-------------------------------------------------------------------------------------------------------
Net decrease (537,599) $ (6,245,127) (543,305) $ (5,999,624)
=======================================================================================================
Class R
Shares sold 574 $ 7,040 784 $ 9,204
Reinvestment of distributions 22 276 -- --
Less shares repurchased -- -- -- --
-------------------------------------------------------------------------------------------------------
Net increase 596 $ 7,316 784 $ 9,204
=======================================================================================================
Class Y
Shares sold 25,592 $ 323,666 45,377 $ 578,975
Reinvestment of distributions 1,041 12,977 6,788 84,446
Less shares repurchased (44,648) (559,723) (68,556) (852,945)
-------------------------------------------------------------------------------------------------------
Net decrease (18,015) $ (223,080) (16,391) $ (189,524)
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 57
---------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Conservative Fund
-------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
1/31/17 Ended Ended Ended Ended Ended
(unaudited) 7/31/16 7/31/15 7/31/14 7/31/13 7/31/12
---------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.41 $ 11.78 $ 11.86 $ 11.42 $ 10.73 $ 10.85
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.12 $ 0.26 $ 0.30 $ 0.25 $ 0.28 $ 0.28
Net realized and unrealized gain (loss) on investments (0.14) (0.21) (0.07) 0.55 0.64 (0.09)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.02) $ 0.05 $ 0.23 $ 0.80 $ 0.92 $ 0.19
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.24) $ (0.29) $ (0.31) $ (0.36) $ (0.23) $ (0.31)
Net realized gain -- (1.13) -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.24) $ (1.42) $ (0.31) $ (0.36) $ (0.23) $ (0.31)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.26) $ (1.37) $ (0.08) $ 0.44 $ 0.69 $ (0.12)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.15 $ 10.41 $ 11.78 $ 11.86 $ 11.42 $ 10.73
===========================================================================================================================
Total return* (0.22)%** 0.89% 2.01% 7.10% 8.72% 1.85%
Ratio of net expenses to average net assets+ 0.70%*** 0.70% 0.71% 0.76% 0.77% 0.78%
Ratio of net investment income to average net assets+ 2.39%*** 2.43% 2.53% 2.15% 2.51% 2.69%
Portfolio turnover rate 21% 23% 108% 12% 17% 20%
Net assets, end of period (in thousands) $43,364 $46,499 $48,721 $46,873 $44,239 $42,613
Ratios with no waivers of fees and assumption of expenses by
PIM and no reduction for fees paid indirectly: 0.82%*** 0.86% 0.79% 0.76% 0.77% 0.82%
Total expenses to average net assets
Net investment income to average net assets 2.27%*** 2.27% 2.45% 2.15% 2.51% 2.65%
===========================================================================================================================
(a) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Not annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Annualized.
The accompanying notes are an integral part of these financial statements.
58 Pioneer Solutions Funds | Semiannual Report | 1/31/17
---------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Conservative Fund
-------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
1/31/17 Ended Ended Ended Ended Ended
(unaudited) 7/31/16 7/31/15 7/31/14 7/31/13 7/31/12
---------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.06 $ 11.41 $ 11.51 $ 11.09 $ 10.44 $ 10.56
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.08 $ 0.17 $ 0.19 $ 0.16 $ 0.18 $ 0.20
Net realized and unrealized gain (loss) on investments (0.14) (0.19) (0.06) 0.54 0.63 (0.09)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.06) $ (0.02) $ 0.13 $ 0.70 $ 0.81 $ 0.11
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.15) $ (0.20) $ (0.23) $ (0.28) $ (0.16) $ (0.23)
Net realized gain -- (1.13) -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.15) $ (1.33) $ (0.23) $ (0.28) $ (0.16) $ (0.23)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.21) $ (1.35) $ (0.10) $ 0.42 $ 0.65 $ (0.12)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.85 $ 10.06 $ 11.41 $ 11.51 $ 11.09 $ 10.44
===========================================================================================================================
Total return* (0.56)%** 0.18% 1.15% 6.42% 7.83% 1.16%
Ratio of net expenses to average net assets+ 1.45%*** 1.45% 1.45% 1.49% 1.51% 1.56%
Ratio of net investment income to average net assets+ 1.58%*** 1.69% 1.69% 1.40% 1.70% 1.91%
Portfolio turnover rate 21% 23% 108% 12% 17% 20%
Net assets, end of period (in thousands) $15,330 $17,586 $21,260 $22,290 $20,542 $16,257
Ratios with no waivers of fees and assumption of expenses by
PIM and no reduction for fees paid indirectly: 1.56%*** 1.59% 1.53% 1.49% 1.51% 1.56%
Total expenses to average net assets
Net investment income to average net assets 1.47%*** 1.55% 1.61% 1.40% 1.70% 1.91%
===========================================================================================================================
(a) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Not annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 59
Financial Highlights (continued)
-----------------------------------------------------------------------------------------
Pioneer Solutions -
Conservative Fund
-------------------------------------
Six Months
Ended Year
1/31/17 Ended 7/1/15 to
(unaudited) 7/31/16 7/31/15
-----------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 10.38 $ 11.78 $ 11.74
-----------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.11 $ 0.25 $ 0.02
Net realized and unrealized gain (loss)
on investments (0.15) (0.22) 0.02
-----------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.04) $ 0.03 $ 0.04
-----------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.21) $ (0.30) $ --
Net realized gain -- (1.13) --
-----------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.21) $ (1.43) $ --
-----------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.25) $ (1.40) $ 0.04
-----------------------------------------------------------------------------------------
Net asset value, end of period $ 10.13 $ 10.38 $ 11.78
=========================================================================================
Total return* (0.33)%** 0.66% 0.34%**
Ratio of net expenses to average net assets+ 0.90%*** 0.90% 0.93%***
Ratio of net investment income to average
net assets+ 2.17%*** 2.30% 1.58%***
Portfolio turnover rate 21% 23% 108%
Net assets, end of period (in thousands) $ 9 $ 9 $ 10
Ratios with no waivers of fees and assumption of
expenses by PIM and no reduction for fees
paid indirectly:
Total expenses to average net assets 1.81%*** 1.50% 1.41%***
Net investment income to average net assets 1.26%*** 1.70% 1.10%***
=========================================================================================
(a) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Not annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Annualized.
The accompanying notes are an integral part of these financial statements.
60 Pioneer Solutions Funds | Semiannual Report | 1/31/17
---------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Conservative Fund
-------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
1/31/17 Ended Ended Ended Ended Ended
(unaudited) 7/31/16 7/31/15 7/31/14 7/31/13 7/31/12
---------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.83 $ 11.18 $ 11.32 $ 10.86 $ 10.21 $ 10.41
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.12 $ 0.24 $ 0.21 $ 0.24 $ 0.20 $ 0.13
Net realized and unrealized gain (loss) on investments (0.15) (0.19) (0.01) 0.49 0.61 (0.10)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.03) $ 0.05 $ 0.20 $ 0.73 $ 0.81 $ 0.03
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.24) $ (0.27) $ (0.34) $ (0.27) $ (0.16) $ (0.23)
Net realized gain -- (1.13) -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.24) $ (1.40) $ (0.34) $ (0.27) $ (0.16) $ (0.23)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.27) $ (1.35) $ (0.14) $ 0.46 $ 0.65 $ (0.20)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.56 $ 9.83 $ 11.18 $ 11.32 $ 10.86 $ 10.21
===========================================================================================================================
Total return* (0.24)%** 0.95% 1.81% 6.83% 8.00% 0.34%
Ratio of net expenses to average net assets+ 0.65%*** 0.65% 0.98% 0.98% 1.43% 2.26%
Ratio of net investment income to average net assets+ 2.42%*** 2.37% 1.84% 2.13% 1.88% 1.28%
Portfolio turnover rate 21% 23% 108% 12% 17% 20%
Net assets, end of period (in thousands) $ 108 $ 92 $ 181 $ 123 $ 141 $ 65
Ratios with no waivers of fees and assumption of expenses by
PIM and no reduction for fees paid indirectly: 0.87%*** 0.82% 0.98% 0.98% 1.43% 2.26%
Total expenses to average net assets
Net investment income to average net assets 2.20%*** 2.19% 1.84% 2.13% 1.88% 1.28%
===========================================================================================================================
(a) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Not annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 61
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Balanced Fund
---------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
1/31/17 Ended Ended Ended Ended Ended
(unaudited) 7/31/16 7/31/15 7/31/14 7/31/13 7/31/12
----------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 11.35 $ 12.78 $ 12.73 $ 11.72 $ 10.46 $ 10.74
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.12 $ 0.20 $ 0.29 $ 0.19 $ 0.21 $ 0.18
Net realized and unrealized gain (loss) on investments (0.01) (0.50) 0.12 1.03 1.27 (0.22)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.11 $ (0.30) $ 0.41 $ 1.22 $ 1.48 $ (0.04)
----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.24) $ (0.27) $ (0.36) $ (0.21) $ (0.22) $ (0.24)
Net realized gain -- (0.86) -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.24) $ (1.13) $ (0.36) $ (0.21) $ (0.22) $ (0.24)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.13) $ (1.43) $ 0.05 $ 1.01 $ 1.26 $ (0.28)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.22 $ 11.35 $ 12.78 $ 12.73 $ 11.72 $ 10.46
==================================================================================================================================
Total return* 1.01%** (2.11)% 3.33% 10.48% 14.32% (0.27)%
Ratio of net expenses to average net assets+ 0.66%*** 0.67% 0.66% 0.64% 0.66% 0.72%
Ratio of net investment income to average net assets+ 2.16%*** 1.77% 2.25% 1.57% 1.85% 1.75%
Portfolio turnover rate 16% 16% 89% 10% 9% 9%
Net assets, end of period (in thousands) $115,982 $125,608 $140,863 $136,511 $128,425 $118,833
Ratios with no waivers of fees and assumption of expenses by
PIM and no reduction for fees paid indirectly: 0.66%*** 0.67% 0.66% 0.64% 0.66% 0.72%
Total expenses to average net assets
Net investment income to average net assets 2.16%*** 1.77% 2.25% 1.57% 1.85% 1.75%
==================================================================================================================================
(a) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Not annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Annualized.
The accompanying notes are an integral part of these financial statements.
62 Pioneer Solutions Funds | Semiannual Report | 1/31/17
-----------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Balanced Fund
---------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
1/31/17 Ended Ended Ended Ended Ended
(unaudited) 7/31/16 7/31/15 7/31/14 7/31/13 7/31/12
-----------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.44 $ 11.84 $ 11.82 $ 10.92 $ 9.77 $ 10.07
-----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.07 $ 0.12 $ 0.17 $ 0.09 $ 0.12 $ 0.10
Net realized and unrealized gain (loss) on investments -- (0.47) 0.14 0.96 1.19 (0.22)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.07 $ (0.35) $ 0.31 $ 1.05 $ 1.31 $ (0.12)
-----------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.16) $ (0.19) $ (0.29) $ (0.15) $ (0.16) $ (0.18)
Net realized gain -- (0.86) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.16) $ (1.05) $ (0.29) $ (0.15) $ (0.16) $ (0.18)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.09) $ (1.40) $ 0.02 $ 0.90 $ 1.15 $ (0.30)
-----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.35 $ 10.44 $ 11.84 $ 11.82 $ 10.92 $ 9.77
-----------------------------------------------------------------------------------------------------------------------------
Total return* 0.71%** (2.81)% 2.64% 9.70% 13.56% (1.08)%
=============================================================================================================================
Ratio of net expenses to average net assets+ 1.37%*** 1.37% 1.35% 1.33% 1.34% 1.41%
Ratio of net investment income to average net assets+ 1.44%*** 1.10% 1.44% 0.81% 1.15% 1.06%
Portfolio turnover rate 16% 16% 89% 10% 9% 9%
Net assets, end of period (in thousands) $53,745 $59,444 $74,720 $75,377 $64,989 $53,594
Ratios with no waivers of fees and assumption of expenses by
PIM and no reduction for fees paid indirectly: 1.37%*** 1.37% 1.35% 1.33% 1.34% 1.41%
Total expenses to average net assets
Net investment income to average net assets 1.44%*** 1.10% 1.44% 1.44% 1.15% 1.06%
=============================================================================================================================
(a) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Not annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 63
Financial Highlights (continued)
-------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions -
Balanced Fund
---------------------------------------------------
Six Months
Ended Year
1/31/17 Ended 7/1/15 to
(unaudited) 7/31/16 7/31/15
-------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 11.30 $ 12.78 $ 12.74
-------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.12 $ 0.15 $ 0.01
Net realized and unrealized gain (loss)
on investments (0.01) (0.47) 0.03
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.11 $ (0.32) $ 0.04
-------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.23) $ (0.30) $ --
Net realized gain -- (0.86) --
-------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.23) $ (1.16) $ --
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.12) $ (1.48) $ 0.04
-------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.18 $ 11.30 $ 12.78
=========================================================================================================================
Total return* 1.02%** (2.34)% 0.31%**
Ratio of net expenses to average net assets+ 0.90%*** 0.90% 0.93%***
Ratio of net investment income to average
net assets+ 2.18%*** 1.28% 0.66%***
Portfolio turnover rate 16% 16% 89%
Net assets, end of period (in thousands) $ 19 $ 14 $ 10
Ratios with no waivers of fees and assumption
of expenses by PIM and no reduction for fees
paid indirectly:
Total expenses to average net assets 1.59%*** 1.58% 1.00%***
Net investment income to average net assets 1.49%*** 0.60% 0.58%***
=========================================================================================================================
(a) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Not annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Annualized.
The accompanying notes are an integral part of these financial statements.
64 Pioneer Solutions Funds | Semiannual Report | 1/31/17
-------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Balanced Fund
-----------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
1/31/17 Ended Ended Ended Ended Ended
(unaudited) 7/31/16 7/31/15 7/31/14 7/31/13 7/31/12
-------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 11.51 $ 12.94 $ 12.88 $ 11.86 $ 10.58 $ 10.88
-------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.12 $ 0.26 $ 0.37 $ 0.23 $ 0.25 $ 0.22
Net realized and unrealized gain (loss) on investments 0.01 (0.53) 0.09 1.03 1.28 (0.23)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.13 $ (0.27) $ 0.46 $ 1.26 $ 1.53 $ (0.01)
-------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.27) $ (0.30) $ (0.40) $ (0.24) $ (0.25) $ (0.29)
Net realized gain -- (0.86) -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.27) $ (1.16) $ (0.40) $ (0.24) $ (0.25) $ (0.29)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.14) $ (1.43) $ 0.06 $ 1.02 $ 1.28 $ (0.30)
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.37 $ 11.51 $ 12.94 $ 12.88 $ 11.86 $ 10.58
===============================================================================================================================
Total return* 1.19%** (1.85)% 3.63% 10.68% 14.68% 0.00%(b)
Ratio of net expenses to average net assets+ 0.48%*** 0.40% 0.36% 0.40% 0.36% 0.38%
Ratio of net investment income to average net assets+ 2.11%*** 2.22% 2.92% 1.88% 2.26% 2.14%
Portfolio turnover rate 16% 16% 89% 10% 9% 9%
Net assets, end of period (in thousands) $ 764 $ 1,107 $ 1,165 $ 3,239 $ 4,134 $ 5,208
Ratios with no waivers of fees and assumption of expenses by
PIM and no reduction for fees paid indirectly: 0.48%*** 0.40% 0.36% 0.40% 0.36% 0.38%
Total expenses to average net assets
Net investment income to average net assets 2.11%*** 2.22% 2.92% 1.88% 2.26% 2.14%
===============================================================================================================================
(a) Calculated using average shares outstanding for the period.
(b) Amount rounds to less than 0.01%.
* 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.
** Not annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 65
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Growth Fund
---------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
1/31/17 Ended Ended Ended Ended Ended
(unaudited) 7/31/16 7/31/15 7/31/14 7/31/13 7/31/12
----------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 12.36 $ 13.84 $ 13.60 $ 12.32 $ 10.75 $ 11.09
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.11 $ 0.13 $ 0.29 $ 0.16 $ 0.17 $ 0.14
Net realized and unrealized gain (loss) on investments 0.25 (0.59) 0.38 1.31 1.57 (0.29)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.36 $ (0.46) $ 0.67 $ 1.47 $ 1.74 $ (0.15)
----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.16) $ (0.18) $ (0.43) $ (0.19) $ (0.17) $ (0.19)
Net realized gain (0.07) (0.84) -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.23) $ (1.02) $ (0.43) $ (0.19) $ (0.17) $ (0.19)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.13 $ (1.48) $ 0.24 $ 1.28 $ 1.57 $ (0.34)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.49 $ 12.36 $ 13.84 $ 13.60 $ 12.32 $ 10.75
==================================================================================================================================
Total return* 2.90%** (3.23)% 5.08% 11.96% 16.40% (1.31)%
Ratio of net expenses to average net assets+ 0.64%*** 0.65% 0.69% 0.68% 0.69% 0.76%
Ratio of net investment income to average net assets+ 1.74%*** 1.08% 2.15% 1.24% 1.50% 1.29%
Portfolio turnover rate 18% 10% 98% 8% 6% 7%
Net assets, end of period (in thousands) $234,938 $242,649 $273,763 $163,349 $149,586 $134,988
Ratios with no waivers of fees and assumption of expenses by
PIM and no reduction for fees paid indirectly: 0.64%*** 0.65% 0.69% 0.68% 0.69% 0.76%
Total expenses to average net assets
Net investment income to average net assets 1.74%*** 1.08% 2.15% 1.24% 1.50% 1.29%
==================================================================================================================================
(a) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Not annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Annualized.
The accompanying notes are an integral part of these financial statements.
66 Pioneer Solutions Funds | Semiannual Report | 1/31/17
------------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Growth Fund
----------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
1/31/17 Ended Ended Ended Ended Ended
(unaudited) 7/31/16 7/31/15 7/31/14 7/31/13 7/31/12
------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 11.63 $ 13.08 $ 12.82 $ 11.65 $ 10.18 $ 10.50
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.06 $ 0.05 $ 0.12 $ 0.06 $ 0.09 $ 0.06
Net realized and unrealized gain (loss) on investments 0.23 (0.57) 0.43 1.23 1.48 (0.27)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.29 $ (0.52) $ 0.55 $ 1.29 $ 1.57 $ (0.21)
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.07) $ (0.09) $ (0.29) $ (0.12) $ (0.10) $ (0.11)
Net realized gain (0.07) (0.84) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.14) $ (0.93) $ (0.29) $ (0.12) $ (0.10) $ (0.11)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.15 $ (1.45) $ 0.26 $ 1.17 $ 1.47 $ (0.32)
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.78 $ 11.63 $ 13.08 $ 12.82 $ 11.65 $ 10.18
==============================================================================================================================
Total return* 3.59%** (3.89)% 4.36% 11.09% 15.58% (1.91)%
Ratio of net expenses to average net assets+ 1.35%*** 1.35% 1.38% 1.37% 1.40% 1.46%
Ratio of net investment income to average net assets+ 0.97%*** 0.47% 0.95% 0.46% 0.78% 0.59%
Portfolio turnover rate 18% 10% 98% 8% 6% 7%
Net assets, end of period (in thousands) $70,715 $76,055 $92,650 $63,333 $53,032 $45,570
Ratios with no waivers of fees and assumption of expenses by
PIM and no reduction for fees paid indirectly: 1.35%*** 1.35% 1.38% 1.37% 1.40% 1.46%
Total expenses to average net assets
Net investment income to average net assets 0.97%*** 0.47% 0.95% 0.46% 0.78% 0.59%
==============================================================================================================================
(a) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Not annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 67
Financial Highlights (continued)
-------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions -
Growth Fund
----------------------------------------------------
Six Months
Ended Year
1/31/17 Ended 7/1/15 to
(unaudited) 7/31/16 7/31/15
-------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 12.30 $ 13.84 $ 13.78
-------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.12 $ 0.02 $ (0.00)(b)
Net realized and unrealized gain (loss)
on investments 0.22 (0.51) 0.06
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.34 $ (0.49) $ 0.06
-------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.15) $ (0.21) $ --
Net realized gain (0.07) (0.84) --
-------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.22) $ (1.05) $ --
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.12 $ (1.54) $ 0.06
-------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.42 $ 12.30 $ 13.84
=========================================================================================================================
Total return* 2.78%** (3.47)% 0.44%**
Ratio of net expenses to average net assets+ 0.90%*** 0.90% 0.89%***
Ratio of net investment income to average
net assets+ 1.88%*** 0.18% (0.38)%***
Portfolio turnover rate 18% 10% 98%
Net assets, end of period (in thousands) $ 26 $ 19 $ 10
Ratios with no waivers of fees and assumption
of expenses by PIM and no reduction for fees
paid indirectly:
Total expenses to average net assets 1.71%*** 1.22% 0.89%***
Net investment income to average net assets 1.07%*** (0.14)% (0.38)%***
=========================================================================================================================
(a) Calculated using average shares outstanding for the period.
(b) Amount rounds to greater than $(0.005) per share.
* 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.
** Not annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Annualized.
The accompanying notes are an integral part of these financial statements.
68 Pioneer Solutions Funds | Semiannual Report | 1/31/17
-----------------------------------------------------------------------------------------------------------------------------
Pioneer Solutions - Growth Fund
---------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
1/31/17 Ended Ended Ended Ended Ended
(unaudited) 7/31/16 7/31/15 7/31/14 7/31/13 7/31/12
-----------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 12.63 $ 14.11 $ 13.88 $ 12.56 $ 10.95 $ 11.45
-----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (a) $ 0.08 $ 0.19 $ 0.26 $ 0.28 $ 0.20 $ 0.17
Net realized and unrealized gain (loss) on investments 0.30 (0.62) 0.46 1.25 1.61 (0.44)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.38 $ (0.43) $ 0.72 $ 1.53 $ 1.81 $ (0.27)
-----------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.20) $ (0.21) $ (0.49) $ (0.21) $ (0.20) $ (0.23)
Net realized gain (0.07) (0.84) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (0.27) $ (1.05) $ (0.49) $ (0.21) $ (0.20) $ (0.23)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.11 $ (1.48) $ 0.23 $ 1.32 $ 1.61 $ (0.50)
-----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.74 $ 12.63 $ 14.11 $ 13.88 $ 12.56 $ 10.95
=============================================================================================================================
Total return* 2.99%** (2.96)% 5.30% 12.25% 16.70% (2.28)%
Ratio of net expenses to average net assets+ 0.44%*** 0.37% 0.47% 0.40% 0.44% 0.50%
Ratio of net investment income to average net assets+ 1.32%*** 1.53% 1.87% 2.10% 1.71% 1.60%
Portfolio turnover rate 18% 10% 98% 8% 6% 7%
Net assets, end of period (in thousands) $ 967 $ 1,186 $ 1,556 $ 1,031 $ 1,314 $ 2,012
Ratios with no waivers of fees and assumption of expenses by
PIM and no reduction for fees paid indirectly:
Total expenses to average net assets 0.44%*** 0.37% 0.47% 0.40% 0.44% 0.50%
Net investment income to average net assets 1.32%*** 1.53% 1.87% 2.10% 1.71% 1.60%
=============================================================================================================================
(a) Calculated using average shares outstanding for the period.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Not annualized.
+ In addition to the expenses which the Fund bears directly, the Fund
indirectly bears pro rata shares of the expenses of the funds in which the
Fund invests. Because each of the underlying funds bears its own varying
expense levels and because the Fund may own differing proportions of each
fund at different times, the amount of expenses incurred indirectly by the
Fund will vary from time to time.
*** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 69
Notes to Financial Statements | 1/31/17 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Asset Allocation Trust (the "Trust") is organized as a Delaware
statutory trust and is registered with the Securities and Exchange Commission
under the Investment Company Act of 1940 (the 1940 Act) as an open-end
management investment company. The Trust consists of three separate funds (each,
a "Fund," and collectively, the "Funds"), each issuing four classes of shares as
follows:
Pioneer Solutions - Conservative Fund ("Conservative Fund")
Pioneer Solutions - Growth Fund ("Growth Fund")
Pioneer Solutions - Balanced Fund ("Balanced Fund").
The investment objective of each of the Conservative Fund, the Growth Fund and
the Balanced Fund is to seek long-term capital growth and current income.
Each Fund is a "fund of funds". Each Fund seeks to achieve its investment
objective by investing primarily in other funds ("underlying funds"). Each Fund
may also invest directly in securities and use derivatives. Each Fund invests
mainly in funds managed by Pioneer Investment Management, Inc. (PIM). Each Fund
may also invest in unaffiliated mutual funds or exchange-traded funds (ETFs).
The Funds indirectly pay a portion of the expenses incurred by underlying funds.
Consequently, an investment in the Funds entails more direct and indirect
expenses than direct investment in the applicable underlying funds.
Each Fund offers four classes of shares designated as Class A, Class C, Class R
and Class Y shares. Each class of shares represents an interest in the same
portfolio of investments of each Fund and has identical rights (based on
relative net asset values) to assets and liquidation proceeds. Share classes can
bear different rates of class-specific fees and expenses such as transfer agent
and distribution fees. Differences in class specific fees and expenses will
result in differences in net investment income and, therefore, the payment of
different dividends from net investment income earned by each class. The Amended
and Restated Declaration of Trust of each Fund gives the Board of Trustees the
flexibility to specify either per-share voting or dollar-weighted voting when
submitting matters for shareholder approval. Under per-share voting, each share
of a class of a Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record
70 Pioneer Solutions Funds | Semiannual Report | 1/31/17
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.
The financial statements have been prepared in conformity with U.S. generally
accepted accounting principles (U.S. GAAP) that require the management of the
Funds to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of income and expenses during the reporting period. Actual results could
differ from these estimates.
Each Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Funds in the preparation of their financial
statements:
A. Security Valuation
The net asset value of the Funds are computed once daily, on each day the
New York Stock Exchange (NYSE) is open, as of the close of regular trading
on the NYSE.
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such funds' net asset value. Repurchase
agreements are valued at par. Cash may include overnight time deposits at
approved financial institutions.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to supply
prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Swap 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.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 71
Futures contracts are generally valued at the closing settlement price
established by the exchange on which they are traded.
Options contracts are generally valued at the mean between the last bid and
ask prices on the principal exchange where they are traded.
Over-the-counter ("OTC") options and options on swaps ("swaptions") are
valued using prices supplied by independent pricing services, which
consider such factors as market prices, market events, quotations from one
or more brokers, Treasury spreads, yields, maturities and ratings, or may
use a pricing matrix or other fair value methods or techniques to provide
an estimated value of the security or instrument.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate, in each case provided by a third party pricing service.
Contracts whose forward settlement date falls between two quoted days are
valued by interpolation.
Securities for which independent pricing services or broker-dealers are
unable to supply prices or for which market prices and/or quotations are
not readily available or are considered to be unreliable are valued by a
fair valuation team comprised of certain personnel of Pioneer Investment
Management, Inc. (PIM), the Fund's investment adviser and a wholly owned
indirect subsidiary of UniCredit S.p.A. (UniCredit), pursuant to procedures
adopted by the Fund's Board of Trustees. PIM's fair valuation team uses
fair value methods approved by the Valuation Committee of the Board of
Trustees. PIM'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 Funds may use fair value methods if it is
determined that a significant event has occurred after the close of the
exchange or market on which the security trades and prior to the
determination of each Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of each Fund's securities may differ significantly from exchange prices and
such differences could be material.
At January 31, 2017, the Funds held no securities 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).
72 Pioneer Solutions Funds | Semiannual Report | 1/31/17
B. Investment Income and Transactions
Dividend income and realized capital gain distributions from investment
company shares held are recorded on the ex-dividend date. Interest income,
including interest on income bearing cash accounts, is recorded on the
accrual basis. Dividend and interest income are reported net of
unrecoverable foreign taxes withheld at the applicable country rates.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Funds are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the Statement of Operations from
the effects of changes in the market price of those securities but are
included with the net realized and unrealized gain or loss on investments.
D. Forward Foreign Currency Contracts
The Funds may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
are recorded in the Funds' financial statements. The Funds record realized
gains and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contracts and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 5).
E. Federal Income Taxes
It is the Funds' policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all taxable income and net realized capital gains, if any, to shareholders.
Therefore, no federal income tax provisions are required. Tax years for the
prior three fiscal years remain subject to examination by federal and state
tax authorities.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 73
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary overdistributions for financial
statement purposes resulting from differences in the recognition or
classification of income or distributions for financial statement and tax
purposes. Capital accounts within the financial statements are adjusted for
permanent book/tax differences to reflect tax character, but are not
adjusted for temporary differences.
The tax character of current year distributions paid will be determined at
the end of the current taxable year. The tax character of distributions
paid during the year ended July 31, 2016 were as follows:
---------------------------------------------------------------------------
2016
---------------------------------------------------------------------------
Conservative Fund
Distributions paid from:
Ordinary income $ 1,550,713
Long-term capital gains 6,622,753
---------------------------------------------------------------------------
Total $ 8,173,466
---------------------------------------------------------------------------
Balanced Fund
Distributions paid from:
Ordinary income $ 4,100,023
Long-term capital gains 14,493,043
---------------------------------------------------------------------------
Total $18,593,066
---------------------------------------------------------------------------
Growth Fund
Distributions paid from:
Ordinary income $ 3,637,690
Long-term capital gains 22,607,725
---------------------------------------------------------------------------
Total $26,245,415
---------------------------------------------------------------------------
The following table shows the components of distributable earnings on a
federal income tax basis at July 31, 2016:
---------------------------------------------------------------------------
Conservative Fund Balanced Fund Growth Fund
---------------------------------------------------------------------------
Undistributed ordinary
income $ 593,085 $ 1,350,820 $ --
Undistributed long-term
capital gains -- -- 889,982
Capital loss carryforward (1,104,901) (3,254,588) --
Unrealized appreciation/
depreciation 307,069 4,180,830 12,468,679
---------------------------------------------------------------------------
Total $ (204,747) $ 2,277,062 $13,358,661
---------------------------------------------------------------------------
The differences between book-basis and tax-basis net unrealized
appreciation are attributable to the tax deferral of losses on wash sales.
74 Pioneer Solutions Funds | Semiannual Report | 1/31/17
F. Fund Shares
The Funds record sales and repurchases of Fund shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Funds and a wholly owned indirect subsidiary of UniCredit, earned the
following in underwriting commissions on the sale of Class A shares during
the six months ended January 31, 2017:
---------------------------------------------------------------------------
Fund Amount
---------------------------------------------------------------------------
Conservative Fund $ 7,150
Balanced Fund 13,965
Growth Fund 30,960
G. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day. Distribution fees are calculated based on the average daily net
asset value attributable to Class A and Class C shares of each Fund,
respectively (see Note 4). Class Y shares do not pay distribution fees. All
expenses and fees paid to the Fund's transfer agent, for its services are
allocated among the class of shares based on the number of accounts in each
class and the ratable allocation of related out-of-pocket expenses (see
Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by each of the Funds with respect to each class of
shares are calculated in the same manner and at the same time, except that
net investment income dividends to Class A, Class C, Class R and Class Y
shares of each Fund can reflect different transfer agent and distribution
expense rates.
H. Risks
Interest rates in the U.S. recently have been historically low, so the Fund
faces a heightened risk that interest rates may rise. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions from
the Fund. Some of the underlying funds can invest in either high yield
securities or small/emerging growth companies.
Investments in these types of securities generally are subject to greater
volatility than either higher-grade securities or more established
companies in more developed markets, respectively. The Funds' prospectus
contains unaudited information regarding the Funds' principal risks. Please
refer to that document when considering the Funds' principal risks.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 75
I. Futures Contracts
The Funds may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Funds are traded on
a futures exchange. Upon entering into a futures contract, the Funds are
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange.
The amount of cash deposited with the broker as collateral at January 31,
2017, and is included in "Restricted Cash" in the Statement of Assets and
Liabilities, was as follows:
---------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
---------------------------------------------------------------------------
Futures Collateral $272,618 $1,100,419 $ 1,683,656
Subsequent payments for futures contracts ("variation margin") are paid or
received by the Funds, depending on the daily fluctuation in the value of
the contracts, and are recorded by the Funds as unrealized appreciation or
depreciation. When the contract is closed, the Funds realize a gain or loss
equal to the difference between the opening and closing value of the
contract as well as any fluctuation in foreign currency exchange rates
where applicable. The use of futures contracts 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. The average value of contracts open during the six
months ended January 31, 2017, was as follows:
---------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
---------------------------------------------------------------------------
$(378,264) $(5,691,854) $(13,084,000)
76 Pioneer Solutions Funds | Semiannual Report | 1/31/17
At January 31, 2017, open futures contracts were as follows:
Pioneer Solutions - Conservative Fund
-----------------------------------------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation
Type Counterparty Long/(Short) Month Value (Depreciation)
-----------------------------------------------------------------------------------------------------------
E-Mini NASDAQ 100 Societe
Generale 3 3/17 $ 306,765 $ 3,324
E-Mini S&P 500 Morgan Stanley
& Co. 2 3/17 227,450 (173)
E-Mini XAI Industrial Morgan Stanley
& Co. (5) 3/17 (316,500) (442)
Euro BUXL
30 Year Bond UBS AG (6) 3/17 (1,083,205) 4,384
Euro Stoxx 50 Morgan Stanley
& Co. (18) 3/17 (628,544) (10,729)
Euro-Bund UBS AG 12 3/17 2,100,718 2,578
Euro-Schatz UBS AG (44) 3/17 (5,331,697) (6,057)
FTSE 100 Credit Suisse 3 3/17 265,834 (7,723)
FTSE 250 Credit Suisse (7) 3/17 (318,983) 2,859
H-Shares Index UBS AG (12) 3/17 (760,715) (26,525)
Japan 10 Year Bond UBS AG (1) 3/17 (1,328,666) 1,950
MINI DJIA Societe
Generale (3) 3/17 (296,880) 211
Nikkei 225 (SGX) UBS AG 12 3/17 1,010,062 23,810
S&P/TSX 60 Morgan Stanley
& Co. 2 3/17 278,675 3,344
Stoxx 600 AUTO Societe
Generale 22 3/17 650,517 20,643
Stoxx Europe 600 Credit Suisse (35) 3/17 (677,597) (13,301)
U.S. 5 Year Note UBS AG 60 3/17 7,072,031 (8,437)
U.S. 10 Year Note UBS AG 21 3/17 2,613,844 (10,172)
U.S. Ultra Bond UBS AG (10) 3/17 (1,606,875) 19,063
XAK Technology Morgan Stanley
& Co. 6 3/17 300,600 5,389
MSCI World IX Societe
Generale (6) 6/17 (297,840) (5,460)
-----------------------------------------------------------------------------------------------------------
$ 2,178,994 $ (1,464)
===========================================================================================================
Pioneer Solutions Funds | Semiannual Report | 1/31/17 77
Pioneer Solutions - Balanced Fund
-----------------------------------------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation
Type Counterparty Long/(Short) Month Value (Depreciation)
-----------------------------------------------------------------------------------------------------------
E-Mini NASDAQ 100 Societe
Generale 9 3/17 $ 920,295 $ 9,975
E-Mini S&P 500 Morgan Stanley
& Co. (30) 3/17 (3,411,750) (14,438)
E-Mini XAI Industrial Morgan Stanley
& Co. (14) 3/17 (886,199) (1,238)
Euro BUXL
30 Year Bond UBS AG (19) 3/17 (3,430,150) 12,374
Euro Stoxx 50 Morgan Stanley
& Co. (146) 3/17 (5,098,191) (87,020)
Euro-Bund UBS AG 37 3/17 6,477,215 7,832
Euro-Schatz UBS AG (130) 3/17 (15,752,742) (17,897)
FTSE 100 Credit Suisse 10 3/17 886,113 (25,743)
FTSE 250 Credit Suisse (19) 3/17 (865,811) 7,760
H-Shares Index UBS AG (35) 3/17 (2,218,753) (77,364)
Japan 10 Year Bond UBS AG (3) 3/17 (3,985,994) 5,851
MINI DJIA Societe
Generale (9) 3/17 (890,640) 632
Nikkei 225 (SGX) UBS AG 28 3/17 2,356,810 56,721
S&P/TSX 60 Morgan Stanley
& Co. 7 3/17 975,362 11,706
Stoxx 600 AUTO Societe
Generale 66 3/17 1,951,551 61,929
Stoxx Europe 600 Credit Suisse (101) 3/17 (1,955,352) (38,382)
U.S. 5 Year Note UBS AG 174 3/17 20,508,891 (24,469)
U.S. 10 Year Note UBS AG 56 3/17 6,970,250 (27,125)
U.S. Ultra Bond UBS AG (28) 3/17 (4,499,250) 53,374
XAK Technology Morgan Stanley
& Co. 18 3/17 901,800 16,167
MSCI World IX Societe
Generale (17) 6/17 (843,880) (15,469)
-----------------------------------------------------------------------------------------------------------
$ (1,890,425) $ (84,824)
===========================================================================================================
78 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Pioneer Solutions - Growth Fund
-----------------------------------------------------------------------------------------------------------
Number of Unrealized
Contracts Settlement Appreciation
Type Counterparty Long/(Short) Month Value (Depreciation)
-----------------------------------------------------------------------------------------------------------
E-Mini NASDAQ 100 Societe
Generale 15 3/17 $ 1,533,825 $ 16,625
E-Mini S&P 500 Morgan Stanley
& Co. 21 3/17 2,388,225 10,004
E-Mini XAI Industrial Morgan Stanley
& Co. (24) 3/17 (1,519,200) (2,122)
Euro BUXL 30
Year Bond UBS AG (33) 3/17 (5,957,628) 19,587
Euro Stoxx 50 Morgan Stanley
& Co. (141) 3/17 (4,923,595) (84,040)
Euro-Bund UBS AG 65 3/17 11,378,891 13,377
Euro-Schatz UBS AG (218) 3/17 (26,416,136) (30,012)
FTSE 100 Credit Suisse 17 3/17 1,506,391 (43,763)
FTSE 250 Credit Suisse (34) 3/17 (1,549,346) 13,886
H-Shares Index UBS AG (59) 3/17 (3,740,184) (130,414)
Japan 10 Year Bond UBS AG (5) 3/17 (6,643,324) 9,751
MINI DJIA Societe
Generale (15) 3/17 (1,484,400) 1,053
Nikkei 225 (SGX) UBS AG 133 3/17 11,194,850 269,800
S&P/TSX 60 Morgan Stanley
& Co. 12 3/17 1,672,049 20,067
Stoxx 600 AUTO Societe
Generale 111 3/17 3,282,154 104,154
Stoxx Europe 600 Credit Suisse (174) 3/17 (3,368,625) (66,123)
U.S. 5 Year Note UBS AG 296 3/17 34,888,688 (41,625)
U.S. 10 Year Note UBS AG 49 3/17 6,098,969 (23,734)
U.S. Ultra Bond UBS AG (46) 3/17 (7,391,625) 87,688
XAK Technology Morgan Stanley
& Co. 31 3/17 1,553,100 27,842
MSCI World IX Societe
Generale (29) 6/17 (1,439,560) (26,390)
-----------------------------------------------------------------------------------------------------------
$ 11,063,519 $ 145,611
===========================================================================================================
J. Option Writing
The Funds may write put and covered call options to seek to increase total
return. When an option is written, the Funds receive a premium and become
obligated to purchase or sell the underlying security at a fixed price upon
the exercise of the option. When the Funds write an option, an amount equal
to the premium received by the Funds is recorded as a liability and is
subsequently adjusted to the current value of the option written. Premiums
received from writing options that expire unexercised are treated by the
Funds on the expiration date as realized gains from investments. The
difference between the premium and the amount paid on effecting a closing
purchase transaction, including brokerage commissions, is also treated as a
realized gain or, if the premium is less than the amount paid for the
closing
Pioneer Solutions Funds | Semiannual Report | 1/31/17 79
purchase transaction, as a realized loss. If a call option is exercised,
the premium is added to the proceeds from the sale of the underlying
security in determining whether the Funds have realized a gain or loss. The
Funds, as writer of an option, bear the market risk of an unfavorable
change in the price of the security underlying the written option.
Written call and put option contracts outstanding at period end are listed
at the end of each Fund's Schedule of Investments. The average value of
written option contracts open during the six months ended January 31, 2017
was as follows:
----------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
----------------------------------------------------------------------------
$(29,294) $(87,147) $(251,507)
Transactions in written options for the six months ended January 31, 2017
are summarized as follows:
Pioneer Solutions - Conservative Fund
---------------------------------------------------------------------------------------
Number of Premium
Contracts Received
---------------------------------------------------------------------------------------
Options open at beginning of period (12) $ (17,964)
Options opened (1,400,644) (125,798)
Options closed 483 105,945
Options expired 173 31,008
---------------------------------------------------------------------------------------
Options open at end of period (1,400,000) $ (6,809)
Pioneer Solutions - Balanced Fund
---------------------------------------------------------------------------------------
Number of Premium
Contracts Received
---------------------------------------------------------------------------------------
Options open at beginning of period (44) $ (65,867)
Options opened (8,001,828) (376,662)
Options closed 1,371 300,724
Options expired 501 102,894
---------------------------------------------------------------------------------------
Options open at end of period (8,000,000) $ (38,911)
Pioneer Solutions - Growth Fund
---------------------------------------------------------------------------------------
Number of Premium
Contracts Received
---------------------------------------------------------------------------------------
Options open at beginning of period (47) $ (195,892)
Options opened (28,503,329) (1,314,775)
Options closed 2,428 734,773
Options expired 779 63,116
---------------------------------------------------------------------------------------
Options open at end of period (28,500,169) $ (712,778)
K. Purchased Options
The Funds may purchase put and call options to seek increased total return.
Purchased call and put options entitle the Funds to buy and sell a
specified number of shares or units of a particular security, currency or
index at a specified price at a specific date or within a specific period
of time. Upon the
80 Pioneer Solutions Funds | Semiannual Report | 1/31/17
purchase of a call or put option, the premium paid by the Funds is included
in the Statements of Assets and Liabilities as an investment. All premiums
are marked-to-market daily, and any unrealized gains or losses are recorded
in the Funds' financial statements. As the purchaser of an index option,
the Funds have the right to receive a cash payment equal to any
depreciation in the value of the index below the strike price of the option
(in the case of a put) or equal to any appreciation in the value of the
index over the strike price of the option (in the case of a call) as of the
valuation date of the option. Premiums paid for purchased call and put
options which have expired are treated as realized losses on investments in
the Statements of Operations. Upon the exercise or closing of a purchased
put option, the premium is offset against the proceeds on the sale of the
underlying security or financial instrument in order to determine the
realized gain or loss on investments. Upon the exercise or closing of a
purchased call option, the premium is added to the cost of the security or
financial instrument. The risk associated with purchasing options is
limited to the premium originally paid.
Purchased option contracts outstanding at period end are listed at the end
of each Fund's Schedule of Investments. The average value of purchased
options open during the six months ended January 31, 2017 was as follows:
---------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
---------------------------------------------------------------------------
$17,845 $64,497 $762,449
L. Credit Default Swap Agreements
A credit default swap is a contract between a buyer of protection and a
seller of protection against a pre-defined credit event on an underlying
reference obligation, which may be a single security or a basket or index
of securities. The Funds may sell or buy credit default swap contracts to
seek to increase the Funds' income, or to attempt to hedge the risk of
default on Fund securities. A credit default swap index is used to hedge
risk or take a position on a basket of credit entities or indices. As a
seller of protection, the Funds would be required to pay the notional (or
other agreed-upon) value of the referenced debt obligation to the
counterparty in the event of a default by a U.S. or foreign corporate
issuer of a debt obligation, which would likely result in a loss to the
Funds. In return, the Funds would receive from the counterparty a periodic
stream of payments during the term of the contract provided that no event
of default occurred. The maximum exposure of loss to the seller would be
the notional value of the credit default swaps outstanding. If no default
occurs, the Funds would keep the stream of payments and would have no
payment obligation. The Funds may also buy credit default swap contracts in
order to hedge against the risk of default of debt securities, in which
case the Funds would function as the counterparty referenced above.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 81
When the Funds enter into a credit default swap contract, the protection
buyer makes an upfront or periodic payment to the protection seller in
exchange for the rights to receive a contingent payment. An upfront payment
made by the Funds, as the protection buyer, is recorded as an asset in the
Statements of Assets and Liabilities. Periodic payments received or paid by
the Funds are recorded as realized gains or losses in the Statements of
Operations.
Credit default swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statements of
Assets and Liabilities. Payments received or made as a result of a credit
event or upon termination of the contract are recognized, net of the
appropriate amount of the upfront payment, as realized gains or losses in
the Statements of Operations.
Certain swap contracts that are cleared through a central clearinghouse are
referred to as centrally cleared swaps. All payments made or received by
the Funds are pursuant to a centrally cleared swap contract with the
central clearing party rather than the original counterparty. Upon entering
into a centrally cleared swap contract, the Funds are required to make an
initial margin deposit, either in cash or in securities. The daily change
in value on open centrally cleared contracts is recorded as variation
margin on centrally cleared swaps on the Statements of Assets and
Liabilities.
Credit default swap contracts involving the sale of protection may involve
greater risks than if the Funds 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 a Fund
is a protection buyer and no credit event occurs, it will lose its
investment. If a Fund is a protection seller and a credit event occurs, the
value of the referenced debt instrument received by that Fund, together
with the periodic payments received, may be less than the amount that Fund
pays to the protection buyer, resulting in a loss to that Fund.
There were no open credit default swap contracts at January 31, 2017.
M. Inflation Rate Swap Contracts
The Funds may enter into inflation rate swap contracts to attempt to hedge
against inflation. Pursuant to the inflation rate swap agreement, the Funds
negotiate with a counterparty to exchange a periodic stream of payments,
based on a benchmark inflation index. One cash flow stream will typically
be a floating rate payment linked to the specified inflation index while
the other is typically a fixed interest rate.
82 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Inflation rate swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statements of
Assets and Liabilities. Inflation rate swaps are normally issued on a zero
coupon basis where all payments compound during the life of the contract
and are netted upon the termination or maturity of the contract. Final
payments received or paid by the Funds are recorded as realized gains or
losses in the Statements of Operations. Inflation rate swap contracts are
subject to movements in interest rates.
There were no open inflation rate swap contracts at January 31, 2017. The
average value of inflation rate swap contracts open during the six months
ended January 31, 2017 was as follows:
---------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
---------------------------------------------------------------------------
$(54,975) $(169,507) $(281,747)
N. Interest Rate Swap Contracts
The Funds may enter into interest rate swaps to attempt to hedge against
interest rate fluctuations or to enhance their income. Pursuant to the
interest rate swap agreement, the Funds negotiate with a counterparty to
exchange a periodic stream of payments based on a benchmark interest rate.
One cash flow stream will typically be a floating rate payment based upon
the specified floating benchmark interest rate while the other is typically
a fixed interest rate. Payment flows are usually netted against each other,
with the difference being paid by one party to the other on a monthly
basis.
Periodic payments received or paid by the Funds are recorded as realized
gains or losses in the Statements of Operations. Interest rate swap
contracts are marked-to-market daily using valuations supplied by
independent sources and the change in value, if any, is recorded as
unrealized appreciation or depreciation in the Statements of Assets and
Liabilities. Interest rate swap contracts are subject to counterparty risk
and movements in interest rates.
Open interest rate swap contracts at period end are listed at the end of
each Fund's Schedule of Investments. The average value of interest rate
swap contracts open during the six months ended January 31, 2017 was as
follows:
---------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
---------------------------------------------------------------------------
$3,023 $9,208 $ 17,116
The amount of cash deposited with the broker as collateral at January 31,
2017, and is included in "Restricted Cash" in the Statement of Assets and
Liabilities, was as follows:
---------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
---------------------------------------------------------------------------
$75,000 $145,000 $200,000
Pioneer Solutions Funds | Semiannual Report | 1/31/17 83
2. Management Agreement
PIM manages the Funds' portfolios. Management fees for each Fund are calculated
daily at an annual rate equal to 0.13% of the fund's average daily net assets up
to $2.5 billion; 0.11% of the fund's average daily net assets over $2.5 billion
up to $4 billion; 0.10% of the fund's average daily net assets over $4 billion
up to $5.5 billion; and 0.08% of the fund's average daily net assets over $5.5
billion.
For the six months ended January 31, 2017, the effective management fee for each
Fund was equivalent to 0.13% of the Fund's average daily net assets. Fees waived
and expenses reimbursed during the six months ended January 31, 2017 are
reflected in the Statements of Operations.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Funds as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statements of Assets and Liabilities are
the following amounts payable to PIM at January 31, 2017:
--------------------------------------------------------------------------------
Fund Amount
--------------------------------------------------------------------------------
Conservative Fund $ 7,593
Balanced Fund 21,268
Growth Fund 33,376
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce fund expenses, other than underlying fund fees and expenses,
as follows. These expense limitations are in effect through December 1, 2018.
There can be no assurance that PIM will extend the expense limitation agreement
for a class of shares beyond the date referred to above:
--------------------------------------------------------------------------------
Fund Class A Class C Class R Class Y
--------------------------------------------------------------------------------
Conservative Fund 0.70% 1.45% 0.90% 0.65%
Balanced Fund 0.70% 1.45% 0.90% --
Growth Fund 0.70% 1.45% 0.90% --
3. Transfer Agent
Boston Financial Data Services serves as the transfer agent to the Funds at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
In addition, the Funds reimburses the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities,
such as proxy and statement mailings, outgoing phone calls. For the six months
ended January 31, 2017, such out-of-pocket expenses by class of shares were as
follows:
84 Pioneer Solutions Funds | Semiannual Report | 1/31/17
--------------------------------------------------------------------------------
Conservative Balanced Growth
Shareholder Communications Fund Fund Fund
--------------------------------------------------------------------------------
Class A $5,285 $17,375 $43,575
Class C 1,296 5,287 8,557
Class R 11 11 10
Class Y 29 302 230
--------------------------------------------------------------------------------
Total $6,621 $22,975 $52,372
================================================================================
4. Distribution Plan
The Funds have adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to Class A and Class C shares.
Pursuant to the Plan, each Fund pays PFD 0.25% of the Fund's average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with respect to
Class A shares. Pursuant to the Plan, each Fund also pays PFD 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 are the
following amounts in distribution fees payable to PFD at January 31, 2017:
--------------------------------------------------------------------------------
Amount
--------------------------------------------------------------------------------
Conservative Fund $ 24,242
Balanced Fund 75,669
Growth Fund 117,231
The Funds also have adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Funds to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Funds a
distribution fee of up to 0.50% of the Fund's average daily net assets
attributable to Class R shares held by such plans.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00% based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to PFD.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 85
For the six months ended January 31, 2017, the following CDSCs were paid to PFD:
--------------------------------------------------------------------------------
Fund Amount
--------------------------------------------------------------------------------
Conservative Fund $ 784
Balanced Fund 1,515
Growth Fund 4,682
5. Forward Foreign Currency Contracts
During the six months ended January 31, 2017, the Funds had entered into various
forward foreign currency contracts that obligate the Funds to deliver or take
delivery of currencies at specified future maturity dates. Alternatively, prior
to the settlement date of a forward foreign currency contract, the Funds may
close out such contract by entering into an offsetting contract.
The average value of contracts open during the six months ended January 31,
2017, were as follows:
--------------------------------------------------------------------------------
Conservative Balanced Growth
Fund Fund Fund
--------------------------------------------------------------------------------
$(2,500,210) $(12,862,295) $(15,516,043)
Open forward foreign currency contracts at January 31, 2017, were as follows:
Pioneer Solutions - Conservative Fund
--------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
--------------------------------------------------------------------------------------------------
CAD 19,640 EUR 14,033 Barclays Bank 4/12/17 $ 326
CAD 940,000 NOK 6,092,839 Barclays Bank 4/12/17 25,830
CAD 200,000 NOK 1,292,780 Goldman Sachs 4/12/17 4,294
International
EUR 340,000 CZK 9,077,320 Goldman Sachs 10/24/17 14,142
International
HUF 27,755,739 EUR 90,000 Barclays Bank 4/12/17 2,089
ILS 368,019 EUR 90,000 Barclays Bank 4/12/17 2,089
KRW 106,148,000 EUR 85,000 Barclays Bank 4/12/17 1,973
PLN 395,402 EUR 90,000 Barclays Bank 4/12/17 2,089
USD 98,284 EUR 91,504 Barclays Bank 4/12/17 833
USD 310,000 INR 21,272,200 Barclays Bank 4/12/17 2,139
USD 620,000 INR 42,516,500 Goldman Sachs 4/12/17 3,869
International
USD 2,865 ZAR 39,219 Goldman Sachs 4/12/17 3
International
ZAR 3,026,465 TRY 810,000 Goldman Sachs 4/12/17 1,019
International
--------------------------------------------------------------------------------------------------
Total $ 60,695
==================================================================================================
86 Pioneer Solutions Funds | Semiannual Report | 1/31/17
-------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
-------------------------------------------------------------------------------------------------
AUD 935,000 USD 703,424 Goldman Sachs 4/12/17 $ (4,492)
International
CAD 19,640 EUR 14,033 Barclays Bank 4/12/17 (215)
CAD 940,000 NOK 6,092,839 Barclays Bank 4/12/17 (8,386)
CAD 200,000 NOK 1,292,780 Goldman Sachs 4/12/17 (1,016)
CAD 594,242 USD 450,000 International
Barclays Bank 4/12/17 (6,582)
CAD 313,067 USD 240,000 Goldman Sachs 4/12/17 (543)
International
EUR 340,000 CZK 9,077,320 Goldman Sachs 10/24/17 (15,085)
International
EUR 448,987 USD 478,122 Goldman Sachs 4/12/17 (8,225)
International
GBP 440,000 USD 545,313 Goldman Sachs 4/12/17 (8,987)
International
HUF 27,755,739 EUR 90,000 Barclays Bank 4/12/17 (1,437)
HUF 28,274,635 USD 98,386 Barclays Bank 4/12/17 (262)
ILS 368,019 EUR 90,000 Barclays Bank 4/12/17 (2,375)
ILS 378,500 USD 99,343 Barclays Bank 4/12/17 (1,216)
JPY 80,506,639 USD 713,362 Goldman Sachs 4/12/17 (2,307)
International
KRW 106,148,000 EUR 85,000 Barclays Bank 4/12/17 (2,275)
KRW 105,129,000 USD 90,000 Goldman Sachs 4/12/17 (1,488)
International
PLN 395,402 EUR 90,000 Barclays Bank 4/12/17 (3,263)
PLN 377,295 USD 92,282 Barclays Bank 4/12/17 (1,863)
ZAR 3,026,465 TRY 810,000 Goldman Sachs 4/12/17 (11,817)
International
-------------------------------------------------------------------------------------------------
Total $(81,834)
=================================================================================================
AUD Australian Dollar
CAD Canadian Dollar
CZK Czech Koruna
EUR Euro
GBP Great British Pound
HUF Hungarian Forint
ILS Israeli New Shekel
INR Indian Rupee
JPY Japanese Yen
KRW Korean Won
NOK Norwegian Krone
PLN Polish Zloty
TRY Turkish Lira
ZAR South African Rand
Pioneer Solutions Funds | Semiannual Report | 1/31/17 87
Pioneer Solutions - Balanced Fund
-------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
-------------------------------------------------------------------------------------------------
CAD 2,670,000 NOK 17,306,256 Barclays Bank 4/12/17 $ 73,372
CAD 570,000 NOK 3,684,423 Goldman Sachs 4/12/17 12,239
International
EUR 980,000 CZK 26,164,040 Goldman Sachs 10/24/17 40,760
International
HUF 86,351,188 EUR 280,000 Barclays Bank 4/12/17 6,499
ILS 1,144,948 EUR 280,000 Barclays Bank 4/12/17 6,499
KRW 312,200,000 EUR 250,000 Barclays Bank 4/12/17 5,802
PLN 1,230,140 EUR 280,000 Barclays Bank 4/12/17 6,498
USD 870,000 INR 59,699,400 Barclays Bank 4/12/17 6,003
USD 1,740,000 INR 119,320,500 Goldman Sachs 4/12/17 10,857
International
USD 8,480 ZAR 116,088 Goldman Sachs 4/12/17 9
International
ZAR 8,631,031 TRY 2,310,000 Goldman Sachs 4/12/17 2,907
International
-------------------------------------------------------------------------------------------------
Total $ 171,445
=================================================================================================
88 Pioneer Solutions Funds | Semiannual Report | 1/31/17
--------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
--------------------------------------------------------------------------------------------------
AUD 2,835,000 USD 2,132,841 Goldman Sachs 4/12/17 $ (13,621)
International
CAD 2,670,000 NOK 17,306,256 Barclays Bank 4/12/17 (23,820)
CAD 570,000 NOK 3,684,423 Goldman Sachs 4/12/17 (2,895)
International
CAD 1,703,494 USD 1,290,000 Barclays Bank 4/12/17 (18,869)
CAD 913,112 USD 700,000 Goldman Sachs 4/12/17 (1,583)
International
EUR 980,000 CZK 26,164,040 Goldman Sachs 10/24/17 (43,480)
International
EUR 5,003,362 USD 5,372,896 Goldman Sachs 4/12/17 (46,791)
International
GBP 1,265,000 USD 1,567,884 Goldman Sachs 4/12/17 (25,728)
International
HUF 86,351,188 EUR 280,000 Barclays Bank 4/12/17 (4,470)
HUF 84,823,905 USD 295,157 Barclays Bank 4/12/17 (785)
ILS 1,144,948 EUR 280,000 Barclays Bank 4/12/17 (7,387)
ILS 1,135,500 USD 298,030 Barclays Bank 4/12/17 (3,648)
JPY 283,139,240 USD 2,508,870 Goldman Sachs 4/12/17 (8,114)
International
KRW 312,200,000 EUR 250,000 Barclays Bank 4/12/17 (6,692)
KRW 315,387,000 USD 270,000 Goldman Sachs 4/12/17 (4,466)
International
PLN 1,230,140 EUR 280,000 Barclays Bank 4/12/17 (10,152)
PLN 1,131,885 USD 276,845 Barclays Bank 4/12/17 (5,590)
ZAR 8,631,031 TRY 2,310,000 Goldman Sachs 4/12/17 (33,701)
International
--------------------------------------------------------------------------------------------------
Total $ (261,792)
==================================================================================================
AUD Australian Dollar
CAD Canadian Dollar
CZK Czech Koruna
EUR Euro
GBP Great British Pound
HUF Hungarian Forint
ILS Israeli New Shekel
INR Indian Rupee
JPY Japanese Yen
KRW Korean Won
NOK Norwegian Krone
PLN Polish Zloty
TRY Turkish Lira
ZAR South African Rand
Pioneer Solutions Funds | Semiannual Report | 1/31/17 89
Pioneer Solutions - Growth Fund
--------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Appreciation
--------------------------------------------------------------------------------------------------
CAD 98,038 EUR 70,048 Barclays Bank 4/12/17 $ 1,626
CAD 4,630,000 NOK 30,010,475 Barclays Bank 4/12/17 127,234
CAD 1,010,000 NOK 6,528,539 Goldman Sachs 4/12/17 21,686
International
EUR 1,740,000 CZK 46,454,520 Goldman Sachs 10/24/17 72,369
International
HUF 141,862,666 EUR 460,000 Barclays Bank 4/12/17 10,676
ILS 1,880,986 EUR 460,000 Barclays Bank 4/12/17 10,676
KRW 549,472,000 EUR 440,000 Barclays Bank 4/12/17 10,212
PLN 2,020,945 EUR 460,000 Barclays Bank 4/12/17 10,676
USD 1,530,000 INR 104,988,600 Barclays Bank 4/12/17 10,557
USD 3,060,000 INR 209,839,500 Goldman Sachs 4/12/17 19,094
International
USD 1,461,471 JPY 164,515,781 Barclays Bank 4/12/17 1,002
USD 14,554 ZAR 199,231 Goldman Sachs 4/12/17 16
International
ZAR 15,244,418 TRY 4,080,000 Goldman Sachs 4/12/17 11,099
International
--------------------------------------------------------------------------------------------------
Total $ 306,923
==================================================================================================
90 Pioneer Solutions Funds | Semiannual Report | 1/31/17
-------------------------------------------------------------------------------------------------
In
Currency Currency Exchange Settlement Unrealized
Sold Deliver Purchased for Counterparty Date Depreciation
-------------------------------------------------------------------------------------------------
AUD 4,785,000 USD 3,599,875 Goldman Sachs 4/12/17 $ (22,990)
International
CAD 98,038 EUR 70,048 Barclays Bank 4/12/17 (1,076)
CAD 4,630,000 NOK 30,010,475 Barclays Bank 4/12/17 (41,305)
CAD 1,010,000 NOK 6,528,539 Goldman Sachs 4/12/17 (5,129)
International
CAD 3,010,826 USD 2,280,000 Barclays Bank 4/12/17 (33,349)
CAD 1,591,423 USD 1,220,000 Goldman Sachs 4/12/17 (2,760)
International
EUR 1,740,000 CZK 46,454,520 Goldman Sachs 10/24/17 (77,199)
International
EUR 5,798,672 USD 6,226,945 Goldman Sachs 4/12/17 (54,228)
International
GBP 2,215,000 USD 2,745,424 Goldman Sachs 4/12/17 (44,972)
International
HUF 141,862,666 EUR 460,000 Barclays Bank 4/12/17 (7,343)
HUF 141,373,175 USD 491,928 Barclays Bank 4/12/17 (1,308)
ILS 1,880,986 EUR 460,000 Barclays Bank 4/12/17 (12,137)
ILS 1,892,500 USD 496,716 Barclays Bank 4/12/17 (6,080)
KRW 549,472,000 EUR 440,000 Barclays Bank 4/12/17 (11,778)
KRW 537,326,000 USD 460,000 Goldman Sachs 4/12/17 (7,608)
International
PLN 2,020,945 EUR 460,000 Barclays Bank 4/12/17 (16,679)
PLN 1,886,475 USD 461,408 Barclays Bank 4/12/17 (9,317)
ZAR 15,244,418 TRY 4,080,000 Goldman Sachs 4/12/17 (65,490)
International
-------------------------------------------------------------------------------------------------
Total $(420,748)
=================================================================================================
AUD Australian Dollar
CAD Canadian Dollar
CZK Czech Koruna
EUR Euro
GBP British Pound
HUF Hungarian Forint
ILS Israeli New Shekel
INR Indian Rupee
JPY Japanese Yen
KRW Korean Won
NOK Norwegian Krone
PLN Polish Zloty
TRY Turkish Lira
ZAR South African Rand
Pioneer Solutions Funds | Semiannual Report | 1/31/17 91
6. Assets and Liabilities Offsetting
The Funds have entered into an International Swaps and Derivatives Association,
Inc. Master Agreement ("ISDA Master Agreement") or similar agreement with
substantially all their derivative counterparties. An ISDA Master Agreement is a
bilateral agreement between the Funds and a counterparty that governs the
trading of certain OTC derivatives and typically contains, among other things,
close-out and set-off provisions which apply upon the occurrence of event of a
default and/or termination event as defined under the relevant ISDA Master
Agreement. The ISDA Master Agreement may also give a party the right to
terminate all transactions traded under such agreement if, among other things,
there is deterioration in the credit quality of the other party. Upon an event
of default or a termination of the ISDA Master Agreement, the non-defaulting
party has the right to close out all transactions under such agreement and to
net amounts owed under each transaction to determine one net amount payable by
one party to the other. The right to close out and net payments across all
transactions under the ISDA Master Agreement could result in a reduction of the
Funds' credit risk to their counterparty equal to any amounts payable by the
Funds under the applicable transactions, if any. However, the Funds' right to
setoff may be restricted or prohibited by the bankruptcy or insolvency laws of
the particular jurisdiction to which a specific ISDA counterparty is subject.
The collateral requirements for derivatives transactions under an ISDA Master
Agreement are governed by a credit support annex to the ISDA Master Agreement.
Collateral requirements are generally determined at the close of business each
day and are typically based on changes in market values for each transaction
under an ISDA Master Agreement and netted into one amount for such agreement.
Generally, the amount of collateral due from or to a counterparty is subject to
threshold (a "minimum transfer amount") before a transfer is required, which may
vary by counterparty. Collaterals pledged for the benefit of the Funds and/or
counterparty are held in segregated accounts by the Funds' custodian and cannot
be sold, re-pledged, assigned or otherwise used while pledged. Cash that has
been segregated to cover the Funds' collateral obligations, if any, will be
reported separately in the Statements of Assets and Liabilities as "Restricted
Cash." Securities pledged by the Funds as collateral, if any, are identified as
such in the Schedules of Investments.
92 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Financial instruments subject to an enforceable master netting agreement such as
an ISDA Master Agreement have been offset on the Statements of Assets and
Liabilities. The following charts show gross assets and liabilities of the Funds
as of January 31, 2017.
Pioneer Solutions - Conservative Fund
-------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
-------------------------------------------------------------------------------------------
Barclays Bank $ 37,368 $ (27,874) $ -- $ -- $ 9,494
Goldman Sachs
International 23,327 (23,327) -- -- --
-------------------------------------------------------------------------------------------
Total $ 60,695 $ (51,201) $ -- $ -- $ 9,494
============================================================================================
-------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Liabilities (c)
-------------------------------------------------------------------------------------------
Barclays Bank $ 27,874 $ (27,874) $ -- $ -- $ --
Deutsche Bank 3,846 -- -- (3,846) --
Goldman Sachs
International 53,960 (23,327) -- -- 30,633
-------------------------------------------------------------------------------------------
Total $ 85,680 $ (51,201) $ -- $ (3,846) $ 30,633
===========================================================================================
Pioneer Solutions - Balanced Fund
-------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
-------------------------------------------------------------------------------------------
Barclays Bank $104,673 $ (81,413) $ -- $ -- $ 23,260
Goldman Sachs
International 66,772 (66,772) -- -- --
-------------------------------------------------------------------------------------------
Total $171,445 $(148,185) $ -- $ -- $ 23,260
===========================================================================================
--------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Liabilities (c)
--------------------------------------------------------------------------------------------
Barclays Bank $ 81,413 $ (81,413) $ -- $ -- $ --
Deutsche Bank 11,553 -- -- (11,553) --
Goldman Sachs
International 180,379 (66,772) -- -- 113,607
--------------------------------------------------------------------------------------------
Total $273,345 $(148,185) $ -- $ (11,553) $113,607
============================================================================================
Pioneer Solutions Funds | Semiannual Report | 1/31/17 93
Pioneer Solutions - Growth Fund
---------------------------------------------------------------------------------------------
Derivative
Assets
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Received (a) Received (a) Assets (b)
---------------------------------------------------------------------------------------------
Barclays Bank $182,659 $(140,372) $ -- $ -- $ 42,287
Goldman Sachs
International 124,264 (124,264) -- -- --
---------------------------------------------------------------------------------------------
Total $306,923 $(264,636) $ -- $ -- $ 42,287
=============================================================================================
---------------------------------------------------------------------------------------------
Derivative
Liabilities
Subject to Derivatives Non-Cash Cash Net Amount
Master Netting Available Collateral Collateral of Derivative
Counterparty Agreement for Offset Pledged (a) Pledged (a) Liabilities (c)
---------------------------------------------------------------------------------------------
Barclays Bank $140,372 $(140,372) $ -- $ -- $ --
Deutsche Bank 21,189 -- -- (21,189) --
Goldman Sachs
International 280,376 (124,264) -- -- 156,112
---------------------------------------------------------------------------------------------
Total $441,937 $(264,636) $ -- $ (21,189) $156,112
==============================================================================================
(a) The amount presented here may be less than the total amount of collateral
received/pledged as the net amount of derivative assets and liabilities
cannot be less than $0.
(b) Represents the net amount due from the counterparty in the event of
default.
(c) Represents the net amount payable to the counterparty in the event of
default.
7. Additional Disclosures about Derivative Instruments and Hedging Activities
The Funds' use of derivatives subjects them to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Funds.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
94 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The fair value of open derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes) by risk exposure at January 31,
2017 was as follows:
Pioneer Solutions - Conservative Fund
Statement of Assets and Liabilities
-----------------------------------------------------------------------------------------------
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
-----------------------------------------------------------------------------------------------
Assets:
Unrealized appreciation
on futures contracts* $ 27,975 $ -- $ -- $ 59,580 $ --
Unrealized appreciation
on centrally cleared
interest rate swap
agreements 2,549 -- -- -- --
Unrealized appreciation
on forward foreign
currency contracts -- -- 60,695 -- --
-----------------------------------------------------------------------------------------------
Total Value $ 30,524 $ -- $ 60,695 $ 59,580 $ --
===============================================================================================
Liabilities:
Unrealized depreciation
on futures contracts* $ (24,666) $ -- $ -- $ (64,353) $ --
Unrealized depreciation
on centrally cleared
interest rate swap
agreements (3,874) -- -- -- --
Unrealized depreciation
on interest rate swap
agreement (3,846) -- -- -- --
Written options -- -- (9,578) -- --
Unrealized depreciation
on forward foreign
currency contracts -- -- (81,834) -- --
-----------------------------------------------------------------------------------------------
Total Value $ (32,386) $ -- $ (91,412) $ (64,353) $ --
===============================================================================================
* Reflects unrealized appreciation/depreciation on futures contracts (see
Note 1I). The current day's variation margin is disclosed on the Statement
of Assets and Liabilities.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 95
Pioneer Solutions - Balanced Fund
Statement of Assets and Liabilities
-----------------------------------------------------------------------------------------------
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
-----------------------------------------------------------------------------------------------
Assets:
Unrealized appreciation
on futures contracts* $ 79,431 $ -- $ -- $ 164,890 $ --
Unrealized appreciation
on centrally cleared
interest rate swap
agreements 6,953 -- -- -- --
Unrealized appreciation
on forward foreign
currency contracts -- -- 171,445 -- --
-----------------------------------------------------------------------------------------------
Total Value $ 86,384 $ -- $ 171,445 $ 164,890 $ --
===============================================================================================
Liabilities:
Unrealized depreciation
on futures contracts* $ (69,491) $ -- $ -- $ (259,654) $ --
Unrealized depreciation
on centrally cleared
interest rate swap
agreements (11,718) -- -- -- --
Unrealized depreciation
in interest rate swap
agreement (11,553) -- -- -- --
Written options -- -- (54,731) -- --
Unrealized depreciation
on forward foreign
currency contracts -- -- (261,792) -- --
-----------------------------------------------------------------------------------------------
Total Value $ (92,762) $ -- $ (316,523) $ (259,654) $ --
===============================================================================================
* Reflects unrealized appreciation/depreciation on futures contracts (see
Note 1I). The current day's variation margin is disclosed on the Statement
of Assets and Liabilities.
96 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Pioneer Solutions - Growth Fund
Statement of Assets and Liabilities
-----------------------------------------------------------------------------------------------
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
-----------------------------------------------------------------------------------------------
Assets:
Unrealized appreciation
on futures contracts* $ 130,403 $ -- $ -- $ 463,431 $ --
Unrealized appreciation
on centrally cleared
interest rate swap
agreements 12,699 -- -- -- --
Unrealized appreciation
on forward foreign
currency contracts -- -- 306,923 -- --
-----------------------------------------------------------------------------------------------
Total Value $ 143,102 $ -- $ 306,923 $ 463,431 $ --
===============================================================================================
Liabilities:
Unrealized depreciation
on futures contracts* $ (95,371) $ -- $ -- $ (352,852) $ --
Unrealized depreciation
on centrally cleared
interest rate swap
agreements (19,298) -- -- -- --
Unrealized depreciation
on interest rate swap
agreement (21,189) -- -- -- --
Written options -- -- (194,978) (522,210) --
Unrealized depreciation
on forward foreign
currency contracts -- -- (420,748) -- --
-----------------------------------------------------------------------------------------------
Total Value $(135,858) $ -- $ (615,726) $ (875,062) $ --
===============================================================================================
* Reflects unrealized appreciation/depreciation on futures contracts (see
Note 1I). The current day's variation margin is disclosed on the Statement
of Assets and Liabilities.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 97
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at January 31, 2017 was as follows:
Pioneer Solutions - Conservative Fund
Statement of Operations
-----------------------------------------------------------------------------------------------
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
-----------------------------------------------------------------------------------------------
Net realized gain (loss):
Futures contracts $(513,434) $ -- $ -- $ (80,274) $ --
Swap contracts (127,837) (504) -- -- --
Written options -- -- (50) (45,028) --
Forward foreign
currency contracts* -- -- 171,203 -- --
-----------------------------------------------------------------------------------------------
Total Value $(641,271) $ (504) $ 171,153 $ (125,302) $ --
===============================================================================================
Change in net
unrealized appreciation
(depreciation) on:
Futures contracts $ (7,115) $ -- $ -- $ 172,712 $ --
Swap contracts 116,033 -- -- -- --
Written options -- -- (2,769) (17,544) --
Forward foreign
currency contracts* -- -- 13,399 -- --
-----------------------------------------------------------------------------------------------
Total Value $ 108,918 $ -- $ 10,630 $ 155,168 $ --
===============================================================================================
* Included in the amount shown on the Statement of Operations as forward
foreign currency contracts and other assets and liabilities denominated in
foreign currencies. Pioneer Solutions - Balanced Fund
Statement of Operations
-----------------------------------------------------------------------------------------------
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
-----------------------------------------------------------------------------------------------
Net realized gain (loss):
Futures contracts $ (1,476,967) $ -- $ -- $ (757,266) $ --
Swap contracts (394,198) (397) -- -- --
Written options -- -- (288) (112,942) --
Forward foreign
currency contracts* -- -- 807,250 -- --
-----------------------------------------------------------------------------------------------
Total Value $ (1,871,165) $ (397) $ 806,962 $ (870,208) $ --
===============================================================================================
Change in net
unrealized appreciation
(depreciation) on:
Futures contracts $ (5,431) $ -- $ -- $ 449,406 $ --
Swap contracts 358,832 -- -- -- --
Written options -- -- (15,820) (64,327) --
Forward foreign
currency contracts* -- -- 71,814 -- --
-----------------------------------------------------------------------------------------------
Total Value $ 353,401 $ -- $ 55,994 $ 385,079 $ --
===============================================================================================
* Included in the amount shown on the Statement of Operations as forward
foreign currency contracts and other assets and liabilities denominated in
foreign currencies.
98 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Pioneer Solutions - Growth Fund
Statement of Operations
-----------------------------------------------------------------------------------------------
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
-----------------------------------------------------------------------------------------------
Net realized gain (loss):
Futures contracts $ (1,028,328) $ -- $ -- $ 243,466 $ --
Swap contracts (655,213) (283) -- -- --
Written options -- -- (1,025) (148,326) --
Forward foreign
currency contracts* -- -- 513,387 -- --
-----------------------------------------------------------------------------------------------
Total Value $ (1,683,541) $ (283) $ 512,362 $ 95,140 $ --
===============================================================================================
Change in net
unrealized appreciation
(depreciation) on:
Futures contracts $ 360,506 $ -- $ -- $1,271,524 $ --
Swap contracts 588,848 -- -- -- --
Written options -- -- (56,356) (65,691) --
Forward foreign
currency contracts* -- -- 157,645 -- --
-----------------------------------------------------------------------------------------------
Total Value $ 949,354 -- $ 101,289 $1,205,833 $ --
===============================================================================================
* Included in the amount shown on the Statement of Operations as forward
foreign currency contracts and other assets and liabilities denominated in
foreign currencies.
8. Transactions in Underlying Funds
An affiliated issuer may be considered one in which a Fund owns 5% or more of
the outstanding voting securities, or a company which is under common control.
For the purposes of this report, each Fund assumes the following to be
affiliated issuers:
Pioneer Solutions - Conservative Fund
--------------------------------------------------------------------------------------------------
Beginning Acquisitions Dispositions Ending
Underlying Funds (Affiliated) Shares Shares Shares Shares
--------------------------------------------------------------------------------------------------
Pioneer Bond Fund Class K 1,689,767 6,502 -- 1,696,269
Pioneer Core Equity Fund Class Y -- 36,692 (4,003) 32,689
Pioneer Disciplined Value Fund Class Y -- 88,233 (9,622) 78,611
Pioneer Dynamic Credit Fund Class Y 289,182 -- (155,400) 133,782
Pioneer Equity Income Fund Class K 77,024 -- (77,024) --
Pioneer Floating Rate Fund Class K 102,850 -- (34,479) 68,371
Pioneer Fund Class Y -- 25,566 (2,785) 22,781
Pioneer Fundamental Growth Fund Class K 64,833 13,617 (47,260) 31,190
Pioneer Global Equity Fund Class K 165,382 -- -- 165,382
Pioneer Global High Yield Fund Class Y 23,959 -- -- 23,959
Pioneer Global Multisector Income Fund
Class Y 108,596 -- (72,988) 35,608
Pioneer High Yield Fund Class Y 36,395 -- -- 36,395
Pioneer International Equity Fund Class Y 100,030 -- -- 100,030
Pioneer Long/Short Bond Fund Class Y 17,146 -- (17,146) --
Pioneer Mid Cap Value Fund Class K -- 66,127 (28,668) 37,459
Pioneer Opportunistic Long/Short Credit
Fund Class Y 17,516 -- (17,516) --
Pioneer Real Estate Shares Class Y 42,184 -- (42,184) --
Pioneer Short Term Income Fund Class K 209,963 -- (144,329) 65,634
Pioneer Strategic Income Fund Class K 878,149 532,896 -- 1,411,045
Pioneer Solutions Funds | Semiannual Report | 1/31/17 99
-----------------------------------------------------------------------------------------------------
Realized Capital Gain Dividend Ending
Underlying Funds (Affiliated) Gain (Loss) Distributions Income Value
-----------------------------------------------------------------------------------------------------
Pioneer Bond Fund Class K $ -- $ -- $289,982 $ 16,318,108
Pioneer Core Equity Fund Class Y 713 -- 8,593 609,977
Pioneer Disciplined Value Fund Class Y 1,375 -- 16,427 1,220,829
Pioneer Dynamic Credit Fund Class Y (65,071) -- 66,804 1,254,875
Pioneer Equity Income Fund Class K (124,008) 284,603 15,405 --
Pioneer Floating Rate Fund Class K -- -- 14,167 464,923
Pioneer Fund Class Y 1,151 -- 2,042 680,013
Pioneer Fundamental Growth Fund
Class K 22,756 27,631 4,142 612,883
Pioneer Global Equity Fund Class K -- -- 39,427 2,317,002
Pioneer Global High Yield Fund Class Y -- -- 6,203 207,008
Pioneer Global Multisector Income Fund
Class Y (55,001) -- 15,603 372,100
Pioneer High Yield Fund Class Y -- -- 9,570 350,485
Pioneer International Equity Fund Class Y -- -- 25,048 2,039,619
Pioneer Long/Short Bond Fund Class Y (15,562) -- -- --
Pioneer Mid Cap Value Fund Class K 317 -- 11,747 933,478
Pioneer Opportunistic Long/Short Credit
Fund Class Y (19,364) -- -- --
Pioneer Real Estate Shares Class Y 97,210 -- 3,252 --
Pioneer Short Term Income Fund Class K (4,330) -- 14,741 625,492
Pioneer Strategic Income Fund Class K -- -- 229,599 15,084,071
---------- ------------- ---------- ------------
$(159,814) $ 312,234 $ 772,752 $ 43,090,863
========== ============= ========== ============
Pioneer Solutions - Balanced Fund
--------------------------------------------------------------------------------------------------
Beginning Acquisitions Dispositions Ending
Underlying Funds (Affiliated) Shares Shares Shares Shares
--------------------------------------------------------------------------------------------------
Pioneer Bond Fund Class K 1,881,011 107,449 (71,257) 1,917,203
Pioneer Core Equity Fund Class Y 462,331 9,343 (199,220) 272,454
Pioneer Disciplined Value Fund Class Y -- 645,082 -- 645,082
Pioneer Dynamic Credit Fund Class Y 623,412 -- (73,234) 550,178
Pioneer Fund Class Y 111,677 77,735 -- 189,412
Pioneer Fundamental Growth Fund
Class K 464,327 -- (213,213) 251,114
Pioneer Global Equity Fund Class K 1,200,077 -- (73,681) 1,126,396
Pioneer Global High Yield Fund Class Y 356,705 -- -- 356,705
Pioneer Global Multisector Income Fund
Class Y 337,381 -- (90,742) 246,639
Pioneer High Yield Fund Class Y 1 -- -- 1
Pioneer International Equity Fund
Class Y 1,204,839 -- (16,691) 1,188,148
Pioneer Long/Short Bond Fund Class Y 136,314 -- (136,314) --
Pioneer Mid Cap Value Fund Class K 75,246 266,025 (42,197) 299,074
Pioneer Opportunistic Long/Short Credit
Fund Class Y 140,030 -- (140,030) --
Pioneer Real Estate Shares Class Y 149,770 -- (149,770) --
Pioneer Select Mid Cap Growth Fund
Class K 82,865 -- (82,865) --
Pioneer Strategic Income Fund Class K 968,450 287,506 -- 1,255,956
100 Pioneer Solutions Funds | Semiannual Report | 1/31/17
-----------------------------------------------------------------------------------------------------
Realized Capital Gain Dividend Ending
Underlying Funds (Affiliated) Gain (Loss) Distributions Income Value
-----------------------------------------------------------------------------------------------------
Pioneer Bond Fund Class K $ (13,895) $ -- $ 328,059 $ 18,443,493
Pioneer Core Equity Fund Class Y 169,337 -- 66,830 5,083,991
Pioneer Disciplined Value Fund Class Y -- -- 127,974 10,018,123
Pioneer Dynamic Credit Fund Class Y (34,357) -- 212,677 5,160,673
Pioneer Fund Class Y -- 775,812 33,948 5,653,946
Pioneer Fundamental Growth Fund
Class K 98,078 169,479 32,218 4,934,390
Pioneer Global Equity Fund Class K 36,465 -- 286,098 15,780,808
Pioneer Global High Yield Fund Class Y -- -- 92,348 3,081,931
Pioneer Global Multisector Income
Fund Class Y (77,496) -- 54,376 2,577,377
Pioneer High Yield Fund Class Y -- -- -- 6
Pioneer International Equity Fund
Class Y (32,727) -- 301,692 24,226,345
Pioneer Long/Short Bond Fund
Class Y (123,719) -- -- --
Pioneer Mid Cap Value Fund Class K (68,359) 112,478 64,381 7,452,924
Pioneer Opportunistic Long/Short
Credit Fund Class Y (154,803) -- -- --
Pioneer Real Estate Shares Class Y 1,967,243 58,270 22,543 --
Pioneer Select Mid Cap Growth Fund
Class K (134,241) 49,247 -- --
Pioneer Strategic Income Fund
Class K -- -- 242,538 13,426,170
---------- ------------- ------------ ------------
$1,631,526 $ 1,165,286 $ 1,865,682 $115,840,177
========== ============= ============ ============
Pioneer Solutions - Growth Fund
--------------------------------------------------------------------------------------------------
Beginning Acquisitions Dispositions Ending
Underlying Funds (Affiliated) Shares Shares Shares Shares
--------------------------------------------------------------------------------------------------
Pioneer Bond Fund Class K 2,250,273 -- -- 2,250,273
Pioneer Core Equity Fund Class Y 1,247,982 21,258 (559,481) 709,759
Pioneer Disciplined Value Fund Class Y -- 1,708,557 -- 1,708,557
Pioneer Fund Class Y 485,961 15,428 (5,816) 495,573
Pioneer Fundamental Growth Fund
Class K 1,179,883 20,251 (522,775) 677,359
Pioneer Global Equity Fund Class K 2,510,481 -- -- 2,510,481
Pioneer Global Multisector Income
Fund Class Y 308,606 -- -- 308,606
Pioneer International Equity Fund
Class Y 2,336,636 -- -- 2,336,636
Pioneer Long/Short Bond Fund Class Y 93,457 -- (93,457) --
Pioneer Mid Cap Value Fund Class K 559,470 419,563 (199,059) 779,974
Pioneer Opportunistic Long/Short
Credit Fund Class Y 95,114 -- (95,114) --
Pioneer Real Estate Shares Class Y 363,171 -- (363,171) --
Pioneer Select Mid Cap Growth Fund
Class K 234,082 -- (234,082) --
Pioneer Strategic Income Fund Class K 311,871 558,154 -- 870,025
Pioneer Solutions Funds | Semiannual Report | 1/31/17 101
-----------------------------------------------------------------------------------------------------
Realized Capital Gain Dividend Ending
Underlying Funds (Affiliated) Gain (Loss) Distributions Income Value
-----------------------------------------------------------------------------------------------------
Pioneer Bond Fund Class K $ -- $ -- $ 387,484 $ 21,647,626
Pioneer Core Equity Fund Class Y 582,898 -- 180,279 13,244,098
Pioneer Disciplined Value Fund Class Y -- -- 344,958 26,533,890
Pioneer Fund Class Y (58,411) 2,715,208 106,091 14,792,842
Pioneer Fundamental Growth Fund
Class K 240,477 430,657 86,905 13,310,105
Pioneer Global Equity Fund Class K -- -- 593,802 35,171,839
Pioneer Global Multisector Income Fund
Class Y -- -- 50,768 3,224,933
Pioneer International Equity Fund
Class Y -- -- 585,094 47,644,016
Pioneer Long/Short Bond Fund Class Y (84,822) -- -- --
Pioneer Mid Cap Value Fund Class K (378,192) 687,574 169,399 19,436,952
Pioneer Opportunistic Long/Short
Credit Fund Class Y (105,149) -- -- --
Pioneer Real Estate Shares Class Y 6,209,083 190,122 58,038 --
Pioneer Select Mid Cap Growth Fund
Class K (379,213) 139,115 -- --
Pioneer Strategic Income Fund
Class K -- -- 126,590 9,300,567
---------- ------------- ------------ ------------
$6,026,671 $ 4,162,676 $ 2,689,408 $204,306,868
========== ============= ============ ============
102 Pioneer Solutions Funds | Semiannual Report | 1/31/17
ADDITIONAL INFORMATION (unaudited)
Pioneer Investment Management, Inc. (the "Adviser"), the Fund's investment
adviser, is currently an indirect, wholly owned subsidiary of UniCredit S.p.A.
("UniCredit"). On December 12, 2016, UniCredit announced that it has entered
into a binding agreement for the sale of its Pioneer Investments business, which
includes the Adviser, to Amundi (the "Transaction"). Amundi is headquartered in
Paris, France, and, as of September 30, 2016, had more than $1.1 trillion in
assets under management worldwide. The closing of the Transaction is expected to
happen in 2017, subject to certain regulatory and antitrust approvals, and other
conditions.
Under the Investment Company Act of 1940, the closing of the Transaction will
cause the Fund's current investment advisory agreement with the Adviser to
terminate. Accordingly, the Fund's Board of Trustees will be asked to approve a
new investment advisory agreement for the Fund. If approved by the Board, the
Fund's new investment advisory agreement will be submitted to the shareholders
of the Fund for their approval.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 103
Pioneer Solutions - Conservative Fund
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Solutions - Conservative Fund (the Fund) pursuant to an investment
advisory agreement between PIM and the Fund. In order for PIM to remain the
investment adviser of the Fund, the Trustees of the Fund must determine annually
whether to renew the investment advisory agreement for the Fund.
The contract review process began in January 2016 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2016 and May
2016. In addition, the Trustees reviewed and discussed the Fund's performance at
regularly scheduled meetings throughout the year, and took into account other
information related to the Fund provided to the Trustees at regularly scheduled
meetings, in connection with the review of the Fund's investment advisory
agreement.
In March 2016, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In May 2016,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in July and
September 2016.
At a meeting held on September 13, 2016, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In approving the
renewal of the investment advisory agreement, the Trustees
104 Pioneer Solutions Funds | Semiannual Report | 1/31/17
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking in to account the investment objective
and strategy of the Fund. The Trustees also reviewed PIM's investment approach
for the Fund and its research process. The Trustees considered the resources of
PIM and the personnel of PIM who provide investment management services to the
Fund and would provide services following the implementation of investment
strategy changes for the Fund. They also reviewed the amount of non-Fund assets
managed by the portfolio managers of the Fund. The Trustees considered the
non-investment resources and personnel of PIM involved in PIM's services to the
Fund, including PIM's compliance and legal resources and personnel. The Trustees
noted the substantial attention and high priority given by PIM's senior
management to the Pioneer fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the advisory
agreement.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 105
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party. In all
quintile rankings referred to below, first quintile is most favorable to the
Fund's shareowners.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the third quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoints in the management fee schedule and the
reduced fee rates above certain asset levels. The Trustees considered that the
expense ratio of the Fund's Class A shares for the most recent fiscal year was
in the fifth quintile relative to its Morningstar peer group and in the fourth
quintile relative to its Strategic Insight peer group, in each case for the
comparable period. The Trustees considered that PIM had agreed to waive fees
and/or reimburse expenses in order to limit the ordinary operating expenses of
the Fund. The Trustees noted the Fund's relatively small asset size compared to
most of the other funds in its peer groups, and that the Fund has not been able
to take advantage of the economies of scale afforded by greater asset size. The
Trustees considered the impact of transfer agency, sub-transfer agency, and
other non-management fee expenses on the expense ratios of the Fund, and noted
the impact of expenses relating to small accounts and omnibus accounts on
transfer and sub-transfer agency expenses generally. The Trustees noted that
they separately review the Fund's transfer agency, sub-transfer agency and
intermediary arrangements and that the results of the most recent such review
were considered in the consideration of the Fund's expense ratio. The Trustees
considered that such non-management fee operating expenses generally are spread
over a smaller asset base than the other funds in the peer group, which results
in these fees being significantly higher as a percentage of assets. The Trustees
also considered information showing significant expense reimbursements by the
sponsors of the other funds in the peer groups.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources
106 Pioneer Solutions Funds | Semiannual Report | 1/31/17
and complexity associated with the Fund and client accounts. The Trustees noted
that, in some instances, the fee rates for those clients were lower than the
management fee for the Fund and considered that, under the investment advisory
agreement with the Fund, PIM performs additional services for the Fund that it
does not provide to those other clients or services that are broader in scope,
including oversight of the Fund's other service providers and activities related
to compliance and the extensive regulatory and tax regimes to which the Fund is
subject. The Trustees also considered the different entrepreneurial risks
associated with PIM's management of the Fund and Pioneer's management of the
other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results, including the profit margins, realized by PIM and its
affiliates from non-fund businesses. The Trustees considered PIM's profit
margins with respect to the Fund in comparison to the limited industry data
available and noted that the profitability of any adviser was affected by
numerous factors, including its organizational structure and method for
allocating expenses. The Trustees concluded that PIM's profitability with
respect to the management of the Fund was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoints in the management fee schedule. The Trustees recognize
that economies of scale are difficult to identify and quantify, and that, among
other factors that may be relevant, are the following: fee levels, expense
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Fund. The Trustees noted that
profitability also may be an indicator of the availability of any economies of
scale, although profitability may vary for other reasons including due to
reductions in expenses. The Trustees concluded that economies of scale, if any,
were being appropriately shared with the Funds.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 107
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
108 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Pioneer Solutions - Balanced Fund
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Solutions - Balanced Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in January 2016 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2016 and May
2016. In addition, the Trustees reviewed and discussed the Fund's performance at
regularly scheduled meetings throughout the year, and took into account other
information related to the Fund provided to the Trustees at regularly scheduled
meetings, in connection with the review of the Fund's investment advisory
agreement.
In March 2016, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In May 2016,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in July and
September 2016.
At a meeting held on September 13, 2016, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In approving the
renewal of the investment advisory agreement, the Trustees considered various
factors that they determined were relevant, including the factors described
below. The Trustees did not identify any single factor as the controlling factor
in determining to approve the renewal of the agreement.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 109
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking in to account the investment objective
and strategy of the Fund. The Trustees also reviewed PIM's investment approach
for the Fund and its research process. The Trustees considered the resources of
PIM and the personnel of PIM who provide investment management services to the
Fund and would provide services following the implementation of investment
strategy changes for the Fund. They also reviewed the amount of non-Fund assets
managed by the portfolio managers of the Fund. The Trustees considered the
non-investment resources and personnel of PIM involved in PIM's services to the
Fund, including PIM's compliance and legal resources and personnel. The Trustees
noted the substantial attention and high priority given by PIM's senior
management to the Pioneer fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the advisory
agreement.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight
110 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the third quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoints in the management fee schedule and the
reduced fee rates above certain asset levels. The Trustees considered that the
expense ratio of the Fund's Class A shares for the most recent fiscal year was
in the fifth quintile relative to its Morningstar peer group and in the fourth
quintile relative to its Strategic Insight peer group, in each case for the
comparable period. The Trustees considered that PIM had agreed to waive fees
and/or reimburse expenses in order to limit the ordinary operating expenses of
the Fund. The Trustees noted the Fund's relatively small asset size compared to
most of the other funds in its peer groups, and that the Fund has not been able
to take advantage of the economies of scale afforded by greater asset size. The
Trustees considered the impact of transfer agency, sub-transfer agency, and
other non-management fee expenses on the expense ratios of the Fund, and noted
the impact of expenses relating to small accounts and omnibus accounts on
transfer and sub-transfer agency expenses generally. The Trustees noted that
they separately review the Fund's transfer agency, sub-transfer agency and
intermediary arrangements and that the results of the most recent such review
were considered in the consideration of the Fund's expense ratio. The Trustees
considered that such non-management fee operating expenses generally are spread
over a smaller asset base than the other funds in the peer group, which results
in these fees being significantly higher as a percentage of assets. The Trustees
also considered information showing significant expense reimbursements by the
sponsors of the other funds in the peer groups.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the Fund that it does not provide to those
other clients or services that are broader
Pioneer Solutions Funds | Semiannual Report | 1/31/17 111
in scope, including oversight of the Fund's other service providers and
activities related to compliance and the extensive regulatory and tax regimes to
which the Fund is subject. The Trustees also considered the different
entrepreneurial risks associated with PIM's management of the Fund and Pioneer's
management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results, including the profit margins, realized by PIM and its
affiliates from non-fund businesses. The Trustees considered PIM's profit
margins with respect to the Fund in comparison to the limited industry data
available and noted that the profitability of any adviser was affected by
numerous factors, including its organizational structure and method for
allocating expenses. The Trustees concluded that PIM's profitability with
respect to the management of the Fund was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoints in the management fee schedule. The Trustees recognize
that economies of scale are difficult to identify and quantify, and that, among
other factors that may be relevant, are the following: fee levels, expense
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Fund. The Trustees noted that
profitability also may be an indicator of the availability of any economies of
scale, although profitability may vary for other reasons including reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business.
112 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Pioneer is the principal U.S. asset management business of Pioneer Global Asset
Management, the worldwide asset management business of UniCredit Group, which
manages over $150 billion in assets (including the Funds). Pioneer and the
Funds receive reciprocal intangible benefits from the relationship, including
mutual brand recognition and, for the Funds, direct and indirect access to the
resources of a large global asset manager. The Trustees concluded that any such
benefits received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 113
Pioneer Solutions - Growth Fund
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Solutions - Growth Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in January 2016 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2016 and May
2016. In addition, the Trustees reviewed and discussed the Fund's performance at
regularly scheduled meetings throughout the year, and took into account other
information related to the Fund provided to the Trustees at regularly scheduled
meetings, in connection with the review of the Fund's investment advisory
agreement.
In March 2016, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In May 2016,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in July and
September 2016.
At a meeting held on September 13, 2016, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In approving the
renewal of the investment advisory agreement, the Trustees considered various
factors that they determined were relevant, including the factors described
below. The Trustees did not identify any single factor as the controlling factor
in determining to approve the renewal of the agreement.
114 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking in to account the investment objective
and strategy of the Fund. The Trustees also reviewed PIM's investment approach
for the Fund and its research process. The Trustees considered the resources of
PIM and the personnel of PIM who provide investment management services to the
Fund and would provide services following the implementation of investment
strategy changes for the Fund. They also reviewed the amount of non-Fund assets
managed by the portfolio managers of the Fund. The Trustees considered the
non-investment resources and personnel of PIM involved in PIM's services to the
Fund, including PIM's compliance and legal resources and personnel. The Trustees
noted the substantial attention and high priority given by PIM's senior
management to the Pioneer fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the advisory
agreement.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight
Pioneer Solutions Funds | Semiannual Report | 1/31/17 115
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the third quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoints in the management fee schedule and the
reduced fee rates above certain asset levels. The Trustees considered that the
expense ratio of the Fund's Class A shares for the most recent fiscal year was
in the fourth quintile relative to its Morningstar peer group and in the fourth
quintile relative to its Strategic Insight peer group, in each case for the
comparable period. The Trustees considered that PIM had agreed to waive fees
and/or reimburse expenses in order to limit the ordinary operating expenses of
the Fund. The Trustees noted the Fund's relatively small asset size compared to
most of the other funds in its peer groups, and that the Fund has not been able
to take advantage of the economies of scale afforded by greater asset size. The
Trustees considered the impact of transfer agency, sub-transfer agency, and
other non-management fee expenses on the expense ratios of the Fund, and noted
the impact of expenses relating to small accounts and omnibus accounts on
transfer and sub-transfer agency expenses generally. The Trustees noted that
they separately review the Fund's transfer agency, sub-transfer agency and
intermediary arrangements and that the results of the most recent such review
were considered in the consideration of the Fund's expense ratio. The Trustees
considered that such non-management fee operating expenses generally are spread
over a smaller asset base than the other funds in the peer group, which results
in these fees being significantly higher as a percentage of assets. The Trustees
also considered information showing significant expense reimbursements by the
sponsors of the other funds in the peer groups.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the Fund that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Fund's other service providers and
116 Pioneer Solutions Funds | Semiannual Report | 1/31/17
activities related to compliance and the extensive regulatory and tax regimes to
which the Fund is subject. The Trustees also considered the different
entrepreneurial risks associated with PIM's management of the Fund and Pioneer's
management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results, including the profit margins, realized by PIM and its
affiliates from non-fund businesses. The Trustees considered PIM's profit
margins with respect to the Fund in comparison to the limited industry data
available and noted that the profitability of any adviser was affected by
numerous factors, including its organizational structure and method for
allocating expenses. The Trustees concluded that PIM's profitability with
respect to the management of the Fund was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoints in the management fee schedule. The Trustees recognize
that economies of scale are difficult to identify and quantify, and that, among
other factors that may be relevant, are the following: fee levels, expense
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Fund. The Trustees noted that
profitability also may be an indicator of the availability of any economies of
scale, although profitability may vary for other reasons including reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global
Pioneer Solutions Funds | Semiannual Report | 1/31/17 117
Asset Management, the worldwide asset management business of UniCredit Group,
which manages over $150 billion in assets (including the Funds). Pioneer and
the Funds receive reciprocal intangible benefits from the relationship,
including mutual brand recognition and, for the Funds, direct and indirect
access to the resources of a large global asset manager. The Trustees concluded
that any such benefits received by Pioneer as a result of its relationship with
the Funds were reasonable and their consideration of the advisory agreement
between the Fund and PIM and the fees thereunder were unaffected by Pioneer's
possible receipt of any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
118 Pioneer Solutions Funds | Semiannual Report | 1/31/17
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Ms. Monchak is a non-voting Advisory Trustee.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 119
This page is for your notes.
120 Pioneer Solutions Funds | Semiannual Report | 1/31/17
This page is for your notes.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 121
This page is for your notes.
122 Pioneer Solutions Funds | Semiannual Report | 1/31/17
This page is for your notes.
Pioneer Solutions Funds | Semiannual Report | 1/31/17 123
This page is for your notes.
124 Pioneer Solutions Funds | Semiannual Report | 1/31/17
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Pioneer Funds
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.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] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2017 Pioneer Investments 19016-11-0317
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.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal 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.
N/A
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Asset Allocation Trust
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date March 29, 2017
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 March 29, 2017
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date March 29, 2017
* Print the name and title of each signing officer under his or her signature.