<PAGE>
DEAR FELLOW SHAREOWNERS,
- --------------------------------------------------------------------------------
Pioneer America Income Trust ended its eighth fiscal year on December 31, 1995.
Healthy investing conditions -- low inflation, slow economic growth and
favorable interest rates -- existed throughout the year, translating into
impressive results for the bond market. Your Fund, too, performed well as it
provided shareowners with current income and capital appreciation.
HOW YOUR FUND PERFORMED
For the year ended December 31, 1995, Pioneer America Income Trust achieved the
following results:
- - CLASS A SHARES -- Shareowners received income dividends totaling $0.677 per
share. The Fund's 30-day yield was 5.68% as of December 31, 1995.1 Net asset
value stood at $10.20 per share, versus $9.41 a year earlier. The Fund's total
return was 16.06% based on net asset value, and 10.88% based on public
offering price. Total return assumes the reinvestment of all distributions at
net asset value.
- - CLASS B SHARES -- Shareowners received a total of $0.610 per share in income
dividends during the period. As of December 31, the Fund's 30-day yield was
5.16%.1 Net asset value stood at $10.17 per share, versus $9.40 a year
earlier. The Fund's total return for the period was 15.08% assuming shares
were held throughout the period, and 11.08% if shares were redeemed. Total
return assumes the reinvestment of all distributions.
A REWARDING YEAR FOR BOND INVESTORS
Performance in the United States bond market was impressive for much of 1995,
making it an especially rewarding year. Weakening economic growth and low
inflation throughout the period provided the backdrop for long-term interest
rates' decline to their lowest levels in two years; the benchmark 30-year
Treasury bond yielded 5.95% as of December 31, versus 7.88% one year earlier.
The much-improved conditions came on the heels of a tumultuous 1994, when
concerns about inflation and the increasing pace of economic growth caused the
Federal Reserve (the Fed) to initiate a series of hikes in short-term interest
rates. These higher rates triggered a severe decline in bond prices throughout
1994. Moving into 1995, however, the Fed's fiscal policy met with success; a
number of important economic indicators pointed to a slower-growing economy, and
inflation remained low. Even the Fed's additional increase in February added
enthusiasm to the bond market; investors saw the hike as an indication of the
Fed's resolve to keep inflation low and to prevent the economy from moving
forward too quickly. Indeed, signs of a slowing economy began to surface,
sending long-term interest rates lower and creating an optimistic climate for
investing.
To keep the economy from slowing too significantly, the Fed began to lower the
federal funds rate later in the period -- on July 6 and December 19. Investors
again viewed the Fed's actions favorably, further fueling the bond market's
positive momentum. There was volatility in the bond market, however,
particularly during the latter half of the fiscal year, due primarily to the
heightening debate about the federal budget. While events in Washington, DC show
promise for a balanced budget, concerns surfaced about how soon an agreement
might be reached, triggering some temporary declines.
HOW PIONEER MANAGED YOUR INVESTMENT
Pioneer America Income Trust invests only in securities issued by the U.S.
Treasury and selected government agencies. Each holding in the portfolio carries
the government's "full faith and credit" backing, ensuring that your Fund will
receive interest and principal payments on time and in full. (Of course, this
guarantee does not extend to the price or yield of Fund shares.) Your management
maintains a high-quality, conservative focus and avoids speculative derivative
investments.
As of December 31, 55% of the Fund's holdings had an average effective life of
less than five years, versus 40% one year earlier. The most significant increase
occurred in bonds with two-to-five years to maturity, which totaled 50% of the
portfolio at the period's end, compared to 29% 12 months ago. Given the
uncertainty of the direction of interest rates, we expect the Fund's
shorter-term issues to add a degree of price stability, in addition to providing
yields that have become highly comparable to those of longer-maturity bonds.
To participate in the bond market's strength, your management took a position in
long-term securities over the course of the year, bringing them to 17% of the
portfolio on December 31. We expect the Fund's footing in bonds with 10-plus
years to maturity will continue to add to the Fund's total return -- while
avoiding the risk that a heavy concentration in long-term bonds can create. The
addition of these bonds
1 Yield is based on a standard formula prescribed by the Securities and
Exchange Commission. The Fund's investment adviser, Pioneering Management
Corporation, is currently reducing its management fee and certain other
expenses, otherwise returns would have been lower and the yield for Class A
shares and Class B shares would have been 5.59% and 5.07%, respectively.
<PAGE>
increased the Fund's average effective life to 8.65 years at December 31, versus
6.11 years one year ago. In our view, the portfolio's combination of short-and
long-term maturities should offer shareowners the conservative -- yet
competitive -- mix needed for income and long-term capital appreciation.
At the end of the fiscal year, half of the Fund's portfolio was invested in
Government National Mortgage Association (GNMA) mortgage-backed securities, and
48% in U.S. Treasury securities. For much of the period, the performance of
GNMAs lagged that of Treasurys, due primarily to falling interest rates. Because
lower interest rates create the potential for mortgage holders to refinance
(leading to the early retirement of mortgage-backed securities such as GNMAs)
demand for the issues at times declined. Despite this, we expect the Fund to
benefit from its mortgage-backed securities, since they have added nicely to the
Fund's income stream. Throughout the year, we found attractively priced issues
to add to the Fund's existing holdings, selecting securities with "call"
protection, which means issuers cannot redeem, or "call," the bonds prior to
maturity or until a pre-set date.
The accompanying chart shows the maturity of portfolio holdings at the end of
the fiscal year.
EFFECTIVE PORTFOLIO MATURITY
(as of December 31,1995)
[SMALL PIE CHART: 10+ YEARS 17%, 7-10 YEARS 17%,
5-7 YEARS 11%, 2-5 YEARS 50%, 0-2 YEARS 5%]
LOOKING AHEAD
Bond investors will not soon forget the past year. The strong results in 1995
came as a huge relief to investors who had been in the market in 1994. While the
past two years' extreme results -- both negative and positive -- are unusual,
they nonetheless illustrate how investing for the long term can help one ride
out market turbulence.
Moving into 1996, concerns exist about the ability of politicians to put
together and pass a credible, balanced budget. In addition, commodity prices
have begun creeping steadily upward -- a possible indicator of potential future
inflation. However, with slow economic growth apparent over the near term and
Fed monetary policy still relatively restrictive, the overall bond market looks
quite healthy to us. In fact, the potential exists for the Fed to lower
short-term interest rates yet again.
Naturally, we will continue to monitor progress on the budget and other events
that may affect the bond market. While these issues undoubtedly will create
short-term fluctuations, they should not hinder the long-term performance we
think the bond market can deliver. We believe the Fund's conservative
positioning, coupled with generally positive investing conditions, should
continue to offer shareowners solid long-term results.
Please read on through the following pages, which provide the Fund's audited
Schedule of Investments and financial statements as of December 31, 1995. If you
have any questions about your investment in Pioneer America Income Trust, please
contact your investment representative, or call Pioneer at 1-800-225-6292.
Respectfully,
[SIGNATURE]
John F. Cogan, Jr.
Chairman and President,
Pioneer America Income Trust
2
<PAGE>
GROWTH OF A $10,000 INVESTMENT*
This chart shows the growth of a $10,000 investment made in Pioneer America
Income Trust Class A at public offering price, compared to the growth of the
Lehman Brothers Government Bond Index.
PIONEER AMERICA INCOME TRUST CLASS A:
Average ANNUAL TOTAL RETURNS
(as of December 31, 1995)
Life of Fund
1 Year 5 Years 6/1/88
------ ------- ------------
Net Asset Value 16.06% 7.78% 8.33%
Public Offering Price* 10.88 6.79 7.67
[LINE CHART GRAPH]
Pioneer America Income Lehman Government
Trust A Bond Index
Jun-88 9,550 10,000
Dec-88 9,799 10,265
10,439 11,208
Dec-89 10,926 11,725
11,283 11,985
Dec-90 11,909 12,747
12,385 13,199
Dec-91 13,354 14,700
13,731 15,014
Dec-92 14,246 15,762
15,197 16,951
Dec-93 15,538 17,442
14,871 16,724
Dec-94 14,921 16,853
16,358 18,741
Dec-95 17,318 19,945
The Lehman Brothers Government Bond Index is an unmanaged measure of the U.S.
Treasury debt, all publicly issued debt of U.S. government agencies and
quasi-federal corporations, and corporate debt guaranteed by the U.S.
government. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in the Index.
* Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period and assumes reinvestment of all distributions at net asset value.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
3
<PAGE>
GROWTH OF A $10,000 INVESTMENT*
This chart shows the growth of a $10,000 investment made in Pioneer America
Income Trust Class B, compared to the growth of the Lehman Brothers Government
Bond Index.+
PIONEER AMERICA INCOME TRUST CLASS B:
Average ANNUAL TOTAL RETURNS
(as of December 31, 1995)
Life of Fund
1 Year 4/29/94
------ --------
If Held 15.08% 8.40%
If Redeemed* 11.08 6.12
[LINE CHART GRAPH]
Pioneer America Income Lehman Government
Trust B Bond Index
Apr-94 10,000 10,000
9,986 9,987
Jun-94 9,952 9,964
10,113 10,147
10,121 10,149
Sep-94 9,978 10,006
9,949 9,999
9,898 9,981
Dec-94 9,943 10,041
10,104 10,228
10,318 10,448
Mar-95 10,395 10,514
10,473 10,651
10,788 11,081
Jun-95 10,856 11,166
10,825 11,125
10,925 11,256
Sep-95 11,034 11,364
11,144 11,537
11,287 11,717
Dec-95 11,042 11,883
The Lehman Brothers Government Bond Index is an unmanaged measure of the U.S.
Treasury debt, all publicly issued debt of U.S. government agencies and
quasi-federal corporations, and corporate debt guaranteed by the U.S.
government. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in the Index.
* Reflects deduction of the maximum 4.0% contingent deferred sales charge at the
end of the period and assumes reinvestment of all distributions.
+ Index comparison begins April 30, 1994.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
4
<PAGE>
<TABLE>
PIONEER AMERICA INCOME TRUST
SCHEDULE OF INVESTMENTS--DECEMBER 31, 1995
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INVESTMENT IN SECURITIES--98.1%
U.S. GOVERNMENT AGENCIES--50.3%
Government National Mortgage Association
$ 136,776 GNMA Midget, 9.0%, 2004 to 2005........................................................ $ 143,214
894,068 GNMA Midget, 9.5%, 2003 to 2006........................................................ 936,233
1,280,223 GNMA Midget, 10.0%, 2001 to 2006....................................................... 1,346,823
113,303 GNMA Midget, 10.5%, 2000 to 2003....................................................... 119,570
7,430,043 GNMA, 7.5%, 2025....................................................................... 7,601,826
30,580,419 GNMA, 8.0%, 2024 to 2025............................................................... 31,830,611
22,012,457 GNMA, 8.5%, 2024 to 2025............................................................... 23,113,080
11,143,680 GNMA, 9.0%, 2016 to 2024............................................................... 11,760,444
477,284 GNMA, 9.5%, 2019 to 2021............................................................... 509,202
2,128,187 GNMA, 10.0%, 2016 to 2020.............................................................. 2,347,902
333,353 GNMA, 10.5%, 1998 to 2019.............................................................. 369,247
------------
$ 80,078,152
------------
OTHER U.S. GOVERNMENT AGENCY OBLIGATIONS
4,275,000 Financial Assistance Corp., 9.45%, 2003................................................ $ 4,723,191
------------
Total U.S. Government Agencies (Cost $81,616,243)...................................... $ 84,801,343
------------
U.S. GOVERNMENT SECURITIES--47.8%
9,000,000 U.S. Treasury Bonds, 7.25%, 2022....................................................... $ 10,409,040
14,500,000 U.S. Treasury Bonds, 8.00%, 2021....................................................... 18,143,125
915,000 U.S. Treasury Bonds, 8.25%, 2005....................................................... 1,005,356
3,000,000 U.S. Treasury Bonds, 8.375%, 2008...................................................... 3,509,520
1,000,000 U.S. Treasury Bonds, 8.75%, 2008....................................................... 1,192,810
2,590,000 U.S. Treasury Bonds, 9.125%, 2009...................................................... 3,169,098
3,000,000 U.S. Treasury Bonds, 10.0%, 2010....................................................... 3,912,180
4,000,000 U.S. Treasury Bonds, 10.375%, 2009..................................................... 5,277,480
2,000,000 U.S. Treasury Bonds, 10.75%, 2003...................................................... 2,622,820
8,100,000 U.S. Treasury Notes, 7.5%, 2005........................................................ 9,180,864
3,990,000 U.S. Treasury Notes, 8.0%, 2001........................................................ 4,466,287
5,000,000 U.S. Treasury Notes, 8.875%, 2000...................................................... 5,675,000
3,750,000 U.S. Treasury Notes, 9.0%, 1998........................................................ 4,060,537
2,000,000 U.S. Treasury Notes, 9.25%, 1996....................................................... 2,002,820
3,000,000 U.S. Treasury Notes, 9.25%, 1998....................................................... 3,290,610
2,680,000 U.S. Treasury Notes, 9.375%, 1996...................................................... 2,710,578
------------
Total U.S. Government Securities (Cost $76,985,926).................................... $ 80,628,125
------------
TOTAL INVESTMENT IN SECURITIES (Cost $158,602,169) (a)(b).............................. $165,429,468
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
<TABLE>
PIONEER AMERICA INCOME TRUST
SCHEDULE OF INVESTMENTS--DECEMBER 31, 1995 (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
TEMPORARY CASH INVESTMENT--1.9%
REPURCHASE AGREEMENT--1.9%
$3,200,000 Agreement with Chase Manhattan Corp., dated 12/29/95, bearing 5.65% to be repurchased
at $3,200,000 plus accrued interest on 1/2/96, collateralized by $578,000 U.S. Treasury
Notes bearing 6.125%, due 9/30/00 and $2,595,000 U.S. Treasury Notes bearing 7.25%
due 11/15/96................................................................................ $ 3,201,508
------------
TOTAL TEMPORARY CASH INVESTMENT (Cost $3,200,000)............................................. $ 3,201,508
------------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT--100% (Cost $161,802,169)......................................... $168,630,976
============
<FN>
(a) At December 31, 1995, the net unrealized gain on investments based on cost for federal income tax purposes of
$158,602,169 was as follows:
Aggregate gross unrealized gain for all investments in which there is an excess of value over tax cost... $ 7,568,978
Aggregate gross unrealized loss for all investments in which there is an excess of tax cost over value... (741,679)
------------
Net unrealized gain...................................................................................... $ 6,827,299
============
(b) At December 31, 1995, the Trust had a capital loss carryforward of $6,494,180 which will expire between 2001 and 2003 if
not utilized.
Note: The Trust's investments in mortgage-backed securities of the Government National Mortgage Association (GNMA) are
interests in separate pools of mortgages. All separate investments in this issuer which have the same coupon rate have
been aggregated for the purpose of presentation in this schedule of investments.
</FN>
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for
the year ended December 31, 1995 aggregated $101,355,972 and $111,181,798,
respectively.
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
<TABLE>
PIONEER AMERICA INCOME TRUST
BALANCE SHEET--DECEMBER 31, 1995
- --------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash investment of $3,201,508)
(cost $161,802,169; see Schedule of Investments and Note 1).............................. $168,630,976
Cash....................................................................................... 92,933
Receivables--
Interest................................................................................. 1,891,495
Trust shares sold........................................................................ 168,679
Other...................................................................................... 8,532
------------
Total assets.......................................................................... $170,792,615
------------
LIABILITIES:
Payables--
Trust shares repurchased................................................................. $ 632,635
Dividends................................................................................ 198,737
Due to affiliates (Notes 2, 3 and 4)....................................................... 201,135
Accrued expenses........................................................................... 60,016
------------
Total liabilities..................................................................... $ 1,092,523
------------
NET ASSETS:
Paid-in capital (Note 1)................................................................... $169,292,549
Accumulated undistributed net investment income (Note 1)................................... 74,424
Accumulated net realized loss on investments (Note 1)...................................... (6,494,180)
Net unrealized gain on investments (Note 1)................................................ 6,827,299
------------
Total net assets...................................................................... $169,700,092
============
NET ASSET VALUE PER SHARE:
Class A--(based on $162,708,133/15,956,535 shares of beneficial interest
outstanding--unlimited number of shares authorized)................................... $ 10.20
============
Class B--(based on $6,991,959/687,528 shares of beneficial interest
outstanding--unlimited number of shares authorized)................................. $ 10.17
============
MAXIMUM OFFERING PRICE:
Class A............................................................................... $ 10.68
=============
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
<TABLE>
PIONEER AMERICA INCOME TRUST
STATEMENT OF OPERATIONS--FOR THE YEAR ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME (NOTE 1):
Interest................................................................... $12,956,877
-----------
EXPENSES:
Management fees (Note 2)................................................... $ 821,251
Distribution fees (Note 4)
Class A.................................................................. 425,890
Class B.................................................................. 39,907
Transfer agent fees (Note 3)
Class A.................................................................. 382,875
Class B.................................................................. 9,983
Registration fees.......................................................... 68,352
Professional fees.......................................................... 93,543
Accounting (Note 2)........................................................ 85,102
Custodian fees............................................................. 28,912
Printing................................................................... 49,640
Fees and expenses of nonaffiliated trustees................................ 12,450
Miscellaneous.............................................................. 18,803
----------
Total expenses........................................................ $2,036,708
Less fees paid indirectly (Note 5).................................... (28,656)
Less management fees waived by Pioneering Management Corporation
(Note 2)............................................................ (331,265)
----------
Net expenses...................................................................... $ 1,676,787
-----------
Net investment income....................................................... $11,280,090
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments....................................................... $ (814,678)
Change in net unrealized gain on investments........................................... 14,043,149
-----------
Net gain on investments........................................................... $13,228,471
-----------
Net increase in net assets resulting from operations........................ $24,508,561
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
<TABLE>
PIONEER AMERICA INCOME TRUST
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994
- ---------------------------------------------------------------------------------------------------------
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income................................................... $ 11,280,090 $ 9,410,841
Net realized loss on investments........................................ (814,678) (5,382,396)
Change in net unrealized gain on investments............................ 14,043,149 (9,650,678)
------------ ------------
Net increase (decrease) in net assets resulting from operations.... $ 24,508,561 $ (5,622,233)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ($0.68 and $0.66 per share, respectively)..................... $(11,072,485) $ (9,314,482)
Class B ($0.61 and $0.40 per share, respectively)..................... (231,937) (47,215)
------------ ------------
Decrease in net assets resulting from distributions to shareholders..... $(11,304,422) $ (9,361,697)
------------ ------------
FROM TRUST SHARE TRANSACTIONS:
Net proceeds from sale of shares........................................ $ 30,228,239 $110,576,083
Net asset value of shares issued to shareholders in reinvestment
of dividends.......................................................... 8,782,844 7,078,526
Cost of shares repurchased.............................................. (46,543,628) (44,533,695)
------------ ------------
Net increase (decrease) in net assets resulting from trust
share transactions................................................. $ (7,532,545) $ 73,120,914
------------ ------------
Net increase in net assets......................................... $ 5,671,594 $ 58,136,984
NET ASSETS:
Beginning of year....................................................... 164,028,498 105,891,514
------------ ------------
End of year (including accumulated undistributed net investment income
of $74,424 and $52,709, respectively)................................. $169,700,092 $164,028,498
============ ============
</TABLE>
<TABLE>
<CAPTION>
1995 1994
------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold..................................... 2,411,447 $ 23,762,264 10,868,373 $107,749,001
Shares issued to shareholders in
reinvestment of distributions................. 871,169 8,600,898 723,067 7,040,310
Less shares repurchased......................... (4,532,725) (44,436,985) (4,464,315) (43,692,421)
---------- ------------ ---------- ------------
Net increase (decrease)......................... (1,250,109) $(12,073,823) 7,127,125 $ 71,096,890
========== ============ ========== ============
CLASS B *
Shares sold..................................... 654,066 $ 6,465,975 292,379 $ 2,827,082
Shares issued to shareholders in
reinvestment of distributions................. 18,343 181,946 4,004 38,216
Less shares repurchased......................... (215,740) (2,106,643) (86,801) (841,274)
---------- ------------ ---------- ------------
Net increase.................................... 456,669 $ 4,541,278 209,582 $ 2,024,024
========== ============ ========== ============
<FN>
* Class B shares were first publicly offered on April 29, 1994.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
<TABLE>
PIONEER AMERICA INCOME TRUST
FINANCIAL HIGHLIGHTS--SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIODS PRESENTED
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31, MAY 31, 1988
---------------------------------------------------------------------- TO
1995 1994 1993 1992 1991 1990 1989 DECEMBER 31, 1988
-------- -------- -------- ------- ------- ------- ------- ------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of
period............................. $ 9.41 $ 10.48 $ 10.27 $ 10.35 $ 10.03 $ 10.04 $ 9.86 $10.00
-------- -------- -------- ------- ------- ------- ------- ------
INCREASE (DECREASE) FROM INVESTMENT
OPERATIONS:
Net investment income............ $ 0.68 $ 0.66 $ 0.68 $ 0.73 $ 0.84 $ 0.87 $ 0.90 $ 0.51
Net realized and unrealized gain
(loss) on investments.......... 0.79 (1.07) 0.24 (0.07) 0.33 (0.02) 0.18 (0.14)
-------- -------- -------- ------- ------- ------- ------- ------
Net increase (decrease) from
investment operations.......... $ 1.47 $ (0.41) $ 0.92 $ 0.66 $ 1.17 $ 0.85 $ 1.08 $ 0.37
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............ (0.68) (0.66) (0.67) (0.73) (0.85) (0.86) (0.90) (0.51)
Net realized gain................ -- -- (0.04) (0.01) -- -- -- --
-------- -------- -------- ------- ------- ------- ------- ------
Net increase (decrease) in net asset
value.............................. $ 0.79 $ (1.07) $ 0.21 $ (0.08) $ 0.32 $ (0.01) $ 0.18 $(0.14)
-------- -------- -------- ------- ------- ------- ------- ------
Net asset value, end of period...... $ 10.20 $ 9.41 $ 10.48 $ 10.27 $ 10.35 $ 10.03 $ 10.04 $ 9.86
======== ======== ======== ======= ======= ======= ======= ======
Total return*....................... 16.06% (3.97)% 9.07% 6.67% 12.14% 8.99% 11.49% 3.76%
Ratio of net operating expenses to
average net assets................. 1.02%+ 1.00% 1.00% 1.03% 0.75% 0.75% 0.75% 0.67%**
Ratio of net investment income to
average
net assets......................... 6.85%+ 6.84% 6.37% 7.01% 8.07% 8.75% 9.10% 8.86%**
Portfolio turnover rate............. 62.25% 60.50% 41.50% 54.50% 36.54% 69.12% 66.06% 61.20%**
Net assets, end of period (in
thousands)......................... $162,708 $161,858 $105,892 $85,425 $43,711 $17,160 $10,533 $4,634
RATIOS ASSUMING NO WAIVER OF
MANAGEMENT FEES OR ASSUMPTION OF
EXPENSES BY PMC AND NO REDUCTION
FOR FEES PAID INDIRECTLY
Net operating expenses........... 1.22% 1.12% 1.13% 1.25% 1.75% 1.81% 2.36% 3.01%**
Net investment income............ 6.65% 6.72% 6.24% 6.79% 7.07% 7.69% 7.49% 6.52%**
RATIOS ASSUMING WAIVER OF MANAGEMENT
FEES AND ASSUMPTION OF EXPENSES BY
PMC AND REDUCTION FOR FEES PAID
INDIRECTLY
Net operating expenses........... 1.00% -- -- -- -- -- -- --
Net investment income............ 6.87% -- -- -- -- -- -- --
<FN>
- ---------------
+ Ratios assuming no reduction for fees paid indirectly.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
<TABLE>
PIONEER AMERICA INCOME FUND
FINANCIAL HIGHLIGHTS--SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIODS PRESENTED
- -------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED APRIL 29, 1994 TO
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- -----------------
<S> <C> <C>
CLASS B***
Net asset value, beginning of
period............................. $ 9.40 $ 9.85
------- -------
INCREASE (DECREASE) FROM INVESTMENT
OPERATIONS:
Net investment income............ $ 0.61 $ 0.40
Net realized and unrealized gain
(loss) on investments.......... 0.77 (0.45)
------- -------
Total increase (decrease) from
investment operations........ $ 1.38 $ (0.05)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............ (0.61) (0.40)
------- -------
Net increase (decrease) in net asset
value.............................. $ 0.77 $ (0.45)
------- -------
Net asset value, end of period...... $ 10.17 $ 9.40
======= =======
Total return*....................... 15.08% (0.57)%
Ratio of net operating expenses to
average
net assets......................... 1.77%+ 1.78%**
Ratio of net investment income to
average
net assets......................... 5.92%+ 6.35%**
Portfolio turnover rate............. 62.25% 60.50%
Net assets, end of period (in
thousands)......................... $ 6,992 $ 2,170
RATIOS ASSUMING NO WAIVER OF
MANAGEMENT FEES OR ASSUMPTION OF
EXPENSES BY PMC AND NO REDUCTION
FOR FEES PAID INDIRECTLY
Net operating expenses........... 1.97% 1.90%**
Net investment income............ 5.72% 6.23%**
RATIOS ASSUMING WAIVER OF MANAGEMENT
FEES AND ASSUMPTION OF EXPENSES BY
PMC AND REDUCTION FOR FEES PAID
INDIRECTLY
Net operating expenses........... 1.72% --
Net investment income............ 5.97% --
<FN>
- ---------------
+ Ratios assuming no reduction for fees paid indirectly.
* Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the
complete redemption of the investment at net asset value at the end of each period and no sales charges. Total return would
be reduced if sales charges were taken into account.
** Annualized.
*** Class B shares were first publicly offered on April 29, 1994.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
PIONEER AMERICA INCOME TRUST
NOTES TO FINANCIAL STATEMENTS--DECEMBER 31, 1995
- --------------------------------------------------------------------------------
1. Pioneer America Income Trust (the Trust) is a Massachusetts business trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Trust is to
provide as high a level of current income, consistent with preservation of
capital.
The Board of Trustees authorized the issuance of two classes of the Trust,
designated as Class A and Class B shares. Class B shares were first publicly
offered on April 29, 1994. Shares issued and outstanding prior to April 29, 1994
were designated as Class A shares. The shares of each class represent an
interest in the same portfolio of investments of the Trust and have equal rights
to voting, redemptions, dividends and liquidation, except that each class of
shares can bear different transfer agent and distribution fees and have
exclusive voting rights with respect to the distribution plans that have been
adopted by Class A and Class B shareholders, respectively.
After the close of business on June 30, 1994, the Trust acquired all assets of
Pioneer America Fund, Inc (the Fund) in exchange solely for (i) the issuance of
Class A shares of beneficial interest of the Trust and (ii) the assumption by
the Trust of the liabilities of the Fund. Following this tax-free transfer, the
Fund was liquidated and dissolved, and Class A shares of the Trust were
distributed to the former shareholders of the Fund. Prior to June 30, 1994, the
Trust's name was Pioneer U.S. Government Trust.
The Trust's financial statements have been prepared in conformity with
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses during the reporting periods. Actual results
could differ from those estimates. The following is a summary of significant
accounting policies consistently followed by the Trust, which are in conformity
with those generally accepted in the investment company industry:
A. Security Valuation--Security transactions are recorded on trade date.
Securities are valued based on valuations furnished by an independent pricing
service that utilizes a matrix system. This matrix system reflects such factors
as security prices, yields, maturities, and ratings, and is supplemented by
dealer and exchange quotations and fair market value information from other
sources, as required. Principal amounts of mortgage-backed securities are
adjusted for monthly paydowns. Premium and discount related to certain
mortgage-backed securities are amortized or accreted in proportion to the
underlying monthly paydowns. Temporary cash investments are valued at amortized
cost plus accrued interest, which approximates value. Interest income is
recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the "identified
cost" method for both financial reporting and federal income tax purposes. It is
the Trust's practice to first select for sale those securities that have the
highest cost and also qualify for long-term capital gain or loss treatment for
tax purposes.
B. Federal Income Taxes--It is the Trust'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 shareholders. Therefore, no federal income tax provision
is required.
The characterization of distributions to shareholders for financial reporting
purposes is determined in accordance with federal income tax rules. Therefore,
the source of the Trust's distributions may be shown in the accompanying
financial statements as either from or in excess of net investment income or net
realized gain on investment transactions, or from paid-in capital, depending on
the type of book/tax differences that may exist.
The Trust has reclassified $265,618 to accumulated net realized loss on
investments, $219,571 to paid-in capital and $46,047 to accumulated
undistributed net investment in-
12
<PAGE>
PIONEER AMERICA INCOME TRUST
NOTES TO FINANCIAL STATEMENTS--DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
come. The reclassification has no impact on the net asset value of the Trust and
is designed to present the Trust's capital accounts on a tax basis.
C. Trust Shares--The Trust records sales and repurchases of its trust shares
on trade date. Shares are sold and redeemed on a continuous basis at net asset
value per share. Net losses, if any, as a result of cancellations are absorbed
by Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Trust and an indirect subsidiary of The Pioneer Group, Inc. (PGI). PFD earned
$44,343 in underwriting commissions on the sale of trust shares during the year
ended December 31, 1995. The Trust 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 paid by the Trust, if any, with respect to each class
of shares are calculated in the same manner, at the same time, on the same day
and in the same amount, except that Class A and Class B shares bear different
transfer agent and distribution fees.
D. Class Allocations--Distribution fees are calculated based on the average
daily net asset value attributable to Class A and Class B shares of the Trust,
respectively. Shareholders of Class A and Class B share all expenses and fees
paid to the transfer agent, Pioneering Services Corporation (PSC), for their
services, which are allocated based on number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3). Income,
common expenses and realized and unrealized gains and losses are calculated at
the Trust level and allocated daily to each class of shares based on the
respective percentage of adjusted net assets at the beginning of the day.
E. Repurchase Agreements--The Trust may enter into repurchase agreements. At
the time the Trust enters into a repurchase agreement, the value of the
underlying security (collateral), including accrued interest, will be equal to
or exceed the value of the repurchase agreement, and in the case of repurchase
agreements exceeding one day, the value of the underlying security, including
accrued interest, is required during the term of the agreement to be equal to or
exceed the value of the repurchase agreement. The underlying securities for all
repurchase agreements are held in safekeeping in the customer-only account of
the Trust's custodian or at the Federal Reserve Bank. If the seller defaults and
the value of the collateral declines, or if bankruptcy proceedings commence with
respect to the seller of the security, realization of the collateral by the
Trust may be delayed or limited.
2. Pioneering Management Corporation (PMC), the Trust's investment adviser,
manages the Trust's portfolio, and is a wholly owned subsidiary of PGI.
Management fees are calculated daily at the annual rate of 0.50% of the Fund's
average daily net assets.
PMC has agreed not to impose a portion of its management fee and to assume
other operating expenses of the Trust to the extent necessary to limit Class A
expenses to 1.00% of the average daily net assets attributable to Class A
shares; the portion of the Trust-wide expenses attributable to Class B shares
will be reduced only to the extent that such expenses are reduced for Class A
shares. PMC's agreement is voluntary and temporary and may be revised or
terminated at any time.
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Trust. Included in due to affiliates is $49,633 and $6,868 in management and
accounting fees, respectively, payable to PMC at December 31, 1995.
3. PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Trust at negotiated rates. Included in due
to affiliates is $35,905 in transfer agent fees payable to PSC at December 31,
1995.
4. The Trust adopted a Plan of Distribution for Class A shares (Class A Plan)
and Class B shares (Class B Plan) in accordance with
13
<PAGE>
PIONEER AMERICA INCOME TRUST
NOTES TO FINANCIAL STATEMENTS--DECEMBER 31, 1995 (CONTINUED)
- --------------------------------------------------------------------------------
Rule 12b-1 of the Investment Company Act of 1940. These plans allow for Class A
shares and Class B shares to reimburse and compensate, RESPECTIVELY, PFD for
providing varying levels of distribution services and other account maintenance
services. The Class A Plan and Class B Plan provide for reimbursement of PFD's
distribution services in an amount up to 0.25% and 0.75%, respectively, of the
average daily net assets of the respective classes of shares. The Trust may also
compensate PFD for additional services in an amount up to 0.25% of the Trust's
average daily net assets attributable to Class B shares. Included in due to
affiliates is $108,729 in distribution fees payable to PFD at December 31, 1995.
In addition, Class B shares that are redeemed within six years of purchase are
subject to a contingent deferred sales charge (CDSC) at declining rates
beginning at 4.0% based on the lower of cost or market value of shares being
redeemed. Proceeds from the CDSC are paid to PFD. For the year ended December
31, 1995, CDSC in the amount of $17,099 was paid to PFD.
5. The Trust has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the year ended December 31, 1995,
the Trust's expenses were reduced by $28,656 under such arrangements.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER AMERICA INCOME TRUST:
We have audited the accompanying balance sheet of Pioneer America Income Trust,
including the schedule of investments, as of December 31, 1995, and the related
statement of operations, statements of changes in net assets and financial
highlights for the periods presented. These financial statements and financial
highlights are the responsibility of the Trust'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 generally accepted auditing
standards. 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. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
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 America Income Trust as of December 31, 1995, the results of its
operations, the changes in its net assets and financial highlights for the
periods presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
February 2, 1996
14
<PAGE>
TRUSTEES FEES, PRINCIPAL SHAREHOLDERS AND SHARE OWNERSHIP OF TRUSTEES AND
OFFICERS (UNAUDITED)
- --------------------------------------------------------------------------------
The aggregate direct remuneration paid by the Trust to trustees and officers
during the year ended December 31, 1995 was approximately $14,400, plus expenses
incurred in attending trustees meetings of approximately $2,900. Fees of
trustees who are affiliated with or "interested persons" of Pioneering
Management Corporation and Pioneer Funds Distributor, Inc., investment adviser
and underwriter, respectively, of the Trust ($1,000 in 1995), are reimbursed to
the Trust by Pioneering Management Corporation in accordance with the management
contract with the Trust. At December 31, 1995, the trustees and officers of the
Trust owned beneficially 10,794 Class A shares of the Trust (approximately 0.07%
of the outstanding Class A shares). The Pioneer Group, Inc. is a publicly held
corporation of which Mr. Cogan, Chairman and President of the Trust,
beneficially owned approximately 15% of the outstanding shares of capital stock
at December 31, 1995.
TAX TREATMENT OF DISTRIBUTIONS MADE DURING THE YEAR ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
During the year ended December 31, 1995, the Trust paid the following
distributions from net investment income:
<CAPTION>
DISTRIBUTIONS DISTRIBUTIONS
PAYMENT PER SHARE PER SHARE
DATE CLASS A CLASS B
-------- ------------- -------------
<S> <C> <C>
01/31/95 $0.057 $0.052
02/28/95 0.056 0.052
03/31/95 0.056 0.052
04/28/95 0.058 0.052
05/31/95 0.058 0.052
06/30/95 0.058 0.052
07/31/95 0.058 0.052
08/31/95 0.057 0.051
09/29/95 0.055 0.049
10/31/95 0.055 0.049
11/30/95 0.054 0.048
12/29/95 0.055 0.049
------ ------
Total $0.677 $0.610
====== ======
</TABLE>
For purposes of the dividend exclusion, none of the distributions per share
qualify for the exclusion.
15
<PAGE>
PIONEER
AMERICA INCOME TRUST
60 STATE STREET
BOSTON, MASSACHUSETTS 02109
OFFICERS
JOHN F. COGAN, JR., Chairman and President
DAVID D. TRIPPLE, Executive Vice President
SHERMAN B. RUSS, Vice President
WILLIAM H. KEOUGH, Treasurer
JOSEPH P. BARRI, Secretary
TRUSTEES
JOHN F. COGAN, JR. MARGUERITE A. PIRET
RICHARD H. EGDAHL, M.D. DAVID D. TRIPPLE
MARGARET B.W. GRAHAM STEPHEN K. WEST
JOHN W. KENDRICK JOHN WINTHROP
INVESTMENT ADVISER
PIONEERING MANAGEMENT CORPORATION
PRINCIPAL UNDERWRITER
PIONEER FUNDS DISTRIBUTOR, INC.
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
LEGAL COUNSEL
HALE AND DORR
SHAREHOLDER SERVICES AND TRANSFER AGENT
PIONEERING SERVICES CORPORATION
60 State Street
Boston, Massachusetts 02109
INDEPENDENT PUBLIC ACCOUNTANTS
ARTHUR ANDERSEN LLP
- ------------------------------------------------------------
Please call Pioneer for information on:
Existing accounts, new accounts,
prospectuses, applications, and
service forms....................... 1-800-225-6292
Fund yields and prices.............. 1-800-225-4321
Toll-free fax....................... 1-800-225-4240
Retirement plans.................... 1-800-622-0176
Telecommunications Device for the
Deaf (TDD).......................... 1-800-225-1997
- ------------------------------------------------------------
When distributed to persons who are not shareowners of the Fund, this
report must be accompanied by an official prospectus, which discusses the
objectives, policies, sales charges and other information about the Fund.
0296-2994
[COPYRIGHT]Pioneer Funds Distributor, Inc.
[LOGO]
PIONEER
AMERICA INCOME
TRUST
ANNUAL REPORT
DECEMBER 31, 1995
