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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21558
Pioneer Short Term Income Fund
(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: August 31
Date of reporting period: September 1, 2009 through August 31, 2010
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer Short Term
Income Fund
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Annual Report | August 31, 2010
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Ticker Symbols:
Class A STABX
Class B STBBX
Class C PSHCX
Class Y PSHYX
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 42
Notes to Financial Statements 50
Report of Independent Registered Public Accounting Firm 60
Trustees, Officers and Service Providers 62
Pioneer Short Term Income Fund | Annual Report | 8/31/10 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe have begun to recover over the past
year from one of their most tumultuous periods in history. This is a welcome
relief, and we are generally optimistic about the prospects for the economy
going forward. Still, challenges remain. Unemployment is high; consumer demand
and loan growth are weak; and housing has not returned to normal.
At Pioneer, we have long advocated the benefits of investing for the long term.
This strategy has generally performed well for many investors. Those who
remained invested in the market during the downturn have most likely seen their
portfolios start to recover over the past year, as the Dow Jones Industrial
Average climbed back from the depressed levels we saw in early 2009. Many bond
investors have similarly seen a strong rebound, with a broad-based recovery
occurring across many different fixed-income asset classes. The riskiest asset
classes, such as high-yield bonds, outperformed other fixed-income asset
classes during most of 2009.
At Pioneer, we are not changing the approach to investing that we have used for
more than 80 years. We remain focused on company fundamentals and risk
management. Our investment process is based on careful research into individual
companies, quantitative analysis, and active portfolio management. This
three-pillared process, which we apply to each of our portfolios, is supported
by an integrated team approach and is designed to carefully balance risk and
reward. While we see potential opportunities for making money in many corners
of the markets around the globe, it takes research and experience to separate
solid investment opportunities from speculation.
Following this difficult period, many investors are rethinking their approach
to investing and risk management. Some are questioning whether the basic
investment principles they were taught in the past are still useful in today's
markets. Complicating matters is that financial markets remain unpredictable.
Our advice, as always, is to work closely with a trusted financial advisor to
discuss your goals and work together to develop an investment strategy that
meets your individual needs. There is no single best strategy that works for
every investor.
2 Pioneer Short Term Income Fund | Annual Report | 8/31/10
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
www.pioneerinvestments.com. We greatly appreciate your trust in us and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 3
Portfolio Management Discussion | 8/31/10
In the following interview, portfolio managers Richard Schlanger and Charles
Melchreit discuss the factors that influenced Pioneer Short Term Income Fund's
performance over the 12-month period ended August 31, 2010.
Q Can you describe the market environment for fixed-income investors over the
12-month period ended August 31, 2010?
A As the period opened in September of 2009, the credit markets continued to
show signs of stabilizing. The improved sentiment was supported by ongoing
signs of economic recovery, albeit a recovery aided by a number of
government stimulus programs. The fourth quarter of 2009 saw U.S. gross
domestic product (GDP) growth come in at a robust 5.7%. Optimism over
renewed overall growth was tempered, however, by weak employment data, as
hiring remained low and unemployment hovered near 10%.
Entering 2010, the markets were roiled by a series of concerns. The
prospect of defaults on debt instruments issued by Dubai and Greece
triggered worries over sovereign debt in the eurozone. The sovereign debt
concerns soon spread across much of southern Europe, and in April 2010 both
Greece and Spain lost their AAA debt ratings. In addition, signs of slowing
growth in China raised concerns about the sustainability of the global
economic recovery, while weaker-than-hoped-for economic data in the U.S.
led to fear of a "double-dip" recession. The result was a jittery market
characterized by sporadic flights into Treasury bonds as investors reacted
defensively to even mixed economic news.
Given concerns over unemployment and moderate inflation, the Federal
Reserve Board (the Fed) kept the target for its benchmark short-term
interest rate at between 0% and 0.25% for the entire 12-month period. With
short-term rates anchored by the Fed, the trend shifted towards a
flattening of the Treasury yield curve in the one- to five-year range, as
investors sought incremental yield. The two-year Treasury yield fell by 50
basis points (0.50%), from 0.97% to 0.47%, while the five-year yield fell
106 basis points (1.06%), from 2.39% to 1.33%.
Despite an uncertain backdrop, the overall trend for credit-sensitive
sectors was upward over the full 12 months ended August 31, 2010. For the
full period, credit spreads (the incremental yields offered by
lower-quality versus higher-quality fixed-income instruments) narrowed as
investors sought incremental yield in a low-rate environment.
4 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Q How did the Fund perform in that environment over the 12 months ended
August 31, 2010?
A The Fund's Class A shares had a total return of 7.19% at net asset value over
the 12 months ended August 31, 2010, while the Fund's benchmark, the
Barclays Capital One- to Three-Year Government/Credit Index, returned
3.40%. Over the same 12-month period, the average return of the 248 mutual
funds in Lipper's Short Investment-Grade Debt Funds category was 5.40%. As
of August 31, 2010, the Fund's 30-day SEC yield was 1.99%. The total return
and SEC yield numbers are for Class A shares and do not include the impact
of any sales charge paid.
Q Can you review the Fund's principal investment strategies and what affect
they had on performance during the 12 months ended August 31, 2010?
A We continued to follow a disciplined investment process based on identifying
relative value among fixed-income sectors and carefully evaluating the
risk/reward profile of individual issues. The Fund's largest exposure in
terms of sector weighting during the period was in mortgage-related issues.
Within mortgage-related securities, we trimmed the Fund's holdings of
issues that benefited from government efforts to enhance market liquidity,
such as those backed by Ginnie Mae, Fannie Mae and Freddie Mac, in
anticipation of the Fed's removing its support for those instruments. In
turn, we purchased non-agency collateralized mortgage obligations that we
believed were attractively valued. We also maintained significant exposure
in the Fund's portfolio to commercial mortgage-backed securities and asset-
backed securities (such as issues backed by home equity loans). All of
those sectors outperformed agency pass-through securities over the 12
months ended August 31, 2010.
Over the 12-month period we made significant purchases of new corporate
debt issues in order to take advantage of the higher yields being offered
in that space, compared with issues traded in the secondary market. Within
corporates, we took the portfolio's credit quality slightly downward early
in the period on signs that the economic backdrop was improving, adding to
the Fund's holdings of bonds rated BBB and BB. That worked out well for the
Fund as credit spreads narrowed for much of the 12 months ended August 31,
2010. With respect to industry sectors, the Fund had significantly
overweight exposure to financials for much of the period; financials
outperformed the broader corporate market as bank profits were supported by
a steep yield curve. Late in the 12-month period, we trimmed the Fund's
lower-rated corporate exposure as valuations became less attractive
relative to other areas of the bond market, investing the proceeds
principally in government agency-backed issues. We also reduced the Fund's
overweight to corporate financial issues as the yield curve flattened.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 5
The Fund had very little exposure to U.S. Treasury issues, reflecting our
view that Treasuries, while viewed by many investors as a safe haven, have
not been valued attractively versus credit-sensitive sectors given their
negative real yields. That move helped the Fund's performance, as
shorter-term Treasuries underperformed their credit sector counterparts in
an environment of narrowing credit spreads.
At the end of the period on August 31, 2010, mortgage-related and asset-
backed securities accounted for 47% of Fund assets. The Fund's corporate
holdings represented 26% of assets at August 31, 2010, while U.S. Treasury
and Agency issues represented 20% of assets. The remaining roughly 7% of
Fund assets was held in cash in the form of overnight repurchase
agreements.
The Fund's overall duration (a standard measure of price sensitivity to
changes in market interest rates) at August 31, 2010, was 1.4 years, compared
with 1.9 years for the Barclays Capital One- to Three-Year Government/
Credit Index. The Fund's lower overall duration was a modest constraint on
performance returns during a period of falling rates. The Fund's yield curve
positioning, however, more than made up for the duration lag, as the Fund had
significant exposure to issues in the five-year range, which outperformed the
two-year area of the yield curve in the falling rate environment.
Q What is your assessment of the current climate for fixed-income investing?
A Given the weak global backdrop, high unemployment rate and moderate
inflation, we expect the Fed to leave short-term rates near zero for some
time going forward. As a short-term fund, we typically focus holdings on
issues with maturities ranging from overnight commercial paper to the five-
year range. With the yield curve from zero- to five-years still relatively
steep, we expect for now to maintain the Fund's somewhat "barbelled"
positioning, with substantial exposure to five-year issues balanced by a
position in short-term paper. That posture helps position the Fund to
garner the incremental income available out on the yield curve while
maintaining an overall duration and interest rate sensitivity that is
consistent with the Fund's guidelines. In addition, by minimizing exposure
to issues in the two-to-three year range of the yield curve, the Fund would
be positioned to protect against any upside surprise in economic growth
numbers that could lead to market speculation that the Fed will have its
hand on interest rates forced by inflation fears.
In addition to Fed policy, we will be monitoring the impact on the markets
of the upcoming mid-term election cycle, in particular the debate with
respect to taxation levels. At the same time, as we take note of
macroeconomic factors with the potential to affect the markets, we will
remain principally focused on adding value to the Fund through individual
security selection. While the yield advantage provided by corporate issues
has narrowed, we continue to see opportunities there to add yield to the
Fund in a
6 Pioneer Short Term Income Fund | Annual Report | 8/31/10
low rate environment. We will be monitoring the companies in the Fund's
portfolio closely and focusing strongly on making sure that the Fund is
getting paid for any credit risk it assumes.
As always, we will seek to provide a high level of current income while
reducing the impact of interest rate changes on the Fund's share price. We
believe our focus on income and relative share price stability continues to
make the Fund an attractive investment for appropriate investors in the
current, low-interest-rate environment.
Please refer to the Schedule of Investments on pages 16-41 for a full listing
of Fund securities.
When interest rates rise, the prices of fixed-income securities in the Fund
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise. Investments in the
Fund are subject to possible loss due to the financial failure of the issuers
of the underlying securities and their inability to meet their debt
obligations. These risks may increase share price volatility. Prepayment risk
is the chance that mortgage-backed bonds will be paid off early if falling
interest rates prompt homeowners to refinance their mortgages. Forced to
reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation associated with falling interest rates. The securities issued by
U.S. government sponsored entities (i.e. Fannie Mae, Freddie Mac) are neither
guaranteed nor issued by the U.S. government. The portfolio may invest in
mortgage-backed securities, which during times of fluctuating interest rates
may increase or decrease more than other fixed-income securities.
Mortgage-backed securities are also subject to pre-payments. Investing in
foreign and/or emerging markets securities involves risks relating to interest
rates, currency exchange rates, economic, and political conditions. At times,
the Fund's investments may represent industries or industry sectors that are
interrelated or have common risks, making it more susceptible to any economic,
political, or regulatory developments or other risks affecting those industries
and sectors.
Past performance is not a guarantee of future results, and there is no
guarantee that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 7
Portfolio Summary | 8/31/10
Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Government Securities 29.2%
U.S. Corporate Bonds 23.9%
Collateralized Mortgage Obligations 23.8%
Asset Backed Securities 12.3%
Temporary Cash Investments 8.4%
Senior Floating Rate Loans 1.7%
Municipal Bonds 0.5%
Foreign Government Bonds 0.1%
Convertible Corporate Bonds 0.1%
Portfolio Quality
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on S&P ratings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
A 8.7%
AA 7.7%
AAA 0.8%
B & Lower 3.2%
BB 3.4%
BBB 12.7%
Commercial Paper 6.9%
Treasury/Agency 56.6%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. U.S. Treasury Notes, 1.0%, 7/31/11 6.41%
- --------------------------------------------------------------------------------
2. U.S. Treasury Notes, 2.5%, 4/30/15 5.68
- --------------------------------------------------------------------------------
3. U.S. Treasury Notes, 0.875%, 5/31/11 2.80
- --------------------------------------------------------------------------------
4. Fannie Mae Grantor Trust, Floating Rate Note, 10/25/40 2.11
- --------------------------------------------------------------------------------
5. U.S. Treasury Notes, 1.875%, 6/15/12 2.04
- --------------------------------------------------------------------------------
6. Residential Accreditation Loans, Inc., 5.0%, 8/25/18 1.63
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7. U.S. Treasury Notes, 1.5%, 7/15/12 1.62
- --------------------------------------------------------------------------------
8. New Century Home Equity Loan 2005-4 A2B, Floating Rate Note, 9/25/35 1.37
- --------------------------------------------------------------------------------
9. Fannie Mae, 5.0%, 5/15/29 1.26
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10. Government National Mortgage Association, 2.351%, 6/16/50 1.02
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* 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.
8 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Prices and Distributions | 8/31/10
Net Asset Value per Share
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- --------------------------------------------------------------------------------
Class 8/31/10 8/31/09
- --------------------------------------------------------------------------------
A $9.75 $9.40
- --------------------------------------------------------------------------------
B $9.75 $9.39
- --------------------------------------------------------------------------------
C $9.73 $9.38
- --------------------------------------------------------------------------------
Y $9.74 $9.38
- --------------------------------------------------------------------------------
Distributions per Share: 9/1/09-8/31/10
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- --------------------------------------------------------------------------------
A $0.3160 $ -- $ --
- --------------------------------------------------------------------------------
B $0.2298 $ -- $ --
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C $0.2361 $ -- $ --
- --------------------------------------------------------------------------------
Y $0.3453 $ -- $ --
- --------------------------------------------------------------------------------
Pioneer Short Term Income Fund | Annual Report | 8/31/10 9
Performance Update | 8/31/10 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Short Term Income Fund at public offering price,
compared to that of the Barclays Capital One- to Three-Year Government/Credit
Index.
Average Annual Total Returns
(As of August 31, 2010)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
Life-of-Class
(7/8/04) 3.60% 3.17%
5 Years 4.05 3.53
1 Year 7.19 4.52
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.15% 0.90%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Barclays Capital
Pioneer Short Term One- to Three-Year
Income Fund Government/Credit Index
----------- -----------------------
7/04 9,745 10,000
8/04 9,805 10,078
8/05 9,933 10,218
8/06 10,170 10,534
8/07 10,645 11,104
8/08 10,877 11,754
8/09 11,301 12,361
8/10 12,114 12,781
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
POP returns reflect deduction of maximum 2.50% sales charge. NAV results
represent the percent change in net asset value per share. Returns would have
been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 for Class A shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Barclays Capital One- to Three-Year Government/Credit Index measures the
performance of the short-term (1 to 3 years) government and investment-grade
corporate bond markets. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an index.
10 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Performance Update | 8/31/10 Class B Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Short Term Income Fund, compared to that of the
Barclays Capital One- to Three-Year Government/Credit Index.
Average Annual Total Returns
(As of August 31, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(7/8/04) 2.70% 2.70%
5 Years 3.14 3.14
1 Year 6.35 4.35
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.95% 1.80%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Barclays Capital
Pioneer Short Term One- to Three-Year
Income Fund Government/Credit Index
----------- -----------------------
7/04 10,000 10,000
8/04 10,052 10,078
8/05 10,108 10,218
8/06 10,265 10,534
8/07 10,639 11,104
8/08 10,762 11,754
8/09 11,092 12,361
8/10 11,796 12,781
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class B shares reflect the deduction of the maximum applicable contingent
deferred sales charge (CDSC). The maximum CDSC is 2.0% and declines over three
years.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/11 for Class B shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
The Barclays Capital One- to Three-Year Government/Credit Index measures the
performance of the short-term (1 to 3 years) government and investment-grade
corporate bond markets. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an index.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 11
Performance Update | 8/31/10 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Short Term Income Fund, compared to that of the
Barclays Capital One- to Three-Year Government/Credit Index.
Average Annual Total Returns
(As of August 31, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(7/8/04) 2.75% 2.75%
5 Years 3.18 3.18
1 Year 6.32 6.32
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.79% 1.79%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Barclays Capital
Pioneer Short Term One- to Three-Year
Income Fund Government/Credit Index
----------- -----------------------
7/04 10,000 10,000
8/04 10,052 10,078
8/05 10,111 10,218
8/06 10,260 10,534
8/07 10,648 11,104
8/08 10,781 11,754
8/09 11,121 12,361
8/10 11,823 12,781
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/11 for Class C shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Barclays Capital One- to Three-Year Government/Credit Index measures the
performance of the short-term (1 to 3 years) government and investment-grade
corporate bond markets. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an index.
12 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Performance Update | 8/31/10 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer Short Term Income Fund, compared to that of the
Barclays Capital One- to Three-Year Government/Credit Index.
Average Annual Total Returns
(As of August 31, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(7/8/04) 3.94% 3.94%
5 Years 4.36 4.36
1 Year 7.64 7.64
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
0.63% 0.63%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5,000,000 Investment
Barclays Capital
Pioneer Short Term One- to Three-Year
Income Fund Government/Credit Index
----------- -----------------------
7/04 5,000,000 5,000,000
8/04 5,031,883 5,039,143
8/05 5,125,561 5,109,065
8/06 5,265,685 5,266,787
8/07 5,527,035 5,552,160
8/08 5,662,589 5,876,896
8/09 5,895,518 6,180,639
8/10 6,345,978 6,390,515
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class 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 reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/11 for Class Y shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
The Barclays Capital One- to Three-Year Government/Credit Index measures the
performance of the short-term (1 to 3 years) government and investment-grade
corporate bond markets. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an index.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Short Term Income Fund
Based on actual returns from March 1, 2010 through August 31, 2010.
- -------------------------------------------------------------------------------------
Share Class A B C Y
- -------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 3/1/10
- -------------------------------------------------------------------------------------
Ending Account Value $1,028.89 $1,024.27 $1,024.77 $1,030.54
on 8/31/10
- -------------------------------------------------------------------------------------
Expenses Paid $ 4.60 $ 9.18 $ 8.68 $ 2.92
During Period*
- -------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.80%,
1.70%, and 0.57% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
14 Pioneer Short Term Income Fund | Annual Report | 8/31/10
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 Short Term Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2010 through August 31, 2010.
- -------------------------------------------------------------------------------------
Share Class A B C Y
- -------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 3/1/10
- -------------------------------------------------------------------------------------
Ending Account Value $1,020.67 $1,016.13 $1,016.64 $1,022.33
on 8/31/10
- -------------------------------------------------------------------------------------
Expenses Paid $ 4.58 $ 9.15 $ 8.64 $ 2.91
During Period*
- -------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.80%,
1.70%, and 0.57% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
Pioneer Short Term Income Fund | Annual Report | 8/31/10 15
Schedule of Investments | 8/31/10
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
CONVERTIBLE CORPORATE BOND -- 0.1%
BANKS -- 0.1%
Regional Banks -- 0.1%
140,000 A/A3 National City Corp., 4.0%, 2/1/11 $ 141,575
- ---------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BOND
(Cost $140,374) $ 141,575
- ---------------------------------------------------------------------------------------------------------
ASSET BACKED SECURITIES -- 12.4%
MATERIALS -- 0.9%
Aluminum -- 0.4%
731,740 0.89 AAA/Aaa Bayview Financial Acquisition,
Floating Rate Note, 5/28/44 $ 654,581
371,484 0.62 AAA/Aaa Bayview Financial Acquisition,
Floating Rate Note, 8/28/44 340,104
------------
$ 994,685
- ---------------------------------------------------------------------------------------------------------
Steel -- 0.5%
295,099 0.46 AAA/Aaa Ameriquest Mortgage Securities,
Floating Rate Note, 5/25/35 $ 289,036
266,517 0.46 AAA/Aaa Ameriquest Mortgage Securities,
Floating Rate Note, 8/25/35 254,490
990,096 0.73 AA+/Aa3 Nomura Home Equity Loan, Inc.,
Floating Rate Note, 5/25/35 956,559
6,889 0.38 AAA/Aaa Nomura Home Equity Trust, Inc.,
Floating Rate Note, 3/25/36 6,882
------------
$ 1,506,967
------------
Total Materials $ 2,501,652
- ---------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.3%
Restaurants -- 0.3%
250,000 BB+/Baa3 Dunkin Brands Master Finance LLC,
5.779%, 6/20/31 $ 247,948
685,000 BB-/Ba3 Dunkin Brands Master Finance LLC,
8.28%, 6/20/31 (144A) 637,797
------------
$ 885,745
------------
Total Consumer Services $ 885,745
- ---------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 0.1%
Food Retail -- 0.1%
215,000 BBB-/Baa3 Dominos Pizza Master Issuer LLC,
5.261%, 4/25/37 $ 209,051
200,000 BB/Aaa Dominos Pizza Master Issuer LLC,
7.629%, 4/25/37 178,522
------------
$ 387,573
------------
Total Food & Drug Retailing $ 387,573
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
BANKS -- 3.8%
Diversified Banks -- 0.0%
35,427 0.35 AAA/Aa1 Wells Fargo Home Equity, Floating Rate
Note, 4/25/37 $ 34,367
- ---------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 3.8%
162,302 0.51 A+/Aa1 ACE 2005-HE7 A2C, Floating Rate Note,
11/25/35 $ 160,908
232,088 0.39 AA/Aa2 ACE Securities Corp., Floating Rate Note,
5/25/36 231,140
683,280 AA/Aa2 Bear Stearns Asset Backed Securities,
0.8271%, 6/25/35 641,952
268,310 0.37 AA/A1 Bear Stearns Asset Backed Securities,
Floating Rate Note, 12/25/36 260,198
584,500 4.89 AAA/Aaa Bear Stearns Asset Backed Securities,
Inc., Floating Rate Note, 6/25/43 535,517
266,889 0.41 AAA/Aaa Bear Stearns Asset Backed Securities,
Inc., Floating Rate Note, 8/25/36 265,607
347,228 0.31 AAA/Baa1 Carrington Mortgage Loan Trust, Floating
Rate Note, 1/25/37 330,545
353,291 0.49 AAA/Aa1 Carrington Mortgage Loan Trust, Floating
Rate Note, 12/25/35 346,744
197,076 0.67 AA+/Aa1 Citigroup Mortgage Loan Trust, Floating
Rate Note, 7/25/35 188,750
78,594 0.31 AAA/Baa2 Countrywide Asset Backed Certificates,
Floating Rate Note, 5/25/47 78,065
358,505 0.80 B-/Baa2 Countrywide Asset Backed Certificates,
Floating Rate Note, 4/25/32 168,419
1,226,306 0.77 A+/Ba2 Countrywide Asset-Backed Certificates,
Floating Rate Note, 5/25/29 1,135,327
330,000 0.63 AAA/Baa2 Countrywide Asset-Backed Certificates,
Floating Rate Note, 1/25/36 296,629
580,529 0.31 A/Ba1 Countrywide Asset-Backed Certificates,
Floating Rate Note, 7/25/37 561,431
270,492 0.28 AAA/Ba2 Countrywide Asset-Backed Certificates,
Floating Rate Note, 12/25/35 265,775
319,899 5.56 AAA/A2 CRMSI 2006-2 A3, Floating Rate Note,
9/25/36 323,103
239,000 5.68 B+/Ba1 CWL 2006-15 A2, Floating Rate Note,
10/25/46 227,702
350,000 0.79 AA+/A1 GSAA Trust, Floating Rate Note, 6/25/35 326,070
112,702 0.66 A/A2 GSAMP Trust, Floating Rate Note, 3/25/35 108,148
58,741 0.60 AAA/Aaa GSAMP, Trust Floating Rate Note, 8/25/36 57,121
631,199 A+/Ba3 HEMT 2004-6 M2, 5.321%, 4/25/35 432,256
637,496 AAA/Aaa LEAF II Receivables, 3.45%, 11/20/12 635,775
466,215 BB/Baa3 Local Insight Media Finance LLC,
5.88%, 10/23/37 223,783
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 17
Schedule of Investments | 8/31/10 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Thrifts & Mortgage Finance -- (continued)
54,856 0.27 AAA/A1 Morgan Stanley ABS Capital, Inc., Floating
Rate Note, 10/25/36 $ 54,726
466,885 0.38 A/Aa3 Option One Mortgage Loan Trust, Floating
Rate Note, 2/25/38 455,298
27,806 0.32 BBB+/Baa2 Option One Mortgage Trust, Floating Rate
Note, 5/25/37 26,755
190,751 0.71 AA+/Aaa Ownit Mortgage Loan Asset Back, Floating
Rate Note, 3/25/36 190,313
761,886 AA/Aa2 Popular ABS Mortgage Pass Through Trust,
5.181%, 9/25/34 600,168
541,125 0.58 AAA/Aaa RAAC Series, Floating Rate Note, 6/25/35 527,426
240,000 0.67 AA+/A3 RASC 2005-KS7 M1, Floating Rate Note,
8/25/35 197,729
159,562 0.28 AA+/Aaa SASC 2006-BC2 A2, Floating Rate Note,
9/25/36 155,459
116,968 1.21 BBB/Aa2 SAST 2002-1 M1, Floating Rate Note,
1/25/32 67,599
228,241 0.29 AAA/A2 Soundview Home Equity Loan, Floating
Rate Note, 8/25/37 226,519
------------
$ 10,302,957
------------
Total Banks $ 10,337,324
- ---------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.7%
Asset Management & Custody Banks -- 0.3%
191,032 NR/Aaa Freddie Mac Reference, 4.75%, 7/15/15 $ 193,178
568,807 0.65 BB+/B3 SPSAC 1998-1 A1, Floating Rate Note,
3/25/28 330,119
------------
$ 523,297
- ---------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.5%
289,623 AA/Baa1 RFMS2 2003-HI1 M1, 5.27%, 4/25/28 $ 246,290
1,156,886 0.49 AA+/A3 Specialty Underwriting & Residual,
Floating Rate Note, 9/25/36 1,133,426
------------
$ 1,379,716
- ---------------------------------------------------------------------------------------------------------
Diversified Financial Services -- 0.3%
58,048 A/Aaa Asset Backed Securities Corp.,
1.93838%, 8/15/32 $ 58,057
159,044 AA/NR DT Auto Owner Trust, 5.92%, 10/15/15 159,647
250,000 AA/A1 Home Equity Asset Trust,
0.76875%, 8/25/35 237,937
461,154 0.33 AAA/Aaa JP Morgan Mortgage Acquisition, Floating
Rate Note, 8/25/36 460,115
------------
$ 915,756
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Specialized Finance -- 2.6%
706,777 0.59 AAA/Aaa Aegis Asset Backed Securities, Floating
Rate Note, 9/25/34 $ 638,700
630,241 0.53 AA+/A1 Aegis Asset Backed Securities, Floating
Rate Note, 3/25/12 557,841
1,020,274 AAA/Aaa Conseco Finance, Inc., 7.05%, 4/15/32 1,080,756
207,951 6.69 AAA/Aaa Conseco Finance, Inc., Floating Rate Note,
11/15/32 212,056
620,175 5.32 NR/Baa1 Irwin Home Equity Corp., Floating Rate
Note, 6/25/35 601,877
69,814 AA+/Aa1 Master Asset Backed Security Trust,
0.67375%, 5/25/35 67,195
122,670 0.61 AAA/Aaa New Century Home Equity Loan, Floating
Rate Note, 3/25/35 116,356
3,587,380 0.53 AAA/Aa2 New Century Home Equity Loan Trust,
Floating Rate Note, 9/25/35 3,451,418
380,000 0.63 AAA/Aaa SLMA 2004-10 A6B, Floating Rate Note,
4/27/26 379,240
------------
$ 7,105,439
------------
Total Diversified Financials $ 9,924,208
- ---------------------------------------------------------------------------------------------------------
GOVERNMENT -- 3.6%
473,604 AAA/Aaa Fannie Mae Benchmark Remic,
5.45%, 12/25/20 $ 516,772
435,000 NR/NR Fannie Mae Grantor Trust,
5.503%, 9/25/11 455,226
1,640,159 4.48 AAA/Aaa Fannie Mae Grantor Trust, Floating Rate
Note, 7/25/43 1,743,871
5,123,781 4.54 NR/Aa1 Fannie Mae Grantor Trust, Floating Rate
Note, 10/25/40 5,295,007
1,734,739 6.00 AAA/Aaa Fannie Mae Whole Loan, Floating Rate
Note, 7/25/42 1,754,515
------------
$ 9,765,391
------------
Total Government $ 9,765,391
- ---------------------------------------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $34,775,232) $ 33,801,893
- ---------------------------------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 24.1%
BANKS -- 10.5%
Thrifts & Mortgage Finance -- 10.5%
336,180 NR/Aaa ABN Amro Mortgage Corp.,
4.75%, 5/25/18 $ 338,537
10,205 AAA/Aaa CDMC 2003-2P A3, 5.45%, 11/25/19 10,255
1,474,829 AAA/Aaa Cendant Mortgage Corp.,
6.25%, 3/25/32 1,469,962
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 19
Schedule of Investments | 8/31/10 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Thrifts & Mortgage Finance -- (continued)
799,215 AAA/Aaa Cendant Mortgage Corp.,
6.25%, 6/25/32 $ 828,995
732,926 6.48 NR/Aaa Chase Commercial Mortgage Securities
Corp., Floating Rate Note, 2/12/16 745,019
297,236 AAA/Aaa Citigroup Commercial Mortgage,
4.639%, 5/15/43 304,763
747,238 5.92 AAA/Aaa Citigroup Commercial Mortgage, Floating
Rate Note, 3/15/49 757,636
578,615 AAA/Aaa CMLTI 2003-UP3 A1, 7.0%, 9/25/33 592,232
297,118 3.56 CCC/NR CMLTI 2005-1 2A1A, Floating Rate Note,
4/25/35 173,108
502,861 NR/NR CMLTI 2005-9 2SX2, 5.5%, 11/25/35 64,685
97,531 1.18 NR/Aaa CMOT 44 F, Floating Rate Note, 7/1/18 98,347
605,236 0.71 AAA/Aa3 Countrywide Alternative Loan Trust,
Floating Rate Note, 9/25/34 559,675
2,078,861 AAA/NA Countrywide Home Loans, Inc.,
5.5%, 10/25/32 2,150,272
204,123 AAA/Aaa Downey Savings & Loan, 0.83625%,
7/19/44 144,879
496,197 AAA/Aaa GECMC 2005-C1 A2, 4.353%, 6/10/48 502,345
552,443 AAA/Aaa GS Mortgage Securities Corp., II,
4.602%, 8/10/38 555,721
75,063 2.03 CC/Ca Impac Cmb Trust, Floating Rate Note,
11/25/34 23,089
2,109,000 0.87 AAA/Aa2 Impac Cmb Trust, Floating Rate Note,
9/25/34 1,539,614
24,032 AAA/Aaa JP Morgan Chase Commercial Mortgage,
4.79%, 10/15/42 24,024
81,598 4.33 B+/B1 JP Morgan Mortgage Trust, Floating Rate
Note, 11/25/35 77,558
257,730 NR/B3 JP Morgan Mortgage Trust,
6.0%, 8/25/36 27,072
593,259 AAA/Aaa JPMCC 2004-CB8 A1A, 4.158%, 1/12/39 607,995
81,096 AAA/Aaa JPMCC 2004-CB8 A2, 3.837%, 1/12/39 81,438
625,516 0.75 A+/B2 LBSBC 2005- 2 A M2, Floating Rate Note,
9/25/30 142,305
424,570 AAA/Aa1 LBSBC 2007- 2 A1, 5.57%, 3/25/37 400,174
2,500,000 AAA/Aa2 LBUBS 2001-C2 C, 6.975%, 9/15/34 2,548,966
390,925 AAA/Aaa LBUBS 2005-C2 A2, 4.81%, 4/15/30 391,071
25,823 AAA/NR LB-UBS Commercial Mortgage,
6.058%, 6/15/20 25,869
495,176 AAA/Aaa LB-UBS Commercial Mortgage,
4.201%, 12/15/29 498,785
568,748 AAA/Aaa LB-UBS Commercial Mortgage,
6.51%, 12/15/26 570,135
The accompanying notes are an integral part of these financial statements.
20 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Thrifts & Mortgage Finance -- (continued)
326,589 AAA/NR Master Alternative Loans Trust,
4.5%, 1/25/15 $ 320,653
566,039 6.73 BBB/NR Master Seasoned Securities Trust, Floating
Rate Note, 9/25/32 586,911
84,510 AAA/Aaa Merrill Lynch Mortgage Trust,
4.556%, 6/12/43 86,917
374,755 5.44 AAA/Aaa Merrill Lynch/Countrywide Communities,
Floating Rate Note, 3/12/11 378,669
330,943 0.49 AAA/Aaa MLCC Mortgage Investors, Inc., Floating
Rate Note, 4/25/29 307,690
1,440,147 BBB/Baa1 RAAC Series, 6.0%, 1/25/32 1,481,306
1,157,506 6.24 BB+/Aaa Residential Asset Mortgage Products, Inc.,
Floating Rate Note, 5/25/18 1,139,958
310,082 0.46 BBB/Aa3 SAMI 2007-AR4 A1, Floating Rate Note,
9/25/47 306,067
237,565 0.59 AAA/Aaa SEMT 2004-10 A2, Floating Rate Note,
11/20/34 202,058
766,936 AAA/B1 SEMT 2005-1 A2, 5.8325%, 2/20/35 624,349
866,239 4.27 CCC/Ba1 Structured Asset Mortgage Investments,
Inc., Floating Rate Note, 5/25/45 473,756
258,745 2.63 AAA/Aaa Thornburg Mortgage Securities, Inc.,
Floating Rate Note, 3/25/44 246,130
1,555,892 0.60 AAA/Aa2 Thornburg Mortgage Securities, Inc.,
Floating Rate Note, 9/25/34 1,457,404
43,120 AAA/NR Wachovia Bank Commercial Mortgage,
4.516%, 5/15/44 43,108
400,000 AAA/Aaa Wachovia Bank Commercial Mortgage,
4.957%, 8/15/35 404,303
426,912 AAA/Aaa Wachovia Bank Commercial Mortgage,
5.416%, 1/15/45 431,956
109,646,343 0.02 AAA/Aaa Wachovia Bank Commercial Mortgage
Trust, Floating Rate Note, 6/15/45 148,231
1,600,141 NR/Baa1 Wells Fargo Mortgage Backed Securities,
4.75%, 4/25/20 1,636,453
256,977 AAA/A1 Wells Fargo Mortgage Backed Securities,
5.0%, 11/25/36 261,591
288,767 AAA/Baa1 Wells Fargo Mortgage Backed Securities,
5.5%, 5/25/35 294,038
172,731 2.96 AAA/Aa1 Wells Fargo Mortgage Backed Securities,
Floating Rate Note, 10/25/35 169,093
32,000 4.72 AAA/Aaa Wells Fargo Mortgage Backed Securities,
Floating Rate Note, 6/25/34 31,869
400,127 3.25 AAA/Aaa Wells Fargo Mortgage Backed Securities,
Floating Rate Note, 9/25/34 393,372
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 21
Schedule of Investments | 8/31/10 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Thrifts & Mortgage Finance -- (continued)
173,925 4.56 AAA/Aaa WFMBS 2003-N-1A1, Floating Rate Note,
12/25/33 $ 174,973
525,000 4.76 AAA/Aaa WFMBS 2004-L A6, Floating Rate Note,
7/25/34 532,274
------------
$ 28,387,655
------------
Total Banks $ 28,387,655
- ---------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 7.0%
Diversified Financial Services -- 6.5%
1,549,843 5.01 AAA/Aaa American Home Mortgage Investment
Corp., Floating Rate Note, 10/25/34 $ 1,414,405
1,262,582 0.53 A-/Ba2 American Home Mortgage Investment
Corp., Floating Rate Note, 11/25/45 823,774
596,736 NR/Aaa Bank of America Mortgage, 3.614%,
11/25/33 565,828
406,373 2.92 AAA/Aaa Bank of America Mortgage, Floating Rate
Note, 7/25/33 391,565
1,503,212 3.59 AAA/Aaa Bank of America Mortgage, Floating Rate
Note, 9/25/33 1,472,491
337,826 2.94 NR/Ba3 Bank of America Mortgage Securities,
Floating Rate Note, 5/25/35 319,783
364,087 AAA/NR Bank of America Mortgage Securities, Inc.,
5.0%, 8/25/33 364,682
205,237 0.97 A+/Aaa Bear Stearns Alt-A Trust, Floating Rate
Note, 11/25/34 169,936
1,543,515 AAA/NR Citicorp Mortgage Securities, Inc.,
4.75%, 8/25/34 1,557,896
707,498 AAA/NR Citicorp Mortgage Securities, Inc.,
5.5%, 12/25/33 710,300
420,155 NR/A2 Citicorp Mortgage Securities, Inc.,
5.5%, 3/25/35 429,322
42,626 3.12 AAA/WR First Horizon Mortgage Pass-Through Trust,
Floating Rate Note, 12/27/32 42,266
89,640 2.84 AAA/Aaa First Horizon Mortgage Pass-Through Trust,
Floating Rate Note, 2/25/34 90,532
568,238 AAA/Aaa Morgan Stanley DW, 4.25%, 12/13/41 582,833
2,970,178 CCC/Caa3 RALI 2005-QA10 A41, 5.7412%,
9/25/35 2,042,274
378,823 AAA/A1 Residential Accreditation Loans, Inc.,
4.5%, 4/25/34 370,131
307,066 0.81 AAA/Aa2 Residential Accreditation Loans, Inc.,
Floating Rate Note, 1/25/34 287,928
761,675 0.81 AAA/Aa2 Residential Accreditation Loans, Inc.,
Floating Rate Note, 10/25/17 735,898
3,945,241 NR/Aaa Residential Accreditation Loans, Inc.,
5.0%, 8/25/18 4,079,975
The accompanying notes are an integral part of these financial statements.
22 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Diversified Financial Services -- (continued)
850,458 AAA/Aaa Residential Accreditation Loans, Inc.,
5.75%, 10/25/33 $ 854,898
132,426 NR/NR Vericrest Opportunity Loan Trust, 4.25%,
5/25/39 132,095
------------
$ 17,438,812
- ---------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.4%
160,367 5.46 NR/Aaa Bear Stearns Commercial Mortgage,
Floating Rate Note, 4/12/38 $ 162,363
939,326 5.56 AA+/Aaa Lehman Brothers, Floating Rate Note,
9/15/21 (144A) 857,079
------------
$ 1,019,442
- ---------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.1%
495,425 0.33 A/A1 Indymac Index Mortgage Loan Trust,
Floating Rate Note, 2/25/37 $ 477,022
------------
Total Diversified Financials $ 18,935,276
- ---------------------------------------------------------------------------------------------------------
REAL ESTATE -- 1.6%
Mortgage Real Estate Investment Trust -- 1.6%
772,902 AAA/Aaa Credit Suisse First Boston Mortgage
Security, 6.51%, 2/15/34 $ 775,435
436,455 AAA/Aaa Credit Suisse First Boston Mortgage
Security, 7.5%, 5/25/32 450,317
383,822 1.58 AA+/Aa2 Credit Suisse First Boston Mortgage
Security, Floating Rate Note, 12/25/33 365,842
2,227,628 AAA/Aaa Credit Suisse First Boston Mortgage
Security, 7.13%, 11/15/30 2,246,295
218,833 1.75 AA+/WR Credit Suisse First Boston Mortgage
Security, Floating Rate Note, 8/25/33 205,715
109,146 1.38 CC/B3 Credit Suisse First Boston Mortgage
Security, Floating Rate Note, 9/25/34 23,396
265,447 AAA/NA CSFB 2004-C2 A1, 3.819%, 5/15/36 268,498
------------
$ 4,335,498
------------
Total Real Estate $ 4,335,498
- ---------------------------------------------------------------------------------------------------------
GOVERNMENT -- 5.0%
3,000,000 AAA/Aaa Fannie Mae, 5.0%, 5/15/29 $ 3,152,364
287,745 AAA/Aaa Fannie Mae, 5.69%, 1/25/32 301,135
411,496 AAA/Aaa Fannie Mae, 6.0%, 6/25/29 449,174
250,850 AAA/Aaa Federal Home Loan Mortgage Association,
5.0%, 6/25/28 256,444
711 AAA/Aaa Federal Home Loan Mortgage Association,
6.0%, 4/25/36 723
384,948 NR/NR Federal National Mortgage Association,
5.5%, 4/25/30 393,859
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 23
Schedule of Investments | 8/31/10 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Government -- (continued)
415,408 AAA/Aaa Freddie Mac, 4.5%, 8/15/17 $ 433,281
809,944 AAA/Aaa Freddie Mac, 5.5%, 10/15/35 884,969
370,395 NR/Aa1 Freddie Mac, 3.25%, 6/15/17 379,782
1,368,997 AAA/Aaa Freddie Mac, 3.4%, 7/1/19 1,402,282
1,744,082 NR/Aa1 Freddie Mac, 4.0%, 6/15/22 1,830,048
694,861 NR/NR Freddie Mac, 4.5%, 10/15/27 704,897
208,774 AAA/Aa1 Freddie Mac, 5.0%, 8/15/31 215,732
1,500,000 NR/Aa1 Freddie Mac, 5.0%, 11/15/28 1,570,395
750,000 AAA/Aa1 Freddie Mac, 6.0%, 5/15/30 764,654
225,706 AAA/Aaa Freddie Mac, 6.0%, 4/15/27 227,069
63,525 AAA/Aaa Freddie Mac, 4.0%, 12/15/12 64,740
9,249 AAA/Aaa Freddie Mac, 4.0%, 4/15/22 9,305
70,961 AAA/Aaa Freddie Mac, 5.5%, 6/15/32 72,053
70,961 AAA/Aaa Freddie Mac, 6.0%, 6/15/32 71,991
62,245 AAA/Aaa Freddie Mac, 6.1%, 9/15/18 62,664
398,681 AAA/A2 GSR Mortgage Loan Trust,
4.1408%, 6/25/34 389,568
------------
$ 13,637,129
------------
Total Government $ 13,637,129
- ---------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $68,334,030) $ 65,295,558
- ---------------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 24.2%
ENERGY -- 2.9%
Integrated Oil & Gas -- 0.2%
500,000 A/A2 BP Capital Markets Plc, 3.125%, 3/10/12 $ 500,864
- ---------------------------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.8%
500,000 3.52 NR/NR Sevan Marine ASA, Floating Rate Note,
5/14/13 (144A) $ 411,250
2,500,000 11.99 NA/NA Sevan Marine ASA, Floating Rate Note,
10/24/12 (144A) 395,964
500,000 BBB/Baa1 Weatherford International, Inc.,
5.95%, 6/15/12 534,210
650,000 BBB/Baa1 Weatherford International, Inc.,
6.625%, 11/15/11 682,554
------------
$ 2,023,978
- ---------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.6%
250,000 A/Aa2 Ras Laffan LNG 3 Co., Ltd.,
4.5%, 9/30/12 (144A) $ 263,229
250,000 A/Aa2 Ras Laffan LNG 3 Co., Ltd.,
5.5%, 9/30/14 (144A) 276,215
The accompanying notes are an integral part of these financial statements.
24 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Oil & Gas Exploration & Production -- (continued)
1,000,000 BBB-/Baa2 TNK-BP Finance SA, 7.5%,
3/13/13 (144A) $ 1,075,000
------------
$ 1,614,444
- ---------------------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.9%
1,500,000 BBB/Baa2 Premcor Refining Group, Inc.,
6.125%, 5/1/11 $ 1,536,680
1,000,000 BBB-/Baa3 Sunoco, Inc., 6.75%, 4/1/11 1,025,079
------------
$ 2,561,759
- ---------------------------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.4%
250,000 BBB-/Baa3 NGPL Pipeco LLC, 6.514%,
12/15/12 (144A) $ 262,590
750,000 BBB-/Baa3 Williams Partners LP, 3.8%, 2/15/15 784,655
------------
$ 1,047,245
------------
Total Energy $ 7,748,290
- ---------------------------------------------------------------------------------------------------------
MATERIALS -- 0.4%
Industrial Gases -- 0.2%
500,000 BBB/Baa3 Airgas, Inc., 2.85%, 10/1/13 $ 509,406
- ---------------------------------------------------------------------------------------------------------
Specialty Chemicals -- 0.2%
536,000 BBB-/Baa3 Cytec Industries, Inc., 4.6%, 7/1/13 $ 566,829
------------
Total Materials $ 1,076,235
- ---------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 1.2%
Industrial Conglomerates -- 0.4%
465,000 A/A2 Cargill, Inc., 5.2%, 1/22/13 (144A) $ 504,900
500,000 BBB-/Baa2 Tyco Electronics Group SA,
6.0%, 10/1/12 541,349
------------
$ 1,046,249
- ---------------------------------------------------------------------------------------------------------
Industrial Machinery -- 0.2%
500,000 BBB+/Baa1 Ingersoll-Rand Global Holding,
9.5%, 4/15/14 $ 619,703
- ---------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.6%
440,000 BBB/Baa1 GATX Corp., 4.75%, 10/1/12 $ 462,953
1,000,000 BBB-/Baa2 Glencore Funding LLC,
6.0%, 4/15/14 (144A) 1,033,005
------------
$ 1,495,958
------------
Total Capital Goods $ 3,161,910
- ---------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.2%
Environmental & Facilities Services -- 0.1%
306,000 BBB/Baa3 Allied Waste North America, Inc.,
5.75%, 2/15/11 $ 311,898
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 25
Schedule of Investments | 8/31/10 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Office Services & Supplies -- 0.1%
350,000 BBB+/A1 Pitney Bowes, Inc., 4.625%, 10/1/12 $ 367,394
------------
Total Commercial Services & Supplies $ 679,292
- ---------------------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.6%
Automobile Manufacturers -- 0.6%
500,000 BBB+/A3 Daimler Chrysler NA Holding Corp.,
5.875%, 3/15/11 $ 513,471
1,000,000 BBB-/Baa3 Hyundai Motor Manufacturer, Ltd.,
4.5%, 4/15/15 1,029,733
100,000 BBB/Baa2 Nissan Motor Acceptance Corp.,
4.5%, 1/30/15 (144A) 106,229
------------
$ 1,649,433
------------
Total Automobiles & Components $ 1,649,433
- ---------------------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.7%
Home Furnishings -- 0.1%
252,000 BB+/Ba2 Mohawk Industries, Inc., 6.5%, 1/15/11 $ 254,520
- ---------------------------------------------------------------------------------------------------------
Household Appliances -- 0.2%
500,000 BBB-/Baa3 Whirlpool Corp., 5.5%, 3/1/13 $ 537,186
- ---------------------------------------------------------------------------------------------------------
Housewares & Specialties -- 0.4%
1,000,000 BBB-/Baa3 Fortune Brands, Inc., 3.0%, 6/1/12 $ 1,013,848
------------
Total Consumer Durables & Apparel $ 1,805,554
- ---------------------------------------------------------------------------------------------------------
MEDIA -- 0.3%
Broadcasting -- 0.3%
750,000 BBB-/Baa2 Discovery Communications LLC,
3.7%, 6/1/15 $ 788,978
------------
Total Media $ 788,978
- ---------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.0%
Brewers -- 0.4%
1,000,000 BBB+/Baa2 Anheuser-Busch InBev Worldwide, Inc.,
2.5%, 3/26/13 $ 1,016,438
- ---------------------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 0.4%
1,000,000 BBB/Baa2 WM Wrigley Jr Co., 3.05%, 6/28/13 $ 1,026,406
- ---------------------------------------------------------------------------------------------------------
Soft Drinks -- 0.2%
500,000 A-/Aa3 Pepsico, Inc., 5.15%, 5/15/12 $ 535,437
------------
Total Food, Beverage & Tobacco $ 2,578,281
- ---------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.6%
Health Care Facilities -- 0.1%
300,000 BB+/Baa3 Universal Health Services, Inc.,
6.75%, 11/15/11 $ 313,133
- ---------------------------------------------------------------------------------------------------------
Health Care Services -- 0.3%
1,000,000 BBB/Baa3 Express Scripts, Inc., 5.25%, 6/15/12 $ 1,066,777
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Managed Health Care -- 0.2%
500,000 A-/Baa1 Wellpoint, Inc., 5.0%, 1/15/11 $ 507,546
------------
Total Health Care Equipment & Services $ 1,887,456
- ---------------------------------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 1.1%
Biotechnology -- 0.5%
900,000 BBB+/Baa3 Biogen Idec, Inc., 6.0%, 3/1/13 $ 984,637
285,000 A-/Baa2 Genzyme Corp., 3.625%, 6/15/15 302,804
------------
$ 1,287,441
- ---------------------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.4%
750,000 BBB-/Ba1 Life Technologies Co., 3.375%, 3/1/13 $ 771,644
475,000 A-/Baa1 Thermo Fisher Scientific, Inc.,
2.15%, 12/28/12 483,809
------------
$ 1,255,453
- ---------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 0.2%
500,000 AA/A1 Abbott Laboratories, Inc.,
5.15%, 11/30/12 $ 548,278
------------
Total Pharmaceuticals & Biotechnology $ 3,091,172
- ---------------------------------------------------------------------------------------------------------
BANKS -- 3.7%
Diversified Banks -- 2.8%
300,000 BB+/Ba1 Alfa Div Pymt Rights Finance, Inc.,
7.23563%, 12/15/11 (144A) $ 284,997
1,500,000 AA-/Aa3 Barclays Bank Plc, 2.5%, 1/23/13 1,527,339
1,000,000 1.05 AA/Aa2 HSBC Bank Plc, Floating Rate Note,
8/12/13 (144A) 998,770
2,000,000 AAA/Aaa International Bank for Reconstruction, Inc.,
1.25%, 6/15/12 2,010,150
1,000,000 1.33 AA/Aa2 Santander US Debt SA, Floating Rate
Note, 3/30/12 (144A) 985,300
500,000 A/A3 Standard Chartered Plc, 3.85%,
4/27/15 (144A) 516,963
820,000 A+/A2 Wachovia Corp., 5.25%, 8/1/14 884,515
250,000 AA-/A1 Wells Fargo Co., 4.375%, 1/31/13 266,624
------------
$ 7,474,658
- ---------------------------------------------------------------------------------------------------------
Regional Banks -- 0.9%
300,000 BBB+/A2 American Express Bank FSB,
5.5%, 4/16/13 $ 326,233
500,000 A/A1 BB&T Corp., 5.7%, 4/30/14 560,520
500,000 A-/A2 KeyBank NA, 5.5%, 9/17/12 532,993
275,000 BBB+/A3 KeyBank NA, 5.8%, 7/1/14 300,211
500,000 BBB+/Baa1 KeyCorp, 3.75%, 8/13/15 505,453
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 27
Schedule of Investments | 8/31/10 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Regional Banks -- (continued)
215,000 BBB+/Baa1 Keycorp, 6.5%, 5/14/13 $ 235,454
------------
$ 2,460,864
------------
Total Banks $ 9,935,522
- ---------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.7%
Asset Management & Custody Banks -- 0.1%
300,000 AA-/A1 Franklin Resources, Inc., 3.125%,
5/20/15 $ 315,240
- ---------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.9%
476,000 0.38 BBB+/A2 American Express Credit Corp.,
Floating Rate Note, 2/24/12 $ 472,301
380,000 A+/A1 American Honda Finance Corp.,
6.7%, 10/1/13 (144A) 434,468
500,000 A+/A1 American Honda Finance Corp.,
2.375%, 3/18/13 510,772
900,000 A+/A1 American Honda Finance Corp.,
5.125%, 12/15/10 911,336
100,000 AAA/Aaa John Deere Capital Corp.,
2.875%, 6/19/12 104,010
------------
$ 2,432,887
- ---------------------------------------------------------------------------------------------------------
Diversified Financial Services -- 3.7%
500,000 BBB+/A2 American Express, Inc., 5.25%, 11/21/11 $ 517,878
250,000 6.66 BB+/NR Caelus Re II, Ltd., Floating Rate Note,
5/24/13 248,200
1,000,000 A-/Baa1 Citigroup, Inc., 5.0%, 9/15/14 1,027,506
250,000 2.90 A/A3 Citigroup, Inc., Floating Rate Note,
3/16/12 245,664
500,000 NR/A2 Crown Castle Towers LLC,
3.214%, 8/15/15 (144A) 506,281
1,000,000 BBB/Baa1 GATX Corp., 5.5%, 2/15/12 1,040,807
800,000 AA+/Aa2 General Electric Capital Corp.,
4.0%, 2/15/12 826,650
1,000,000 AA+/Aa2 General Electric Capital Corp.,
1.101%, 12/20/13 978,727
1,000,000 AA+/Aa2 General Electric Capital Corp.,
5.5%, 11/15/11 1,007,695
50,000 AA+/Aa2 General Electric Capital Corp.,
5.5%, 4/28/11 51,586
500,000 0.96 A+/Aa3 JP Morgan Chase & Co., Floating Rate
Note, 2/26/13 500,859
2,000,000 AAA/Aaa JPMorgan Chase & Co., 1.65%, 2/23/11 2,011,832
100,000 AAA/Aaa JPMorgan Chase & Co., 3.125%, 12/1/11 103,349
250,000 BB+/NR Lodestone Re, Ltd., 0.0%,
5/17/13 (144A) 245,100
The accompanying notes are an integral part of these financial statements.
28 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Diversified Financial Services -- (continued)
577,449 BBB/Baa2 Power Receivables Finance LLC,
6.29%, 1/1/12 (144A) $ 577,738
250,000 6.76 BB/NR Residential Reinsurance 2010, Ltd.,
Floating Rate Note, 6/6/13 (144A) 249,425
------------
$ 10,139,297
- ---------------------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.8%
340,000 A/A1 Goldman Sachs Group, Inc.,
3.7%, 8/1/15 $ 344,197
500,000 A/A2 Merrill Lynch & Co., 5.45%, 2/5/13 533,702
500,000 A/A2 Morgan Stanley & Co., 5.0%, 8/31/25 494,460
800,000 2.88 A/A2 Morgan Stanley & Co., Floating Rate Note,
5/14/13 808,147
------------
$ 2,180,506
- ---------------------------------------------------------------------------------------------------------
Specialized Finance -- 0.2%
500,000 A/A2 National Rural Utilities Corp.,
5.4%, 10/15/13 $ 550,755
------------
Total Diversified Financials $ 15,618,685
- ---------------------------------------------------------------------------------------------------------
INSURANCE -- 1.4%
Life & Health Insurance -- 0.7%
500,000 A-/NR Jefferson-Pilot Corp., 4.75%, 1/30/14 $ 528,160
250,000 A-/Baa2 Lincoln National Corp., 4.3%, 6/15/15 263,497
500,000 BBB/A3 Principal Financial Group, Inc.,
7.875%, 5/15/14 591,614
500,000 A/Baa2 Prudential Financial, Inc., 5.1%, 9/20/14 543,442
------------
$ 1,926,713
- ---------------------------------------------------------------------------------------------------------
Multi-Line Insurance -- 0.2%
50,000 AA-/A1 Allstate Life Global, Inc.,
5.375%, 4/30/13 $ 55,197
500,000 AA-/Aa3 Metropolitan Life Global Funding, Inc.,
2.875%, 9/17/12 513,210
------------
$ 568,407
- ---------------------------------------------------------------------------------------------------------
Reinsurance -- 0.5%
500,000 7.19 BB+/NR Blue Fin, Ltd., Floating Rate Note,
4/10/12 $ 476,850
250,000 5.81 BB+/A2 Foundation Re III, Ltd., Floating Rate Note,
2/3/14 244,125
250,000 12.03 NR/B3 Globecat, Ltd., Cat Bond, Floating Rate
Note, 1/2/13 (144A) 231,300
250,000 10.25 BB-/NR Mystic Re, Ltd., Floating Rate Note,
6/7/11 250,725
------------
$ 1,203,000
------------
Total Insurance $ 3,698,120
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 29
Schedule of Investments | 8/31/10 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
REAL ESTATE -- 1.5%
Diversified Real Estate Activities -- 0.1%
350,000 A-/A2 Westfield Group, Inc., 5.4%, 10/1/12 $ 375,690
- ---------------------------------------------------------------------------------------------------------
Diversified Real Estate Investment Trust -- 0.4%
685,000 BBB+/Baa1 Dexus Finance Pty, Ltd.,
7.125%, 10/15/14 $ 752,083
350,000 BBB/Baa2 Digital Realty Trust, 4.5%,
7/15/15 (144A) 354,429
------------
$ 1,106,512
- ---------------------------------------------------------------------------------------------------------
Office Real Estate Investment Trust -- 0.2%
385,000 BBB/Baa2 Mack-Cali Realty LP, 5.125%, 2/15/14 $ 408,237
- ---------------------------------------------------------------------------------------------------------
Retail Real Estate Investment Trust -- 0.5%
500,000 BB/Baa3 Developers Diversified Realty,
5.375%, 10/15/12 $ 499,351
773,000 A-/A3 Simon Property Group LP, 5.0%, 3/1/12 803,602
------------
$ 1,302,953
- ---------------------------------------------------------------------------------------------------------
Specialized Real Estate Investment Trust -- 0.3%
780,000 BBB/Baa2 Hospitality Properties Trust, Inc.,
7.875%, 8/15/14 $ 874,841
------------
Total Real Estate $ 4,068,233
- ---------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.2%
Internet Software & Services -- 0.2%
550,000 NR/A2 GTP Towers Issuer LLC, 4.436%,
2/15/15 (144A) $ 555,535
------------
Total Software & Services $ 555,535
- ---------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.9%
Communications Equipment -- 0.0%
50,000 A+/A1 Cisco Systems Inc., 5.25%, 2/22/11 $ 51,107
- ---------------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 0.5%
500,000 BBB-/Baa3 Agilent Technologies, Inc., 2.5%, 7/15/13 $ 508,765
620,000 BBB-/NR Agilent Technologies, Inc., 5.5%, 9/14/15 694,597
------------
$ 1,203,362
- ---------------------------------------------------------------------------------------------------------
Office Electronics -- 0.4%
500,000 BBB-/Baa2 Xerox Corp., 5.5%, 5/15/12 $ 533,565
500,000 BBB-/Baa2 Xerox Corp., 6.875%, 8/15/11 525,080
------------
$ 1,058,645
------------
Total Technology Hardware & Equipment $ 2,313,114
- ---------------------------------------------------------------------------------------------------------
SEMICONDUCTORS -- 0.3%
750,000 BBB/Baa1 Maxim Integrated Products, Inc.,
3.45%, 6/14/13 $ 770,740
------------
Total Semiconductors $ 770,740
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
30 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
TELECOMMUNICATION SERVICES -- 0.6%
Integrated Telecommunication Services -- 0.6%
750,000 BBB/Baa2 Telecom Italia Capital SA,
4.95%, 9/30/14 (b) $ 788,299
720,000 BBB/Baa2 Telecom Italia Capital, SA,
4.875%, 10/1/10 722,322
------------
$ 1,510,621
------------
Total Telecommunication Services $ 1,510,621
- ---------------------------------------------------------------------------------------------------------
UTILITIES -- 0.9%
Electric Utilities -- 0.9%
1,000,000 BBB+/Baa1 FPL Group Capital, Inc.,
2.55%, 11/15/13 $ 1,022,987
1,000,000 A-/A3 Iberdrola Finance Ireland, Ltd.,
3.8%, 9/11/14 (144A) 1,020,903
500,000 BBB+/Baa1 Midamerican Energy Holdings Co.,
3.15%, 7/15/12 517,141
------------
$ 2,561,031
------------
Total Utilities $ 2,561,031
- ---------------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $63,435,139) $ 65,498,202
- ---------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS -- 29.4%
106,615 AAA/WR Federal Home Loan Bank,
4.84%, 1/25/12 $ 112,292
415,794 AAA/Aaa Federal Home Loan Mortgage Corp.,
4.5%, 9/1/12 430,420
545,447 AAA/Aaa Federal Home Loan Mortgage Corp.,
5.0%, 9/1/11 - 2/1/21 575,356
444,175 AAA/Aaa Federal Home Loan Mortgage Corp.,
5.505%, 12/1/31 457,051
10,928 AAA/Aaa Federal Home Loan Mortgage Corp.,
5.79%, 11/1/31 11,350
136,319 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.064%, 11/1/40 138,328
783,831 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.134%, 10/1/31 819,072
13,988 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.303%, 7/1/18 14,618
642,921 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.44%, 10/1/36 684,834
76,028 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.5%, 3/1/11 - 6/1/17 81,432
7,349 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.533%, 11/1/25 7,670
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 31
Schedule of Investments | 8/31/10 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
U.S. Government and Agency Obligations -- (continued)
3,759 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.571%, 4/1/29 $ 3,910
4,079 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.837%, 4/1/28 4,268
10,538 AAA/Aaa Federal Home Loan Mortgage Corp.,
6.985%, 5/1/25 11,103
4,739 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.035%, 4/1/29 4,855
5,881 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.142%, 1/1/28 6,148
184,242 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.245%, 8/1/31 193,037
1,740 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.25%, 8/1/31 1,795
221,346 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.3%, 10/1/32 229,573
120,113 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.393%, 11/1/24 120,665
23,370 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.484%, 2/1/27 24,524
51,905 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.652%, 4/1/25 54,225
75,136 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.680%, 1/1/25 75,707
2,686 AAA/Aaa Federal Home Loan Mortgage Corp.,
7.936%, 2/1/33 2,813
1,980,339 AAA/Aaa Federal National Mortgage Association,
4.0%, 5/1/24 2,082,013
3,633,239 AAA/Aaa Federal National Mortgage Association,
4.5%, 7/1/19 3,869,729
254,355 AAA/Aaa Federal National Mortgage Association,
5.0%, 7/1/15 265,973
121,798 AAA/Aaa Federal National Mortgage Association,
5.469%, 7/1/36 127,865
859,974 AAA/Aaa Federal National Mortgage Association,
5.5%, 1/1/12 - 12/1/35 924,960
2,374,982 AAA/Aaa Federal National Mortgage Association,
6.0%, 2/1/24 - 1/1/39 2,562,590
546,467 AAA/Aaa Federal National Mortgage Association,
6.339%, 12/1/36 569,786
958,781 AAA/Aaa Federal National Mortgage Association,
6.5%, 8/1/13 - 7/1/32 1,058,835
1,189,513 AAA/Aaa Federal National Mortgage Association,
7.0%, 5/1/12 - 1/1/36 1,303,521
96,082 AAA/Aaa Federal National Mortgage Association,
7.243%, 12/1/28 100,496
The accompanying notes are an integral part of these financial statements.
32 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
U.S. Government and Agency Obligations -- (continued)
102,890 AAA/Aaa Federal National Mortgage Association,
7.405%, 10/1/29 $ 106,554
248,457 AAA/Aaa Federal National Mortgage Association,
7.586%, 10/1/29 260,074
107,016 AAA/Aaa Federal National Mortgage Association,
8.0%, 4/1/14 114,373
17,964,010 AAA/Aa1 Government National Mortgage
Association, 1.524, 2/16/52 1,231,573
2,500,000 NR/NR Government National Mortgage
Association, 2.351%, 6/16/50 2,549,023
1,000,000 AAA/Aaa Government National Mortgage
Association, 3.025%, 2/16/30 1,041,045
501,357 AAA/Aa1 Government National Mortgage
Association, 3.084%, 4/16/22 510,251
121,095 AAA/Aa1 Government National Mortgage
Association, 4.009%, 5/16/37 128,583
350,000 AAA/Aa1 Government National Mortgage
Association, 4.549%, 6/16/28 374,773
1,892,065 AAA/Aaa Government National Mortgage
Association, 6.0%, 5/20/13 - 11/15/36 2,058,195
1,023,011 NR/Aaa Government National Mortgage
Association, 6.269%, 10/16/27 1,080,499
248,142 AAA/Aaa Government National Mortgage
Association, 6.5%, 5/15/31 - 10/15/37 275,061
25,303 AAA/Aaa Government National Mortgage
Association, 7.0%, 11/15/13 26,884
298,051 AAA/Aaa Government National Mortgage
Association, 7.5%, 8/15/11 - 10/15/36 330,845
17,330,998 0.71 NR/NR Government National Mortgage
Association, Floating Rate Note,
11/16/51 778,117
512,357 4.65 AAA/Aaa Government National Mortgage
Association, Floating Rate Note, 6/16/31 524,758
7,000,000 AAA/Aaa U.S. Treasury Notes, 0.875%, 5/31/11 7,032,816
16,000,000 AAA/Aaa U.S. Treasury Notes, 1.0%, 7/31/11 16,104,368
4,000,000 AAA/Aaa U.S. Treasury Notes, 1.5%, 7/15/12 4,079,844
2,000,000 AAA/Aaa U.S. Treasury Notes, 1.7%, 9/15/12 2,049,922
5,000,000 AAA/Aaa U.S. Treasury Notes, 1.875%, 6/15/12 5,127,735
13,500,000 NR/Aaa U.S. Treasury Notes, 2.5%, 4/30/15 14,273,091
1,000,000 NR/Aaa U.S. Treasury Notes, 1.0%, 10/31/11 1,007,500
2,000,000 AAA/Aaa U.S. Treasury Notes, 1.375%, 9/15/12 2,035,311
------------
$ 80,032,009
- ---------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS
(Cost $78,338,389) $ 80,032,009
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 33
Schedule of Investments | 8/31/10 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
FOREIGN GOVERNMENT BOND -- 0.1%
250,000 A/A1 Korea Development Bank, 5.3%, 1/17/13 $ 266,107
- ---------------------------------------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BOND
(Cost $249,643) $ 266,107
- ---------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 0.5%
Municipal General -- 0.5%
500,000 AA/Aa1 OH INFRA-TXB-2-BABS, 3.0%, 6/15/15 $ 516,255
760,000 A+/A1 State of Illinois, 3.321%, 1/1/13 756,952
------------
$ 1,273,207
- ---------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $1,270,131) $ 1,273,207
- ---------------------------------------------------------------------------------------------------------
SENIOR FLOATING RATE LOAN INTERESTS -- 1.8%**
MATERIALS -- 0.3%
Metal & Glass Containers -- 0.2%
228,571 5.50 B+/Ba3 BWAY Holding Co., B Term Loan, 6/16/17 $ 229,144
153,396 6.75 B+/B2 Graham Packaging Co., Term C Loan,
4/5/14 154,807
16,233 2.58 B+/B2 Graham Packaging Co., Term B Loan,
10/7/11 16,217
21,429 5.50 B+/Ba3 ICL Industrial Containers, Inc., C Term
Loan, 6/16/17 21,482
------------
$ 421,650
- ---------------------------------------------------------------------------------------------------------
Paper Packaging -- 0.1%
263,115 3.28 BB/Ba2 Graphic Packaging International, Inc.,
Incremental Term Loan, 5/16/14 $ 259,267
------------
Total Materials $ 680,917
- ---------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.1%
Aerospace & Defense -- 0.1%
350,000 4.50 NR/NR Triumph Group, Inc., U.S. Term II Loan,
6/16/16 $ 351,969
------------
Total Capital Goods $ 351,969
- ---------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.1%
Environmental & Facilities Services -- 0.1%
194,975 2.28 D/B2 Synagro Technologies, Inc., 1st Lien Term
Loan, 4/2/14 $ 165,891
------------
Total Commercial Services & Supplies $ 165,891
- ---------------------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.0%
Casinos & Gaming -- 0.0%
16,583 3.05 NR/NR Gateway Casinos & Entertainment,
Delayed Draw Term Loan, 9/30/14 (e) $ 16,169
The accompanying notes are an integral part of these financial statements.
34 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Casinos & Gaming -- (continued)
81,875 3.05 NR/NR Gateway Casinos & Entertainment, Inc.,
Term Advance Loan, 9/30/14 (e) $ 79,828
------------
$ 95,997
------------
Total Consumer Services $ 95,997
- ---------------------------------------------------------------------------------------------------------
MEDIA -- 0.3%
Movies & Entertainment -- 0.3%
482,500 5.25 NR/NR Christie/AIX Inc., Term Loan, 4/29/16 $ 479,484
199,500 4.50 B+/NR Live Nation Entertainment, Inc., Term B
Loan, 11/7/16 196,092
------------
$ 675,576
------------
Total Media $ 675,576
- ---------------------------------------------------------------------------------------------------------
RETAILING -- 0.1%
Automotive Retail -- 0.1%
250,000 6.00 NR/NR Autotrader Com, Inc., Tranche B Term
Loan, 6/14/16 $ 250,781
------------
Total Retailing $ 250,781
- ---------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 0.3%
Health Care Facilities -- 0.2%
18,633 2.55 BB -/Ba3 CHS/Community Health Systems, Inc.,
Delayed Draw Term Loan, 7/25/14 $ 17,605
363,172 2.55 BB -/Ba3 CHS/Community Health Systems, Inc.,
Funded Term Loan, 7/25/14 343,135
66,511 2.18 B +/Ba2 Psychiatric Solutions, Inc., Term Loan,
7/1/12 66,137
21,375 3.64 B +/Ba2 Sun Health Care, Inc., Term Loan,
4/19/14 20,894
12,680 4.33 B +/Ba2 Sun Health Care, Inc., Synthetic LC Loan,
4/19/14 12,394
------------
$ 460,165
- ---------------------------------------------------------------------------------------------------------
Health Care Services -- 0.0%
238,578 6.00 B B/Ba3 RehabCare Group, Inc., Term Loan B,
11/24/15 $ 236,550
- ---------------------------------------------------------------------------------------------------------
Health Care Supplies -- 0.1%
198,199 3.51 B B-/B1 Bausch & Lomb, Inc., Parent Term Loan,
4/24/15 $ 190,384
48,004 3.51 B B-/B1 Bausch & Lomb, Inc., Delayed Draw Term
Loan, 4/24/15 46,111
------------
$ 236,495
------------
Total Health Care Equipment & Services $ 933,210
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 35
Schedule of Investments | 8/31/10 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
DIVERSIFIED FINANCIALS -- 0.1%
Investment Banking & Brokerage -- 0.1%
149,625 5.25 B+/Ba3 LPL Holdings, Inc., 2017 Term Loan,
6/28/17 $ 148,877
------------
Total Diversified Financials $ 148,877
- ---------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.2%
Data Processing & Outsourced Services -- 0.1%
250,000 5.25 BBB-/Ba1 Fidelity National Information Services, Inc.,
Term B Loan, 7/18/16 $ 251,741
- ---------------------------------------------------------------------------------------------------------
IT Consulting & Other Services -- 0.1%
389,899 2.04 BB/Ba3 Sungard Data Systems, Inc., Tranche A
U.S. Term Loan, 2/28/14 $ 373,328
------------
Total Software & Services $ 625,069
- ---------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.3%
Integrated Telecommunication Services -- 0.3%
344,138 6.50 BB/Ba3 Cincinnati Bell, Inc., Tranche B Term Loan,
6/11/17 $ 342,632
40,048 3.27 NR/NR Telesat Canada, Inc., U.S. Term II Loan,
10/31/14 38,824
466,240 3.27 NR/NR Telesat Canada, Inc., U.S. Term I Loan,
10/31/14 451,993
------------
$ 833,449
------------
Total Telecommunication Services $ 833,449
- ---------------------------------------------------------------------------------------------------------
TOTAL SENIOR FLOATING RATE
LOAN INTERESTS
(Cost $4,715,756) $ 4,761,736
- ---------------------------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 8.5%
REPURCHASE AGREEMENTS -- 8.3%
4,500,000 Bank of America, Inc., 0.25%, dated
8/31/10, repurchase price of
$4,500,000 plus accrued interest on
9/1/10 collateralized by the following:
$3,379,652 Freddie Mac Giant,
5.5%, 8/1/25
$1,210,348 Federal National Mortgage
Association, 4.5%, 3/1/40 $ 4,500,000
4,500,000 BNP Paribas SA, 0.25%, dated 8/31/10,
repurchase price of $4,500,000 plus
accrued interest on 9/1/10 collateralized
by $4,590,000 Freddie Mac Giant,
4.0 - 5.5%, 8/1/25 - 3/1/40 4,500,000
The accompanying notes are an integral part of these financial statements.
36 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Repurchase Agreements -- (continued)
4,500,000 Deutsche Bank Securities, Inc, 0.25%,
dated 7/31/10, repurchase price of
$4,500,000 plus accrued interest on
9/1/10 collateralized by $4,590,000
Freddie Mac Giant, 4.0%, 8/1/40 $ 4,500,000
4,500,000 JPMorgan Securities, Inc., 0.24%,
dated 8/31/10, repurchase price of
$4,500,000 plus accrued interest on
9/1/10 collateralized by $4,590,118
Federal National Mortgage Association,
4.5%, 7/1/39 4,500,000
4,500,000 SG Americas Securities LLC, 0.25%,
dated 8/31/10, repurchase price of
$4,500,000 plus accrued interest on
9/1/10 collateralized by $4,590,002
U.S. Treasury Note, 0.75%, 11/30/11 4,500,000
------------
Total Repurchase Agreements $ 22,500,000
- ---------------------------------------------------------------------------------------------------------
SECURITIES LENDING COLLATERAL -- 0.2% (c)
Certificates of Deposit:
15,886 Bank of Nova Scotia, 0.47%, 9/7/10 $ 15,886
11,120 BBVA Group NY, 0.51%, 7/26/11 11,120
15,886 BNP Paribas Bank NY, 0.38%, 11/8/10 15,886
7,943 DNB Nor Bank ASA NY, 0.27%, 11/10/10 7,943
15,886 Nordea NY, 0.50%, 12/10/10 15,886
15,886 RoboBank Netherland NV NY, 0.44%,
8/8/11 15,886
15,886 Royal Bank of Canada NY,
0.26%, 1/21/11 15,886
15,886 SocGen NY, 0.34%, 11/10/10 15,886
7,943 Svenska NY, 0.275%, 11/12/10 7,943
------------
$ 122,322
- ---------------------------------------------------------------------------------------------------------
Commercial Paper:
9,531 American Honda Finance, 0.33%, 5/4/11 $ 9,531
6,394 American Honda Finance,
1.29%, 6/20/11 6,394
5,848 Australia & New Zealand Banking Group,
1.04%, 8/4/11 5,848
7,551 Caterpillar Financial Services Corp.,
1.29%, 6/24/11 7,551
17,474 CBA, 0.56%, 1/3/11 17,474
3,176 CHARFD, 0.38%, 10/15/10 3,176
11,110 CHARFD, 0.31%, 12/14/10 11,110
6,351 CLIPPR, 0.45%, 10/8/10 6,351
9,525 CLIPPR, 0.28%, 12/1/10 9,525
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 37
Schedule of Investments | 8/31/10 (continued)
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
Commercial Paper: -- (continued)
9,531 CLIPPR, 0.45%, 9/1/10 $ 9,531
5,128 FAIRPP, 0.30%, 11/9/10 5,128
6,350 FASCO, 0.27%, 12/1/10 6,350
7,307 FASCO, 0.45%, 9/9/10 7,307
7,943 FASCO, 0.46%, 9/2/10 7,943
15,888 Federal Home Loan Bank, 0.37%, 6/1/11 15,888
7,942 GE Corp., 0.548%, 1/26/11 7,942
1,587 General Electric Capital Corp.,
0.61%, 6/6/11 1,587
1,732 General Electric Capital Corp.,
0.59%, 10/6/10 1,732
1,720 General Electric Capital Corp.,
0.62%, 10/21/10 1,720
13,426 JPMorgan Chase & Co., 0.89%, 09/24/10 13,426
7,942 RANGER, 0.25%, 9/13/10 7,942
12,701 SANTANDER, 0.43%, 10/22/10 12,701
3,176 SRCPP, 0.38%, 10/12/10 3,176
4,764 STRAIT, 0.36%, 10/4/10 4,764
7,939 TBLLC, 0.38%, 10/12/10 7,939
7,942 TBLLC, 0.24%, 9/10/10 7,942
15,886 Toyota Motor Credit Corp.,
0.29%, 1/10/11 15,886
15,877 VARFUN, 0.35%, 10/25/10 15,877
9,532 Wachovia, 0.69%, 3/22/11 9,532
15,886 Westpac, 0.50%, 7/29/11 15,886
6,354 WFC, 0.61%, 12/2/10 6,354
------------
$ 263,513
- ---------------------------------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
29,139 Barclays Capital Markets, 0.24%, 9/1/10 $ 29,139
39,714 Deutsche Bank Securities, Inc.,
0.24%, 9/1/10 39,714
15,886 HSBC Bank USA NA, 0.24%, 9/1/10 15,886
31,771 RBS Securities, Inc., 0.25%, 9/1/10 31,771
------------
$ 116,510
- ---------------------------------------------------------------------------------------------------------
Shares
- ---------------------------------------------------------------------------------------------------------
Money Market Mutual Funds
15,883 Blackrock Liquidity Temporary Cash Fund $ 15,883
15,886 Dreyfus Preferred Money Market Fund 15,886
15,886 Fidelity Prime Money Market Fund 15,886
------------
$ 47,655
------------
Total Securities Lending Collateral $ 550,000
- ---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
38 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Shares Value
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $23,050,000) $ 23,050,000
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 101.1%
(Cost $274,308,694) (a) $274,120,287
- ---------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (1.1)% $ (3,114,349)
- ---------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $271,005,938
=========================================================================================================
NR Not rated by either S&P or Moody's.
WR Withdrawn rating.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
August 31, 2010, the value of these securities amounted to $12,784,480
or 4.7% of total net assets.
** Senior floating rate loan interests in which the Fund invests generally
pay interest at rates that are periodically redetermined by reference to
a base lending rate plus a premium. These base lending rates are
generally (i) the lending rate offered by one or more major European
banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime rate
offered by one or more major United States banks, (iii) the certificate
of deposit or (iv) other base lending rates used by commercial lenders.
The rate shown is the coupon rate at period end.
(a) At August 31, 2010, the net unrealized loss on investments based on cost
for federal income tax purposes of $274,615,248 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $5,098,089
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (5,593,050)
----------
Net unrealized loss $ (494,961)
==========
(b) At August 31, 2010, the following security was out on loan:
- --------------------------------------------------------------------------------
Principal
Amount ($) Security Value
- --------------------------------------------------------------------------------
500,000 Telecom Italia Capital SA, 4.95%, 9/30/14 $525,533
================================================================================
(c) Securities lending collateral is managed by Credit Suisse AG, New York
Branch.
(d) Debt obligation with a variable interest rate. Rate shown is rate at end
of period.
(e) Security is in default and is non-income producing.
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 39
Schedule of Investments | 8/31/10 (continued)
Purchases and sales of securities (excluding temporary cash investments) for
the year ended August 31, 2010 were as follows:
- --------------------------------------------------------------------------------
Purchases Sales
- --------------------------------------------------------------------------------
Long-Term U.S. Government $ 66,465,073 $23,793,411
- --------------------------------------------------------------------------------
Other Long-Term Securities $128,329,880 $49,567,645
- --------------------------------------------------------------------------------
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
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 risk, etc.)
Level 3 -- significant unobservable inputs (including the Fund's own assumptions in determining fair
value of investments)
The following is a summary of the inputs used as of August 31, 2010, in valuing
the Fund's assets:
- --------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
- --------------------------------------------------------------------------------------------------------
Convertible Corporate Bonds $ -- $ 141,575 $ -- $ 141,575
Asset Backed Securities -- 33,801,893 -- 33,801,893
Collateralized Mortgage Obligations -- 64,895,384 -- 64,895,384
Collateralized Mortgage Obligations (Banks) -- -- 400,174 400,174
Corporate Bonds -- 65,498,202 -- 65,498,202
U.S. Government Agency Obligations -- 80,032,009 -- 80,032,009
Foreign Government Bonds -- 266,107 -- 266,107
Municipal Bonds -- 1,273,207 -- 1,273,207
Senior Floating Rate Loan Interests -- 4,761,736 -- 4,761,736
Temporary Cash Investments -- 23,002,345 -- 23,002,345
Money Market Mutual Funds 47,655 -- -- 47,655
- --------------------------------------------------------------------------------------------------------
Total $47,655 $273,672,458 $400,174 $274,120,287
========================================================================================================
The accompanying notes are an integral part of these financial statements.
40 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Following is a reconciliation of assets using significant unobservable inputs
(Level 3):
- ---------------------------------------------------------------------------------------------
Asset Backed Collateralized
Securities Mortgage Obligations
- ---------------------------------------------------------------------------------------------
Balance as of 8/31/09 $ 287,229 $ 693,277
Realized gain (loss)(1) 70 --
Change in unrealized appreciation (depreciation)(2) (82,709) (293,103)
Net purchases (sales) -- --
Transfers in and out of Level 3* (204,590) --
- ---------------------------------------------------------------------------------------------
Balance as of 8/31/10 $ -- $ 400,174
=============================================================================================
1 Realized gain (loss) on these securities is included in the net realized
gain (loss) from investments in the Statement of Operations.
2 Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized gain (loss) on investments in the Statement of
Operations.
* Transfers are calculated on the beginning of period values.
Net change in unrealized appreciation (depreciation)
of investments still held as of 8/31/10 $282,885
--------
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 41
Statement of Assets and Liabilities | 8/31/10
ASSETS:
Investment in securities (including securities loaned of $525,533)
(cost $274,308,694) $274,120,287
Foreign currencies, at value (cost $16,771) 15,894
Receivables --
Paydown 107,625
Fund shares sold 1,753,117
Forward foreign currency portfolio hedge contracts, open -- net 25,439
Dividends and interest 1,408,039
Due from Pioneer Investment Management, Inc. 75,564
Other 36,857
- --------------------------------------------------------------------------------------
Total assets $277,542,822
- --------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 3,562,276
Fund shares repurchased 733,624
Dividends 272,571
Forward foreign currency settlement contracts, net 2,061
Upon return of securities loaned 550,000
Due to bank 1,312,513
Due to affiliates 32,110
Accrued expenses 71,729
- --------------------------------------------------------------------------------------
Total liabilities $ 6,536,884
- --------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $279,379,917
Distributions in excess of net investment income (59,804)
Accumulated net realized loss on investments and foreign currency
transactions (8,148,166)
Net unrealized loss on investments (188,407)
Net unrealized gain on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies 22,398
- --------------------------------------------------------------------------------------
Total net assets $271,005,938
======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $130,523,772/13,386,231 shares) $ 9.75
Class B (based on $4,821,574/494,600 shares) $ 9.75
Class C (based on $20,507,219/2,107,110 shares) $ 9.73
Class Y (based on $115,153,373/11,822,496 shares) $ 9.74
MAXIMUM OFFERING PRICE:
Class A ($9.75 [divided by] 97.5%) $ 10.00
======================================================================================
The accompanying notes are an integral part of these financial statements.
42 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Statement of Operations
For the Year Ended 8/31/10
INVESTMENT INCOME:
Interest $7,178,388
Income from securities loaned, net 902
- ------------------------------------------------------------------------------------------------------
Total investment income $ 7,179,290
- ------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 724,050
Transfer agent fees and expenses
Class A 85,492
Class B 14,428
Class C 15,023
Class Y 1,411
Distribution fees
Class A 127,883
Class B 58,907
Class C 141,785
Shareholder communications expense 48,215
Administrative reimbursements 56,874
Custodian fees 15,267
Registration fees 72,209
Professional fees 66,332
Printing expense 44,457
Fees and expenses of nonaffiliated trustees 5,629
Miscellaneous 45,912
- ------------------------------------------------------------------------------------------------------
Total expenses $ 1,523,874
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (87,662)
- ------------------------------------------------------------------------------------------------------
Net expenses $ 1,436,212
- ------------------------------------------------------------------------------------------------------
Net investment income $ 5,743,078
- ------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on:
Investments $ (381,921)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (21,760) $ (403,681)
- ------------------------------------------------------------------------------------------------------
Change in net unrealized gain on:
Investments $6,972,512
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies 36,009 $ 7,008,521
- ------------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $ 6,604,840
- ------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $12,347,918
======================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 43
Statements of Changes in Net Assets
For the Years Ended 8/31/10 and 8/31/09, respectively
- --------------------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/10 8/31/09
- --------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 5,743,078 $ 4,938,682
Net realized loss on investments and foreign currency
transactions (403,681) (126,966)
Change in net unrealized gain (loss) on investments and foreign
currency transactions 7,008,521 (1,870,045)
- --------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 12,347,918 $ 2,941,671
- --------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.32 and $0.46 per share, respectively) $ (1,529,659) $ (705,053)
Class B ($0.23 and $0.38 per share, respectively) (144,001) (273,250)
Class C ($0.24 and $0.39 per share, respectively) (336,754) (261,030)
Class Y ($0.35 and $0.49 per share, respectively) (3,945,313) (5,053,655)
- --------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (5,955,727) $ (6,292,988)
- --------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $194,603,188 $ 51,674,970
Shares issued in reorganization -- 2,948,475
Reinvestment of distributions 1,588,208 3,962,554
Cost of shares repurchased (63,622,492) (76,403,252)
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $132,568,904 $(17,817,253)
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $138,961,095 $(21,168,570)
NET ASSETS:
Beginning of year 132,044,843 153,213,413
- --------------------------------------------------------------------------------------------------
End of year $271,005,938 $132,044,843
- --------------------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (392,698) $ (55,067)
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
44 Pioneer Short Term Income Fund | Annual Report | 8/31/10
- -------------------------------------------------------------------------------------------------------
'10 Shares '10 Amount '09 Shares '09 Amount
- -------------------------------------------------------------------------------------------------------
Class A
Shares sold 16,135,157 $155,975,673 1,481,394 $ 13,487,157
Shares issued in reorganization -- -- 310,760 2,815,490
Reinvestment of distributions 105,459 1,018,000 62,043 564,408
Less shares repurchased (4,933,375) (47,613,013) (1,088,825) (9,952,183)
- -------------------------------------------------------------------------------------------------------
Net increase 11,307,241 $109,380,660 765,372 $ 6,914,872
=======================================================================================================
Class B
Shares sold 165,531 $ 1,583,923 322,005 $ 2,956,123
Reinvestment of distributions 12,250 117,431 20,043 181,876
Less shares repurchased (383,974) (3,683,579) (356,583) (3,254,647)
- -------------------------------------------------------------------------------------------------------
Net decrease (206,193) $ (1,982,225) (14,535) $ (116,648)
=======================================================================================================
Class C
Shares sold 1,686,258 $ 16,169,023 973,568 $ 8,938,734
Reinvestment of distributions 26,006 249,635 16,344 148,199
Less shares repurchased (516,830) (4,957,407) (440,687) (3,972,471)
- -------------------------------------------------------------------------------------------------------
Net increase 1,195,434 $ 11,461,251 549,225 $ 5,114,462
=======================================================================================================
Class Y
Shares sold 2,190,445 $ 20,874,569 2,855,292 $ 26,292,956
Shares issued in reorganization -- -- 14,694 132,985
Reinvestment of distributions 21,180 203,142 339,487 3,068,071
Less shares repurchased (764,432) (7,368,493) (6,550,393) (59,223,951)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) 1,447,193 $ 13,709,218 (3,340,920) $(29,729,939)
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 45
Financial Highlights
- ---------------------------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/10 8/31/09
- ---------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.40 $ 9.52
- ---------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.31 $ 0.37
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.36 (0.03)
- ---------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.67 $ 0.34
Distributions to shareowners:
Net investment income (0.32) (0.46)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.35 $ (0.12)
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.75 $ 9.40
=========================================================================================================
Total return* 7.19% 3.90%
Ratio of net expenses to average net assets+ 0.90% 0.90%
Ratio of net investment income to average net assets+ 2.78% 3.59%
Portfolio turnover rate 42% 43%
Net assets, end of period (in thousands) $130,524 $19,544
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Net expenses 1.06% 1.15%
Net investment income 2.61% 3.35%
Ratios with waiver of fees and assumption of expenses by the Adviser and
reduction for fees paid indirectly:
Net expenses 0.90% 0.90%
Net investment income 2.78% 3.59%
=========================================================================================================
- -----------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended
8/31/08 8/31/07 8/31/06
- -----------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.76 $ 9.75 $ 9.84
- -----------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.45 $ 0.43 $ 0.29
Net realized and unrealized gain (loss) on investments and foreign
currency transactions (0.24) 0.02 (0.06)
- -----------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.21 $ 0.45 $ 0.23
Distributions to shareowners:
Net investment income (0.45) (0.44) (0.32)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.24) $ 0.01 $ (0.09)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.52 $ 9.76 $ 9.75
=======================================================================================================================
Total return* 2.18% 4.68% 2.38%
Ratio of net expenses to average net assets+ 0.91% 0.91% 0.90%
Ratio of net investment income to average net assets+ 4.60% 4.27% 3.05%
Portfolio turnover rate 34% 78% 81%
Net assets, end of period (in thousands) $12,499 $13,184 $21,701
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Net expenses 1.00% 1.00% 0.99%
Net investment income 4.51% 4.18% 2.96%
Ratios with waiver of fees and assumption of expenses by the Adviser and
reduction for fees paid indirectly:
Net expenses 0.90% 0.90% 0.90%
Net investment income 4.61% 4.28% 3.05%
=======================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales charges.
Total return would be reduced if sales charges were taken into account.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
46 Pioneer Short Term Income Fund | Annual Report | 8/31/10
- ---------------------------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/10 8/31/09
- ---------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 9.39 $ 9.50
- ---------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.22 $ 0.28
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.37 (0.01)
- ---------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.59 $ 0.27
Distributions to shareowners:
Net investment income (0.23) (0.38)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.36 $(0.11)
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.75 $ 9.39
=========================================================================================================
Total return* 6.35% 3.06%
Ratio of net expenses to average net assets+ 1.80% 1.80%
Ratio of net investment income to average net assets+ 2.37% 3.15%
Portfolio turnover rate 42% 43%
Net assets, end of period (in thousands) $4,822 $6,582
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Net expenses 1.88% 1.95%
Net investment income 2.29% 3.00%
Ratios with waiver of fees and assumption of expenses by the Adviser and
reduction for fees paid indirectly:
Net expenses 1.80% 1.80%
Net investment income 2.37% 3.15%
=========================================================================================================
- -----------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended
8/31/08 8/31/07 8/31/06
- -----------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 9.75 $ 9.75 $ 9.84
- -----------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.36 $ 0.34 $ 0.20
Net realized and unrealized gain (loss) on investments and foreign
currency transactions (0.25) 0.01 (0.05)
- -----------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.11 $ 0.35 $ 0.15
Distributions to shareowners:
Net investment income (0.36) (0.35) (0.24)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(0.25) $ -- $ (0.09)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.50 $ 9.75 $ 9.75
=======================================================================================================================
Total return* 1.16% 3.64% 1.56%
Ratio of net expenses to average net assets+ 1.80% 1.82% 1.80%
Ratio of net investment income to average net assets+ 3.72% 3.37% 2.14%
Portfolio turnover rate 34% 78% 81%
Net assets, end of period (in thousands) $6,798 $8,969 $14,959
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Net expenses 1.85% 1.88% 1.82%
Net investment income 3.67% 3.31% 2.12%
Ratios with waiver of fees and assumption of expenses by the Adviser and
reduction for fees paid indirectly:
Net expenses 1.80% 1.80% 1.80%
Net investment income 3.72% 3.39% 2.14%
=======================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales charges.
Total return would be reduced if sales charges were taken into account.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 47
Financial Highlights (continued)
- ----------------------------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/10 8/31/09
- ----------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.38 $ 9.49
- ----------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.23 $ 0.29
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.36 (0.01)
- ----------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.59 $ 0.28
Distributions to shareowners:
Net investment income (0.24) (0.39)
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.35 $(0.11)
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.73 $ 9.38
==========================================================================================================
Total return* 6.32% 3.14%
Ratio of net expenses to average net assets+ 1.70% 1.79%
Ratio of net investment income to average net assets+ 2.27% 2.74%
Portfolio turnover rate 42% 43%
Net assets, end of period (in thousands) $20,507 $8,549
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Net expenses 1.70% 1.79%
Net investment income 2.27% 2.74%
Ratios with waiver of fees and assumption of expenses by the Adviser and
reduction for fees paid indirectly:
Net expenses 1.70% 1.79%
Net investment income 2.27% 2.74%
==========================================================================================================
- ----------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended
8/31/08 8/31/07 8/31/06
- ----------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.74 $ 9.73 $ 9.82
- ----------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.37 $ 0.35 $ 0.21
Net realized and unrealized gain (loss) on investments and foreign
currency transactions (0.25) 0.01 (0.07)
- ----------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.12 $ 0.36 $ 0.14
Distributions to shareowners:
Net investment income (0.37) (0.35) (0.23)
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(0.25) $ 0.01 $(0.09)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.49 $ 9.74 $ 9.73
======================================================================================================================
Total return* 1.25% 3.79% 1.47%
Ratio of net expenses to average net assets+ 1.73% 1.72% 1.78%
Ratio of net investment income to average net assets+ 3.77% 3.45% 2.16%
Portfolio turnover rate 34% 78% 81%
Net assets, end of period (in thousands) $3,441 $2,879 $5,964
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Net expenses 1.73% 1.72% 1.78%
Net investment income 3.77% 3.45% 2.16%
Ratios with waiver of fees and assumption of expenses by the Adviser and
reduction for fees paid indirectly:
Net expenses 1.73% 1.71% 1.78%
Net investment income 3.77% 3.46% 2.16%
======================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales charges.
Total return would be reduced if sales charges were taken into account.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
48 Pioneer Short Term Income Fund | Annual Report | 8/31/10
- ---------------------------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/10 8/31/09
- ---------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.38 $ 9.51
- ---------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.34 $ 0.40
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.37 (0.04)
- ---------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.71 $ 0.36
Distributions to shareowners:
Net investment income (0.35) (0.49)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.36 $ (0.13)
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.74 $ 9.38
=========================================================================================================
Total return* 7.64% 4.11%
Ratio of net expenses to average net assets+ 0.57% 0.63%
Ratio of net investment income to average net assets+ 3.52% 4.36%
Portfolio turnover rate 42% 43%
Net assets, end of period (in thousands) $115,153 $97,370
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Net expenses 0.57% 0.63%
Net investment income 3.52% 4.36%
Ratios with waiver of fees and assumption of expenses by the Adviser and
reduction for fees paid indirectly:
Net expenses 0.57% 0.63%
Net investment income 3.52% 4.36%
=========================================================================================================
- -----------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended
8/31/08 8/31/07 8/31/06
- -----------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.76 $ 9.76 $ 9.85
- -----------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.48 $ 0.45 $ 0.32
Net realized and unrealized gain (loss) on investments and foreign
currency transactions (0.24) 0.02 (0.06)
- -----------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.24 $ 0.47 $ 0.26
Distributions to shareowners:
Net investment income (0.49) (0.47) (0.35)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.25) $ -- $ (0.09)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.51 $ 9.76 $ 9.76
=======================================================================================================================
Total return* 2.45% 4.96% 2.73%
Ratio of net expenses to average net assets+ 0.55% 0.53% 0.53%
Ratio of net investment income to average net assets+ 4.98% 4.68% 3.37%
Portfolio turnover rate 34% 78% 81%
Net assets, end of period (in thousands) $130,475 $189,724 $148,514
Ratios with no waiver of fees and assumption of expenses by the Adviser and
no reduction for fees paid indirectly:
Net expenses 0.55% 0.53% 0.53%
Net investment income 4.98% 4.68% 3.37%
Ratios with waiver of fees and assumption of expenses by the Adviser and
reduction for fees paid indirectly:
Net expenses 0.55% 0.53% 0.53%
Net investment income 4.98% 4.68% 3.37%
=======================================================================================================================
* 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.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 49
Notes to Financial Statements | 8/31/10
1. Organization and Significant Accounting Policies
Pioneer Short Term Income Fund (the Fund) is a Delaware statutory trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is to seek
a high level of current income to the extent consistent with a relatively high
level of stability of principal.
The Fund offers three classes of shares designated as Class A, Class C, and
Class Y shares. Effective as of the close of business on December 31, 2009,
Class B shares are no longer offered to new or existing shareholders, except
that dividends and/or capital gain distributions may continue to be reinvested
in Class B shares, and shareholders may exchange their Class B shares for
Class B shares of other Pioneer funds, as permitted by existing exchange
privileges. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
rates of class-specific fees and expenses, such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board 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 the 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 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. Class B shares convert to Class A shares
approximately eight years after the date of purchase.
When interest rates rise, the prices of fixed-income securities in the Fund
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise. Investments in the
Fund are subject to possible loss due to the financial failure of underlying
issuers and their inability to meet their debt obligations. The Fund's
prospectus contains unaudited information regarding the Fund's principal risks.
Please refer to that document when considering the Fund's principal risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
50 Pioneer Short Term Income Fund | Annual Report | 8/31/10
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting year. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Senior
floating rate loan interests (senior loans) are valued in accordance with
guidelines established by the Board of Trustees at the mean between the last
available bid and asked prices from one or more brokers or dealers as
obtained from Loan Pricing Corporation. Senior loans for which no reliable
price quotes are available will be valued by Loan Pricing Corporation through
the use of pricing matrices to determine valuations. Fixed income securities
with remaining maturity of more than sixty days are valued at 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. Valuations may be supplemented by dealers and
other sources, as required. Securities for which independent pricing services
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 using
fair value methods pursuant to procedures adopted by the Board of Trustees.
The Fund may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset value.
Thus, the valuation of the Fund's securities may differ from exchange prices.
At August 31, 2010, one security, representing 0.1% of total net assets was
valued using fair value methods (other than securities valued using prices
supplied by independent pricing services). Inputs used in the valuation of a
security using fair value methods include credit ratings, the financial
condition of the company, current market conditions and comparable
securities. Short-term fixed income securities with remaining maturities of
sixty days or less generally are valued at amortized cost. Money market
mutual funds are valued at net asset value.
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premiums and discounts related to certain mortgage-backed
securities are amortized or accreted in proportion to the monthly paydowns.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 51
All discounts/premiums on debt securities are accreted/amortized for
financial reporting purposes over the life of the respective securities, and
such accretion/amortization is included in interest income. Interest income,
including interest on income bearing cash accounts, is recorded on the
accrual basis, net of unrecoverable foreign taxes withheld at the applicable
country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in market price of those securities but are included with
the net realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized gains or losses are recorded in
the Fund's financial statements. The Fund records realized gains and losses
at the time a portfolio hedge is offset by entry into a closing transaction
or extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (see Note 6).
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years remain subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
52 Pioneer Short Term Income Fund | Annual Report | 8/31/10
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain on investment transactions, or
as from paid-in capital, depending on the type of book/tax differences that
may exist.
At August 31, 2010, The fund had a net capital loss carryforward of
$7,622,625, of which, the following amounts will expire between 2011 and 2018
if not utilized: $124 in 2011, $1,200,645 in 2012, $628,614 in 2013, $975,752
in 2014, $2,520,831 in 2015, $667,204 in 2016, $566,527 in 2017 and
$1,062,928 in 2018.
The Fund has elected to defer $212,581 in capital losses recognized between
November 1, 2009 and August 31, 2010 to its fiscal year ending August 31,
2011.
At August 31, 2010, the Fund has reclassified $207,912 to increase
distributions in excess of net investment income and $207,912 to increase
accumulated net realized loss and foreign currency transactions, to reflect
permanent book/tax differences. The reclassification has no impact on the net
assets of the Fund and presents the Fund's capital accounts on a tax basis.
The tax character of distributions paid during the years ended August 31,
2010 and August 31, 2009 were as follows:
- --------------------------------------------------------------------------------
2010 2009
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $5,955,727 $6,292,988
- --------------------------------------------------------------------------------
Total $5,955,727 $6,292,988
================================================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2010:
- --------------------------------------------------------------------------------
2010
- --------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 229,740
Capital loss carryforward (7,622,625)
Current year post-October loss deferred (212,581)
Current year dividend payable (272,571)
Unrealized depreciation (495,942)
- --------------------------------------------------------------------------------
Total $(8,373,979)
================================================================================
The difference between book-basis and tax-basis unrealized depreciation is
attributable to the tax treatment of premium and amortization, the
mark-to-market of foreign currency contracts, adjustments relating to
catastrophe bonds and interest on defaulted bonds.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 53
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned approximately $5,546 in underwriting commissions on the sale of
Class A shares for the year ended August 31, 2010.
F. Class Allocations
Income, common expenses, and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning of
the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, and Class C shares of the Fund,
respectively (see Note 4). Class Y shares do not pay distribution fees. All
expenses and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
The Fund declares as daily dividends substantially all of its net investment
income. All dividends are paid on a monthly basis. Short-term capital gain
distributions, if any, may be declared with the daily dividends.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time except that net investment
income dividends to Class A, Class B, Class C and Class Y shares can reflect
different transfer agent and distribution expense rates.
G. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian or a subcustodian of the Fund. The Fund's
investment adviser, Pioneer Investment Management, Inc. (PIM), is responsible
for determining that the value of the collateral remains at least equal to
the repurchase price.
H. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors. When entering into a securities loan transaction,
the Fund typically receives cash collateral from the borrower equal to at
least the fair value of the securities loaned, which is invested in temporary
investments. Credit Suisse AG, New York Branch, as the Fund's securities
lending
54 Pioneer Short Term Income Fund | Annual Report | 8/31/10
agent, manages the Fund's securities lending collateral. The income earned on
the investment of collateral is shared with the borrower and the lending
agent in payment of any rebate due to the borrower with respect to the
securities loan, and in compensation for the lending agent's services to the
Fund. The Fund also continues to receive payments in lieu of dividends or
interest on the securities loaned. Gain or loss on the fair value of the
loaned securities that may occur during the term of the loan will be for the
account of the Fund. The amount of the collateral is required to be adjusted
daily to reflect any price fluctuation in the fair value of the loaned
securities. If the required market value of the collateral is less than the
fair value of the loaned securities, the borrower is required to deliver
additional collateral for the account of the Fund prior to the close of
business on that day. The Fund has the right, under the lending agreement, to
terminate the loan and recover the securities from the borrower with prior
notice. The Fund is required to return the cash collateral to the borrower
and could suffer a loss if the value of the collateral, as invested, has
declined.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.40% of
the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 0.90%, 1.80%, 1.80% and 0.79% of the
average daily net assets attributable to Class A, Class B, Class C and Class Y
shares, respectively. These expense limitations are in effect through January
1, 2012 for Class A shares, through January 1, 2011 for Class B and Class C
shares and through June 1, 2012 for Class Y shares. There can be no assurance
that PIM will extend the expense limitation agreement for a class of shares
beyond the dates referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting, and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$3,196 in management fees, administrative costs and certain other
reimbursements payable to PIM at August 31, 2010.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 55
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the year ended August 31, 2010, such out-of-pocket expenses by class of
shares were as follows:
- --------------------------------------------------------------------------------
Shareholder Communications:
- --------------------------------------------------------------------------------
Class A $40,365
Class B 3,373
Class C 3,702
Class Y 775
- --------------------------------------------------------------------------------
Total $48,215
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $27,333 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at August 31, 2010.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B and Class C
shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the
average daily net assets attributable to Class B and Class C shares. The fee
for Class B and 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 B and
Class C shares. Included in "Due to affiliates" reflected on the Statement
of Assets and Liabilities is $1,581 in distribution fees payable to PFD at
August 31, 2010.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase (within 12 months for purchases made on or after
April 1, 2009). Class B shares that are redeemed within three years of purchase
are subject to a CDSC at declining rates beginning at 2.00%, based on the lower
of cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%, 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. For the year ended August 31, 2010, CDSCs in the amount of $17,181
were paid to PFD.
56 Pioneer Short Term Income Fund | Annual Report | 8/31/10
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS,
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended August 31, 2010, the Fund's expenses
were not reduced under such arrangements.
6. Forward Foreign Currency Contracts
At August 31, 2010, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. At August 31, 2010, the Fund's gross
forward currency settlement contracts receivable and payable were $384,085 and
$386,147, respectively, resulting in a net payable of $2,061. The average
number of contracts open during the year ended August 31, 2010 was 2,898,077.
Open portfolio hedges at August 31, 2010 were as follows:
- -----------------------------------------------------------------------------------------------
Net Net
Contracts to In Exchange Settlement Unrealized
Currency deliver For Date Value Gain
- -----------------------------------------------------------------------------------------------
NOK (Norwegian Krone) (2,425,000) $383,946 12/31/10 $(381,443) $ 2,503
NOK (Norwegian Krone) (2,525,000) $422,659 9/3/10 $(399,723) $22,936
7. Reorganization Information
On May 8, 2009, beneficial owners of Regions Morgan Keegan Select Limited
Maturity Fixed Income Fund approved a proposed Agreement and Plan of
Reorganization that provided for the reorganization listed below. This tax-free
reorganization was accomplished on May 15, 2009 ("Closing Date"), by exchanging
the assets and stated liabilities of Regions Morgan Keegan Select Limited
Maturity Fixed Income Fund for shares of Pioneer Short Term Income Fund.
Shareholders holding Class A, Class C and Class I shares of Regions Morgan
Keegan Select Limited Maturity Fixed Income Fund received Class A, Class A and
Class Y shares, respectively, of Pioneer Short Term Income Fund in the
reorganization. The following charts show the details of the reorganization as
of that Closing Date:
Pioneer Short Term Income Fund | Annual Report | 8/31/10 57
- --------------------------------------------------------------------------------------------------
Regions Morgan Pioneer
Pioneer Short Term Keegan Limited Maturity Short Term
Income Fund Fixed Income Fund Income Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- --------------------------------------------------------------------------------------------------
Net Assets
Class A $14,463,249 $2,568,326 $ 17,278,739*
Class B $ 6,457,009 $ -- $ 6,457,009
Class C $ 6,717,464 $ 247,164 $ 6,717,464*
Class Y/I $70,142,312 $ 132,985 $ 70,275,297
- --------------------------------------------------------------------------------------------------
Total Net Assets $97,780,034 $2,948,475 $100,728,509
- --------------------------------------------------------------------------------------------------
Shares Outstanding
Class A 1,596,197 340,313 1,906,957*
Class B 713,308 -- 713,308
Class C 742,845 32,753 742,845*
Class Y/I 7,751,275 17,619 7,765,969
Shares Issued in
Reorganization
Class A 310,760
Class Y 14,694
- --------------------------------------------------------------------------------------------------
Unrealized Accumulated
Depreciation On Gain On
Closing Date Closing Date
- --------------------------------------------------------------------------------------------------
Regions Morgan Keegan Select Limited Maturity
Fixed Income Fund $ (189,329) $ 16,539
- --------------------------------------------------------------------------------------------------
* On Closing Date, Class C shares of Regions Morgan Keegan Select Limited
Maturity Fixed Income Fund were exchanged for Class A shares of Pioneer
Short Term Income Fund.
8. Additional Disclosures about Derivative Instruments and Hedging Activities:
Fair values of derivative instruments as of August 31, 2010 were as follows:
- ----------------------------------------------------------------------------------------------
Derivatives Not
Accounted For As
Hedging Instruments
Under Accounting
Codification Standards
(ASC) 815 (formerly
FASB Statement 133) Asset Derivatives 2010 Liabilities Derivatives 2010
- ----------------------------------------------------------------------------------------------
Balance Sheet Fair Balance Sheet Fair
Location Value Location Value
- ----------------------------------------------------------------------------------------------
Foreign Exchange Contracts Receivables $25,439 Payables $2,061
- ----------------------------------------------------------------------------------------------
Total $25,439 $2,061
- ----------------------------------------------------------------------------------------------
58 Pioneer Short Term Income Fund | Annual Report | 8/31/10
The effect of derivative instruments on the Statement of Operations for the
year ended August 31, 2010 was as follows:
- -----------------------------------------------------------------------------------------------------
Derivatives Not
Accounted For As Change in
Hedging Instruments Location of Gain Realized Gain Unrealized
Under Accounting or (Loss) On or (Loss) Gain or (Loss)
Codification Standards Derivatives on Derivatives on Derivatives
(ASC) 815 (formerly Recognized Recognized Recognized
FASB Statement 133) in Income in Income in Income
- -----------------------------------------------------------------------------------------------------
Foreign Exchange Net realized loss on forward foreign $(21,760)
Contracts currency contracts and other assets
and liabilities denominated in
foreign currencies
Foreign Exchange Change in unrealized gain (loss) on $36,009
Contracts forward foreign currency contracts
and other assets and liabilities
denominated in foreign currencies
9. Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure and has
determined that there were no subsequent events requiring recognition or
disclosure in the financial statements.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 59
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders of
Pioneer Short Term Income Fund:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Short Term Income Fund (the Fund), including the schedule of investments, as of
August 31, 2010, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Fund's internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of August 31, 2010, by correspondence with
the custodian, brokers and agent banks or by other appropriate auditing
procedures where replies from brokers and agent banks were not received. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Short Term Income Fund at August 31, 2010, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the five years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
October 26, 2010
60 Pioneer Short Term Income Fund | Annual Report | 8/31/10
ADDITIONAL INFORMATION (unaudited)
The percentages of the Fund's ordinary income distributions that are exempt
from nonresident alien (NRA) tax withholding resulting from qualified interest
income and qualified short term gains were 90.83% and 0.0%, respectively.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 61
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their
principal occupations during at least the past five years. Trustees who are
interested persons of the Fund within the meaning of the 1940 Act are referred
to as Interested Trustees. Trustees who are not interested persons of the Fund
are referred to as Independent Trustees. Each of the Trustees serves as a
Trustee of each of the 58 U.S. registered investment portfolios for which
Pioneer serves as investment adviser (the "Pioneer Funds"). The address for all
Trustees and all officers of the Fund is 60 State Street, Boston, Massachusetts
02109.
62 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Interested Trustees
- --------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- --------------------------------------------------------------------------------
John F. Cogan, Jr. (84)* Chairman of the Board, Trustee since 2004.
Trustee and President Serves until a successor
trustee is elected or ear-
lier retirement or removal.
- --------------------------------------------------------------------------------
Daniel K. Kingsbury (52)* Trustee and Executive Trustee since 2008.
Vice President Serves until a successor
trustee is elected or ear-
lier retirement or removal.
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation(s) Held by Trustee
- -------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (84)* Non-Executive Chairman and a Director of Pioneer Investment Man- None
agement USA Inc. ("PIM-USA"); Chairman and a Director of Pioneer;
Chairman and Director of Pioneer Institutional Asset Management,
Inc. (since 2006); Director of Pioneer Alternative Investment Manage-
ment Limited (Dublin); President and a Director of Pioneer Alternative
Investment Management (Bermuda) Limited and affiliated funds;
Deputy Chairman and a Director of Pioneer Global Asset Management
S.p.A. ("PGAM") (until April 2010); Director of PIOGLOBAL Real
Estate Investment Fund (Russia) (until June 2006); Director of
Nano-C, Inc. (since 2003); Director of Cole Management Inc. (since
2004); Director of Fiduciary Counseling, Inc.; President and Director
of Pioneer Funds Distributor, Inc. ("PFD") (until May 2006); President
of all of the Pioneer Funds; and Of Counsel, Wilmer Cutler Pickering
Hale and Dorr LLP
- -------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (52)* Director, CEO and President of PIM-USA (since February 2007); None
Director and President of Pioneer and Pioneer Institutional Asset
Management, Inc. (since February 2007); Executive Vice President of
all of the Pioneer Funds (since March 2007); Director of PGAM
(2007-2010); Head of New Europe Division, PGAM (2000-2005);
Head of New Markets Division, PGAM (2005-2007)
- -------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers
or directors of the Fund's investment adviser and certain of its affiliates.
Pioneer Short Term Income Fund | Annual Report | 8/31/10 63
Independent Trustees
- -------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- -------------------------------------------------------------------
David R. Bock (66) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or ear-
lier retirement or removal.
- -------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation(s) Held by Trustee
- ----------------------------------------------------------------------------------------------------------------------------------
David R. Bock (66) Interim Chief Executive Officer, Oxford Analytica, Inc. (privately-held Director of Enterprise Commu-
research and consulting company) (2010 - present); Managing Part- nity Investment, Inc. (privately-
ner, Federal City Capital Advisors (corporate advisory services com- held affordable housing finance
pany) (1997-2004 and 2008-present); Executive Vice President and company) (1985 - present);
Chief Financial Officer, I-trax, Inc. (publicly traded health care services Director of Oxford Analytica,
company) (2004-2007); Executive Vice President and Chief Financial Inc. (2008 - present); Director
Officer, Pedestal Inc. (internet-based mortgage trading company) of New York Mortgage Trust
(2000-2002) (publicly-traded mortgage REIT)
(2004-2009)
- ----------------------------------------------------------------------------------------------------------------------------------
64 Pioneer Short Term Income Fund | Annual Report | 8/31/10
- ------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- ------------------------------------------------------------------
Mary K. Bush (62) Trustee Trustee since 2004.
Serves until a successor
trustee is elected or ear-
lier retirement or removal.
- ------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation(s) Held by Trustee
- ----------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (62) President, Bush International, LLC (international financial advisory Director of Marriott Interna-
firm) (1991 - present); Managing Director, Federal Housing Finance tional, Inc. (2008 - present);
Board (oversight of Federal Home Loan Bank system) (1989 - 1991); Director of Discover Financial
Vice President and Head of International Finance, Federal National Services (credit card issuer and
Mortgage Association (1988 - 1989); U.S. Alternate Executive Direc- electronic payment services)
tor, International Monetary Fund (1984 - 1988); Executive Assistant (2007 - present); Former Direc-
to Deputy Secretary of the U.S. Treasury, U.S. Treasury Department tor of Briggs & Stratton Co.
(1982 - 1984); Vice President and Team Leader in Corporate Bank- (engine manufacturer)
ing, Bankers Trust Co. (1976 - 1982) (2004 - 2009); Director of UAL
Corporation (airline holding
company) (2006 - present);
Director of ManTech Interna-
tional Corporation (national
security, defense, and intelli-
gence technology firm)
(2006 - present); Member,
Board of Governors, Investment
Company Institute
(2007 - present); Former Direc-
tor of Brady Corporation
(2000 - 2007); Former Director
of Mortgage Guaranty Insurance
Corporation (1991 - 2006);
Former Director of Millennium
Chemicals, Inc. (commodity
chemicals) (2002 - 2005);
Former Director, R.J. Reynolds
Tobacco Holdings, Inc.
(tobacco) (1999 - 2005);
Former Director of Texaco, Inc.
(1997 - 2001)
- ----------------------------------------------------------------------------------------------------------------------------------
Pioneer Short Term Income Fund | Annual Report | 8/31/10
65
Independent Trustees (continued)
- -------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- -------------------------------------------------------------------------
Benjamin M. Friedman (65) Trustee Trustee since 2008.
Serves until a successor
trustee is elected or ear-
lier retirement or removal.
- -------------------------------------------------------------------------
Margaret B.W. Graham (63) Trustee Trustee since 2004.
Serves until a successor
trustee is elected or ear-
lier retirement or removal.
- -------------------------------------------------------------------------
Thomas J. Perna (59) Trustee Trustee since 2006.
Serves until a successor
trustee is elected or ear-
lier retirement or removal.
- -------------------------------------------------------------------------
Marguerite A. Piret (62) Trustee Trustee since 2004.
Serves until a successor
trustee is elected or ear-
lier retirement or removal.
- -------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation(s) Held by Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (65) William Joseph Maier Professor of Political Economy, Harvard Univer- Trustee, Mellon Institutional
sity (1972 - present) Funds Investment Trust and
Mellon Institutional Funds Mas-
ter Portfolio (oversaw 17 portfo-
lios in fund complex)
(1989 - 2008)
- -----------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (63) Founding Director, Vice-President and Corporate Secretary, The None
Winthrop Group, Inc. (consulting firm) (1982 - present); Desautels
Faculty of Management, McGill University (1999 - present); and Man-
ager of Research Operations and Organizational Learning, Xerox
PARC, Xerox's Advance Research Center (1990 - 1994)
- -----------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (59) Chairman and Chief Executive Officer, Quadriserv, Inc. (technology Director, Broadridge Financial
products for securities lending industry) (2008 - present); Private Solutions, Inc. (investor com-
investor (2004 - 2008); and Senior Executive Vice President, The munications and securities
Bank of New York (financial and securities services) (1986 - 2004) processing provider for financial
services industry)
(2009 - present); Director,
Quadriserv, Inc.
(2005 - present)
- -----------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (62) President and Chief Executive Officer, Newbury, Piret & Company, Inc. Director of New America High
(investment banking firm) (1981 - present) Income Fund, Inc. (closed-end
investment company)
(2004 - present); Member,
Board of Governors, Investment
Company Institute
(2000 - 2006)
- -----------------------------------------------------------------------------------------------------------------------------------
66 Pioneer Short Term Income Fund | Annual Report | 8/31/10
Fund Officers
- --------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- --------------------------------------------------------------------------------
Christopher J. Kelley (45) Secretary Since 2010. Serves at the
discretion of the Board.
- --------------------------------------------------------------------------------
Carol B. Hannigan (49) Assistant Secretary Since 2010. Serves at the
discretion of the Board.
- --------------------------------------------------------------------------------
Thomas Reyes (47) Assistant Secretary Since 2010. Serves at the
discretion of the Board.
- --------------------------------------------------------------------------------
Mark E. Bradley (50) Treasurer Since 2008. Serves at the
discretion of the Board.
- --------------------------------------------------------------------------------
Luis I. Presutti (45) Assistant Treasurer Since 2004. Serves at the
discretion of the Board.
- --------------------------------------------------------------------------------
Gary Sullivan (52) Assistant Treasurer Since 2004. Serves at the
discretion of the Board.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation(s) Held by Officer
- --------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (45) Vice President and Associate General Counsel of Pioneer since Janu- None
ary 2008 and Secretary of all of the Pioneer Funds since June 2010;
Assistant Secretary of all of the Pioneer Funds from September 2003
to May 2010; Vice President and Senior Counsel of Pioneer from July
2002 to December 2007
- --------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (49) Fund Governance Director of Pioneer since December 2006 and None
Assistant Secretary of all the Pioneer Funds since June 2010; Man-
ager -- Fund Governance of Pioneer from December 2003 to Novem-
ber 2006; Senior Paralegal of Pioneer from January 2000 to Novem-
ber 2003
- --------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (47) Counsel of Pioneer since June 2007 and Assistant Secretary of all the None
Pioneer Funds since June 2010; Vice President and Counsel at State
Street Bank from October 2004 to June 2007
- --------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (50) Vice President -- Fund Accounting, Administration and Controllership None
Services of Pioneer; and Treasurer of all of the Pioneer Funds since
March 2008; Deputy Treasurer of Pioneer from March 2004 to
February 2008; Assistant Treasurer of all of the Pioneer Funds from
March 2004 to February 2008; and Treasurer and Senior Vice Presi-
dent, CDC IXIS Asset Management Services from 2002 to 2003
- --------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (45) Assistant Vice President -- Fund Accounting, Administration and Con- None
trollership Services of Pioneer; and Assistant Treasurer of all of the
Pioneer Funds
- --------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (52) Fund Accounting Manager -- Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all of
the Pioneer Funds
- --------------------------------------------------------------------------------------------------------------------------
Pioneer Short Term Income Fund | Annual Report | 8/31/10
67
Fund Officers (continued)
- --------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- --------------------------------------------------------------------------------
David F. Johnson (30) Assistant Treasurer Since 2009. Serves at the
discretion of the Board.
- --------------------------------------------------------------------------------
Jean M. Bradley (57) Chief Compliance Officer Since 2010. Serves at the
discretion of the Board.
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation(s) Held by Officer
- -----------------------------------------------------------------------------------------------------------------------
David F. Johnson (30) Fund Administration Manager -- Fund Accounting, Administration and None
Controllership Services since November 2008 and Assistant Treasurer
of all of the Pioneer Funds since January 2009; Client Service Man-
ager -- Institutional Investor Services at State Street Bank from March
2003 to March 2007
- -----------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (57) Chief Compliance Officer of Pioneer and of all the Pioneer Funds None
since March 2010; Director of Adviser and Portfolio Compliance at
Pioneer since October 2005; Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to October 2005
- -----------------------------------------------------------------------------------------------------------------------
68 Pioneer Short Term Income Fund | Annual Report | 8/31/10
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:
- --------------------------------------------------------------------------------
PIMSS, Inc.
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: www.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
pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2010 Pioneer Investments 19427-04-1010
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
$38,686 in 2010 and $37,000 in 2009.
(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.
$8,290 and $8,290 in 2010 and 2009, respectively.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
$8,290 in 2010 and $8,290 in 2009.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Short Term Income Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date October 29, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date October 29, 2010
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date October 29, 2010
* Print the name and title of each signing officer under his or her signature.