[Pioneer Logo]
Pioneer
Short-Term Income
Trust
ANNUAL REPORT 11/30/96
<PAGE>
Table of Contents
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<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 5
Schedule of Investments 8
Financial Statements 15
Notes to Financial Statements 20
Report of Independent Public Accountants 24
Tax Treatment of Distributions 25
Trustees' Fees and Share Ownership 26
Trustees, Officers and Service Providers 27
Programs and Services for Pioneer Shareowners 28
</TABLE>
<PAGE>
Pioneer Short-Term Income Trust
LETTER FROM THE CHAIRMAN 11/30/96
D e a r S h a r e o w n e r ,
It is with pleasure that I introduce this report for Pioneer Short-Term
Income Trust, covering the year ended November 30, 1996.
The bond market went full cycle during the year, going from falling interest
rates and rising bond prices to rising rates and falling prices, and back
again. Your Fund's management team had an active year adjusting the portfolio
to pursue income while seeking to minimize changes in share price. We are
pleased to report that, despite the fast-changing environment for bonds
overall, Pioneer Short-Term Income Trust continued to pay shareowners
attractive dividends and generated a competitive, positive total return. The
Fund remains a high-quality alternative for investors looking for higher
yields than money market funds or certificates of deposit offer.
A final note. As you see, we've given your Fund's annual report a facelift.
The new, improved style reflects what shareowners told us they want to see in
fund reports. Our thanks to all of you who took the time to respond to our
questions. Now you'll find a Table of Contents and consistent, easy-to-read
summaries of portfolio information and performance. There's also a Portfolio
Management Discussion of the portfolio management team's insights into market
conditions, portfolio strategy and results. We hope you find them
informative.
Please contact your investment representative, or us at 1-800-225-6292, if
you have questions about your investment in Pioneer Short-Term Income Trust.
Thank you for your continued support.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
Pioneer Short-Term Income Trust
PORTFOLIO SUMMARY 11/30/96
P o r t f o l i o D i v e r s i f i c a t i o n
(As a percentage of total investment portfolio)
[Description of Pie Chart]
U.S. Government Agency Obligations 71%
Short-Term Cash Equivalents 3%
Corporate Bonds 11%
U.S. Government Obligations 15%
P o r t f o l i o Q u a l i t y
(As a percentage of debt holdings)
BBB 1%
A 4%
AA 1%
AAA 5%
Treasury/Agency 89%
10 L a r g e s t H o l d i n g s
(As a percentage of debt holdings)
<TABLE>
<S> <C>
1. U.S. Treasury Notes, 7.75%, 1999 5.54%
2. U.S. Treasury Notes, 7.25%, 1998 3.52
3. U.S. Treasury Notes, 7.125%, 1999 3.43
4. U.S. Treasury Notes, 6.375%, 2000 2.68
5. Federal National Mortgage Association, Medium Term Note, 7.0%, 2001 2.22
6. Federal National Mortgage Association, Medium Term Note, 7.11%, 2000 1.87
7. Tennessee Valley Authority, 8.375%, 1999 1.87
8. Federal Home Loan Mortgage Corp., REMIC Series 1145G, 8.0%, 2006 1.79
9. Federal National Mortgage Association, Medium Term Note, 7.17%, 2001 1.79
10. Federal National Mortgage Association, Medium Term Note, 7.3%, 2000 1.79
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer Short-Term Income Trust
PERFORMANCE UPDATE 11/30/96 CLASS A SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
Net Asset Value
per Share 11/30/96 11/30/95
$3.79 $3.84
Distributions per Share Income Short-Term Long-Term
(11/30/95-11/30/96) Dividends Capital Gains Capital Gains
$0.243 - -
I n v e s t m e n t R e t u r n s
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Short-Term Income Trust at public offering price, compared to the
growth of the Merrill Lynch 1-3 Year Government Bond Index.
Average Annual Total Returns
(As of November 30, 1996)
Net Asset Public Offering
Period Value Price*
Life-of-Fund 5.11% 4.50%
(8/10/92)
1 Year 5.20 2.53
* Reflects deduction of the maximum 2.5% sales charge at the beginning
of the period and assumes reinvestment of distributions at net asset value.
- --------------------------------------------------------------------------------
[Description of Mountain Chart]
Growth of $10,000+
Pioneer Short-Term Merrill Lynch 1-3 Year Government
Income Trust Bond Index
8/92 9756 1000
11/92 9809 10018
10066 10307
5/93 10204 10372
10362 10564
11/93 10424 10623
10488 10661
5/94 10466 10586
10518 10746
11/94 10457 10697
10756 11019
5/95 11122 11375
11259 11553
11/95 11466 11810
11576 11951
5/96 11606 11975
11743 12150
11/96 12062 12494
- --------------------------------------------------------------------------------
+ Index comparison begins 8/31/92. The Merrill Lynch 1-3 Year Government Bond
Index is an unmanaged, composite index of debt obligations of the U.S.
Treasury and U.S. government agencies (excluding mortgage-backed securities).
All issues have a maturity of at least one year and no more than three years.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Fund returns, do not reflect any fees, expenses or sales charges. You
cannot invest directly in 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
<PAGE>
Pioneer Short-Term Income Trust
PERFORMANCE UPDATE 11/30/96 CLASS B SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
Net Asset Value
per Share 11/30/96 11/30/95
$3.79 $3.85
Distributions per Share Income Short-Term Long-Term
(11/30/95-11/30/96) Dividends Capital Gains Capital Gains
$0.222 - -
I n v e s t m e n t R e t u r n s
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Short-Term Income Trust, compared to the growth of the Merrill
Lynch 1-3 Year Government Bond Index.
Average Annual Total Returns
(As of November 30, 1996)
If If
Period Held Redeemed*
Life-of-Fund 4.85% 4.51%
(4/4/94)
1 Year 4.37 2.40
* Reflects deduction of the maximum applicable contingent deferred sales charge
CDSC) at the end of the period and assumes reinvestment of distributions. The
maximum CDSC of 2% declines over three years.
- --------------------------------------------------------------------------------
[Description of Mountain Chart]
Growth of $10,000+
Pioneer Short-Term Merrill Lynch 1-3 Year Government
Income Trust Bond Index
4/94 10000 1000
5/94 9987 10014
8/94 10027 10166
11/94 9961 10119
2/95 10221 10424
5/95 10539 10761
8/95 10643 10929
11/95 10850 11172
2/96 10922 11306
5/96 10910 11328
8/96 11044 11493
11/96 11227 11819
- --------------------------------------------------------------------------------
Pioneer Short-Term Income Trust
Merrill Lynch 1-3 Year Government Bond Index
+ Index comparison begins 4/30/94. The Merrill Lynch 1-3 Year Government Bond
Index is an unmanaged, composite index of debt obligations of the U.S.
Treasury and U.S. government agencies (excluding mortgage-backed securities).
All issues have a maturity of at least one year and no more than three years.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Fund returns, do not reflect any fees, expenses or sales charges. You
cannot invest directly in 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
<PAGE>
Pioneer Short-Term Income Trust
PORTFOLIO MANAGEMENT DISCUSSION 11/30/96
Dear Shareowner,
It's my pleasure to report on Pioneer Short-Term Income Trust for the fiscal
year ended November 30, 1996. The Fund generated a positive total return and
consistent monthly dividends despite the bond market's considerable
volatility.
The Fund continued to stand out among its peers. Morningstar, an independent
firm that tracks mutual fund performance, awarded the Fund's Class A Shares a
risk-adjusted rating of four stars for the three-year period ended November
30, 1996.* The Fund was rated among 1,075 taxable bond funds for the
three-year period. In addition, Lipper Analytical Services ranked the
12-month yield of 6.40% on the Fund's Class A Shares in the top 20% of the 95
short-term investment-grade bond funds tracked for the year ended November
30.
Higher Interest Rates Snuff Extended Market Rally
A glimpse at interest rates at the beginning and end of the Fund's fiscal
year might lead an investor to conclude that the bond market was rather quiet
during the 12-month period. That was not the case, as the chart to the right
shows.
Early on, sluggish growth, low interest rates and low inflation created an
ideal environment for bonds. Signs of an economic slowdown led the Federal
Reserve (the Fed) to reduce short-term interest
- --------------------------------------------------------------------------------
[Description of Line Chart]
Fast-Changing Interest Rates
(Yields on Treasury Issues 11/30/95-11/30/96)
1-Year Treasury Bill 10-Year Treasury Bond 30-Year Treasury Bond
11/30/95 5.35 5.75 6.13
12/31/95 5.13 5.57 5.95
1/31/96 4.89 5.57 6.02
2/29/96 5.19 6.09 6.47
3/31/96 5.38 6.32 6.67
4/30/96 5.61 6.67 6.9
5/31/96 5.74 6.85 6.99
6/30/96 5.67 6.71 6.89
7/31/96 5.83 6.79 6.97
8/31/96 5.89 6.94 7.12
9/31/96 5.68 6.7 6.92
10/31/96 5.4 6.34 6.64
11/30/96 5.35 6.05 6.36
- --------------------------------------------------------------------------------
*Morningstar proprietary ratings reflect sales charges and historical
risk-adjusted performance and are subject to change every month. Ratings are
calculated from the Fund's three-year average annual returns in excess of
90-day Treasury bill returns with appropriate fee adjustments, and a risk
factor that reflects fund performance below 90-day Treasury bill returns.
Ten percent of the funds in an investment category receive five stars and
the next 22.5% receive four stars. The Fund's Class B Shares will not be
eligible for a Morningstar rating until they have three years of operating
history. Past performance does not guarantee future results.
5
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Pioneer Short-Term Income Trust
PORTFOLIO MANAGEMENT DISCUSSION 11/30/96 (continued)
rates by 0.25% on December 19, 1995, and January 31, 1996, bolstering bond
investors' euphoria. Despite the breakdown of budget talks in Washington,
investor confidence and bond prices rose.
In March, however, evidence of rapid employment growth fueled fears of
inflation and a possible end to the Fed's program of lowering short-term
rates. The extended bond rally came to a sudden close. Bond prices dropped,
pushing yields on bonds of all maturities higher. However, prices of
short-term securities, like those in which your Fund invests, fluctuated far
less than their longer-term counterparts.
The bond market remained uneasy in the following months. To the surprise of
many, the Fed left short-term rates unchanged for the balance of the period.
In the final weeks of November, mixed economic signals eased concerns over
rising interest rates, and bond investors once again adopted a more favorable
outlook.
Fund Defined by Portfolio Maturity, High Quality and Strategic Allocation
To help limit volatility, the Fund's average maturity cannot exceed three
years, and no individual holding can carry a maturity of more than five
years. At the beginning of the fiscal year, the portfolio's effective
duration and average maturity were 1.62 years and 1.95 years, respectively.
As yields rose, we increased both - to 2.01 years and 2.45 years,
respectively - at mid-year. Even with the recent rally, we believe it prudent
to maintain a conservative course. By the end of the year, duration and
average maturity were back down to 1.62 years and 1.76 years. Happily, the
Fund maintained a healthy monthly dividend rate throughout the entire year,
despite the changes in interest rates.
The Fund's focus on high-quality securities and its strategic allocation also
are distinctive. On November 30, 1996, 98.6% of the portfolio's holdings were
rated A or above - the same as one year earlier. Assets are spread among
three major market sectors - U.S. government and agency securities,
collateralized mortgage obligations (CMOs) and corporate securities. However,
over the 12-month period, our view of the bond market led us to decrease CMO
and corporate holdings, while steadily increasing Treasury issues.
6
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Pioneer Short-Term Income Trust
We reduced the CMO position to 31% from 41% at the beginning of the fiscal
year. Although they augment the portfolio's income stream, we moved away from
CMOs as a result of prepayment concerns brought about by falling interest
rates. Now, Treasury and agency issues comprise more than half the portfolio.
We added a sizable number of callable agency issues, which can be redeemed by
the issuer at a specified date before maturity. We bought them last spring
when they were relatively cheap, and they appreciated as investors grew wary
of other instruments. These highly liquid issues should provide an attractive
income stream and can be readily sold if we wish to quickly reallocate
assets. We limited holdings in corporate bonds. Although this sector did
benefit from an expanding U.S. economy, we felt shareowners would not be
adequately compensated for the increased credit risk. Furthermore, the
difference between yields of low investment-grade and AAA-rated corporate
issues narrowed, making corporate debt relatively expensive.
Looking Forward
As we enter fiscal 1997, one-quarter of the Fund's assets are invested in
securities maturing in one year or less, giving the portfolio a defensive
tone. Although the Fed has yet to raise interest rates, fears of rising
inflation still remain foremost in the minds of bond investors and are likely
to create some choppy waters ahead.
While the Fund offers the potential for higher returns than CDs or savings
accounts, its share price and income will fluctuate with market conditions.
However, we believe Pioneer Short-Term Income Trust's focus on high- quality,
shorter-term securities will be key to maintaining greater price stability
than longer-term bond investments with higher income potential than money
market instruments.
Respectfully,
/s/ Richard A. Schlanger
Richard A. Schlanger,
Portfolio Manager
7
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Pioneer Short-Term Income Trust
SCHEDULE OF INVESTMENTS 11/30/96
S&P/Moody's
Principal Ratings
Amount (Unaudited) Value
INVESTMENT IN SECURITIES - 97.0%
Corporate Bonds - 10.7%
Asset-Backed - 4.9%
$ 458,333 Chase Manhattan Credit Card Master
AAA/Aaa Trust, Series 1992-1A, 7.4%, 2000 $ 460,565
500,000 Nationsbank Credit Card Master Trust,
AAA/Aaa Series 1995-1A, 6.45%, 2003 507,510
500,000 Navistar Financial Corp. Owner Trust,
AAA/Aaa Series 1996-A2, 6.35%, 2002 503,570
875,000 Premier Auto Trust, Series 1995-2A6,
AAA/Aaa 7.2%, 1999 898,984
500,000 Sears Credit Account Master Trust,
AAA/Aaa Series 1994-1A, 7.0%, 2004 513,680
-----------
$2,884,309
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Financial - 4.5%
500,000 AA-/Aa3 Associates Corp. N.A., 8.125%, 1998 $ 513,125
250,000 Discover Credit Corp., Medium Term
A-/A2 Note, 7.77%, 1997 251,942
500,000 A+/A1 Ford Motor Credit Co., 6.85%, 2000 510,000
350,000 General Motors Acceptance Corp.,
A-/A3 Medium Term Note, 7.4%, 1997 352,832
500,000 General Motors Acceptance Corp.,
A-/A3 Medium Term Note, 7.9%, 1997 504,550
500,000 A/A3 Transamerica Financial, 6.75%, 2000 506,875
-----------
$2,639,324
-----------
Industrial - 1.3%
780,000 BBB+/Baa1 Comdisco Inc., 6.5%, 2000 $ 784,875
-----------
Total Corporate Bonds
(Cost $ 6,256,566) $6,308,508
-----------
U.S. Government Obligations - 14.7%
1,975,000 U.S. Treasury Notes, 7.25%, 1998 $2,014,658
1,890,000 U.S. Treasury Notes, 7.125%, 1999 1,959,212
3,000,000 U.S. Treasury Notes, 7.75%, 1999 3,164,520
1,500,000 U.S. Treasury Notes, 6.375%, 2000 1,529,280
-----------
Total U.S. Government Obligations
(Cost $8,770,964) $8,667,670
-----------
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
Pioneer Short-Term Income Trust
S&P/Moody's
Principal Ratings
Amount (Unaudited) Value
U.S. Government Agency
Obligations - 71.6%
$ 500,000 Aid-Israel, 7.75%, 1999 $ 522,500
500,000 Federal Home Loan Bank, 7.55%, 1997 509,090
400,000 Federal Home Loan Bank, 6.47%, 1999 400,388
500,000 Federal Home Loan Bank, 8.125%, 2000 504,360
200,000 Federal Home Loan Bank, 6.17%, 2001 201,362
500,000 Federal Home Loan Bank, 6.3%, 2001 506,790
350,000 Federal Home Loan Bank, 6.32%, 2001 348,740
500,000 Federal Home Loan Bank, 6.36%, 2001 502,500
500,000 Federal Home Loan Mortgage Corp.,
7.01%, 1999 500,385
600,000 Federal Home Loan Mortgage Corp.,
6.29%, 2000 602,376
200,000 Federal Home Loan Mortgage Corp.,
7.38%, 2000 202,818
300,000 Federal Home Loan Mortgage Corp.,
7.51%, 2000 305,010
500,000 Federal Home Loan Mortgage Corp.,
7.645%, 2000 509,420
500,000 Federal Home Loan Mortgage Corp.,
7.726%, 2000 502,685
500,000 Federal Home Loan Mortgage Corp.,
6.87%, 2001 510,450
500,000 Federal Home Loan Mortgage Corp.,
6.92%, 2001 511,345
300,000 Federal Home Loan Mortgage Corp.,
7.055%, 2001 302,979
350,000 Federal Home Loan Mortgage Corp.,
7.5%, 2001 351,257
1,000,000 Federal Home Loan Mortgage Corp.,
Global Notes, 6.93%, 2000 1,008,370
23,875 Federal Home Loan Mortgage Corp.,
REMIC Series 1292E, 7.35%, 2003 23,822
177,822 Federal Home Loan Mortgage Corp.,
REMIC Series 1319E, 7.0%, 2004 178,232
1,000,000 Federal Home Loan Mortgage Corp.,
REMIC Series 1243H, 7.5%, 2004 1,019,060
The accompanying notes are an integral part of these financial statements.
9
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Pioneer Short-Term Income Trust
SCHEDULE OF INVESTMENTS 11/30/96 (continued)
S&P/Moody's
Principal Ratings
Amount (Unaudited) Value
$ 82,303 Federal Home Loan Mortgage Corp.,
REMIC Series 1164F, 7.0%, 2005 $ 82,391
119,071 Federal Home Loan Mortgage Corp.,
REMIC Series 1027H, 9.0%, 2005 119,560
232,352 Federal Home Loan Mortgage Corp.,
REMIC Series 1238G, 7.25%, 2006 234,018
570,878 Federal Home Loan Mortgage Corp.,
REMIC Series 1132I, 8.0%, 2006 584,676
1,000,000 Federal Home Loan Mortgage Corp.,
REMIC Series 1145G, 8.0%, 2006 1,025,010
175,540 Federal Home Loan Mortgage Corp.,
REMIC Series 1457E, 7.0%, 2007 175,082
407,995 Federal Home Loan Mortgage Corp.,
REMIC Series 1564J, 6.5%, 2008 402,283
1,000,000 Federal Home Loan Mortgage Corp.,
REMIC Series 1262F, 7.5%, 2015 1,009,910
395,108 Federal Home Loan Mortgage Corp.,
REMIC Series 1311F, 7.5%, 2018 397,194
500,000 Federal Home Loan Mortgage Corp.,
REMIC Series 1281F, 8.0%, 2018 512,005
2,040 Federal Home Loan Mortgage Corp.,
REMIC Series 1039G, 6.5%, 2019 2,035
500,000 Federal Home Loan Mortgage Corp.,
REMIC Series 1358F, 6.75%, 2019 500,845
203,200 Federal Home Loan Mortgage Corp.,
REMIC Series 1264F, 7.75%, 2019 204,821
628,417 Federal Home Loan Mortgage Corp.,
REMIC Series 186D, 8.0%, 2019 633,092
87,460 Federal Home Loan Mortgage Corp.,
REMIC Series 1143H, 8.0%, 2019 87,589
187,915 Federal Home Loan Mortgage Corp.,
REMIC Series 82C, 8.9%, 2019 187,915
500,000 Federal Home Loan Mortgage Corp.,
REMIC Series 1142H, 7.95%, 2020 511,720
795,532 Federal Home Loan Mortgage Corp.,
REMIC Series 112H, 8.8%, 2020 816,072
562,083 Federal Home Loan Mortgage Corp.,
REMIC Series 189C, 8.0%, 2021 573,920
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
Pioneer Short-Term Income Trust
S&P/Moody's
Principal Ratings
Amount (Unaudited) Value
$ 442,701 Federal Home Loan Mortgage Corp.,
REMIC Series 1590K, 6.5%, 2023 $ 443,259
500,000 Federal Home Loan Mortgage Corp.,
Step Up Note, 6.25%, 2001 504,840
235,000 Federal National Mortgage
Association, 7.85%, 1998 243,091
500,000 Federal National Mortgage
Association, 6.45%, 2001 504,415
1,000,000 Federal National Mortgage
Association, Global Notes, 6.85%,
2000 1,013,510
500,000 Federal National Mortgage
Association, Medium Term Note, 7.26%,
1999 504,320
500,000 Federal National Mortgage
Association, Medium Term Note, 6.35%,
2000 502,485
500,000 Federal National Mortgage
Association, Medium Term Note, 6.64%,
2000 504,195
500,000 Federal National Mortgage
Association, Medium Term Note, 6.81%,
2000 506,080
1,050,000 Federal National Mortgage
Association, Medium Term Note, 7.11%,
2000 1,070,695
585,000 Federal National Mortgage
Association, Medium Term Note, 7.26%,
2000 598,473
1,000,000 Federal National Mortgage
Association, Medium Term Note, 7.3%,
2000 1,020,750
500,000 Federal National Mortgage
Association, Medium Term Note, 8.16%,
2000 502,030
500,000 Federal National Mortgage
Association, Medium Term Note, 6.37%,
2001 503,230
500,000 Federal National Mortgage
Association, Medium Term Note, 6.61%,
2001 503,735
500,000 Federal National Mortgage
Association, Medium Term Note, 6.63%,
2001 507,905
500,000 Federal National Mortgage
Association, Medium Term Note, 6.93%,
2001 504,900
1,250,000 Federal National Mortgage
Association, Medium Term Note, 7.0%,
2001 1,267,075
500,000 Federal National Mortgage
Association, Medium Term Note, 7.0%,
2001 504,665
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
Pioneer Short-Term Income Trust
SCHEDULE OF INVESTMENTS 11/30/96 (continued)
S&P/Moody's
Principal Ratings
Amount (Unaudited) Value
$1,000,000 Federal National Mortgage
Association, Medium Term Note, 7.17%,
2001 $1,021,650
445,233 Federal National Mortgage
Association, REMIC Series 1991-175E,
7.0%, 1998 446,890
365,042 Federal National Mortgage
Association, REMIC Series 1993-26PL,
7.0%, 1998 367,188
500,000 Federal National Mortgage
Association, REMIC Series 1992-97DB,
8.0%, 1999 509,990
500,000 Federal National Mortgage
Association, REMIC Series 1992-40G,
7.0%, 2002 504,070
500,000 Federal National Mortgage
Association, REMIC Series 1992-145J,
7.15%, 2003 509,835
500,000 Federal National Mortgage
Association, REMIC Series 1992-110G,
7.0%, 2005 507,100
300,000 Federal National Mortgage
Association, REMIC Series 1991-119M,
8.5%, 2008 315,219
500,000 Federal National Mortgage
Association, REMIC Series 1992-84G,
7.5%, 2014 504,850
303,437 Federal National Mortgage
Association, REMIC Series 1992-132PE,
7.25%, 2015 303,667
130,657 Federal National Mortgage
Association, REMIC Series 1992-131E,
7.0%, 2017 130,363
698,798 Federal National Mortgage
Association, REMIC Series 1988-26C,
7.5%, 2018 709,322
179,884 Federal National Mortgage
Association, REMIC Series 1992-43B,
7.5%, 2018 180,136
323,069 Federal National Mortgage
Association, REMIC Series 1990-8E,
8.5%, 2018 328,135
64,138 Federal National Mortgage
Association, REMIC Series 1989-87G,
8.75%, 2018 64,043
500,000 Federal National Mortgage
Association, REMIC Series 1993-23PJ,
6.7%, 2019 504,965
1,000,000 Federal National Mortgage
Association, REMIC Series 1992-131G,
7.25%, 2019 1,004,490
213,845 Federal National Mortgage
Association, REMIC Series 1990-48G,
7.95%, 2019 215,678
500,000 Federal National Mortgage
Association, REMIC Series 1991-169PJ,
7.0%, 2020 499,475
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
Pioneer Short-Term Income Trust
S&P/Moody's
Principal Ratings
Amount (Unaudited) Value
$ 391,808 Federal National Mortgage
Association, REMIC Series 1991-74J,
7.95%, 2020 $ 393,626
427,875 Federal National Mortgage
Association, REMIC Series 1991-103HB,
8.75%, 2020 434,174
98,373 Federal National Mortgage
Association, REMIC Series 1992-77G,
8.0%, 2021 99,968
190,802 Federal National Mortgage
Association, REMIC Series 1992-64M,
7.0%, 2022 190,646
500,000 Federal Farm Credit Bank, Medium Term
Note, 7.79%, 1997 510,465
500,000 Federal Farm Credit Bank, Medium Term
Note, 6.62%, 2001 503,930
250,000 Federal Farm Credit Bank, Medium Term
Note, 7.3%, 2001 255,285
300,000 Student Loan Marketing Association,
Global Notes, 7.0%, 1998 304,938
1,000,000 Tennessee Valley Authority, 8.375%,
1999 1,066,250
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Total U.S. Government Agency
Obligations (Cost $42,097,099) $42,180,078
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $57,124,629) $57,156,256
-----------
TEMPORARY CASH INVESTMENT - 3.0%
Commercial Paper - 3.0%
1,758,000 Household Finance Corp., 5.75%,
12/02/96 $ 1,758,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,758,000) $ 1,758,000
-----------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENTS - 100%
(Cost $58,882,629) (a) (b) $58,914,256
-----------
(a) At November 30, 1996, the net unrealized gain on investments
based on cost for federal income tax purposes of $58,888,254
was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $370,107
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (344,105)
-----------
Net unrealized gain $ 26,002
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
Pioneer Short-Term Income Trust
SCHEDULE OF INVESTMENTS 11/30/96 (continued)
(b) At November 30, 1996, the Fund had a net capital loss carryforward of
$3,046,729 which will expire between 2000 and 2004 if not utilized.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended November 30, 1996, were as follows:
Purchases Sales
------------ -------------
Long-term U.S. Government $35,213,786 $30,129,530
Other Long-term Securities 911,786 4,360,570
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
Pioneer Short-Term Income Trust
BALANCE SHEET 11/30/96
ASSETS:
Investment in securities, at value (including temporary cash
investments of $1,758,000) (cost $58,882,629) $58,914,256
Cash 7,107
Receivables -
Fund shares sold 214,171
Interest 778,472
Other 2,082
-----------
Total assets $59,916,088
-----------
LIABILITIES:
Payables -
Fund shares repurchased 147,374
Dividends 69,204
Due to affiliates 45,015
Accrued expenses 49,073
-----------
Total liabilities $ 310,666
-----------
NET ASSETS:
Paid-in capital $62,678,987
Distributions in excess of net investment income (48,615
Accumulated net realized loss on investments (3,056,577
Net unrealized gain on investments 31,627
-----------
Total net assets $59,605,422
-----------
Net Asset Value Per Share:
(Unlimited number of shares authorized)
Class A (based on $54,636,594/14,398,261 shares) $ 3.79
-----------
Class B (based on $4,968,828/1,311,811 shares) $ 3.79
-----------
Maximum Offering Price:
Class A $ 3.89
-----------
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
Pioneer Short-Term Income Trust
STATEMENT OF OPERATIONS
For the Year Ended 11/30/96
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Interest $3,901,807
------------
EXPENSES:
Management fees $274,726
Transfer agent fees
Class A 94,976
Class B 9,637
Distribution fees
Class A 127,915
Class B 37,792
Accounting 87,532
Custodian fees 17,090
Registration fees 26,908
Professional fees 39,640
Printing 13,856
Fees and expenses of nonaffiliated trustees 17,217
Miscellaneous 16,428
---------
Total expenses $ 763,717
Less management fees waived by
Pioneering Management Corporation (254,776)
Less fees paid indirectly (11,298)
------------
Net expenses $ 497,643
------------
Net investment income $3,404,164
------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments $ (248,627)
Change in net unrealized gain on investments (351,256)
------------
Net loss on investments $ (599,883)
------------
Net increase in net assets resulting from operations $2,804,281
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
Pioneer Short-Term Income Trust
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended 11/30/96 and 11/30/95
<TABLE>
<CAPTION>
Year Ended Year Ended
11/30/96 11/30/95
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 3,404,164 $ 3,729,437
Net realized loss on investments (248,627) (804,710)
Change in net unrealized gain/loss on investments (351,256) 2,442,228
------------- --------------
Net increase in net assets resulting from operations $ 2,804,281 $ 5,366,955
------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.24 and $0.26 per share, respectively) $ (3,222,631) $ (3,791,748)
Class B ($0.21 and $0.23 per share, respectively) (197,640) (178,555)
In excess of net investment income:
Class A ($0.00 and $0.00 per share, respectively) (25,178) -
Class B ($0.01 and $0.00 per share, respectively) (23,437) -
------------- --------------
Total distributions to shareholders $ (3,468,886) $ (3,970,303)
------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 32,092,020 $ 30,760,993
Reinvestment of distributions 2,552,698 2,969,805
Cost of shares repurchased (31,158,433) (40,613,691)
------------- --------------
Net increase (decrease) in net assets resulting
from fund share transactions $ 3,486,285 $ (6,882,893)
------------- --------------
Net increase (decrease) in net assets $ 2,821,680 $ (5,486,241)
NET ASSETS:
Beginning of year 56,783,742 62,269,983
------------- --------------
End of year (including (distributions in excess of) /
accumulated undistributed net investment income of
($48,615) and $16,107, respectively) $ 59,605,422 $ 56,783,742
------------- --------------
</TABLE>
<TABLE>
<CAPTION>
'96 Shares '96 Amount '95 Shares '95 Amount
<S> <C> <C> <C> <C>
Class A
Shares sold 6,451,953 $ 24,450,587 4,746,546 $ 18,022,565
Reinvestment of distributions 635,331 2,410,126 743,271 2,831,308
Less shares repurchased (6,697,289) (25,468,788) (7,218,106) (27,401,015)
------------ ------------- ------------ --------------
Net increase (decrease) 389,995 $ 1,391,925 (1,728,289) $ (6,547,142)
------------ ------------- ------------ --------------
Class B
Shares sold 2,013,404 $ 7,641,433 3,354,078 $ 12,738,428
Reinvestment of distributions 37,660 142,572 36,365 138,497
Less shares repurchased (1,499,135) (5,689,645) (3,478,134) (13,212,676)
------------ ------------- ------------ --------------
Net increase (decrease) 551,929 $ 2,094,360 (87,691) $ (335,751)
------------ ------------- ------------ --------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
Pioneer Short-Term Income Trust
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended Year Ended 8/10/92 to
11/30/96 11/30/95 11/30/94(a) 11/30/93 11/30/92
<S> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 3.84 $ 3.75 $ 3.95 $ 3.95 $ 4.00
---------- ---------- ---------- ---------- ------------
Increase (decrease) from investment
operations:
Net investment income $ 0.24 $ 0.25 $ 0.22 $ 0.24 $ 0.08
Net realized and unrealized gain (loss) on
investments (0.05) 0.10 (0.21) - (0.05)
---------- ---------- ---------- ---------- ------------
Net increase from investment operations $ 0.19 $ 0.35 $ 0.01 $ 0.24 $ 0.03
Distributions to shareholders:
Net investment income (0.24) (0.26) (0.21) (0.24) (0.08)
---------- ---------- ---------- ---------- ------------
Net increase (decrease) in net asset value $ (0.05) $ 0.09 $ (0.20) $ -- $ (0.05)
---------- ---------- ---------- ---------- ------------
Net asset value, end of period $ 3.79 $ 3.84 $ 3.75 $ 3.95 $ 3.95
---------- ---------- ---------- ---------- ------------
Total return* 5.20% 9.64% 0.32% 6.28% 0.79%
Ratio of net expenses to average net assets 0.87% + 0.86% + 0.85% 0.66% 0.50% **
Ratio of net investment income to average
net assets 6.25% + 6.43% + 5.89% 5.80% 5.93% **
Portfolio turnover rate 64.78% 109.60% 144.17% 83.25% 146.45% **
Net assets, end of period (in thousands) $54,637 $53,860 $59,088 $57,482 $ 15,588
Ratios assuming no waiver of management fees
and assumption of expenses by PMC and no
reduction for fees paid indirectly:
Net expenses 1.33% 1.38% 1.20% 1.33% 3.40% **
Net investment income 5.79% 5.92% 5.54% 5.13% 3.03% **
Ratios assuming waiver of management fees
and assumption of expenses by PMC and
reduction for fees paid indirectly:
Net expenses 0.85% 0.85% - - -
Net investment income 6.27% 6.44% - - -
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* 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.
18
<PAGE>
Pioneer Short-Term Income Trust
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Ended Year Ended 4/4/94 to
11/30/96 11/30/95 11/30/94(a)
<S> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 3.85 $ 3.75 $ 3.89
---------- ---------- -----------
Increase (decrease) from investment
operations:
Net investment income $ 0.21 $ 0.22 $ 0.15
Net realized and unrealized gain (loss) on
investments (0.05) 0.11 (0.16)
---------- ---------- -----------
Net increase (decrease) from investment
operations $ 0.16 $ 0.33 $ (0.01)
Distributions to shareholders:
Net investment income (0.21) (0.23) (0.13)
In excess of net investment income (0.01) - -
---------- ---------- -----------
Net increase (decrease) in net asset value $(0.06) $ 0.10 $ (0.14)
---------- ---------- -----------
Net asset value, end of period $ 3.79 $ 3.85 $ 3.75
---------- ---------- -----------
Total return* 4.37% 8.93% (0.24)%
Ratio of net expenses to average net assets 1.69% + 1.63% + 1.41% **
Ratio of net investment income to average net
assets 5.40% + 5.61% + 6.05% **
Portfolio turnover rate 64.78% 109.60% 144.17%
Net assets, end of period (in thousands) $4,969 $ 2,924 $ 3,182
Ratios assuming no waiver of management fees
and assumption of expenses by PMC and no
reduction for fees paid indirectly:
Net expenses 2.15% 2.17% 1.82% **
Net investment income 4.94% 5.08% 5.64% **
Ratios assuming waiver of management fees and
assumption of expenses by PMC and reduction
for fees paid indirectly:
Net expenses 1.67% 1.60% -
Net investment income 5.42% 5.64% -
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* 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.
19
<PAGE>
Pioneer Short-Term Income Trust
NOTES TO FINANCIAL STATEMENTS 11/30/96
1. Organization and Significant Accounting Policies
Pioneer Short-Term 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 Trust's investment objective is
to seek a high level of current income consistent with a high level of
principal stability.
The Trust offers two classes of shares - Class A and Class B shares. Shares
of Class A and Class B 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 and Class B 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.
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.
20
<PAGE>
Pioneer Short-Term Income Trust
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 $21,069 in
underwriting commissions on the sale of fund shares during the year ended
November 30, 1996.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class B shares of the Trust, respectively.
Shareholders of 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.
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 and Class B shares can bear different transfer agent and
distribution fees.NOTES TO FINANCIAL STATEMENTS 11/30/96 (continued)
21
<PAGE>
Pioneer Short-Term Income Trust
NOTES TO FINANCIAL STATEMENTS 11/30/96 (continued)
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,
Pioneering 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 up to $100 million; 0.45% of the next $200
million; and 0.40% of the excess over $300 million.
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 0.85% of the average daily net assets attributable to Class A
shares; the portion of the Trust-wide expenses attributable to Class B shares
will be reduced only to the extent that such expenses are reduced for Class A
shares. PMC's agreement is voluntary and temporary and may be revised or
terminated at any time.
In addition, under the management agreement, certain other services and
costs, including accounting, regulatory reporting and insurance premiums, are
paid by the Trust. At November 30, 1996, $9,819 was payable to PMC related to
management fees and certain other services.
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 $8,854 in transfer agent fees payable to PSC at November
30, 1996.
4. Distribution Plans
The Trust adopted a Plan of Distribution for each class of shares (Class A
Plan and Class B 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
22
<PAGE>
Pioneer Short-Term Income Trust
to result in the sale of Class A shares. Pursuant to the Class B Plan, the
Trust pays PFD 1.00% of the average daily net assets attributable to the
Class B 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 shares.
Included in due to affiliates is $26,342 in distribution fees payable to PFD
at November 30, 1996.
In addition, redemptions of each class of shares may be subject to a
contingent deferred sales charge (CDSC). A CDSC of 0.50% 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 three years of
purchase are subject to a CDSC at declining rates beginning at 2.0%, based on
the lower of cost or market value of shares being redeemed. Proceeds from the
CDSC are paid to PFD. For the year ended November 30, 1996, CDSCs in the
amount of $14,647 were paid to PFD.
5. Expense Offsets
The Trust has entered into certain expense offset arrangements resulting in a
reduction in the Trust's total expenses. For the year ended November 30,
1996, the Trust's expenses were reduced by $11,298 under such arrangements.
23
<PAGE>
Pioneer Short-Term Income Trust
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and the Board of Trustees of Pioneer Short-Term Income
Trust:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer Short-Term Income Trust as of November 30, 1996, 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 November 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 Short-Term Income Trust as of November 30, 1996, 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
January 3, 1997
24
<PAGE>
Pioneer Short-Term Income Trust
TAX TREATMENT OF DISTRIBUTIONS
Made during the Year Ended 11/30/96
During the year ended 11/30/96, Pioneer Short-Term Income Trust paid the
following distributions per share from ordinary income:
Payment
Date Class A Class B
12/29/95 $0.0190 $0.0185
01/31/96 0.0190 0.0186
02/29/96 0.0190 0.0186
03/29/96 0.0190 0.0186
04/30/96 0.0200 0.0186
05/31/96 0.0210 0.0186
06/28/96 0.0215 0.0186
07/31/96 0.0215 0.0186
08/30/96 0.0214 0.0186
09/30/96 0.0214 0.0186
10/31/96 0.0209 0.0183
11/29/96 0.0190 0.0181
-------- ---------
Total $0.2427 $0.2223
-------- ---------
For purposes of the dividend exclusion, none of the distributions per share
qualify for the exclusion.
25
<PAGE>
Pioneer Short-Term Income Trust
TRUSTEES' FEES AND SHARE OWNERSHIP 11/30/96
Trustees' Fees, Principal Shareholders and Share
Ownership of Trustees and Officers (Unaudited)
The aggregate direct remuneration paid by the Trust to nonaffiliated trustees
and officers during the year ended November 30, 1996 was $12,626, plus
expenses incurred in attending trustees meetings of $3,498. Fees of trustees
who are affiliated with or "interested persons" of Pioneering Management
Corporation and Pioneer Funds Distributor, Inc., investment adviser and
principal underwriter, respectively, of the Trust ($1,000 in 1996) are
reimbursed to the Trust by Pioneering Management Corporation in accordance
with the management agreement with the Trust. At November 30, 1996, the
trustees and officers of the Trust owned beneficially 335,971 of Class A
shares of the Trust (2.3% of the outstanding Class A shares). The Pioneer
Group, Inc., the parent company of Pioneering Management Corporation and
Pioneer Funds Distributor, Inc., is a publicly held corporation of which Mr.
Cogan, Chairman and President of the Trust, owned approximately 14% of the
outstanding shares of capital stock at November 30, 1996.
26
<PAGE>
Pioneer Short-Term 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
Officers
John F. Cogan, Jr., Chairman and
President
David D. Tripple, Executive Vice President
Richard A. Schlanger, Vice President
William H. Keough, Treasurer
Joseph P. Barri, Secretary
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
Shareholder Services and Transfer Agent
Pioneering Services Corporation
27
<PAGE>
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 1-800-225-6292.
FactFoneSM
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.
90-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.
28
<PAGE>
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 distributions 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.)
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 for:
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
Or write to us at:
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)
This report must be preceded or accompanied by a current
Fund prospectus.
Pioneer Funds Distributor, Inc.
60 State Street
Boston, Massachusetts 02109
[Pioneer Logo)
0197-3856
(c) Pioneer Funds Distributor, Inc.
[Recycle Logo] Printed on Recycled Paper
30
