<PAGE>
DEAR SHAREOWNER,
- --------------------------------------------------------------------------------
Pioneer America Income Trust completed the first half of its ninth fiscal year
on June 30, 1996. Last year was considered one of the best years on record for
the bond market with low inflation, slow economic growth and falling interest
rates. However, unexpected economic growth and rising interest rates made this
semiannual period challenging for bond investors.
HOW YOUR FUND PERFORMED
Your Fund's performance reflected the overall dip in bond prices. Following are
results for the six months ended June 30, 1996.
- - CLASS A SHARES -- Shareowners received income dividends totaling $0.319 per
share. The Fund's 30-day SEC yield was 5.94% as of June 30, 1996.1 Net asset
value stood at $9.68 per share, versus $10.20 six months ago, reflecting the
overall decline in bond prices. The Fund's total return was -1.98% based on
net asset value, and -6.38% based on maximum public offering price. Total
return assumes the reinvestment of all distributions at net asset value.
- - CLASS B SHARES -- Shareowners received a total of $0.283 per share in income
dividends during the period. As of June 30, the Fund's 30-day SEC yield was
5.52%.(1) Net asset value stood at $9.66 per share, versus $10.17 six months
ago, again reflecting the overall decline in bond prices. The Fund's total
return for the period was -2.24% assuming shares were held throughout, and
-6.04% if shares were sold on June 30 and the maximum 4% contingent deferred
sales charge deducted. Total return assumes the reinvestment of all
distributions.
The Fund introduced CLASS C SHARES on January 31, 1996. Shareowners received a
total of $0.234 per share in income dividends during this abbreviated period. As
of June 30, the Fund's 30-day SEC yield was 5.50%.(1) Net asset value was $9.65
per share, versus the introductory $10.16. The Fund's total return for the
abbreviated period was -2.71% if shares were held throughout, and -3.66% if
shares were sold and the 1% contingent deferred sales charge deducted at the end
of the period.
<TABLE>
The following table shows your Fund's performance over longer time periods.
AVERAGE ANNUAL TOTAL RETURNS
(As of June 30, 1996)
<CAPTION>
NET ASSET PUBLIC OFFERING
CLASS A SHARES VALUE PRICE*
-------------- --------- ---------------
<S> <C> <C>
Life-of-Fund
(6/1/88) 7.53% 6.92%
5 Years 6.51 5.53
1 Year 3.78 -0.90
<CAPTION>
CLASS B SHARES IF HELD IF REDEEMED**
-------------- ------- -------------
<S> <C> <C>
Life-of-Fund
(4/29/94) 5.30% 4.01%
1 Year 3.04 -0.84
</TABLE>
A SHIFTING BOND MARKET
The period began with healthy conditions for the bond market -- low inflation,
slow economic growth and falling interest rates. The general outlook was for the
bond market to continue to be profitable. This stance was reinforced when the
Federal Reserve (the Fed) cut short-term interest rates in January, indicating
its concern over erratic economic growth. The mood changed in February, however,
when the monthly employment report, one of the many indicators used to monitor
the economy's strength, showed the biggest job increase in 12 years. Worries
about an overheating economy undermined investor confidence in bonds.
Longer-term interest rates continued to rise and retreat through June 30 as a
result of the unexpected strength in the economy, inflationary fears and
speculative selling by hedge funds.
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 not imposing a portion of its management fee,
otherwise returns would have been lower and the yield for Class A shares,
Class B and Class C shares would have been 5.75%, 5.34% and 5.32%,
respectively.
* 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.
** Reflects deduction of the maximum contingent deferred sales charge
(CDSC) at the end of the period and assumes reinvestment of all
distributions. The CDSC of 4% declines over six years.
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.
<PAGE>
HOW PIONEER MANAGED YOUR INVESTMENT
Pioneer America Income Trust invests 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.) As always, this
means your management maintains a high-quality, conservative focus and avoids
speculative derivative investments.
The eroding climate for bond investing overall prompted some changes to the
portfolio. As part of the effort to keep the portfolio's average effective
maturity under nine years, we sold long-term Treasurys, bringing them to 8% of
the portfolio on June 30, versus 17% six months ago. Your management then
increased the Fund's position in short-term liquid or "cash" securities. (The
Fund's strategic allocation to cash was about 13% on June 30.) Reflecting this
strategy, your Fund's position in Treasurys dropped from 48% six months ago to
30% as of June 30. As a result of these changes, the Fund's average effective
life was 7.7 years at June 30. In our view, a fairly conservative blend of
maturities and overall portfolio maturity is appropriate in a volatile market.
EFFECTIVE PORTFOLIO MATURITY
(As of June 30, 1996)
(INSERT MATURITY PIE CHART)
0-2 years 15%
2-5 years 13%
5-7 years 11%
7-10 years 53%
20+ years 8%
Mortgage-backed securities tend to perform well when interest rates are moving
higher, so your management kept a 50% position in Government National Mortgage
Association issues (GNMAs). We carefully bought and sold GNMA issues in an
effort to manage the effect of their lengthening maturities as interest rates
rose. (Approximately one-third of the Fund's temporary cash investment is
earmarked to complete the purchase of two GNMA issues.) For much of the
six-month period, GNMAs outperformed Treasurys, since rising interest rates
inhibit mortgage-holders from re-financing, boosting the demand for GNMA issues.
The Fund benefited from its mortgage-backed securities, particularly in the
latter half of the period.
LOOKING AHEAD
From our vantage point, we think inflation will not reach significant levels in
the second half of the year. Since February, housing and consumer spending have
shown remarkable resiliency in the face of higher interest rates, helping the
economy show sustainable and good growth, but with low inflation. Even if the
economy maintains its momentum, interest rates should be relatively stable if
there is no pressure in the form of rising inflation. Of course, a slowing
economy would come as good news to bond investors.
At this point it is uncertain what action, if any, the Fed will take. In this
election year, the Fed may be hesitant to move in the absence of evidence of
extreme inflation or strong domestic growth. We believe the Fund's conservative
positioning should offer shareowners solid long-term results and should continue
to generate a high level of income and a steady stream of dividends.
One final note. We are pleased to announce that we are giving semiannual and
annual reports a facelift, including easy-to-find and use graphic summaries.
Your annual report dated December 31, 1996, will reflect these improvements. We
wish to thank all of you who took the time to respond to our questions about
what you want to see in fund reports.
Please read on through the following pages, which provide the Fund's audited
Schedule of Investments and financial statements as of June 30, 1996. 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,
/s/ John F. Cogan, Jr.
- ----------------------------
John F. Cogan, Jr.
Chairman and President,
Pioneer America Income Trust
2
<PAGE>
PIONEER AMERICA INCOME TRUST
<TABLE>
SCHEDULE OF INVESTMENTS--JUNE 30, 1996
- ----------------------------------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INVESTMENT IN SECURITIES--80.3%
U.S. GOVERNMENT AGENCIES--50.2%
Government National Mortgage Association
$ 123,415 GNMA Midget, 10.5%, 1998 to 2003.................................................... $ 130,666
1,114,363 GNMA Midget, 10.0%, 2001 to 2006.................................................... 1,171,864
805,216 GNMA Midget, 9.5%, 2003 to 2006..................................................... 851,040
113,182 GNMA Midget, 9.0%, 2004 to 2005..................................................... 117,504
5,000,000 GNMA I, 8.0%, TBA 30 year*.......................................................... 5,043,750
5,000,000 GNMA II, 8.0%, TBA 30 year*......................................................... 5,018,750
9,070,154 GNMA, 9.0%, 2016 to 2024............................................................ 9,473,029
1,834,968 GNMA, 10.0%, 2016 to 2020........................................................... 2,000,143
261,619 GNMA, 10.5%, 2017 to 2019........................................................... 287,905
423,891 GNMA, 9.5%, 2019 to 2021............................................................ 451,615
32,843,530 GNMA, 8.0%, 2024 to 2025............................................................ 33,120,317
17,813,364 GNMA, 8.5%, 2024 to 2025............................................................ 18,336,694
7,110,401 GNMA, 7.5%, 2025.................................................................... 6,972,602
------------
$ 82,975,879
------------
OTHER U.S. GOVERNMENT AGENCY OBLIGATIONS
4,275,000 Financial Assistance Corp., 9.45%, 2003............................................. $ 4,536,160
------------
Total U.S. Government Agencies (Cost $86,553,936)................................... $ 87,512,039
------------
U.S. GOVERNMENT SECURITIES--30.1%
2,000,000 U.S. Treasury Bond, 10.75%, 2003...................................................... $ 2,450,320
3,415,000 U.S. Treasury Bond, 8.25%, 2005....................................................... 3,584,691
5,590,000 U.S. Treasury Bond, 9.125%, 2009...................................................... 6,359,519
4,000,000 U.S. Treasury Bond, 10.375%, 2009..................................................... 4,891,880
3,000,000 U.S. Treasury Bond, 10.0%, 2010....................................................... 3,622,020
2,000,000 U.S. Treasury Bond, 7.875%, 2021...................................................... 2,195,937
9,000,000 U.S. Treasury Bond, 8.0%, 2021........................................................ 10,008,270
3,750,000 U.S. Treasury Notes, 9.0%, 1998....................................................... 3,939,263
3,000,000 U.S. Treasury Notes, 9.25%, 1998...................................................... 3,180,480
6,000,000 U.S. Treasury Notes, 8.875%, 2000..................................................... 6,498,720
1,000,000 U.S. Treasury Notes, 8.0%, 2001....................................................... 1,063,120
2,000,000 U.S. Treasury Notes, 7.875%, 2004..................................................... 2,153,438
2,500,000 U.S. Treasury Notes, 6.875%, 2006..................................................... 2,527,725
------------
Total U.S. Government Securities (Cost $53,551,890)................................. $ 52,475,383
------------
TOTAL INVESTMENT IN SECURITIES
(Cost $140,105,826)................................................................. $139,987,422
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
PIONEER AMERICA INCOME TRUST
<TABLE>
SCHEDULE OF INVESTMENTS--JUNE 30, 1996 (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
TEMPORARY CASH INVESTMENT--19.7%
REPURCHASE AGREEMENT--19.7%
34,400,000 Chase Manhattan, 6/28/96, 5.40% repurchase price of $34,400,000 plus accrued interest
on 7/1/96, collateralized by $34,624,000 U.S. Treasury Notes, 5.25%, 12/31/97........ $ 34,400,000
------------
TOTAL TEMPORARY CASH INVESTMENT (Cost $34,400,000)..................................... $ 34,400,000
------------
TOTAL INVESTMENT IN SECURITIES AND TEMPORARY
CASH INVESTMENT--100% (Cost $174,505,826)(a)(b).................................... $174,387,422
============
- ----------
<FN>
* Security is purchased on a forward commitment basis with an approximate principal amount and no definite maturity date. The
actual principal amount and maturity date will be determined upon settlement when the specific mortgage pools are assigned.
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.
(a) At June 30, 1996, the net unrealized loss on investments based on cost for federal income tax purposes of
$174,505,826 was as follows:
Aggregate gross unrealized gain for all investments in which there is an excess of value over tax
cost................................................................................................. $ 1,252,415
Aggregate gross unrealized loss for all investments in which there is an excess of tax cost over
value................................................................................................ (1,370,819)
-----------
Net unrealized loss ........... $ (118,404)
===========
At December 31, 1995, the Trust had a capital loss carryforward of $6,494,180 which will expire between 2001 and
(b) 2003 if not utilized.
</FN>
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended June 30, 1996 aggregated $38,927,570 and $55,772,019,
respectively.
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
PIONEER AMERICA INCOME TRUST
<TABLE>
BALANCE SHEET--JUNE 30, 1996
- --------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash investment of
$34,400,000) (cost $174,505,826; see Schedule of Investments and Note 1)............. $174,387,422
Cash.................................................................................. 5,959
Receivables--
Interest............................................................................ 1,195,788
Fund shares sold.................................................................... 217,382
Other................................................................................. 5,552
------------
Total assets..................................................................... $175,812,103
------------
LIABILITIES:
Payables--
Investment securities purchased..................................................... $ 14,425,644
Fund shares repurchased............................................................. 550,529
Dividends........................................................................... 185,245
Due to affiliates (Notes 2, 3 and 4).................................................. 184,434
Accrued expenses...................................................................... 51,537
------------
Total liabilities................................................................ $ 15,397,389
------------
NET ASSETS:
Paid-in capital (Note 1).............................................................. $168,622,435
Distributions in excess of net investment income (Note 1)............................. (8,359)
Accumulated net realized loss on investments (Note 1)................................. (8,080,958)
Net unrealized loss on investments (Note 1)........................................... (118,404)
------------
Total net assets................................................................. $160,414,714
============
NET ASSET VALUE PER SHARE:
Class A--(based on $151,468,473/15,643,451 shares of beneficial interest
outstanding--unlimited number of shares authorized).............................. $ 9.68
============
Class B--(based on $8,443,805/874,142 shares of beneficial interest
outstanding--unlimited number of shares authorized).............................. $ 9.66
============
Class C--(based on $502,436/52,050 shares of beneficial interest
outstanding--unlimited number of shares authorized).............................. $ 9.65
============
MAXIMUM OFFERING PRICE:
Class A.......................................................................... $ 10.14
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
PIONEER AMERICA INCOME TRUST
<TABLE>
STATEMENT OF OPERATIONS--FOR THE SIX MONTHS ENDED JUNE 30, 1996
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME (NOTE 1):
Interest................................................................... $ 6,049,124
-----------
EXPENSES:
Management fees (Note 2)................................................... $ 407,307
Distribution fees (Note 4)
Class A.................................................................. 193,589
Class B.................................................................. 39,012
Class C.................................................................. 1,265
Transfer agent fees (Note 3)
Class A.................................................................. 200,243
Class B.................................................................. 8,709
Class C.................................................................. 443
Registration fees.......................................................... 30,550
Professional fees.......................................................... 31,735
Accounting (Note 2)........................................................ 36,200
Custodian fees............................................................. 18,178
Printing................................................................... 3,956
Fees and expenses of nonaffiliated trustees................................ 8,410
Miscellaneous.............................................................. 16,045
---------
Total expenses........................................................ $ 995,642
Less fees paid indirectly (Note 5).................................... (15,904)
Less management fees waived by
Pioneering Management Corporation (Note 2).......................... (137,604)
---------
Net expenses.......................................................... $ 842,134
-----------
Net investment income............................................. $ 5,206,990
-----------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments........................................... $(1,586,778)
Change in net unrealized gain on investments............................... (6,945,703)
-----------
Net loss on investments............................................... $(8,532,481)
-----------
Net decrease in net assets resulting from operations.............. $(3,325,491)
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
PIONEER AMERICA INCOME TRUST
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND THE YEAR ENDED DECEMBER 31, 1995
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE, 30 1996 DECEMBER 31, 1995
---------------- -----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income..................................................... $ 5,206,990 $ 11,280,090
Net realized loss on investments.......................................... (1,586,778) (814,678)
Change in net unrealized gain on investments.............................. (6,945,703) 14,043,149
------------ ------------
Net increase (decrease) in net assets resulting from operations....... $ (3,325,491) $ 24,508,561
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A ($0.32 and $0.68 per share, respectively)....................... $ (5,050,251) $(11,072,485)
Class B ($0.28 and $0.61 per share, respectively)....................... (223,904) (231,937)
Class C ($0.24 and $0.00 per share, respectively)....................... (7,259) --
In excess of net investment income
Class A ($0.00 and $0.00 per share, respectively)....................... (5,934) --
Class B ($0.00 and $0.00 per share, respectively)....................... (2,247) --
Class C ($0.00 and $0.00 per share, respectively)....................... (178) --
------------ ------------
Decrease in net assets resulting from distributions to shareholders... $ (5,289,773) $(11,304,422)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares.......................................... $ 13,742,618 $ 30,228,239
Net asset value of shares issued to shareholders in reinvestment of
distributions........................................................... 4,122,585 8,782,844
Cost of shares repurchased................................................ (18,535,317) (46,543,628)
------------ ------------
Net decrease in net assets resulting from fund share transactions..... $ (670,114) $ (7,532,545)
------------ ------------
Net increase (decrease) in net assets............................. $ (9,285,378) $ 5,671,594
NET ASSETS:
Beginning of period....................................................... 169,700,092 164,028,498
------------ ------------
End of period (including (distributions in excess of)/accumulated
undistributed net investment income of $(8,359) and $74,424,
respectively)........................................................... $160,414,714 $169,700,092
============ ============
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold................................................... 1,037,673 $ 10,222,831 2,411,447 $ 23,762,264
Shares issued to shareholders in reinvestment of
distributions............................................... 401,287 3,945,834 871,169 8,600,898
Less shares repurchased....................................... (1,752,044) (17,209,031) (4,532,725) (44,436,985)
---------- ------------ ---------- ------------
Net decrease.................................................. (313,084) $ (3,040,366) (1,250,109) $(12,073,823)
========== ============ ========== ============
CLASS B
Shares sold................................................... 295,211 $ 2,919,274 654,066 $ 6,465,975
Shares issued to shareholders in reinvestment of
distributions............................................... 17,300 169,445 18,343 181,946
Less shares repurchased....................................... (125,897) (1,232,880) (215,740) (2,106,643)
---------- ------------ ---------- ------------
Net increase.................................................. 186,614 $ 1,855,839 456,669 $ 4,541,278
========== ============ ========== ============
CLASS C *
Shares sold................................................... 60,872 $ 600,513
Shares issued to shareholders in reinvestment of
distributions............................................... 752 7,306
Less shares repurchased....................................... (9,574) (93,406)
---------- ------------
Net increase.................................................. 52,050 $ 514,413
========== ============
- ------------
<FN>
* Class C shares were first publicly offered on January 31, 1996.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
PIONEER AMERICA INCOME TRUST
<TABLE>
FINANCIAL HIGHLIGHTS--SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIODS PRESENTED
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
MAY 31, 1988
SIX MONTHS FOR THE YEARS ENDED DECEMBER 31, TO
ENDED --------------------------------------------------------------------------- DECEMBER 31,
JUNE 30, 1996 1995 1994 1993 1992 1991 1990 1989 1988
------------- -------- -------- -------- ------- ------- ------- ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Net asset value,
beginning of
period.............. $ 10.20 $ 9.41 $ 10.48 $ 10.27 $ 10.35 $ 10.03 $ 10.04 $ 9.86 $10.00
-------- -------- -------- -------- ------- ------- ------- ------- ------
INCREASE (DECREASE)
FROM INVESTMENT
OPERATIONS:
Net investment
income.......... $ 0.31 $ 0.68 $ 0.66 $ 0.68 $ 0.73 $ 0.84 $ 0.87 $ 0.90 $ 0.51
Net realized and
unrealized gain
(loss) on
investments..... (0.51) 0.79 (1.07) 0.24 (0.07) 0.33 (0.02) 0.18 (0.14)
-------- -------- -------- -------- ------- ------- ------- ------- ------
Net increase
(decrease)
from
investment
operations.... $ (0.20) $ 1.47 $ (0.41) $ 0.92 $ 0.66 $ 1.17 $ 0.85 $ 1.08 $ 0.37
DISTRIBUTIONS TO
SHAREHOLDERS:
From net
investment
income.......... (0.32) (0.68) (0.66) (0.67) (0.73) (0.85) (0.86) (0.90) (0.51)
From net realized
gain............ -- -- -- (0.04) (0.01) -- -- -- --
-------- -------- -------- -------- ------- ------- ------- ------- ------
Net increase
(decrease) in net
asset value......... $ (0.52) $ 0.79 $ (1.07) $ 0.21 $ (0.08) $ 0.32 $ (0.01) $ 0.18 $(0.14)
-------- -------- -------- -------- ------- ------- ------- ------- -------
Net asset value, end
of period........... $ 9.68 $ 10.20 $ 9.41 $ 10.48 $ 10.27 $ 10.35 $ 10.03 $ 10.04 $ 9.86
======== ======== ======== ======== ======= ======= ======= ======= ======
Total return*........ (1.98%) 16.06% (3.97%) 9.07% 6.67% 12.14% 8.99% 11.49% 3.76%
Ratio of net expenses
to average net
assets.............. 1.02%**+ 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.............. 6.42%**+ 6.85%+ 6.84% 6.37% 7.01% 8.07% 8.75% 9.10% 8.86%**
Portfolio turnover
rate................ 52.68%** 62.25% 60.50% 41.50% 54.50% 36.54% 69.12% 66.06% 61.20%**
Net assets, end of
period (in
thousands).......... $151,468 $162,708 $161,858 $105,892 $85,425 $43,711 $17,160 $10,533 $4,634
RATIOS ASSUMING NO
WAIVER OF MANAGEMENT
FEES AND ASSUMPTION
OF EXPENSES BY PMC
AND NO REDUCTION FOR
FEES PAID
INDIRECTLY:
Net expenses...... 1.19%** 1.22% 1.12% 1.13% 1.25% 1.75% 1.81% 2.36% 3.01%**
Net investment
income.......... 6.25%** 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 expenses...... 1.00%** 1.00% -- -- -- -- -- -- --
Net investment
income.......... 6.44%** 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.
8
<PAGE>
PIONEER AMERICA INCOME TRUST
<TABLE>
FINANCIAL HIGHLIGHTS--SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIODS PRESENTED
- ----------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS YEAR APRIL 29, 1994
ENDED ENDED TO
JUNE 30, 1996 DECEMBER 31, 1995 DECEMBER 31, 1994
------------- ------------------ -----------------
<S> <C> <C> <C>
CLASS B
Net asset value, beginning of period........................ $10.17 $ 9.40 $ 9.85
------ ------ ------
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS:
Net investment income................................... $ 0.28 $ 0.61 $ 0.40
Net realized and unrealized gain (loss) on
investments........................................... (0.51) 0.77 (0.45)
------ ------ ------
Net increase (decrease) from investment
operations........................................ $(0.23) $ 1.38 $(0.05)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................................... (0.28) (0.61) (0.40)
------ ------ ------
Net increase (decrease) in net asset value.................. $(0.51) $ 0.77 $(0.45)
------ ------ ------
Net asset value, end of period.............................. $ 9.66 $10.17 $ 9.40
====== ====== ======
Total return*............................................... (2.24%) 15.08% (0.57%)
Ratio of net expenses to average net assets................. 1.73%**+ 1.77%+ 1.78%**
Ratio of net investment income to average net assets........ 5.69%**+ 5.92%+ 6.35%**
Portfolio turnover rate..................................... 52.68%** 62.25% 60.50%
Net assets, end of period (in thousands).................... $8,444 $6,992 $2,170
RATIOS ASSUMING NO WAIVER OF MANAGEMENT FEES BY PMC AND NO
REDUCTION FOR FEES PAID INDIRECTLY:
Net expenses............................................ 1.90%** 1.97% 1.90%**
Net investment income................................... 5.52%** 5.72% 6.23%**
RATIOS ASSUMING WAIVER OF MANAGEMENT FEES BY PMC AND
REDUCTION FOR FEES PAID INDIRECTLY:
Net expenses............................................ 1.70%** 1.72% --
Net investment income................................... 5.72%** 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.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
PIONEER AMERICA INCOME TRUST
<TABLE>
FINANCIAL HIGHLIGHTS--SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIOD
PRESENTED
- --------------------------------------------------------------------------
<CAPTION>
JANUARY 31,
1996 TO
JUNE 30,
1996
-----------
<S> <C>
CLASS C ***
Net asset value, beginning of period................. $10.16
------
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS:
Net investment income............................ $ 0.23
Net realized and unrealized loss on
investments.................................... (0.51)
------
Net decrease from investment operations..... $(0.28)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............................ (0.23)
------
Net decrease in net asset value...................... $(0.51)
------
Net asset value, end of period....................... $ 9.65
======
Total return*........................................ (2.71%)
Ratio of net expenses to average net assets.......... 1.83%**+
Ratio of net investment income to average net
assets............................................. 5.57%**+
Portfolio turnover rate.............................. 52.68%**
Net assets, end of period (in thousands)............. $ 502
RATIOS ASSUMING NO WAIVER OF MANAGEMENT FEES BY PMC
AND NO REDUCTION
FOR FEES PAID INDIRECTLY:
Net expenses..................................... 2.00%**
Net investment income............................ 5.40%**
RATIOS ASSUMING WAIVER OF MANAGEMENT FEES BY PMC AND
REDUCTION
FOR FEES PAID INDIRECTLY:
Net expenses..................................... 1.76%**
Net investment income............................ 5.64%**
- ------------
<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 C shares were first publicly offered on January 31, 1996.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
PIONEER AMERICA INCOME TRUST
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1996
- --------------------------------------------------------------------------------
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 a level of current income consistent with preservation of capital.
The Trust offers three classes of shares -- Class A, Class B and Class C
shares. Class C shares were first publicly offered on January 31, 1996. The
shares of Class A, Class B and Class C 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,
Class B and Class C shareholders, respectively.
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.
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.
C. Fund Shares -- The Trust records sales and repurchases of its shares on
trade date. 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 $26,447
in underwriting commissions on the sale of fund shares during the six months
ended June 30, 1996. The
11
<PAGE>
PIONEER AMERICA INCOME TRUST
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
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, Class B and Class C shares can 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, Class B and Class C shares of the
Trust, respectively. Shareholders of each class share all expenses and fees paid
to the transfer agent, Pioneering Services Corporation (PSC), for their
services, which are allocated based on the 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 Trust'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 and Class
C 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 $38,172 and $5,817 in management and
accounting fees, respectively, payable to PMC at June 30, 1996.
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 $37,562 in transfer agent fees payable to PSC at June 30, 1996.
4. The Trust adopted a Plan of Distribution for each Class of shares (Class A
Plan, Class B Plan and Class C Plan) in accordance with Rule 12b-1 of the
Investment Company Act of 1940. Pursuant to Class A Plan, the Trust pays PFD a
service fee of up to 0.25% of the Trust's average daily net assets in
reimbursement of its actual expenditures to finance activities primarily
intended to result in the sale of Class A shares. Pursuant to Class B Plan and
Class C Plan, the
12
<PAGE>
PIONEER AMERICA INCOME TRUST
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
Trust pays PFD 1.00% of the average daily net assets attributable to each class
of shares. The fee 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 is $102,883 in distribution fees payable to PFD at June 30,
1996.
In addition, redemptions of each class of shares may be subject to a
contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on
certain net asset value purchases of Class A shares that are redeemed within one
year of purchase. Class B shares that are redeemed within six years of purchase
are subject to a CDSC at declining rates beginning at 4.00%, 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%. Proceeds from the
CDSC are paid to PFD. For the six months ended June 30, 1996, CDSCs in the
amount of $10,959 were paid to PFD.
5. The Trust has entered into certain expense offset arrangements resulting in a
reduction in the Trust's total expenses. For the six months ended June 30, 1996,
the Trust's expenses were reduced by $15,904 under such arrangements.
13
<PAGE>
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 June 30, 1996, 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 June
30, 1996 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 June 30, 1996, 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.
Boston, Massachusetts ARTHUR ANDERSEN LLP
August 1, 1996
14
<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 Trust, this report
must be accompanied by a current prospectus, which discusses the objectives,
policies, sales charges and other information concerning the Trust.
0896-3600
[Copyright] Pioneer Funds Distributor, Inc.
[LOGO]
Pioneer
America Income
Trust
SEMIANNUAL REPORT
JUNE 30, 1996
