[Pioneer LOGO]
Pioneer
America Income
Trust
SEMIANNUAL REPORT 6/30/97
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Table of Contents
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Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 11
Notes to Financial Statements 17
Report of Independent Public Accountants 21
Trustees, Officers and Service Providers 22
Programs and Services for Pioneer Shareowners 26
The Pioneer Family of Mutual Funds 29
<PAGE>
Pioneer America Income Trust
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LETTER FROM THE CHAIRMAN 6/30/97
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Dear Shareowner,
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It is with pleasure that I introduce this semiannual report for Pioneer America
Income Trust, covering the six months ended June 30, 1997.
It was a time of uncertainty for bond investors, and emotions and perceptions
seemed to be the primary factors moving the bond market. Corrections in the
stock market and an economy that was alternately growing and retreating -
depending on how data were interpreted - kept bond investors on the lookout for
indications of a trend. We are happy to report that even in this challenging
environment, your Fund continued to reward shareowners by paying steady
dividends and providing a positive total return. The questions and answers that
follow in the Portfolio Management Discussion provide details of your investment
team's strategies and results.
Over recent time periods, the stock market has generally outperformed the bond
market. We happen to be in the midst of the longest bull market in history, and
our concern is that many investors, especially those newer to the markets, see
stocks moving only in an upward direction, which will not always be the case.
When the stock market slows or retreats, people will be reminded how important
it is to diversify their money among a variety of investments. Bond funds can be
an effective way to enhance your portfolio's diversity, liquidity and provide
current income. If you haven't taken a look at your portfolio recently, perhaps
this is a good time to speak with your investment professional. Varying
performance of your investments can change the balance of your portfolio, and
you may need to get back on track.
If you have any questions about Pioneer America Income Trust, please contact
your investment representative, or Pioneer at 1-800-225-6292. Thank you for your
continued support.
Respectfully,
/S/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
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Pioneer America Income Trust
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PORTFOLIO SUMMARY 6/30/97
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[GRAPHIC OMITTED]
[The following table was depicted as a Pie Chart in the printed material]
U.S. Government Agency Obligations 61%
Short-Term Cash Equivalents 2%
U.S. Treasury Obligations 37%
Portfolio Maturity
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(Effective life as a percentage of total investment portfolio)
[GRAPHIC OMITTED]
[The following table was depicted as a Pie Chart in the printed material]
0-2 Years 7%
20+ Years 10%
2-5 Years 6%
10-20 Years 10%
5-7 Years 20%
7-10 Years 47%
10 Largest Holdings
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(As a percentage of long-term holdings)
1. U.S. Treasury Bonds, 8.0%, 11/15/21 10.33%
2. GNMA, 8.0%, 10/15/24 9.71
3. GNMA II, 8.0%, 5/20/27 7.07
4. U.S. Treasury Notes, 7.0%, 7/15/06 6.87
5. GNMA, 8.5%, 10/15/24 4.90
6. U.S. Treasury Bonds, 9.125%, 5/15/09 4.46
7. GNMA II, 8.0%, 4/20/27 3.62
8. GNMA, 8.0%, 6/5/26 3.61
9. GNMA II, 8.0%, 7/20/26 3.46
10. GNMA, 8.0%, 7/15/26 3.42
Fund holdings will vary for other periods.
2
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Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/97 CLASS A SHARES
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Share Prices and Distributions
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Net Asset Value
per Share 6/30/97 12/31/96
$9.70 $9.77
Distributions per Share Income Short-Term Long-Term
(12/31/96 - 6/30/97) Dividends Capital Gains Capital Gains
$0.324 - -
Investment Returns
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The mountain chart on the right shows the growth of a $10,000 invest ment made
in Pioneer America Income Trust at public offering price, compared to the growth
of the Lehman Brothers Government Bond Index.
Average Annual Total Returns
(As of June 30, 1997)
Net Asset Public Offering
Period Value Price*
Life-of-Fund 7.48% 6.94%
(6/1/88)
5 Years 5.78 4.82
1 Year 7.13 2.27
* Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
Growth of $10,000
[GRAPHIC OMITTED]
Date Pioneer America Lehman Brothers
Income Trust* Government Bond Index
6/30/88 9,550 10,000
12/31/88 9,799 10,265
6/30/89 10,439 11,208
12/31/89 10,926 11,725
6/30/90 11,283 11,984
12/31/90 11,909 12,746
6/30/91 12,385 13,198
12/31/91 13,354 14,698
6/30/92 13,731 15,013
12/31/92 14,246 15,760
6/30/93 15,197 16,949
12/31/93 15,538 17,440
6/30/94 14,871 16,722
12/31/94 14,921 16,850
6/30/95 16,358 18,738
12/31/95 17,318 19,941
6/30/96 16,976 19,584
12/31/96 17,715 20,494
6/30/97 18,186 21,033
- - Pioneer America Income Trust*
- --Lehman Brothers
Government Bond Index
+ Index comparison begins 6/30/88. The Lehman Brothers Government Bond Index
is an unmanaged measure of the performance of 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.
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
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Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/97 CLASS B SHARES
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Share Prices and Distributions
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Net Asset Value
per Share 6/30/97 12/31/96
$9.68 $9.75
Distributions per Share Income Short-Term Long-Term
(12/31/96 - 6/30/97) Dividends Capital Gains Capital Gains
$0.288 - -
Investment Returns
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The mountain chart on the right shows the growth of a $10,000 invest ment made
in Pioneer America Income Trust, compared to the growth of the Lehman Brothers
Government Bond Index.
Average Annual Total Returns
(As of June 30, 1997)
If If
Period Held Redeemed*
Life-of-Fund 5.61% 4.78%
(4/29/94)
1 Year 6.29 2.29
* Reflects deduction of the maximum appli cable contingent deferred sales
charge (CDSC) at the end of the period and assumes rein vestment of
distributions. The maximum CDSC of 4% declines over six years.
Growth of $10,000
[GRAPHIC OMITTED]
Date Pioneer America Lehman Brothers
Income Trust* Government Bond Index
4/30/94 10,000 10,000
6/30/94 9,952 9,964
9/30/94 9,978 10,006
12/31/94 9,943 10,041
3/31/95 10,395 10,514
6/30/95 10,856 11,166
9/30/95 11,034 11,364
12/31/95 11,442 11,883
3/31/96 11,197 11,613
6/30/96 11,186 11,668
9/30/96 11,338 11,865
12/31/96 11,624 12,211
3/31/97 11,516 12,112
6/30/97 11,890 12,531
- - Pioneer America Income Trust*
- -- Lehman Brothers
Government Bond Index
The Lehman Brothers Government Bond Index is an unmanaged measure of the
performance of 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.
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
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Pioneer America Income Trust
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PERFORMANCE UPDATE 6/30/97 CLASS C SHARES
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Share Prices and Distributions
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Net Asset Value
per Share 6/30/97 12/31/96
$9.67 $9.74
Distributions per Share Income Short-Term Long-Term
(12/31/96 - 6/30/97) Dividends Capital Gains Capital Gains
$0.288 - -
Investment Returns
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The mountain chart on the right shows the growth of a $10,000 invest ment made
in Pioneer America Income Trust, compared to the growth of the Lehman Brothers
Government Bond Index.
Average Annual Total Returns
(As of June 30, 1997)
If If
Period Held Redeemed*
Life-of-Fund 2.35% 2.35%
(1/31/96)
1 Year 6.23 6.23
* Assumes reinvestment of distri-butions. The 1% contingent deferred sales
charge (CDSC) applies to redemptions made within one year of purchase.
Growth of $10,000
[GRAPHIC OMITTED]
Date Pioneer America Lehman Brothers
Income Trust* Government Bond Index
1/31/96 10,000 10,000
2/29/96 9,810 9,796
3/31/96 9,748 9,714
4/30/96 9,686 9,652
5/31/96 9,652 9,635
6/30/96 9,728 9,759
7/31/96 9,755 9,784
8/31/96 9,730 9,762
9/30/96 9,861 9,924
10/31/96 10,051 10,143
11/30/96 10,210 10,319
12/31/96 10,104 10,214
1/31/97 10,122 10,225
2/28/97 10,129 10,239
3/31/97 10,020 10,131
4/30/97 10,155 10,277
5/31/97 10,239 10,365
6/30/97 10,335 10,481
- - Pioneer America Income Trust*
- -- Lehman Brothers
Government Bond Index
The Lehman Brothers Government Bond Index is an unmanaged measure of the
performance of 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.
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.
5
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Pioneer America Income Trust
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/97
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The first half of Pioneer America Income Trust's fiscal year came to a close on
June 30, 1997. The bond market was resilient over the past six months,
recovering from several episodes of investor nervousness and repeatedly
regaining lost ground. While the bond market's performance was mixed, your
Fund's results were solid.
For this report, we offer a discussion with portfolio manager Sherman B. Russ,
who has overall responsibility for Pioneer's fixed-income department. He has
more than 20 years of experience and also heads up the investment team
responsible for the day-to-day management of Pioneer America Income Trust.
How did the Fund perform over the past six months?
The Fund was competitive, especially considering the varied conditions in the
bond market. The Fund continued to meet its objective of providing current
income from a portfolio composed of securities issued and backed by the "full
faith and credit" of the U.S. government and its agencies. Shareowners received
steady monthly dividends, and the Fund offered a 30-day SEC yield of 6.20% at
the end of the period.
The Fund generated a six-month total return of 2.66% for Class A Shares, 2.28%
for Class B shares and 2.29% for Class C Shares. The Fund's performance compared
well with the 2.47% average for the 187 funds in Lipper Analytical Services'
General U.S. Government Funds category. (Returns do not reflect sales charges.)
What happened in the bond market in the first six months of 1997?
Investor expectations shaped the market - almost more than actual events.
Concern about the pace of economic growth, inflation, changes in interest rates
and the volatility in the stock market kept many bond investors on their toes.
Throughout the period, however, inflation remained contained despite continued
economic expansion, and interest rates generally were low.
6
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Pioneer America Income Trust
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We entered 1997 with bond prices falling. By February, the bond market had
recovered ground lost in January. The economy showed substantial growth in the
first quarter of 1997, and the Federal Reserve increased short-term interest
rates one-quarter of a percentage point (0.25%) on March 25. The rate hike
didn't have a significant or lasting effect. Because investors acted in advance
of the Fed's much-discussed move, bond prices had already moved down, sending
yields higher. Bond prices resumed their ascent in April, finishing higher in
June. As the period closed, the Fed was continuing its "wait and see" attitude.
Against this backdrop, what kind of changes did you make to the portfolio?
We adjusted the Fund's maturity profile as interest rates inched up and down.
Last December 31, portfolio holdings had an average effective life of 8.9 years;
they were only slightly longer, 9.0 years, as of June 30. (Effective maturity
takes into account the time left until a bond matures or can be called on demand
by the issuer, whichever is sooner.) Over the six months, we reduced the Fund's
concentration in securities with shorter maturities (2-10 years) from 81% to 73%
of the portfolio, while increasing the allocation to bonds with somewhat longer
maturities (10-30 years) from 11% to 20%, favoring them for their stronger
income stream. Lately, we have been increasing the Fund's maturity to take a
more aggressive stance, as we think interest rates will probably be stable going
forward.
The Fund's greatest concentration by market sector is in Government National
Mortgage Association (GNMA) pass-throughs. These mortgage-backed securities
offer a slightly higher income stream than U.S. Treasury issues, and we
gradually increased their position in the portfolio from 52% at the end of
December to 58% as of June 30. The Fund primarily held GNMAs in the 7.5% to 8.5%
rate range, which are tied to mortgages that charge 8.0% to 9.0% interest rates.
Since interest rates were relatively stable, we felt the Fund faced little risk
from prepayment of these bonds. This strategy helped the Fund maintain its
yield. As a
7
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Pioneer America Income Trust
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/97 (continued)
- --------------------------------------------------------------------------------
result of the increased GNMA holdings, the Fund's position in Treasurys fell
from 45% on December 31 to 37% at the end of June.
Both GNMAs and Treasurys are backed by the "full faith and credit" of the U.S.
government, which insures that your Fund will receive interest and principal
payments on time and in full. (This guarantee does not extend to the price or
yield of Fund shares.) With this backing, the average quality rating of Fund
holdings was AAA on June 30, the same as throughout the period.
What's your outlook going forward?
We have a positive outlook for bonds, so we are currently increasing the
portfolio's duration. (Duration measures a bond fund's sensitivity to interest
rates, with a portfolio likely to change in value by one percentage point for
every percentage point change in interest rates, up or down.)
The economy and markets seem to be moving forward with an "all news is good
news" attitude. There are indications that inflation will likely remain
contained, with interest rates staying near their current range. This would be
good news for almost all bond investors. However, if the economy rebounds and
shows strength similar to the first quarter of 1997, the Fed would likely take
action and push short-term interest rates higher. Through either scenario,
though, we believe the Fund's emphasis on high-quality U.S. government
securities can help us con tinue to reward investors with current income and
solid returns.
8
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Pioneer America Income Trust
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SCHEDULE OF INVESTMENTS 6/30/97
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Principal
Amount Value
INVESTMENT IN SECURITIES - 98.0%
U.S. GOVERNMENT OBLIGATIONS - 37.4%
$ 2,000,000 U.S. Treasury Bonds, 10.75%, 2003 $ 2,415,580
2,915,000 U.S. Treasury Bonds, 8.25%, 2005 3,051,684
5,590,000 U.S. Treasury Bonds, 9.125%, 2009 6,344,371
4,000,000 U.S. Treasury Bonds, 10.375%, 2009 4,859,400
3,000,000 U.S. Treasury Bonds, 10.0%, 2010 3,609,120
13,000,000 U.S. Treasury Bonds, 8.0%, 2021 14,708,200
3,000,000 U.S. Treasury Notes, 9.25%, 1998 3,107,640
4,000,000 U.S. Treasury Notes, 8.875%, 2000 4,278,320
2,000,000 U.S. Treasury Notes, 7.875%, 2004 2,157,140
9,500,000 U.S. Treasury Notes, 7.0%, 2006 9,775,405
--------------
Total U.S. Government Obligations $ 54,306,860
--------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 57.5%
89,458 GNMA Midget, 10.5%, 1998 to 2003 $ 94,983
798,974 GNMA Midget, 10.0%, 2001 to 2006 843,001
629,077 GNMA Midget, 9.5%, 2003 to 2006 657,229
87,896 GNMA Midget, 9.0%, 2004 to 2005 90,859
164,022 GNMA, 10.5%, 2017 to 2019 181,418
1,483,966 GNMA, 10.0%, 2016 to 2020 1,631,045
340,163 GNMA, 9.5%, 2019 to 2021 366,170
6,913,535 GNMA, 9.0%, 2016 to 2024 7,327,586
15,490,707 GNMA, 8.5%, 2024 to 2025 16,200,567
54,775,106 GNMA, 8.0%, 2024 to 2027 56,121,359
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Total U.S. Government Agency Obligations $ 83,514,217
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OTHER U.S. GOVERNMENT AGENCY OBLIGATION - 3.1%
4,275,000 Financial Assistance Corp., 9.45%, 2003 $ 4,454,465
--------------
Total Other U.S. Government Agency Obligation $ 4,454,465
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TOTAL INVESTMENT IN SECURITIES
(Cost $140,886,223) $ 142,275,542
==============
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer America Income Trust
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SCHEDULE OF INVESTMENTS 6/30/97 (CONTINUED)
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Principal
Amount Value
TEMPORARY CASH INVESTMENT - 2.0%
REPURCHASE AGREEMENT - 2.0%
$2,900,000 Chase Manhattan, 6/30/97, 5.80%, repurchase
price of $2,900,000 plus accrued interest on
7/1/97, collateralized by $2,872,000 U.S.
Treasury Bill, 6.25%, 7/31/98 $ 2,900,000
--------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $2,900,000) $ 2,900,000
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TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $143,786,223)(a)(b) $ 145,175,542
==============
Note: The Fund'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, 1997, the net unrealized gain on investments based on cost for
federal income tax purposes of $143,786,223 was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $ 2,398,509
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (1,009,190)
--------------
Net unrealized gain $ 1,389,319
==============
(b) At December 31, 1996, the Fund had a net capital loss carry forward of
$8,034,239 which will expire between 2001 and 2004 if not utilized.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended June 30, 1997 aggregated $28,560,469 and $39,977,443,
respectively.
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer America Income Trust
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Balanced Sheet 6/30/97
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ASSETS:
Investment in securities, at value (including temporary cash
investment of $2,900,000) (cost $143,786,223) $ 145,175,542
Cash 49,268
Receivables -
Fund shares sold 83,579
Interest 1,425,899
Other 668
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Total assets $ 146,734,956
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LIABILITIES:
Payables -
Fund shares repurchased 1,603,757
Dividends 201,368
Due to affiliates 189,196
Accrued expenses 40,899
-------------
Total liabilities $ 2,035,220
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NET ASSETS:
Paid-in capital $ 152,606,393
Distributions in excess of net investment income (7,154)
Accumulated net realized loss on investments (9,288,823)
Net unrealized gain on investments 1,389,319
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Total net assets $ 144,699,735
=============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $132,442,256/13,653,772 shares) $ 9.70
=============
Class B (based on $9,450,828/976,550 shares) $ 9.68
=============
Class C (based on $2,806,651/290,140 shares) $ 9.67
=============
MAXIMUM OFFERING PRICE:
Class A $ 10.16
=============
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer America Income Trust
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STATEMENT OF OPERATIONS
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For the Six Months Ended 6/30/97
INVESTMENT INCOME:
Interest $ 5,754,627
------------
EXPENSES:
Management fees $ 370,074
Transfer agent fees
Class A 160,964
Class B 11,253
Class C 2,058
Distribution fees
Class A 168,998
Class B 45,632
Class C 9,349
Accounting 50,361
Custodian fees 14,589
Registration fees 19,098
Professional fees 6,168
Printing 5,740
Fees and expenses of nonaffiliated trustees 7,928
Miscellaneous 11,889
-----------
Total expenses $ 884,101
Less management fees waived by
Pioneering Management Corporation (89,633)
Less fees paid indirectly (16,526)
------------
Net expenses $ 777,942
------------
Net investment income $ 4,976,685
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $ (1,254,584)
Change in net unrealized gain on investments 167,355
------------
Net loss on investments $ 1,087,229)
------------
Net increase in net assets resulting from operations $ 3,889,456
============
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer America Income Trust
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STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 6/30/97 and for the Year Ended 12/31/96
<TABLE>
<CAPTION>
Six Months Year Ended
FROM OPERATIONS: 6/30/97 12/31/96
<S> <C> <C>
Net investment income $ 4,976,685 $ 10,482,518
Net realized loss on investments (1,254,584) (1,540,059)
Change in net unrealized gain or loss on investments 167,355 (5,605,335)
-------------- --------------
Net increase in net assets resulting from operations $ 3,889,456 $ 3,337,124
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.32 and $0.64 per share, respectively) $ (4,647,709) $ (10,028,781)
Class B ($0.29 and $0.57 per share, respectively) (276,002) (493,224)
Class C ($0.29 and $0.52 per share, respectively) (56,631) (31,004)
In excess of net investment income:
Class A ($0.00 and $0.00 per share, respectively) (7,055) -
Class B ($0.00 and $0.00 per share, respectively) (375) -
-------------- --------------
Total distributions to shareholders $ (4,987,772) $ (10,553,009)
-------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 10,790,387 $ 22,744,467
Reinvestment of distributions 3,830,020 8,227,893
Cost of shares repurchased (25,093,549) (37,185,374)
-------------- --------------
Net decrease in net assets resulting from
fund share transactions $ (10,473,142) $ (6,213,014)
-------------- --------------
Net decrease in net assets $ (11,571,458) $ (13,428,899)
NET ASSETS:
Beginning of period 156,271,193 169,700,092
-------------- --------------
End of period including (distributions in excess of)/
accumulated undistributed net investment income
of ($7,154 and $3,933, respectively) $ 144,699,735 $ 156,271,193
============== ==============
<CAPTION>
CLASS A '97 Shares '97 Amount '96 Shares '96 Amount
<S> <C> <C> <C> <C>
Shares sold 751,553 $ 7,259,632 1,619,071 $ 15,878.995
Reinvestment of distributions 371,131 3,584,619 800,704 7,833,834
Less shares repurchased (2,357,799) (22,775,214) (3,487,423) (34,124,157)
------------- ------------- ------------- -------------
Net decrease (1,235,115) $(11,930,963) $ (1,067,648) (10,411,328)
============= ============= ============= =============
CLASS B
Shares sold 165,796 $ 1,598,292 545,668 $ 5,342,163
Reinvestment of distributions 21,168 204,036 37,373 364,533
Less shares repurchased (191,013) (1,842,657) (289,970) (2,822,817)
------------- ------------- ------------- -------------
Net increase (decrease) (4,049) $ (40,329) 293,071 $ 2,883,879
============= ============= ============= =============
CLASS C*
Shares sold 200,855 $ 1,932,463 155,653 $ 1,523,309
Reinvestment of distributions 4,293 41,365 3,036 29,526
Less shares repurchased (49,112) (475,678) (24,585) (238,400)
------------- ------------- ------------- -------------
Net increase 156,036 $ 1,498,150 134,104 $ 1,314,435
============= ============= ============= =============
</TABLE>
* Class C shares were first publicly offered on January 31, 1996.
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer America Income Trust
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FINANCIAL HIGHLIGHTS 6/30/97
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<TABLE>
<CAPTION>
Six Months Year Year Year Year
Ended Ended Ended Ended Ended
CLASS A 6/30/97 12/31/96 12/31/95 12/31/94 12/31/93
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.77 $ 10.20 $ 9.41 $ 10.48 $ 10.27
-------- -------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.32 $ 0.64 $ 0.68 $ 0.66 $ 0.68
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (0.07) (0.43) 0.79 (1.07) 0.24
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations $ 0.25 $ 0.21 $ 1.47 $ (0.41) $ 0.92
Distributions to shareholders:
Net investment income (0.32) (0.64) (0.68) (0.66) (0.67)
Net realized gain -- -- -- -- (0.04)
-------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ (0.07) $ (0.43) $ 0.79 $ (1.07) $ 0.21
-------- -------- -------- -------- --------
Net asset value, end of period $ 9.70 $ 9.77 $ 10.20 $ 9.41 $ 10.48
======== ======== ======== ======== ========
Total return* 2.66% 2.29% 16.06% (3.97)% 9.07%
Ratio of net expenses to average net assets 1.01%**+ 1.01%+ 1.02%+ 1.00% 1.00%
Ratio of net investment income to average net assets 6.72%**+ 6.51%+ 6.85%+ 6.84% 6.37%
Portfolio turnover rate 40%** 43% 62% 61% 42%
Net assets, end of period (in thousands) $132,442 $145,408 $162,708 $161,858 $105,892
Ratios assuming no waiver of management fees by PMC and
no reduction for fees paid indirectly:
Net expenses 1.13%** 1.17% 1.22% 1.12% 1.13%
Net investment income 6.60%** 6.35% 6.65% 6.72% 6.24%
Ratios assuming waiver of management fees by PMC and
reduction for fees paid indirectly:
Net expenses 0.99%** 1.00% 1.00% -- --
Net investment income 6.74%** 6.52% 6.87% -- --
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of 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.
+ Ratio assuming no reduction for fees paid indirectly.
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Year
Ended Ended Ended 4/29/94 to
CLASS B 6/30/97 12/31/96 12/31/95 12/31/94
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.75 $10.17 $ 9.40 $ 9.85
------ ------ ------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.29 $ 0.57 $ 0.61 $ 0.40
Net realized and unrealized gain (loss) on investments (0.07) (0.42) 0.77 (0.45)
------ ------ ------ ------
Net increase (decrease) from investment operations $ 0.22 $ 0.15 $ 1.38 $(0.05)
Distributions to shareholders:
Net investment income (0.29) (0.57) (0.61) (0.40)
------ ------ ------ ------
Net increase (decrease) in net asset value $(0.07) $(0.42) $ 0.77 $(0.45)
------ ------ ------ ------
Net asset value, end of period $ 9.68 $ 9.75 $10.17 $ 9.40
====== ====== ====== ======
Total return* 2.28% 1.59% 15.08% (0.57)%
Ratio of net expenses to average net assets 1.77%**+ 1.75%+ 1.77%+ 1.78%**
Ratio of net investment income to average net assets 5.96%**+ 5.78%+ 5.92%+ 6.35%**
Portfolio turnover rate 40%** 43% 62% 61%
Net assets, end of period (in thousands) $9,451 $9,557 $6,992 $2,170
Ratios assuming no waiver of management fees by
PMC and no reduction for fees paid indirectly:
Net expenses 1.89%** 1.91% 1.97% 1.90%**
Net investment income 5.84%** 5.62% 5.72% 6.23%**
Ratios assuming waiver of management fees by
PMC and reduction for fees paid indirectly:
Net expenses 1.76%** 1.73% 1.72% -
Net investment income 5.97%** 5.80% 5.97% -
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of 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.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer America Income Trust
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended 1/31/96 to
6/30/97 12/31/96
<S> <C> <C>
Net asset value, beginning of period $ 9.74 $10.16
------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.29 $ 0.52
Net realized and unrealized loss on investments (0.07) (0.42)
------ ------
Net increase (decrease) from investment operations $(0.22) $ 0.10
Distributions to shareholders:
Net investment income (0.29) (0.52)
------ ------
Net decrease in net asset value $(0.07) $(0.42)
------ ------
Net asset value, end of period $ 9.67 $ 9.74
====== ======
Total return* 2.29% 1.04%
Ratio of net expenses to average net assets 1.74%**+ 1.80%**+
Ratio of net investment income to average net assets 5.89%**+ 5.73%**+
Portfolio turnover rate 40%** 43%
Net assets, end of period (in thousands) $2,807 $1,306
Ratios assuming no waiver of management fees
by PMC and no reduction for fees paid indirectly:
Net expenses 1.85%** 1.95%**
Net investment income 5.78%** 5.58%**
Ratios assuming waiver of management fees
by PMC and reduction for fees paid indirectly:
Net expenses 1.69%** 1.76%**
Net investment income 5.94%** 5.77%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of 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.
+ Ratio assuming no reduction for fees paid indirectly.
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/97
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
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 high level of current income consistent with preservation of capital
and prudent investment risk.
The Trust offers three classes of shares - Class A, Class B and Class C shares.
Shares of Class A, Class B and Class C each 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 independent pricing services that utilize matrix
systems. These matrix systems reflect such factors as security prices,
yields, maturities and ratings and are 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.
Interest income is recorded on the accrual basis. Temporary cash investments
are valued at amortized cost.
17
<PAGE>
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/97 (continued)
- --------------------------------------------------------------------------------
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 dis tribute 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 $8,375 in underwriting commissions
on the sale of fund shares during the six months ended June 30, 1997.
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 expense (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.
18
<PAGE>
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/97 (continued)
- --------------------------------------------------------------------------------
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
to shareholders are recorded as of the ex-dividend date. Distributions paid by
the Trust with respect to each class of shares are calculated in the same
manner, at the same time, and in the same amount, except that Class A, Class B
and Class C shares can bear different transfer agent and distribution fees.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Trust, the value of
the underlying securities (collateral), including accrued interest received from
counterparties, is required to be at least equal to or in excess of the value of
the repurchase agreement at the time of purchase. The collateral for all
repurchase agreements is held in safekeeping in the customer-only account of the
Trust's custodian, or subcustodians. The Trust's investment adviser, Pioneer
Management Corporation (PMC), is responsible for determining that the value of
the collateral remains at least equal to the repurchase price.
2. Management Agreement
PMC 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. At June 30, 1997, $62,236 was payable to PMC related to management
fees and certain other services.
19
<PAGE>
Pioneer America Income Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/97 (continued)
- --------------------------------------------------------------------------------
3. Transfer Agent
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 $34,696 in transfer agent fees payable to PSC at June 30, 1997.
4. Plan of Distribution
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 the 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 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 $92,264 in distribution fees payable to PFD at June 30,
1997.
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 redemptions of
certain net asset value purchases of Class A shares 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 4.0%, 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, 1997, CDSCs in the amount of $17,537 were paid
to PFD.
5. Expense Reductions
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, 1997,
the Trust's expenses were reduced by $16,526 under such arrangements.
20
<PAGE>
Pioneer America Income Trust
- --------------------------------------------------------------------------------
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, including the schedule of
investments, of Pioneer America Income Trust as of June 30, 1997, and the
related statement of operations, the statements of changes in net assets, and
the financial highlights for the periods presented. These financial statements
and the 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, 1997, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by man agement, as
well as evaluating the overall financial statement pre sentation. 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, 1997, the results of its operations,
the changes in its net assets, and the financial highlights for the periods
presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
August 1, 1997
21
<PAGE>
Pioneer America Income Trust
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees
John F. Cogan, Jr.
Richard H. Egdahl, M.D.
Margaret B.W. Graham
John W. Kendrick
Marguerite A. Piret
David D. Tripple
Stephen K. West
John Winthrop
Investment Adviser
Pioneering Management Corporation
Custodian
Brown Brothers Harriman & Co
Independent Public Accountants
Arthur Andersen LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
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
22
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Pioneer America Income Trust
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This page for your notes.
23
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Pioneer America Income Trust
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This page for your notes.
24
<PAGE>
Pioneer America Income Trust
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This page for your notes.
25
<PAGE>
Pioneer America Income Trust
- --------------------------------------------------------------------------------
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
- --------------------------------------------------------------------------------
Your investment representative can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-8O0-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information, have
your 13-digit account number and four-digit personal identification number at
hand.
9O-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as you
meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need to
do is authorize a set amount of money to be moved out of your bank account into
the Pioneer fund of your choice. Investomatic also allows you to change the
dollar amount, frequency and investment date right over the phone. By putting
aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing Pioneer
to deduct from participating employees' paychecks. You specify the dollar amount
you want to invest into the Pioneer fund(s) of your choice.
26
<PAGE>
Pioneer America Income Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Automatic Exchange Program
A simple way to move money from a money market or bond fund into a stock fund
over a period of time. Just invest a lump sum in a Pioneer money market fund or
bond fund. Then, select the Pioneer equity fund or funds you wish to invest in,
and choose the amounts and dates for Pioneer to sell shares of your money market
or bond fund and use the proceeds to buy shares of the Pioneer equity fund you
have chosen. Over time, your original investment will be shifted to your Pioneer
equity fund.
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distri butions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals. You
decide the frequency and the day of the month you want. Pioneer will send the
proceeds by check to the address you designate, or electronically to your bank
account. You also can authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available only for accounts with a value of $10,000 or
more.)
27
<PAGE>
Pioneer America Income Trust
- --------------------------------------------------------------------------------
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This page for your notes.
28
<PAGE>
Pioneer America Income Trust
- --------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
For information about any Pioneer mutual fund, please contact your investment
representative, or call Pioneer at 1-800-225-6292. Ask for a free fund
information kit, which includes a fund prospectus. Please read the prospectus
carefully before you invest or send money.
Growth Funds Income Funds
Global/International Taxable
Pioneer Emerging Markets Fund Pioneer America Income Trust
Pioneer Europe Fund Pioneer Bond Fund
Pioneer Gold Shares Pioneer Short-Term Income Trust*
Pioneer India Fund
Pioneer International Growth Fund Tax-Exempt
Pioneer World Equity Fund Pioneer Intermediate Tax-Free Fund
Pioneer Tax-Free Income Fund
United States
Pioneer Capital Growth Fund Money Market Fund
Pioneer Growth Shares Pioneer Cash Reserves Fund
Pioneer Micro-Cap Fund*
Pioneer Mid-Cap Fund
Pioneer Small Company Fund
Growth and Income Funds
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Fund
Pioneer Real Estate Shares
Pioneer II
*0ffers Class A and B Shares only
29
<PAGE>
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call us:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFoneSM for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current Fund prospectus.
Pioneer Funds Distributor, Inc.
60 State Street
Boston, Massachusetts 02109
[LOGO] Pioneer Funds Distributor, Inc. 0897-4369
60 State Street (C) Pioneer Funds Distributor, Inc.
Boston, Massachusetts 02109 [Recycled] Printed on Recycled Paper
