File Number: 002-62436
Filed Pursuant to Rule 497(c) of
the Securities Act of 1933
PIONEER
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BOND FUND
Class A Shares (PIOBX)
Class C Shares (PCYBX)
Class K Shares (PBFKX)
Class R Shares (PBFRX)
Class Y Shares (PICYX)
Prospectus, November 1, 2018
CONTENTS
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Fund summary................................. 1
More on the fund's investment objectives
and strategies............................... 18
More on the risks of investing in the
fund......................................... 28
Management................................... 47
Pricing of shares............................ 50
Choosing a class of shares................... 53
Distribution and service arrangements . 58
Sales charges................................ 61
Buying, exchanging and selling shares........ 69
Account options.............................. 82
Shareholder services and policies............ 86
Dividends, capital gains and taxes........... 93
Financial highlights......................... 96
Intermediary defined sales charge waiver
policies..................................... 102
Neither the Securities and Exchange Commission nor any state securities agency
has approved or disapproved the fund's shares
[GRAPHIC APPEARS HERE]
or determined whether this prospectus is accurate or complete. Any
representation to the contrary is a crime.
An investment in the fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
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Contact your investment professional to discuss how the fund may fit
into your portfolio.
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Fund summary
INVESTMENT OBJECTIVES
The fund seeks current income and total return.
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy and hold
shares of the fund.
You may qualify for sales charge discounts if you or your family invest, or
agree to invest in the future, at least $100,000 in Class A shares of the
Pioneer funds. More information about these and other discounts is available
from your investment professional and in the "Sales charges" section of the
prospectus beginning on page 61, the "Intermediary defined sales charge waiver
policies" section of the prospectus beginning on page 102, and the "Sales
charges" section of the statement of additional information beginning on page
67. If you invest in Class K shares or Class Y shares through an investment
professional or financial intermediary, that investment professional or
financial intermediary may charge you a commission. Such commissions, if any,
are not charged by the fund and are not reflected in the fee table or expense
example below.
1
Fund summary
SHAREOWNER FEES
(fees paid directly from your investment) CLASS A CLASS C CLASS K CLASS R CLASS Y
-------------------------------------------------- --------- --------- --------- --------- --------
Maximum sales charge (load) when you buy
shares (as a percentage of offering price) 4.50% None None None None
-------------------------------------------------- ------ --------- --------- --------- --------
Maximum deferred sales charge (load) (as a
percentage of offering price or the amount you
receive when you sell shares, whichever is less) None/1/ 1% None None None
-------------------------------------------------- ------ --------- --------- --------- --------
ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a
percentage of the value of your investment) CLASS A CLASS C CLASS K CLASS R CLASS Y
--------------------------------------------- --------- --------- --------- --------- --------
Management Fees/2/ 0.29% 0.29% 0.29% 0.29% 0.29%
--------------------------------------------- ---- ---- ---- ---- ----
Distribution and Service (12b-1) Fees 0.25% 1.00% 0.00% 0.50% 0.00%
--------------------------------------------- ---- ---- ---- ---- ----
Other Expenses 0.31% 0.20% 0.06% 0.31% 0.18%
--------------------------------------------- ---- ---- ---- ---- ----
Total Annual Fund Operating Expenses 0.85% 1.49% 0.35% 1.10% 0.47%
--------------------------------------------- ---- ---- ---- ---- ----
Class A purchases of $500,000 or more that are not subject to an initial sales
charge may be subject to a contingent deferred sales charge of 1%. See "Sales
charges."
Restated to reflect current fees.
EXAMPLE
This example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds. The example assumes that you
invest $10,000 in the fund for the time periods shown and then, except as
indicated, redeem all of your shares at the end of those periods. It also
assumes that (a) your investment has a 5% return each year and (b) the fund's
total annual operating expenses remain the same. Although your actual costs may
be higher or lower, based on these assumptions your costs would be:
IF YOU REDEEM YOUR SHARES IF YOU DO NOT REDEEM YOUR SHARES
------------------------------------ ------------------------------------
NUMBER OF YEARS YOU OWN YOUR SHARES
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1 3 5 10 1 3 5 10
------- ------- ------- --------- ------- ------- ------- ---------
Class A $533 $709 $900 $1,452 $533 $709 $900 $1,452
--------- ---- ---- ---- ------ ---- ---- ---- ------
Class C 252 471 813 1,779 152 471 813 1,779
--------- ---- ---- ---- ------ ---- ---- ---- ------
Class K 36 113 197 443 36 113 197 443
--------- ---- ---- ---- ------ ---- ---- ---- ------
Class R 112 350 606 1,340 112 350 606 1,340
--------- ---- ---- ---- ------ ---- ---- ---- ------
Class Y 48 151 263 591 48 151 263 591
--------- ---- ---- ---- ------ ---- ---- ---- ------
2
PORTFOLIO TURNOVER
The fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover rate
may indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the example, affect the fund's
performance. During the most recent fiscal year, the fund's portfolio turnover
rate was 45% of the average value of its portfolio.
PRINCIPAL INVESTMENT STRATEGIES
Normally, the fund invests at least 80% of its net assets (plus the amount of
borrowings, if any, for investment purposes) in debt securities issued or
guaranteed by the U.S. government, its agencies and instrumentalities,
investment grade debt securities (including convertible debt) of corporate or
other issuers and cash, cash equivalents and other short-term holdings.
Derivative instruments that provide exposure to such securities or have similar
economic characteristics may be used to satisfy the fund's 80% policy.
The fund may invest a substantial portion of its assets in mortgage-related
securities, including collateralized mortgage obligations and "sub-prime"
mortgages, and asset-backed securities. The fund also may invest a portion of
its assets in subordinated debt securities, municipal securities, preferred
securities, Treasury Inflation Protected Securities ("TIPS") and other
inflation-linked debt securities, floating-rate loans and event-linked bonds
and other insurance-linked securities. The fund also may enter into mortgage
dollar roll transactions.
The fund may invest up to 20% of its net assets in debt securities rated below
investment grade or, if unrated, of equivalent credit quality as determined by
the adviser (known as "junk bonds"), including securities that are in default.
The fund may invest up to 15% of its total assets in securities of non-U.S.
issuers, including up to 5% of its total assets in securities of emerging
market issuers.
The fund may invest in securities with a broad range of maturities, and
maintains an average portfolio maturity which varies based upon the judgment of
the fund's investment adviser. The fund's investments may have fixed or
variable principal payments and all types of interest rate payment and reset
terms, including fixed rate, floating rate, inverse floating rate, zero coupon,
when-issued, delayed delivery, to be announced and forward commitment,
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Fund summary
contingent, deferred and payment in kind and auction rate features. The fund's
investments may include instruments that allow for balloon payments or negative
amortization payments.
The fund may, but is not required to, use derivatives such as credit default
swaps and bond and interest rate futures. The fund may use derivatives for a
variety of purposes, including: in an attempt to hedge against adverse changes
in the market price of securities, interest rates or currency exchange rates;
as a substitute for purchasing or selling securities; to attempt to increase
the fund's return as a non-hedging strategy that may be considered speculative;
to manage portfolio characteristics; and as a cash flow management technique.
The fund may choose not to make use of derivatives for a variety of reasons,
and any use may be limited by applicable law and regulations. The fund may hold
cash or other short-term investments.
The adviser considers both broad economic and issuer specific factors in
selecting investments. In assessing the appropriate maturity, credit quality
and sector weighting of the fund's portfolio, the adviser considers a variety
of factors that are expected to influence economic activity and interest rates.
The adviser selects individual securities to buy and sell based upon such
factors as a security's yield, liquidity and rating, an assessment of credit
quality, and sector and issuer diversification.
PRINCIPAL RISKS OF INVESTING IN THE FUND
You could lose money on your investment in the fund. As with any mutual fund,
there is no guarantee that the fund will achieve its objectives.
MARKET RISK. The market prices of securities held by the fund may go up or
down, sometimes rapidly or unpredictably, due to general market conditions,
such as real or perceived adverse economic, political, or regulatory
conditions, inflation, changes in interest or currency rates, lack of liquidity
in the bond markets or adverse investor sentiment. In the past decade,
financial markets throughout the world have experienced increased volatility,
depressed valuations, decreased liquidity and heightened uncertainty.
Governmental and non-governmental issuers have defaulted on, or been forced to
restructure, their debts. These conditions may continue, recur, worsen or
spread. Events that have contributed to these market conditions include, but
are not limited to, major cybersecurity events; geopolitical events (including
wars and terror attacks); measures to address budget deficits; downgrading of
sovereign debt; changes in oil and commodity prices; dramatic changes in
currency exchange rates; and public sentiment. U.S. and non-U.S. governments
and
4
central banks have provided significant support to financial markets, including
by keeping interest rates at historically low levels. The U.S. Federal Reserve
is reducing its market support activities and has begun raising interest rates.
Certain foreign governments and central banks have implemented or may implement
so-called negative interest rates (e.g., charging depositors who keep their
cash at a bank) to spur economic growth. Further Federal Reserve or other U.S.
or non-U.S. governmental or central bank actions, including interest rate
increases or contrary actions by different governments, could negatively affect
financial markets generally, increase market volatility and reduce the value
and liquidity of securities in which the fund invests. Policy and legislative
changes in the U.S. and in other countries and other events affecting global
markets, such as the United Kingdom's expected exit from the European Union (or
Brexit), are affecting many aspects of financial regulation, and may in some
instances contribute to decreased liquidity and increased volatility in the
financial markets. The impact of these changes on the markets, and the
practical implications for market participants, may not be fully known for some
time. Economies and financial markets throughout the world are increasingly
interconnected. Economic, financial or political events, trading and tariff
arrangements, terrorism, natural disasters and other circumstances in one
country or region could have profound impacts on global economies or markets.
As a result, whether or not the fund invests in securities of issuers located
in or with significant exposure to the countries directly affected, the value
and liquidity of the fund's investments may be negatively affected. The fund
may experience a substantial or complete loss on any individual security or
derivative position.
INTEREST RATE RISK. Interest rates may go up, causing the value of the fund's
investments to decline (this risk generally will be greater for securities with
longer maturities or durations). For example, if interest rates increase by 1%,
the value of a fund's portfolio with a portfolio duration of ten years would be
expected to decrease by 10%, all other things being equal. Interest rates in
the U.S. recently have been historically low, so the fund faces a heightened
risk that interest rates may continue to rise. A general rise in interest rates
could adversely affect the price and liquidity of fixed income securities and
could also result in increased redemptions from the fund. The maturity of a
security may be significantly longer than its effective duration. A security's
maturity and other features may be more relevant than its effective duration in
determining the security's sensitivity to other
5
Fund summary
factors affecting the issuer or markets generally, such as changes in credit
quality or in the yield premium that the market may establish for certain types
of securities.
CREDIT RISK. If an issuer or guarantor of a security held by the fund or a
counterparty to a financial contract with the fund defaults on its obligation
to pay principal and/or interest, has its credit rating downgraded or is
perceived to be less creditworthy, or the credit quality or value of any
underlying assets declines, the value of your investment will typically
decline.
PREPAYMENT OR CALL RISK. Many issuers have a right to prepay their securities.
If interest rates fall, an issuer may exercise this right. If this happens, the
fund will not benefit from the rise in market price that normally accompanies a
decline in interest rates, and will be forced to reinvest prepayment proceeds
at a time when yields on securities available in the market are lower than the
yield on the prepaid security. The fund also may lose any premium it paid on
the security.
EXTENSION RISK. During periods of rising interest rates, the average life of
certain types of securities may be extended because of slower than expected
principal payments. This may lock in a below market interest rate, increase the
security's duration and reduce the value of the security.
LIQUIDITY RISK. Some securities and derivatives held by the fund may be
impossible or difficult to purchase, sell or unwind, particularly during times
of market turmoil. An instrument's liquidity may be affected by reduced trading
volume, a relative lack of market makers or legal restrictions, and illiquid
securities and derivatives also may be difficult to value. Liquidity risk may
be magnified in a rising interest rate environment. If the fund is forced to
sell an illiquid asset or unwind a derivative position to meet redemption
requests or other cash needs, the fund may be forced to sell at a loss. The
fund may not receive its proceeds from the sale of certain securities for an
extended period (for example, several weeks or even longer). In extreme cases,
this may constrain the fund's ability to meet its obligations (including
obligations to redeeming shareholders).
PORTFOLIO SELECTION RISK. The adviser's judgment about the quality, relative
yield, relative value or market trends affecting a particular sector or region,
market segment, security or about interest rates generally may prove to be
incorrect.
6
U.S. TREASURY OBLIGATIONS RISK. The market value of direct obligations of the
U.S. Treasury may vary due to changes in interest rates. In addition, changes
to the financial condition or credit rating of the U.S. government may cause
the value of the fund's investments in obligations issued by the U.S. Treasury
to decline.
U.S. GOVERNMENT AGENCY OBLIGATIONS RISK. The fund invests in obligations issued
by agencies and instrumentalities of the U.S. government. Government-sponsored
entities such as FNMA, FHLMC and the FHLBs, although chartered or sponsored by
Congress, are not funded by congressional appropriations and the debt and
mortgage-backed securities issued by them are neither guaranteed nor issued by
the U.S. government. The maximum potential liability of the issuers of some
U.S. government obligations may greatly exceed their current resources,
including any legal right to support from the U.S. government. Such debt and
mortgage-backed securities are subject to the risk of default on the payment of
interest and/or principal, similar to debt of private issuers. Although the
U.S. government has provided financial support to FNMA and FHLMC in the past,
there can be no assurance that it will support these or other
government-sponsored entities in the future.
MORTGAGE-RELATED AND ASSET-BACKED SECURITIES RISK. The value of
mortgage-related and asset-backed securities will be influenced by factors
affecting the housing market and the assets underlying such securities. As a
result, during periods of declining asset value, difficult or frozen credit
markets, swings in interest rates, or deteriorating economic conditions,
mortgage-related and asset-backed securities may decline in value, face
valuation difficulties, become more volatile and/or become illiquid.
Mortgage-backed securities tend to be more sensitive to changes in interest
rate than other types of debt securities. These securities are also subject to
prepayment and extension risks. Some of these securities may receive little or
no collateral protection from the underlying assets and are thus subject to the
risk of default. The risk of such defaults is generally higher in the case of
mortgage-backed investments that include so-called "sub-prime" mortgages. The
structure of some of these securities may be complex and there may be less
available information than for other types of debt securities. Upon the
occurrence of certain triggering events or defaults, the fund may become the
holder of underlying assets at a time when those assets may be difficult to
sell or may be sold only at a loss.
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Fund summary
RISKS OF INSTRUMENTS THAT ALLOW FOR BALLOON PAYMENTS OR NEGATIVE AMORTIZATION
PAYMENTS. Certain debt instruments allow for balloon payments or negative
amortization payments. Such instruments permit the borrower to avoid paying
currently a portion of the interest accruing on the instrument. While these
features make the debt instrument more affordable to the borrower in the near
term, they increase the risk that the borrower will be unable to make the
resulting higher payment or payments that become due at the maturity of the
loan.
HIGH YIELD OR "JUNK" BOND RISK. Debt securities that are below investment
grade, called "junk bonds," are speculative, have a higher risk of default or
are already in default, tend to be less liquid and are more difficult to value
than higher grade securities. Junk bonds tend to be volatile and more
susceptible to adverse events and negative sentiments. These risks are more
pronounced for securities that are already in default.
RISKS OF INVESTING IN FLOATING RATE LOANS. Floating rate loans and similar
investments may be illiquid or less liquid than other investments and difficult
to value. The value of collateral, if any, securing a floating rate loan can
decline or may be insufficient to meet the issuer's obligations or may be
difficult to liquidate. Market quotations for these securities may be volatile
and/or subject to large spreads between bid and ask prices. No active trading
market may exist for many floating rate loans, and many loans are subject to
restrictions on resale. Any secondary market may be subject to irregular
trading activity and extended trade settlement periods. In particular, loans
may take longer than seven days to settle, potentially leading to the sale
proceeds of loans not being available to meet redemptions for a substantial
period of time after the sale of the loans. To the extent that sale proceeds of
loans are not available, the fund may sell securities that have shorter
settlement periods or may access other sources of liquidity to meet redemption
requests. Loans may not be considered "securities," and purchasers, such as the
fund, therefore may not be entitled to rely on the anti-fraud protections
afforded by federal securities laws.
RISKS OF INVESTING IN INSURANCE-LINKED SECURITIES. The fund could lose a
portion or all of the principal it has invested in an insurance-linked
security, and the right to additional interest payments with respect to the
security, upon the occurrence of one or more trigger events, as defined within
the terms of an insurance-linked security. Trigger events, generally, are
hurricanes, earthquakes, or other natural events of a specific size or
magnitude that occur in a designated geographic region during a specified time
period,
8
and/or that involve losses or other metrics that exceed a specific amount.
There is no way to accurately predict whether a trigger event will occur and,
accordingly, insurance-linked securities carry significant risk. In addition to
the specified trigger events, insurance-linked securities may expose the fund
to other risks, including but not limited to issuer (credit) default, adverse
regulatory or jurisdictional interpretations and adverse tax consequences.
Certain insurance-linked securities may have limited liquidity, or may be
illiquid. The fund has limited transparency into the individual contracts
underlying certain insurance-linked securities, which may make the risk
assessment of such securities more difficult. Certain insurance-linked
securities may be difficult to value.
INFLATION-LINKED SECURITIES RISK. The principal or interest of inflation-linked
securities such as TIPS is adjusted periodically to a specified rate of
inflation. The inflation index used may not accurately measure the real rate of
inflation. Inflation-linked securities may lose value or interest payments on
such securities may decline in the event that the actual rate of inflation is
different than the rate of the inflation index, and losses may exceed those
experienced by other debt securities with similar durations. The values of
inflation-linked securities may not be directly correlated to changes in
interest rates, for example if interest rates rise for reasons other than
inflation.
RISKS OF SUBORDINATED SECURITIES. A holder of securities that are subordinated
or "junior" to more senior securities of an issuer is entitled to payment after
holders of more senior securities of the issuer. Subordinated securities are
more likely to suffer a credit loss than non-subordinated securities of the
same issuer, any loss incurred by the subordinated securities is likely to be
proportionately greater, and any recovery of interest or principal may take
more time. As a result, even a perceived decline in creditworthiness of the
issuer is likely to have a greater impact on subordinated securities than more
senior securities.
MUNICIPAL SECURITIES RISK. The municipal bond market can be susceptible to
unusual volatility, particularly for lower-rated and unrated securities.
Liquidity can be reduced unpredictably in response to overall economic
conditions or credit tightening. Municipal issuers may be adversely affected by
rising health care costs, increasing unfunded pension liabilities, and by the
phasing out of federal programs providing financial support. Unfavorable
conditions and developments relating to projects financed with municipal
securities can result in lower revenues to issuers of municipal securities,
potentially resulting in defaults. Issuers often depend on revenues from
9
Fund summary
these projects to make principal and interest payments. The value of municipal
securities can also be adversely affected by changes in the financial condition
of one or more individual municipal issuers or insurers of municipal issuers,
regulatory and political developments, tax law changes or other legislative
actions, and by uncertainties and public perceptions concerning these and other
factors. Municipal issuers may be more susceptible to downgrades or defaults
during recessions or similar periods of economic stress. In recent periods, an
increasing number of municipal issuers in the United States have defaulted on
obligations and commenced insolvency proceedings. Financial difficulties of
municipal issuers may continue or get worse. To the extent the fund invests
significantly in a single state or in securities the payments on which are
dependent upon a single project or source of revenues, or that relate to a
sector or industry, the fund will be more susceptible to associated risks and
developments.
RISKS OF ZERO COUPON BONDS, PAYMENT IN KIND, DEFERRED AND CONTINGENT PAYMENT
SECURITIES. These securities may be more speculative and may fluctuate more in
value than securities which pay income periodically and in cash. In addition,
although the fund receives no periodic cash payments on such securities, the
fund is deemed for tax purposes to receive income from such securities, which
applicable tax rules require the fund to distribute to shareholders. Such
distributions may be taxable when distributed to shareholders.
RISKS OF INVESTING IN WHEN-ISSUED, DELAYED DELIVERY, TO BE ANNOUNCED AND
FORWARD COMMITMENT TRANSACTIONS. The market value of these transactions may
increase or decrease as a result of changes in interest rates. These
transactions involve risk of loss if the value of the underlying security
changes unfavorably before the settlement date or if the assets set aside to
pay for these securities decline in value prior to the settlement date.
Therefore, these transactions may have a leveraging effect on the fund, making
the value of an investment in the fund more volatile and increasing the fund's
overall investment exposure. There is also a risk that the other party to the
transaction will default on its obligation to purchase or sell the security,
which may result in the fund missing the opportunity to obtain a favorable
price or yield elsewhere.
RISKS OF NON-U.S. INVESTMENTS. Investing in non-U.S. issuers, or in U.S.
issuers that have significant exposure to foreign markets, may involve unique
risks compared to investing in securities of U.S. issuers. These risks are more
pronounced for issuers in emerging markets or to the extent
10
that the fund invests significantly in one region or country. These risks may
include different financial reporting practices and regulatory standards, less
liquid trading markets, extreme price volatility, currency risks, changes in
economic, political, regulatory and social conditions, terrorism, sustained
economic downturns, financial instability, tax burdens, and investment and
repatriation restrictions. Lack of information and less market regulation also
may affect the value of these securities. Withholding and other non-U.S. taxes
may decrease the fund's return. Non-U.S. issuers may be located in parts of the
world that have historically been prone to natural disasters. Investing in
depositary receipts is subject to many of the same risks as investing directly
in non-U.S. issuers. Depositary receipts may involve higher expenses and may
trade at a discount (or premium) to the underlying security. A number of
countries in the European Union (EU) have experienced, and may continue to
experience, severe economic and financial difficulties. In addition, voters in
the United Kingdom have approved withdrawal from the EU. Other countries may
seek to withdraw from the EU and/or abandon the euro, the common currency of
the EU.
RISKS OF CONVERTIBLE SECURITIES. The market values of convertible securities
tend to decline as interest rates increase and, conversely, to increase as
interest rates decline. A downturn in equity markets may cause the price of
convertible securities to decrease relative to other fixed income securities.
PREFERRED STOCKS RISK. Preferred stocks may pay fixed or adjustable rates of
return. Preferred stocks are subject to issuer-specific and market risks
applicable generally to equity securities. In addition, a company's preferred
stocks generally pay dividends only after the company makes required payments
to holders of its bonds and other debt. Thus, the value of preferred stocks
will usually react more strongly than bonds and other debt to actual or
perceived changes in the company's financial condition or prospects. The market
value of preferred stocks generally decreases when interest rates rise.
Preferred stocks of smaller companies may be more vulnerable to adverse
developments than preferred stocks of larger companies.
MORTGAGE DOLLAR ROLL TRANSACTIONS RISK. The benefits to the fund from mortgage
dollar roll transactions depend upon the adviser's ability to forecast mortgage
prepayment patterns on different mortgage pools. The fund may lose money if,
during the period between the time it agrees to the forward purchase of the
mortgage securities and the settlement date, these securities decline in value
due to market conditions or prepayments on the underlying mortgages.
11
Fund summary
DERIVATIVES RISK. Using swaps, futures and other derivatives can increase fund
losses and reduce opportunities for gains when market prices, interest rates or
the derivative instruments themselves behave in a way not anticipated by the
fund. Using derivatives may increase the volatility of the fund's net asset
value and may not provide the result intended. Derivatives may have a
leveraging effect on the fund. Some derivatives have the potential for
unlimited loss, regardless of the size of the fund's initial investment.
Changes in a derivative's value may not correlate well with the referenced
asset or metric. The fund also may have to sell assets at inopportune times to
satisfy its obligations. Derivatives may be difficult to sell, unwind or value,
and the counterparty may default on its obligations to the fund. Use of
derivatives may have different tax consequences for the fund than an investment
in the underlying security, and such differences may affect the amount, timing
and character of income distributed to shareholders. The U.S. government and
foreign governments are in the process of adopting and implementing regulations
governing derivatives markets, including mandatory clearing of certain
derivatives, margin and reporting requirements. The ultimate impact of the
regulations remains unclear. Additional regulation of derivatives may make them
more costly, limit their availability or utility, otherwise adversely affect
their performance or disrupt markets.
CREDIT DEFAULT SWAP RISK. Credit default swap contracts, a type of derivative
instrument, involve special risks and may result in losses to the fund. Credit
default swaps may in some cases be illiquid, and they increase credit risk
since the fund has exposure to the issuer of the referenced obligation and
either the counterparty to the credit default swap or, if it is a cleared
transaction, the brokerage firm through which the trade was cleared and the
clearing organization that is the counterparty to that trade.
RISKS OF INVESTING IN INVERSE FLOATING RATE OBLIGATIONS. The interest rate on
inverse floating rate obligations will generally decrease as short-term
interest rates increase, and increase as short-term rates decrease. Due to
their leveraged structure, the sensitivity of the market value of an inverse
floating rate obligation to changes in interest rates is generally greater than
a comparable long-term bond issued by the same issuer and with similar credit
quality, redemption and maturity provisions. Inverse floating rate obligations
may be volatile and involve leverage risk.
LEVERAGING RISK. The value of your investment may be more volatile and other
risks tend to be compounded if the fund borrows or uses derivatives or other
investments that have embedded leverage. Leverage generally
12
magnifies the effect of any increase or decrease in the value of the fund's
underlying assets and creates a risk of loss of value on a larger pool of
assets than the fund would otherwise have, potentially resulting in the loss of
all assets. Engaging in such transactions may cause the fund to liquidate
positions when it may not be advantageous to do so to satisfy its obligations
or meet segregation requirements.
REPURCHASE AGREEMENT RISK. In the event that the other party to a repurchase
agreement defaults on its obligations, the fund may encounter delay and incur
costs before being able to sell the security. Such a delay may involve loss of
interest or a decline in price of the security. In addition, if the fund is
characterized by a court as an unsecured creditor, it would be at risk of
losing some or all of the principal and interest involved in the transaction.
MARKET SEGMENT RISK. To the extent the fund emphasizes, from time to time,
investments in a market segment, the fund will be subject to a greater degree
to the risks particular to that segment, and may experience greater market
fluctuation than a fund without the same focus.
VALUATION RISK. The sales price the fund could receive for any particular
portfolio investment may differ from the fund's valuation of the investment,
particularly for illiquid securities and securities that trade in thin or
volatile markets or that are valued using a fair value methodology. Investors
who purchase or redeem fund shares on days when the fund is holding fair-valued
securities may receive fewer or more shares or lower or higher redemption
proceeds than they would have received if the fund had not fair-valued the
securities or had used a different valuation methodology. The fund's ability to
value its investments may also be impacted by technological issues and/or
errors by pricing services or other third party service providers.
REDEMPTION RISK. The fund may experience heavy redemptions that could cause the
fund to liquidate its assets at inopportune times or at a loss or depressed
value, which could cause the value of your investment to decline.
CYBERSECURITY RISK. Cybersecurity failures by and breaches of the fund's
adviser, transfer agent, distributor, custodian, fund accounting agent and
other service providers may disrupt fund operations, interfere with the fund's
ability to calculate its NAV, prevent fund shareholders from purchasing,
redeeming or exchanging shares or receiving distributions, cause loss of or
unauthorized access to private shareholder information, and result in financial
losses, regulatory fines, penalties, reputational damage, or additional
compliance costs.
13
Fund summary
EXPENSE RISK. Your actual costs of investing in the fund may be higher than the
expenses shown in "Annual fund operating expenses" for a variety of reasons.
For example, expense ratios may be higher than those shown if overall net
assets decrease. Net assets are more likely to decrease and fund expense ratios
are more likely to increase when markets are volatile.
Please note that there are many other factors that could adversely affect your
investment and that could prevent the fund from achieving its goals.
An investment in the fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.
THE FUND'S PAST PERFORMANCE
The bar chart and table indicate the risks and volatility of an investment in
the fund by showing how the fund has performed in the past. The bar chart shows
changes in the performance of the fund's Class A shares from calendar year to
calendar year. The table shows the average annual total returns for each class
of the fund over time and compares these returns to the returns of the
Bloomberg Barclays U.S. Aggregate Bond Index, a broad-based measure of market
performance that has characteristics relevant to the fund's investment
strategies. You can obtain updated performance information by visiting
https://us.amundipioneer.com/products/mutual-funds/performance.html or by
calling 1-800-225-6292.
The fund's past performance (before and after taxes) does not necessarily
indicate how it will perform in the future.
The bar chart does not reflect any sales charge you may pay when you buy fund
shares. If this amount was reflected, returns would be less than those shown.
14
ANNUAL RETURN CLASS A SHARES (%)
(Year ended December 31)
[GRAPHIC APPEARS HERE]
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17
-4.36 17.70 9.44 5.08 8.66 0.49 5.92 -0.01 4.18 4.10
For the period covered by the bar chart:
THE HIGHEST CALENDAR QUARTERLY RETURN WAS 6.84% (07/01/2009 TO 09/30/2009).
THE LOWEST CALENDAR QUARTERLY RETURN WAS -3.05% (10/01/2008 TO 12/31/2008).
At September 30, 2018, the year-to-date return was -1.24%.
AVERAGE ANNUAL TOTAL RETURN (%)
(for periods ended December 31, 2017)
SINCE INCEPTION
1 YEAR 5 YEARS 10 YEARS INCEPTION DATE
-------- --------- ---------- ----------- ----------
Class A 10/31/78
-------------------------------------- ----- ---- ---- ---- --------
Return before taxes -0.56 1.96 4.49 7.02
-------------------------------------- ------ ---- ---- ---- --------
Return after taxes on distributions -1.79 0.55 2.84 3.88
-------------------------------------- ------ ---- ---- ---- --------
Return after taxes on distributions
and sale of shares -0.33 0.85 2.80 3.86
-------------------------------------- ------ ---- ---- ---- --------
Class C+ 3.34 2.10 4.07 4.35 1/31/96
-------------------------------------- ------ ---- ---- ---- --------
Class K 4.50 3.29 N/A 3.31 12/20/12
-------------------------------------- ------ ---- ---- ---- --------
Class R 3.83 2.62 4.60 4.74 4/1/03
-------------------------------------- ------ ---- ---- ---- --------
Class Y 4.39 3.17 5.22 5.61 9/20/01
-------------------------------------- ------ ---- ---- ---- --------
Bloomberg Barclays U.S. Aggregate
Bond Index (reflects no deduction for
fees, expenses or taxes) 3.54 2.10 4.01 7.49 10/31/78
-------------------------------------- ------ ---- ---- ---- --------
+ The performance of Class C shares does not reflect the 1% front-end sales
charge in effect prior to February 1, 2004. If you paid a 1% sales
charge, your returns would be lower than those shown above.
15
Fund summary
After-tax returns are calculated using the historical highest individual
federal marginal income tax rates and do not reflect the impact of state and
local taxes. Actual after-tax returns depend on the investor's tax situation
and may differ from those shown. The after-tax returns shown are not relevant
to investors who hold fund shares through tax-deferred arrangements such as
401(k) plans or individual retirement accounts.
After-tax returns are shown only for Class A shares. After-tax returns for
Class C, Class K, Class R and Class Y shares will vary.
MANAGEMENT
INVESTMENT ADVISER Amundi Pioneer Asset Management, Inc.
PORTFOLIO MANAGEMENT Kenneth J. Taubes, Executive Vice President
and Chief Investment Officer, U.S. of Amundi
Pioneer (portfolio manager of the fund since
1998); Brad Komenda, Senior Vice President
and Deputy Director of Investment Grade
Corporates of Amundi Pioneer (portfolio
manager of the fund since February 2018); and
Timothy Rowe, Managing Director and Deputy
Director of Multi-Sector Fixed Income of Amundi
Pioneer (portfolio manager of the fund since
June 2018)
PURCHASE AND SALE OF FUND SHARES
You may purchase, exchange or sell (redeem) shares each day the New York Stock
Exchange is open through your financial intermediary or, for accounts held
directly with the fund, by contacting the fund in writing or by telephone:
Pioneer Funds, P.O. Box 219427, Kansas City, MO 64121-9427, tel.
1-800-225-6292.
Your initial investment for Class A or Class C shares must be at least $1,000.
Additional investments must be at least $100 for Class A shares and $500 for
Class C shares. Generally, the initial investment for Class K or Class Y shares
must be at least $5 million. This amount may be invested in one or more of the
Pioneer mutual funds that currently offer Class K or Class Y shares, as
applicable. There is no minimum additional investment amount for Class K or
Class Y shares. There is no minimum investment amount for Class R shares.
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TAX INFORMATION
The fund intends to make distributions that may be taxed as ordinary income or
capital gains.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If you purchase the fund through a broker-dealer or other financial
intermediary (such as a bank), the fund and its related companies may pay the
intermediary for the sale of fund shares and related services. These payments
create a conflict of interest by influencing the broker-dealer or other
intermediary and your salesperson or investment professional to recommend the
fund over another investment. Ask your salesperson or investment professional
or visit your financial intermediary's website for more information.
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More on the fund's investment objectives
and strategies
INVESTMENT OBJECTIVES
The fund seeks current income and total return.
PRINCIPAL INVESTMENT STRATEGIES
The fund invests primarily in:
o debt securities issued or guaranteed by the U.S. government or its agencies
and instrumentalities,
o debt securities, including convertible debt, of corporate and other issuers
rated at least investment grade at the time of investment, and comparably
rated commercial paper,
o cash and cash equivalents, certificates of deposit, repurchase agreements
maturing in one week or less and bankers' acceptances.
Normally, the fund invests at least 80% of its net assets (plus the amount of
borrowings, if any, for investment purposes) in these securities. Derivative
instruments that provide exposure to such securities or have similar economic
characteristics may be used to satisfy the fund's 80% policy.
The fund will provide written notice to shareholders at least 60 days prior to
any change to the requirement that it invest at least 80% of its assets as
described above.
Cash and cash equivalents include cash balances, accrued interest and
receivables for items such as the proceeds, not yet received, from the sale of
the fund's portfolio investments.
U.S. government securities include U.S. Treasury obligations, such as bills,
bonds and notes, and obligations issued or guaranteed by U.S. government
agencies or instrumentalities. These obligations may be supported by:
o the full faith and credit of the U.S. Treasury, such as securities issued by
the GNMA;
o the authority of the U.S. government to purchase certain obligations of the
issuer, such as securities issued by the FNMA and the FHLMC;
o the limited authority of the issuer to borrow from the U.S. Treasury; or
o only the credit of the issuer.
The fund may invest a substantial portion of its assets in mortgage-related
securities, including collateralized mortgage obligations and "sub-prime"
mortgages, and asset-backed securities. Mortgage-backed securities represent
18
interests in pools of mortgage loans assembled for sale to investors by various
U.S. governmental agencies, government-related organizations and private
issuers.
The fund may invest in securities with a broad range of maturities and
maintains an average portfolio maturity which varies based upon the judgment of
Amundi Pioneer Asset Management, Inc. ("Amundi Pioneer"), the fund's investment
adviser. The fund's investments may have fixed or variable principal payments
and all types of interest rate payment and reset terms, including fixed rate,
floating rate, inverse floating rate, zero coupon, when-issued, delayed
delivery, to be announced and forward commitment, contingent, deferred and
payment in kind and auction rate features. The fund's investments may include
instruments that allow for balloon payments or negative amortization payments.
The fund may invest up to 20% of its net assets in debt securities rated below
investment grade or, if unrated, of equivalent credit quality as determined by
Amundi Pioneer (known as "junk bonds"). The fund's investment in debt
securities rated below investment grade may include debt securities rated "D"
or better, or comparable unrated securities. Debt securities rated "D" are in
default.
The fund may invest a portion of its assets in subordinated debt securities,
municipal securities, preferred securities, Treasury Inflation Protected
Securities ("TIPS") and other inflation-linked debt securities, floating-rate
loans and event-linked bonds and other insurance-linked securities. The fund
also may enter into mortgage dollar roll transactions.
The fund may invest up to 15% of its total assets in securities of non-U.S.
issuers. Up to 5% of the fund's total assets may be invested in securities of
emerging market issuers. The fund does not count securities of Canadian issuers
against the limit on investment in securities of non-U.S. issuers.
Amundi Pioneer considers both broad economic and issuer specific factors in
selecting a portfolio designed to achieve the fund's investment objectives. In
assessing the appropriate maturity, rating and sector weighting of the fund's
portfolio, Amundi Pioneer considers a variety of factors that are expected to
influence economic activity and interest rates. These factors include
fundamental economic indicators, such as the rates of economic growth and
inflation, Federal Reserve monetary policy and the relative value of the U.S.
dollar compared to other currencies. Once Amundi Pioneer determines the
preferable portfolio characteristics, Amundi Pioneer selects
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More on the fund's investment objectives
and strategies
individual securities based upon the terms of the securities (such as yields
compared to U.S. Treasuries or comparable issues), liquidity and rating, sector
and issuer diversification. Amundi Pioneer also employs fundamental research to
assess an issuer's credit quality, taking into account financial condition and
profitability, future capital needs, potential for change in rating, industry
outlook, the competitive environment and management ability. In making these
portfolio decisions, Amundi Pioneer relies on the knowledge, experience and
judgment of its staff and the staff of its affiliates who have access to a wide
variety of research.
Except for the fund's investment objective, the fund's investment strategies
and policies may be changed from time to time without shareholder approval,
unless specifically stated otherwise in this prospectus or in the SAI.
INVESTMENT GRADE SECURITIES
A debt security is considered investment grade if it is:
o Rated BBB or higher at the time of purchase by Standard & Poor's Financial
Services LLC;
o Rated the equivalent rating by a nationally recognized statistical rating
organization; or
o Determined to be of equivalent credit quality by Amundi Pioneer.
Securities in the lowest category of investment grade (i.e., BBB) are
considered to have speculative characteristics. An investor can still lose
significant amounts when investing in investment grade securities.
BELOW INVESTMENT GRADE SECURITIES ("JUNK BONDS")
The fund may invest in debt securities rated below investment grade or, if
unrated, of equivalent quality as determined by Amundi Pioneer. A debt security
is below investment grade if it is rated BB or lower by Standard & Poor's
Financial Services LLC or the equivalent rating by another nationally
recognized statistical rating organization or determined to be of equivalent
credit quality by Amundi Pioneer. Debt securities rated below investment grade
are commonly referred to as "junk bonds" and are considered speculative. Below
investment grade debt securities involve greater risk of loss, are subject to
greater price volatility and are less liquid, especially during periods of
economic uncertainty or change, than higher quality debt securities. Below
investment grade securities also may be more difficult to value.
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DEBT RATING CONSIDERATIONS
For purposes of the fund's credit quality policies, if a security receives
different ratings from nationally recognized statistical rating organizations,
the fund will use the rating chosen by the portfolio manager as most
representative of the security's credit quality. The ratings of nationally
recognized statistical rating organizations represent their opinions as to the
quality of the securities that they undertake to rate and may not accurately
describe the risks of the securities. A rating organization may have a conflict
of interest with respect to a security for which it assigns a quality rating.
In addition, there may be a delay between a change in the credit quality of a
security or other asset and a change in the quality rating assigned to the
security or other asset by a rating organization. If a rating organization
changes the quality rating assigned to one or more of the fund's securities,
Amundi Pioneer will consider if any action is appropriate in light of the
fund's investment objectives and policies. These ratings are used as criteria
for the selection of portfolio securities, in addition to Amundi Pioneer's own
assessment of the credit quality of potential investments.
MORTGAGE-BACKED SECURITIES
The fund may invest in mortgage-backed securities. Mortgage-backed securities
may be issued by private issuers, by government-sponsored entities such as FNMA
or FHLMC or by agencies of the U.S. government, such as GNMA. Mortgage-backed
securities represent direct or indirect participation in, or are collateralized
by and payable from, mortgage loans secured by real property. The fund's
investments in mortgage-related securities may include mortgage derivatives and
structured securities.
The fund may invest in collateralized mortgage obligations (CMOs). A CMO is a
mortgage-backed bond that is issued in multiple classes, each with a specified
fixed or floating interest rate and a final scheduled distribution date. The
holder of an interest in a CMO is entitled to receive specified cash flows from
a pool of underlying mortgages or other mortgage-backed securities. Depending
upon the class of CMO purchased, the holder may be entitled to payment before
the cash flow from the pool is used to pay holders of other classes of the CMO
or, alternatively, the holder may be paid only to the extent that there is cash
remaining after the cash flow has been used to pay other classes. A
subordinated interest may serve as a credit support for the senior securities
purchased by other investors.
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More on the fund's investment objectives
and strategies
ASSET-BACKED SECURITIES
The fund may invest in asset-backed securities. Asset-backed securities
represent participations in, or are secured by and payable from, assets such as
installment sales or loan contracts, leases, credit card receivables and other
categories of receivables. The fund's investments in asset-backed securities
may include derivative and structured securities.
The fund may invest in asset-backed securities issued by special entities, such
as trusts, that are backed by a pool of financial assets. The fund may invest
in collateralized debt obligations (CDOs), which include collateralized bond
obligations (CBOs), collateralized loan obligations (CLOs) and other similarly
structured securities. A CDO is a trust backed by a pool of fixed income
securities. The trust typically is split into two or more portions, called
tranches, which vary in credit quality, yield, credit support and right to
repayment of principal and interest. Lower tranches pay higher interest rates
but represent lower degrees of credit quality and are more sensitive to the
rate of defaults in the pool of obligations. Certain CDOs may use derivatives,
such as credit default swaps, to create synthetic exposure to assets rather
than holding such assets directly.
FLOATING RATE INVESTMENTS
Floating rate investments are securities and other instruments with interest
rates that adjust or "float" periodically based on a specified interest rate or
other reference and include floating rate loans, repurchase agreements, money
market securities and shares of money market and short-term bond funds.
FLOATING RATE LOANS
Floating rate loans are provided by banks and other financial institutions to
large corporate customers in connection with recapitalizations, acquisitions,
and refinancings. These loans are generally acquired as a participation
interest in, or assignment of, loans originated by a lender or other financial
institution. These loans are rated below investment grade. The rates of
interest on the loans typically adjust periodically by reference to a base
lending rate, such as the London Interbank Offered Rate (LIBOR), a designated
U.S. bank's prime or base rate or the overnight federal funds rate, plus a
premium. Some loans reset on set dates, typically every 30 to 90 days, but not
to exceed one year. Other loans reset periodically when the underlying rate
resets.
22
In most instances, the fund's investments in floating rate loans hold a senior
position in the capital structure of the borrower. Having a senior position
means that, if the borrower becomes insolvent, senior debtholders, like the
fund, will be paid before subordinated debtholders and stockholders of the
borrower. Senior loans typically are secured by specific collateral.
Floating rate loans typically are structured and administered by a financial
institution that acts as an agent for the holders of the loan. Loans can be
acquired directly through the agent, by assignment from another holder of the
loan, or as a participation interest in the loan. When the fund is a direct
investor in a loan, the fund may have the ability to influence the terms of the
loan, although the fund does not act as the sole negotiator or originator of
the loan. Participation interests are fractional interests in a loan issued by
a lender or other financial institution. When the fund invests in a loan
participation, the fund does not have a direct claim against the borrower and
must rely upon an intermediate participant to enforce any rights against the
borrower.
SUBORDINATED SECURITIES
The fund may invest in securities that are subordinated or "junior" to more
senior securities of the issuer. The investor in a subordinated security of an
issuer is entitled to payment after other holders of debt in that issuer.
NON-U.S. INVESTMENTS
The fund may invest in securities of non-U.S. issuers, including securities of
emerging markets issuers. Non-U.S. issuers are issuers that are organized and
have their principal offices outside of the United States. Non-U.S. securities
may be issued by non-U.S. governments, banks or corporations, or private
issuers, and certain supranational organizations, such as the World Bank and
the European Union. The fund considers emerging market issuers to include
issuers organized under the laws of an emerging market country, issuers with a
principal office in an emerging market country, issuers that derive at least
50% of their gross revenues or profits from goods or services produced in
emerging markets or sales made in emerging markets, and emerging market
governmental issuers. Emerging markets generally will include, but not be
limited to, countries included in the Morgan Stanley Capital International
(MSCI) Emerging + Frontier Markets Index.
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More on the fund's investment objectives
and strategies
EVENT-LINKED BONDS AND OTHER INSURANCE-LINKED SECURITIES
The fund may invest in "event-linked" bonds, which sometimes are referred to as
"insurance-linked" or "catastrophe" bonds. Event-linked bonds are debt
obligations for which the return of principal and the payment of interest are
contingent on the non-occurrence of a pre-defined "trigger" event, such as a
hurricane or an earthquake of a specific magnitude or other event that leads to
physical or economic loss. For some event-linked bonds, the trigger event's
magnitude may be based on losses to a company or industry, industry indexes or
readings of scientific instruments rather than specified actual losses. The
fund is entitled to receive principal and interest payments so long as no
trigger event occurs of the description and magnitude specified by the
instrument.
Event-linked bonds may be issued by government agencies, insurance companies,
reinsurers, special purpose corporations or other on-shore or off-shore
entities. The fund may invest in interests in pooled entities that invest
primarily in event-linked bonds.
Event-linked bonds are typically rated below investment grade or may be
unrated. The rating for an event-linked bond primarily reflects the rating
agency's calculated probability that a pre-defined trigger event will occur,
which will cause a loss of principal. This rating may also assess the credit
risk of the bond's collateral pool, if any, and the reliability of the model
used to calculate the probability of a trigger event.
In addition to event-linked bonds, the fund may also invest in other
insurance-linked securities, including structured reinsurance instruments such
as quota share instruments (a form of proportional reinsurance whereby an
investor participates in the premiums and losses of a reinsurer's portfolio of
catastrophe-oriented policies, sometimes referred to as "reinsurance sidecars")
and collateralized reinsurance investments, industry loss warranties, and other
insurance- and reinsurance-related securities. Quota share instruments and
other structured reinsurance instruments generally will be considered illiquid
securities by the fund.
ZERO COUPON SECURITIES
The fund may invest in zero coupon securities. Zero coupon securities are debt
instruments that do not pay interest during the life of the security but are
issued at a discount from the amount the investor will receive when the issuer
repays the amount borrowed (the face value). The discount approximates the
total amount of interest that would be paid at an assumed interest rate.
24
DERIVATIVES
The fund may, but is not required to, use futures and options on securities,
indices and currencies, forward foreign currency exchange contracts, swaps and
other derivatives. The fund also may enter into credit default swaps, which can
be used to acquire or to transfer the credit risk of a security or index of
securities without buying or selling the security or securities comprising the
relevant index. A derivative is a security or instrument whose value is
determined by reference to the value or the change in value of one or more
securities, currencies, indices or other financial instruments. The fund may
use derivatives for a variety of purposes, including:
o In an attempt to hedge against adverse changes in the market prices of
securities, interest rates or currency exchange rates
o As a substitute for purchasing or selling securities
o To attempt to increase the fund's return as a non-hedging strategy that may
be considered speculative
o To manage portfolio characteristics (for example, the duration or credit
quality of the fund's portfolio)
o As a cash flow management technique
The fund may choose not to make use of derivatives for a variety of reasons,
and any use may be limited by applicable law and regulations.
INVERSE FLOATING RATE OBLIGATIONS
The fund may invest in inverse floating rate obligations (a type of derivative
instrument). The interest rate on inverse floating rate obligations will
generally decrease as short-term interest rates increase, and increase as
short-term rates decrease. Due to their leveraged structure, the sensitivity of
the market value of an inverse floating rate obligation to changes in interest
rates is generally greater than a comparable long-term bond issued by the same
issuer and with similar credit quality, redemption and maturity provisions.
Inverse floating rate obligations may be volatile and involve leverage risk.
CASH MANAGEMENT AND TEMPORARY INVESTMENTS
Normally, the fund invests substantially all of its assets to meet its
investment objectives. The fund may invest the remainder of its assets in
securities with remaining maturities of less than one year or cash equivalents,
or may hold cash. For temporary defensive purposes, including during periods of
unusual cash flows, the fund may depart from its principal investment
strategies and invest part or all of its assets in these securities or may hold
cash. The fund may adopt a defensive strategy when the adviser believes
securities in which the fund normally invests have special or unusual risks
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More on the fund's investment objectives
and strategies
or are less attractive due to adverse market, economic, political or other
conditions. During such periods, it may be more difficult for the fund to
achieve its investment objective.
ADDITIONAL INVESTMENT STRATEGIES
In addition to the principal investment strategies discussed above, the fund
may also use other techniques, including the following non-principal investment
strategies.
REPURCHASE AGREEMENTS
In a repurchase agreement, the fund purchases securities from a broker/dealer
or a bank, called the counterparty, upon the agreement of the counterparty to
repurchase the securities from the fund at a later date, and at a specified
price, which is typically higher than the purchase price paid by the fund. The
securities purchased serve as the fund's collateral for the obligation of the
counterparty to repurchase the securities. If the counterparty does not
repurchase the securities, the fund is entitled to sell the securities, but the
fund may not be able to sell them for the price at which they were purchased,
thus causing a loss. Additionally, if the counterparty becomes insolvent, there
is some risk that the fund will not have a right to the securities, or the
immediate right to sell the securities.
REVERSE REPURCHASE AGREEMENTS AND BORROWING
The fund may enter into reverse repurchase agreements pursuant to which the
fund transfers securities to a counterparty in return for cash, and the fund
agrees to repurchase the securities at a later date and for a higher price.
Reverse repurchase agreements are treated as borrowings by the fund, are a form
of leverage and may make the value of an investment in the fund more volatile
and increase the risks of investing in the fund. The fund also may borrow money
from banks or other lenders for temporary purposes. The fund may borrow up to
33 1/3% of its total assets. Entering into reverse repurchase agreements and
other borrowing transactions may cause the fund to liquidate positions when it
may not be advantageous to do so in order to satisfy its obligations or meet
segregation requirements.
SHORT-TERM TRADING
The fund usually does not trade for short-term profits. The fund will sell an
investment, however, even if it has only been held for a short time, if it no
longer meets the fund's investment criteria. If the fund does a lot of trading,
26
it may incur additional operating expenses, which would reduce performance, and
could cause shareowners to incur a higher level of taxable income or capital
gains.
27
More on the risks of investing in the fund
PRINCIPAL INVESTMENT RISKS
You could lose money on your investment in the fund. As with any mutual fund,
there is no guarantee that the fund will achieve its objectives.
MARKET RISK. The market prices of securities held by the fund may go up or
down, sometimes rapidly or unpredictably, due to general market conditions,
such as real or perceived adverse economic, political, or regulatory
conditions, inflation, changes in interest or currency rates, lack of liquidity
in the bond markets or adverse investor sentiment. Changes in market conditions
may not have the same impact on all types of securities. The value of
securities may also fall due to specific conditions that affect a particular
sector of the securities market or a particular issuer. In the past decade,
financial markets throughout the world have experienced increased volatility,
depressed valuations, decreased liquidity and heightened uncertainty.
Governmental and non-governmental issuers have defaulted on, or been forced to
restructure, their debts. These conditions may continue, recur, worsen or
spread. Events that have contributed to these market conditions include, but
are not limited to, major cybersecurity events; geopolitical events (including
wars and terror attacks); measures to address budget deficits; downgrading of
sovereign debt; changes in oil and commodity prices; dramatic changes in
currency exchange rates; and public sentiment. U.S. and non-U.S. governments
and central banks have provided significant support to financial markets,
including by keeping interest rates at historically low levels. The U.S.
Federal Reserve is reducing its market support activities and has begun raising
interest rates. Certain foreign governments and central banks have implemented
or may implement so-called negative interest rates (e.g., charging depositors
who keep their cash at a bank) to spur economic growth. Further Federal Reserve
or other U.S. or non-U.S. governmental or central bank actions, including
interest rate increases or contrary actions by different governments, could
negatively affect financial markets generally, increase market volatility and
reduce the value and liquidity of securities in which the fund invests. Policy
and legislative changes in the U.S. and in other countries and other events
affecting global markets, such as the United Kingdom's expected exit from the
European Union (or Brexit), are affecting many aspects of financial regulation,
and may in some instances contribute to decreased liquidity and increased
volatility in the financial markets. The impact of these changes on the
markets, and the practical implications for market participants, may not be
fully known for some time. Economies and financial markets throughout the world
are increasingly interconnected. Economic, financial or political events,
trading and tariff arrangements, terrorism,
28
natural disasters and other circumstances in one country or region could have
profound impacts on global economies or markets. As a result, whether or not
the fund invests in securities of issuers located in or with significant
exposure to the countries directly affected, the value and liquidity of the
fund's investments may be negatively affected. The fund may experience a
substantial or complete loss on any individual security or derivative position.
INTEREST RATE RISK. The market prices of securities may fluctuate significantly
when interest rates change. When interest rates rise, the value of fixed income
securities and therefore the value of your investment in the fund, generally
falls. For example, if interest rates increase by 1%, the value of a fund's
portfolio with a portfolio duration of ten years would be expected to decrease
by 10%, all other things being equal. Interest rates have been historically
low, so the fund faces a heightened risk that interest rates may continue to
rise. A general rise in interest rates could adversely affect the price and
liquidity of fixed income securities and could also result in increased
redemptions from the fund. A change in interest rates will not have the same
impact on all fixed income securities. Generally, the longer the maturity or
duration of a fixed income security, the greater the impact of a rise in
interest rates on the security's value. The maturity of a security may be
significantly longer than its effective duration. A security's maturity and
other features may be more relevant than its effective duration in determining
the security's sensitivity to other factors affecting the issuer or markets
generally, such as changes in credit quality or in the yield premium that the
market may establish for certain types of securities. Calculations of duration
and maturity may be based on estimates and may not reliably predict a
security's price sensitivity to changes in interest rates. Moreover, securities
can change in value in response to other factors, such as credit risk. In
addition, different interest rate measures (such as short- and long-term
interest rates and U.S. and foreign interest rates), or interest rates on
different types of securities or securities of different issuers, may not
necessarily change in the same amount or in the same direction. When interest
rates go down, the income received by the fund, and the fund's yield, may
decline. Also, when interest rates decline, investments made by the fund may
pay a lower interest rate, which would reduce the income received and
distributed by the fund.
Certain fixed income securities pay interest at variable or floating rates.
Variable rate securities tend to reset at specified intervals, while floating
rate securities may reset whenever there is a change in a specified index rate.
In most cases, these reset provisions reduce the impact of changes
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More on the risks of investing in the fund
in market interest rates on the value of the security. However, some securities
do not track the underlying index directly, but reset based on formulas that
may produce a leveraging effect; others may also provide for interest payments
that vary inversely with market rates. The market prices of these securities
may fluctuate significantly when interest rates change. Yield generated by the
fund may decline due to a decrease in market interest rates.
CREDIT RISK. If an obligor (such as the issuer itself or a party offering
credit enhancement) for a security held by the fund fails to pay, otherwise
defaults, is perceived to be less creditworthy, becomes insolvent or files for
bankruptcy, a security's credit rating is downgraded or the credit quality or
value of an underlying asset declines, the value of your investment could
decline. If the fund enters into financial contracts (such as certain
derivatives, repurchase agreements, reverse repurchase agreements, and
when-issued, delayed delivery and forward commitment transactions), the fund
will be subject to the credit risk presented by the counterparty. In addition,
the fund may incur expenses in an effort to protect the fund's interests or to
enforce its rights. Credit risk is broadly gauged by the credit ratings of the
securities in which the fund invests. However, ratings are only the opinions of
the companies issuing them and are not guarantees as to quality. Securities
rated in the lowest category of investment grade (Baa/BBB) may possess certain
speculative characteristics.
PREPAYMENT OR CALL RISK. Many fixed income securities give the issuer the
option to prepay or call the security prior to its maturity date. Issuers often
exercise this right when interest rates fall. Accordingly, if the fund holds a
fixed income security that can be prepaid or called prior to its maturity date,
it will not benefit fully from the increase in value that other fixed income
securities generally experience when interest rates fall. Upon prepayment of
the security, the fund also would be forced to reinvest the proceeds at then
current yields, which would be lower than the yield of the security that was
prepaid or called. In addition, if the fund purchases a fixed income security
at a premium (at a price that exceeds its stated par or principal value), the
fund may lose the amount of the premium paid in the event of prepayment.
EXTENSION RISK. During periods of rising interest rates, the average life of
certain types of securities may be extended because of slower than expected
principal payments. This may lock in a below market interest rate, increase the
security's duration and reduce the value of the security.
30
To the extent the fund invests significantly in mortgage-related and
asset-backed securities, its exposure to extension risks may be greater than if
it invested in other fixed income securities.
LIQUIDITY RISK. Liquidity risk is the risk that particular investments, or
investments generally, may be impossible or difficult to purchase or sell.
Although most of the fund's securities and other investments must be liquid at
the time of investment, securities and other investments may become illiquid
after purchase by the fund, particularly during periods of market turmoil.
Liquidity and value of investments can deteriorate rapidly. Markets may become
illiquid when, for instance, there are few, if any, interested buyers and
sellers or when dealers are unwilling to make a market for certain securities
or when dealer market-making capacity is otherwise reduced, and this is more
likely to occur as a result of the reduction of market support activity by the
Federal Reserve. A lack of liquidity or other adverse credit market conditions
may affect the fund's ability to sell the securities in which it invests or to
find and purchase suitable investments. These illiquid investments may also be
difficult to value, especially in changing markets. If the fund is forced to
sell or unwind an illiquid investment to meet redemption requests or for other
cash needs, the fund may suffer a loss. The fund may experience heavy
redemptions that could cause the fund to liquidate its assets at inopportune
times or at a loss or depressed value, which could cause the value of your
investment to decline. In addition, when there is illiquidity in the market for
certain securities and other investments, the fund, due to limitations on
investments in illiquid securities, may be unable to achieve its desired level
of exposure to a certain sector. Further, certain securities, once sold, may
not settle for an extended period (for example, several weeks or even longer).
The fund will not receive its sales proceeds until that time, which may
constrain the fund's ability to meet its obligations (including obligations to
redeeming shareholders). Liquidity risk may be magnified in a rising interest
rate environment in which investor redemptions from fixed income mutual funds
may be higher than normal. If an auction fails for an auction rate security,
there may be no secondary market for the security and the fund may be forced to
hold the security until the security is refinanced by the issuer or a secondary
market develops. To the extent the fund holds a material percentage of the
outstanding debt securities of an issuer, this practice may impact adversely
the liquidity and market value of those investments.
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More on the risks of investing in the fund
PORTFOLIO SELECTION RISK. The adviser's judgment about the quality, relative
yield, relative value or market trends affecting a particular sector or region,
market segment, security or about interest rates generally may prove to be
incorrect.
U.S. TREASURY OBLIGATIONS RISK. The market value of direct obligations of the
U.S. Treasury may vary due to changes in interest rates. In addition, changes
to the financial condition or credit rating of the U.S. government may cause
the value of the fund's investments in obligations issued by the U.S. Treasury
to decline.
U.S. GOVERNMENT AGENCY OBLIGATIONS RISK. The fund invests in obligations issued
by agencies and instrumentalities of the U.S. government. Government-sponsored
entities such as FNMA, FHLMC and the FHLBs, although chartered or sponsored by
Congress, are not funded by congressional appropriations and the debt and
mortgage-backed securities issued by them are neither guaranteed nor issued by
the U.S. government. The maximum potential liability of the issuers of some
U.S. government obligations may greatly exceed their current resources,
including any legal right to support from the U.S. government. Such debt and
mortgage-backed securities are subject to the risk of default on the payment of
interest and/or principal, similar to debt of private issuers. Although the
U.S. government has provided financial support to FNMA and FHLMC in the past,
there can be no assurance that it will support these or other
government-sponsored entities in the future.
MORTGAGE-RELATED AND ASSET-BACKED SECURITIES RISK. The repayment of certain
mortgage-backed and asset-backed securities depends primarily on the cash
collections received from the issuer's underlying asset portfolio and, in
certain cases, the issuer's ability to issue replacement securities. As a
result, there could be losses to the fund in the event of credit or market
value deterioration in the issuer's underlying portfolio, mismatches in the
timing of the cash flows of the underlying asset interests and the repayment
obligations of maturing securities, or the issuer's inability to issue new or
replacement securities. Mortgage-backed securities tend to be more sensitive to
changes in interest rate than other types of debt securities. These securities
are also subject to prepayment and extension risks. Upon the occurrence of
certain triggering events or defaults, the fund may become the holder of
underlying assets at a time when those assets may be difficult to sell or may
be sold only at a loss. In the event of a default, the value of the underlying
collateral may be insufficient to pay certain expenses, such as litigation and
foreclosure expenses, and inadequate to pay any principal
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or unpaid interest. Privately issued mortgage-backed and asset-backed
securities are not traded on an exchange and may have a limited market. Without
an active trading market, these securities may be particularly difficult to
value given the complexities in valuing the underlying collateral.
Certain mortgage-backed and asset-backed securities may pay principal only at
maturity or may represent only the right to receive payments of principal or
interest on the underlying obligations, but not both. The value of these types
of instruments may change more than the value of debt securities that pay both
principal and interest during periods of changing interest rates. Principal
only instruments generally increase in value if interest rates decline, but are
also subject to the risk of prepayment. Interest only instruments generally
increase in value in a rising interest rate environment when fewer of the
underlying obligations are prepaid. Interest only instruments could lose their
entire value in a declining interest rate environment if the underlying
obligations are prepaid.
Unlike mortgage-related securities issued or guaranteed by the U.S. government
or its agencies and instrumentalities, mortgage-related securities issued by
private issuers do not have a government or government-sponsored entity
guarantee (but may have other credit enhancement), and may, and frequently do,
have less favorable collateral, credit risk or other characteristics. The fund
may invest in other mortgage-related securities, including mortgage derivatives
and structured securities. These securities typically are not secured by real
property. Because these securities have embedded leverage features, small
changes in interest or prepayment rates may cause large and sudden price
movements. These securities also can become illiquid and difficult to value in
volatile or declining markets.
Mortgage-backed securities are particularly susceptible to prepayment and
extension risks, because prepayments on the underlying mortgages tend to
increase when interest rates fall and decrease when interest rates rise.
Prepayments may also occur on a scheduled basis or due to foreclosure. When
market interest rates increase, mortgage refinancings and prepayments slow,
which lengthens the effective duration of these securities. As a result, the
negative effect of the interest rate increase on the market value of
mortgage-backed securities is usually more pronounced than it is for other
types of fixed income securities, potentially increasing the volatility of the
fund. Conversely, when market interest rates decline, while the value of
mortgage-backed securities may increase, the rates of prepayment of the
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More on the risks of investing in the fund
underlying mortgages tend to increase, which shortens the effective duration of
these securities. Mortgage-backed securities are also subject to the risk that
the underlying borrowers will be unable to meet their obligations.
At times, some of the mortgage-backed securities in which the fund may invest
will have higher than market interest rates and therefore will be purchased at
a premium above their par value. Prepayments may cause losses on securities
purchased at a premium.
The value of mortgage-backed and asset-backed securities may be affected by
changes in credit quality or value of the mortgage loans or other assets that
support the securities. In addition, for mortgage-backed securities, when
market conditions result in an increase in the default rates on the underlying
mortgages and the foreclosure values of the underlying real estate are below
the outstanding amount of the underlying mortgages, collection of the full
amount of accrued interest and principal on these investments may be less
likely.
The fund may invest in CMOs. Principal prepayments on the underlying mortgage
loans may cause a CMO to be retired substantially earlier than its stated
maturity or final distribution date. If there are defaults on the underlying
mortgage loans, the fund will be less likely to receive payments of principal
and interest, and will be more likely to suffer a loss. This risk may be
increased to the extent the underlying mortgages include sub-prime mortgages.
As market conditions change, and particularly during periods of rapid or
unanticipated changes in market interest rates, the attractiveness of a CMO
class and the ability of the structure to provide the anticipated investment
characteristics may be significantly reduced. Such changes can result in
volatility in the market value, and in some instances reduced liquidity, of a
CMO class.
Asset-backed securities are structured like mortgage-backed securities and are
subject to many of the same risks. The ability of an issuer of asset-backed
securities to enforce its security interest in the underlying asset or to
otherwise recover from the underlying obligor may be limited. Certain
asset-backed securities present a heightened level of risk because, in the
event of default, the liquidation value of the underlying assets may be
inadequate to pay any unpaid principal or interest.
RISKS OF INSTRUMENTS THAT ALLOW FOR BALLOON PAYMENTS OR NEGATIVE AMORTIZATION
PAYMENTS. Certain debt instruments allow for balloon payments or negative
amortization payments. Such instruments permit the borrower
34
to avoid paying currently a portion of the interest accruing on the instrument.
While these features make the debt instrument more affordable to the borrower
in the near term, they increase the risk that the borrower will be unable to
make the resulting higher payment or payments that become due at the maturity
of the loan.
HIGH YIELD OR "JUNK" BOND RISK. Debt securities that are below investment
grade, called "junk bonds," are speculative, have a higher risk of default or
are already in default, tend to be less liquid and are more difficult to value
than higher grade securities and may involve major risk of exposure to adverse
conditions and negative sentiments. These securities have a higher risk of
issuer default because, among other reasons, issuers of junk bonds often have
more debt in relation to total capitalization than issuers of investment grade
securities. Junk bonds tend to be volatile and more susceptible to adverse
events and negative sentiments. These risks are more pronounced for securities
that are already in default. Changes in economic conditions or developments
regarding the individual issuer are more likely to cause price volatility and
weaken the capacity of such securities to make principal and interest payments
than is the case for higher grade debt securities. The value of lower-quality
debt securities often changes in response to company, political, or economic
developments and can decline significantly over short as well as long periods
of time or during periods of general or regional economic difficulty. Junk
bonds may also be less liquid than higher-rated securities, which means that
the fund may have difficulty selling them at times, and it may have to apply a
greater degree of judgment in establishing a price for purposes of valuing fund
shares. Junk bonds generally are issued by less creditworthy issuers. Issuers
of junk bonds may have a larger amount of outstanding debt securities relative
to their assets than issuers of investment grade bonds. In the event of an
issuer's bankruptcy, claims of other creditors may have priority over the
claims of junk bond holders, leaving few or no assets available to repay junk
bond holders. The fund may incur expenses to the extent necessary to seek
recovery upon default or to negotiate new terms with a defaulting issuer. Junk
bonds frequently have redemption features that permit an issuer to repurchase
the security from the fund before it matures. If the issuer redeems junk bonds,
the fund may have to invest the proceeds in bonds with lower yields and may
lose income.
RISKS OF INVESTING IN FLOATING RATE LOANS. Floating rate loans and similar
investments may be illiquid or less liquid than other investments and difficult
to value. The value of collateral, if any, securing a floating rate loan can
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More on the risks of investing in the fund
decline or may be insufficient to meet the issuer's obligations or may be
difficult to liquidate. In the event of a default, the fund may have difficulty
collecting on any collateral and would not have the ability to collect on any
collateral for an uncollateralized loan. Further, the fund's access to
collateral, if any, may be limited by bankruptcy law. Market quotations for
these securities may be volatile and/or subject to large spreads between bid
and ask prices. No active trading market may exist for many floating rate
loans, and many loans are subject to restrictions on resale. Any secondary
market may be subject to irregular trading activity and extended trade
settlement periods. In particular, loans may take longer than seven days to
settle, potentially leading to the sale proceeds of loans not being available
to meet redemptions for a substantial period of time after the sale of the
loans. To the extent that sale proceeds of loans are not available, the fund
may sell securities that have shorter settlement periods or may access other
sources of liquidity to meet redemption requests. An economic downturn
generally leads to a higher non-payment rate, and a loan may lose significant
value before a default occurs. There is less readily available, reliable
information about most floating rate loans than is the case for many other
types of securities. Normally, Amundi Pioneer will seek to avoid receiving
material, non-public information about the issuer of a loan either held by, or
considered for investment by, the fund, and this decision could adversely
affect the fund's investment performance. Loans may not be considered
"securities," and purchasers, such as the fund, therefore may not be entitled
to rely on the anti-fraud protections afforded by federal securities laws.
RISKS OF INVESTING IN INSURANCE-LINKED SECURITIES. The fund could lose a
portion or all of the principal it has invested in an insurance-linked
security, and the right to additional interest payments with respect to the
security, upon the occurrence of one or more trigger events, as defined within
the terms of an insurance-linked security. Trigger events, generally, are
hurricanes, earthquakes, or other natural events of a specific size or
magnitude that occur in a designated geographic region during a specified time
period, and/or that involve losses or other metrics that exceed a specific
amount. There is no way to accurately predict whether a trigger event will
occur and, accordingly, insurance-linked securities carry significant risk. In
addition to the specified trigger events, insurance-linked securities may
expose the fund to other risks, including but not limited to issuer (credit)
default, adverse regulatory or jurisdictional interpretations and adverse tax
consequences. Insurance-linked securities are also subject to the risk that the
model used to calculate the probability of a trigger event was not accurate and
36
underestimated the likelihood of a trigger event. Insurance-linked securities
may provide for extensions of maturity in order to process and audit loss
claims in those cases when a trigger event has, or possibly has, occurred.
Certain insurance-linked securities may have limited liquidity, or may be
illiquid. Upon the occurrence or possible occurrence of a trigger event, and
until the completion of the processing and auditing of applicable loss claims,
the fund's investment in an insurance-linked security may be priced using fair
value methods. Lack of a liquid market may impose the risk of higher
transaction costs and the possibility that the fund may be forced to liquidate
positions when it would not be advantageous to do so. Certain insurance-linked
securities represent interests in baskets of underlying reinsurance contracts.
The fund has limited transparency into the individual contracts underlying such
securities and therefore must rely on the risk assessment and sound
underwriting practices of the insurer and/or reinsurer. Certain
insurance-linked securities may be difficult to value.
INFLATION-LINKED SECURITIES RISK. Unlike a conventional bond, whose issuer
makes regular fixed interest payments and repays the face value of the bond at
maturity, an inflation-indexed security provides principal payments and
interest payments, both of which are adjusted over time to reflect a rise
(inflation) or a drop (deflation) in the general price level. The inflation
index generally used is a non-seasonally adjusted index, which is not
statistically smoothed to overcome highs and lows observed at different points
each year. The use of a non-seasonally adjusted index can cause the fund's
income level to fluctuate. As inflationary expectations increase,
inflation-linked securities will become more attractive, because they protect
future interest payments against inflation. Conversely, as inflationary
concerns decrease, inflation-linked securities will become less attractive and
less valuable. The inflation index used may not accurately measure the real
rate of inflation. Inflation-linked securities may lose value or interest
payments on such securities may decline in the event that the actual rate of
inflation is different than the rate of the inflation index, and losses may
exceed those experienced by other debt securities with similar durations. The
values of inflation-linked securities may not be directly correlated to changes
in interest rates, for example if interest rates rise for reasons other than
inflation. In general, the price of an inflation-linked security tends to
decline when real interest rates increase.
RISKS OF SUBORDINATED SECURITIES. A holder of securities that are subordinated
or "junior" to more senior securities of an issuer is entitled to payment after
holders of more senior securities of the issuer. Subordinated securities
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More on the risks of investing in the fund
are more likely to suffer a credit loss than non-subordinated securities of the
same issuer, any loss incurred by the subordinated securities is likely to be
proportionately greater, and any recovery of interest or principal may take
more time. If there is a default, bankruptcy or liquidation of the issuer, most
subordinated securities are paid only if sufficient assets remain after payment
of the issuer's non-subordinated securities. As a result, even a perceived
decline in creditworthiness of the issuer is likely to have a greater impact on
subordinated securities than more senior securities.
MUNICIPAL SECURITIES RISK. The municipal bond market can be susceptible to
unusual volatility, particularly for lower-rated and unrated securities.
Liquidity can be reduced unpredictably in response to overall economic
conditions or credit tightening. Municipal issuers may be adversely affected by
rising health care costs, increasing unfunded pension liabilities and by the
phasing out of federal programs providing financial support. Unfavorable
conditions and developments relating to projects financed with municipal
securities can result in lower revenues to issuers of municipal securities,
potentially resulting in defaults. Issuers often depend on revenues from those
projects to make principal and interest payments. The value of municipal
securities can also be adversely affected by changes in the financial condition
of one or more individual municipal issuers or insurers of municipal issuers,
regulatory and political developments, tax law changes or other legislative
actions, and by uncertainties and public perceptions concerning these and other
factors. Municipal issuers may be more susceptible to downgrades or defaults
during recessions or similar periods of economic stress. In recent periods, an
increasing number of municipal issuers in the United States have defaulted on
obligations and commenced insolvency proceedings. Financial difficulties of
municipal issuers may continue or get worse. To the extent the fund invests
significantly in a single state or in securities the payments on which are
dependent upon a single project or source of revenues, or that relate to a
sector or industry, the fund will be more susceptible to associated risks and
developments.
RISKS OF ZERO COUPON BONDS, PAYMENT IN KIND, DEFERRED AND CONTINGENT PAYMENT
SECURITIES. Zero coupon bonds (which do not pay interest until maturity) and
payment in kind securities (which pay interest in the form of additional
securities) may be more speculative and may fluctuate more in value than
securities which pay income periodically and in cash. These securities are more
likely to respond to changes in interest rates than interest-bearing securities
having similar maturities and credit quality. These securities are more
sensitive to the credit quality of the underlying issuer.
38
Payment in kind securities may be difficult to value because their continuing
accruals require judgments about the collectability of the deferred payments
and the value of any collateral. Deferred interest securities are obligations
that generally provide for a period of delay before the regular payment of
interest begins and are issued at a significant discount from face value. The
interest rate on contingent payment securities is determined by the outcome of
an event, such as the performance of a financial index. If the financial index
does not increase by a prescribed amount, the fund may receive no interest.
Unlike bonds that pay interest throughout the period to maturity, the fund
generally will realize no cash until maturity and, if the issuer defaults, the
fund may obtain no return at all on its investment. In addition, although the
fund receives no periodic cash payments on such securities, the fund is deemed
for tax purposes to receive income from such securities, which applicable tax
rules require the fund to distribute to shareholders. Such distributions may be
taxable when distributed to shareholders and, in addition, could reduce the
fund's reserve position and require the fund to sell securities and incur a
gain or loss at a time it may not otherwise want in order to provide the cash
necessary for these distributions.
RISKS OF INVESTING IN "WHEN-ISSUED", DELAYED DELIVERY, TO BE ANNOUNCED AND
FORWARD COMMITMENT TRANSACTIONS. The market value of these transactions may
increase or decrease as a result of changes in interest rates. These
transactions involve risk of loss if the value of the underlying security
changes unfavorably before the settlement date or if the assets set aside to
pay for these securities decline in value prior to the settlement date.
Therefore, these transactions may have a leveraging effect on the fund, making
the value of an investment in the fund more volatile and increasing the fund's
overall investment exposure. There is also a risk that the security will not be
issued or that the other party to the transaction will default on its
obligation to purchase or sell the security, which may result in the fund
missing the opportunity to obtain a favorable price or yield elsewhere.
RISKS OF NON-U.S. INVESTMENTS. Investing in non-U.S. issuers, or in U.S.
issuers that have significant exposure to foreign markets, may involve unique
risks compared to investing in securities of U.S. issuers. These risks are more
pronounced for issuers in emerging markets or to the extent that the fund
invests significantly in one region or country. These risks may include:
39
More on the risks of investing in the fund
o Less information about non-U.S. issuers or markets may be available due to
less rigorous disclosure or accounting standards or regulatory practices
o Many non-U.S. markets are smaller, less liquid and more volatile. In a
changing market, the adviser may not be able to sell the fund's securities
at times, in amounts and at prices it considers reasonable
o Adverse effect of currency exchange rates or controls on the value of the
fund's investments, or its ability to convert non-U.S. currencies to U.S.
dollars
o The economies of non-U.S. countries may grow at slower rates than expected or
may experience a downturn or recession
o Economic, political, regulatory and social developments may adversely affect
the securities markets
o It may be difficult for the fund to pursue claims or enforce judgments
against a foreign bank, depository or issuer of a security, or any of their
agents, in the courts of a foreign country
o Withholding and other non-U.S. taxes may decrease the fund's return. The
value of the fund's foreign investments also may be affected by U.S. tax
considerations and restrictions in receiving investment proceeds from a
foreign country
o Some markets in which the fund may invest are located in parts of the world
that have historically been prone to natural disasters that could result in
a significant adverse impact on the economies of those countries and
investments made in those countries
o It is often more expensive for the fund to buy, sell and hold securities in
certain foreign markets than in the United States
o A governmental entity may delay, or refuse or be unable to pay, interest or
principal on its sovereign debt due to cash flow problems, insufficient
foreign currency reserves, political considerations, the relative size of
the governmental entity's debt position in relation to the economy or the
failure to put in place economic reforms
o Investing in depositary receipts is subject to many of the same risks as
investing directly in non-U.S. issuers. Depositary receipts may involve
higher expenses and may trade at a discount (or premium) to the underlying
security. In addition, depositary receipts may not pass through voting and
other shareholder rights, and may be less liquid than the underlying
securities listed on an exchange
o A number of countries in the European Union (EU) have experienced, and may
continue to experience, severe economic and financial difficulties.
Additional EU member countries may also fall subject to such difficulties. A
number of countries in Europe have suffered terror attacks, and additional
attacks may occur in the future. In addition, voters in the United Kingdom
40
have approved withdrawal from the EU. Other countries may seek to withdraw
from the EU and/or abandon the euro, the common currency of the EU. These
events could negatively affect the value and liquidity of the fund's
investments, particularly in euro-denominated securities and derivative
contracts, securities of issuers located in the EU or with significant
exposure to EU issuers or countries
o If one or more stockholders of a supranational entity such as the World Bank
fail to make necessary additional capital contributions, the entity may be
unable to pay interest or repay principal on its debt securities
RISKS OF CONVERTIBLE SECURITIES. Convertible securities generally offer lower
interest or dividend yields than non-convertible securities of similar quality.
As with all fixed income securities, the market values of convertible
securities tend to decline as interest rates increase and, conversely, to
increase as interest rates decline. However, when the market price of the
common stock underlying a convertible security approaches or exceeds the
conversion price, the convertible security tends to reflect the market price of
the underlying common stock. As the market price of the underlying common stock
declines, the convertible security tends to trade increasingly on a yield basis
and thus may not decline in price to the same extent as the underlying common
stock. Convertible securities rank senior to common stocks in an issuer's
capital structure and consequently entail less risk than the issuer's common
stock. The value of a synthetic convertible security will respond differently
to market fluctuations than a traditional convertible security because a
synthetic convertible security is composed of two or more separate securities
or instruments, each with its own market value. If the value of the underlying
common stock or the level of the index involved in the convertible component
falls below the exercise price of the warrant or option, the warrant or option
may lose all value.
PREFERRED STOCKS RISK. Preferred stocks may pay fixed or adjustable rates of
return. Preferred stocks are subject to issuer-specific and market risks
applicable generally to equity securities. In addition, a company's preferred
stocks generally pay dividends only after the company makes required payments
to holders of its bonds and other debt. Thus, the value of preferred stocks
will usually react more strongly than bonds and other debt to actual or
perceived changes in the company's financial condition or prospects. The market
value of preferred stocks generally decreases when interest rates rise.
Preferred stocks of smaller companies may be more vulnerable to adverse
developments than preferred stocks of larger companies.
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More on the risks of investing in the fund
MORTGAGE DOLLAR ROLL TRANSACTIONS RISK. The benefits to the fund from mortgage
dollar roll transactions depend upon the adviser's ability to forecast mortgage
prepayment patterns on different mortgage pools. The fund may lose money if,
during the period between the time it agrees to the forward purchase of the
mortgage securities and the settlement date, these securities decline in value
due to market conditions or prepayments on the underlying mortgages.
DERIVATIVES RISK. Using swaps, futures and other derivatives exposes the fund
to special risks and costs and may result in losses to the fund, even when used
for hedging purposes. Using derivatives can increase losses and reduce
opportunities for gain when market prices, interest rates or currencies, or the
derivative instruments themselves, behave in a way not anticipated by the fund,
especially in abnormal market conditions. Using derivatives can have a
leveraging effect (which may increase investment losses) and increase the
fund's volatility, which is the degree to which the fund's share price may
fluctuate within a short time period. Certain derivatives have the potential
for unlimited loss, regardless of the size of the fund's initial investment. If
changes in a derivative's value do not correspond to changes in the value of
the fund's other investments or do not correlate well with the underlying
assets, rate or index, the fund may not fully benefit from, or could lose money
on, or could experience unusually high expenses as a result of, the derivative
position. The other parties to certain derivative transactions present the same
types of credit risk as issuers of fixed income securities. Derivatives also
tend to involve greater liquidity risk and they may be difficult to value. The
fund may be unable to terminate or sell its derivative positions. In fact, many
over-the-counter derivatives will not have liquidity beyond the counterparty to
the instrument. Use of derivatives or similar instruments may have different
tax consequences for the fund than an investment in the underlying security,
and those differences may affect the amount, timing and character of income
distributed to shareholders. The fund's use of derivatives may also increase
the amount of taxes payable by shareholders. Risks associated with the use of
derivatives are magnified to the extent that an increased portion of the fund's
assets are committed to derivatives in general or are invested in just one or a
few types of derivatives.
The U.S. government and foreign governments are in the process of adopting and
implementing regulations governing derivative markets, including mandatory
clearing of certain derivatives, margin and reporting requirements. The
ultimate impact of the regulations remains unclear. Additional regulation of
derivatives may make derivatives more costly, limit their availability or
utility,
42
otherwise adversely affect their performance or disrupt markets. The fund may
be exposed to additional risks as a result of the additional regulations. The
extent and impact of the regulations are not yet fully known and may not be for
some time.
The fund will be required to maintain its positions with a clearing
organization through one or more clearing brokers. The clearing organization
will require the fund to post margin and the broker may require the fund to
post additional margin to secure the fund's obligations. The amount of margin
required may change from time to time. In addition, cleared transactions may be
more expensive to maintain than over-the-counter transactions and may require
the fund to deposit larger amounts of margin. The fund may not be able to
recover margin amounts if the broker has financial difficulties. Also, the
broker may require the fund to terminate a derivatives position under certain
circumstances. This may cause the fund to lose money. The fund's ability to use
certain derivative instruments currently is limited by Commodity Futures
Trading Commission rules.
CREDIT DEFAULT SWAP RISK. Credit default swap contracts, a type of derivative
instrument, involve heightened risks and may result in losses to the fund.
Credit default swaps may in some cases be illiquid and difficult to value, and
they increase credit risk since the fund has exposure to both the issuer of the
referenced obligation and the counterparty to the credit default swap. If the
fund buys a credit default swap, it will be subject to the risk that the credit
default swap may expire worthless, as the credit default swap would only
generate income in the event of a default on the underlying debt security or
other specified event. As a buyer, the fund would also be subject to credit
risk relating to the seller's payment of its obligations in the event of a
default (or similar event). If the fund sells a credit default swap, it will be
exposed to the credit risk of the issuer of the obligation to which the credit
default swap relates. As a seller, the fund would also be subject to leverage
risk, because it would be liable for the full notional amount of the swap in
the event of default (or similar event). Swaps may be difficult to unwind or
terminate. Certain index-based credit default swaps are structured in tranches,
whereby junior tranches assume greater default risk than senior tranches. The
absence of a central exchange or market for swap transactions may lead, in some
instances, to difficulties in trading and valuation, especially in the event of
market disruptions. New regulations require many kinds of swaps to be executed
through a centralized exchange or regulated facility and be cleared through a
regulated clearinghouse. Although this clearing mechanism is generally expected
to reduce counterparty credit risk, it may
43
More on the risks of investing in the fund
disrupt or limit the swap market and may not result in swaps being easier to
trade or value. As swaps become more standardized, the fund may not be able to
enter into swaps that meet its investment needs. The fund also may not be able
to find a clearinghouse willing to accept the swaps for clearing. In a cleared
swap, a central clearing organization will be the counterparty to the
transaction. The fund will assume the risk that the clearinghouse may be unable
to perform its obligations. The new regulations may make using swaps more
costly, may limit their availability, or may otherwise adversely affect their
value or performance.
RISKS OF INVESTING IN INVERSE FLOATING RATE OBLIGATIONS. The interest rate on
inverse floating rate obligations will generally decrease as short-term
interest rates increase, and increase as short-term rates decrease. Due to
their leveraged structure, the sensitivity of the market value of an inverse
floating rate obligation to changes in interest rates is generally greater than
a comparable long-term bond issued by the same issuer and with similar credit
quality, redemption and maturity provisions. Inverse floating rate obligations
may be volatile and involve leverage risk.
LEVERAGING RISK. The value of your investment may be more volatile and other
risks tend to be compounded if the fund borrows or uses derivatives or other
investments that have embedded leverage. Leverage generally magnifies the
effect of any increase or decrease in the value of the fund's underlying assets
and creates a risk of loss of value on a larger pool of assets than the fund
would otherwise have, potentially resulting in the loss of all assets. Engaging
in such transactions may cause the fund to liquidate positions when it may not
be advantageous to do so to satisfy its obligations or meet segregation
requirements.
REPURCHASE AGREEMENT RISK. In the event that the other party to a repurchase
agreement defaults on its obligations, the fund may encounter delay and incur
costs before being able to sell the security. Such a delay may involve loss of
interest or a decline in price of the security. In addition, if the fund is
characterized by a court as an unsecured creditor, it would be at risk of
losing some or all of the principal and interest involved in the transaction.
MARKET SEGMENT RISK. To the extent the fund emphasizes, from time to time,
investments in a market segment, the fund will be subject to a greater degree
to the risks particular to that segment, and may experience greater market
fluctuation, than a fund without the same focus.
44
VALUATION RISK. Many factors may influence the price at which the fund could
sell any particular portfolio investment. The sales price may well differ -
higher or lower - from the fund's valuation of the investment, and such
differences could be significant, particularly for illiquid securities and
securities that trade in thin markets and/or markets that experience extreme
volatility. The fund may value investments using fair value methodologies.
Investors who purchase or redeem fund shares on days when the fund is holding
fair-valued securities may receive fewer or more shares, or lower or higher
redemption proceeds, than they would have received if the fund had not
fair-valued the securities or had used a different valuation methodology. Fixed
income securities are typically valued using fair value methodologies. The
value of foreign securities, certain fixed income securities and currencies, as
applicable, may be materially affected by events after the close of the market
on which they are valued, but before the fund determines its net asset value.
The fund's ability to value its investments may also be impacted by
technological issues and/or errors by pricing services or other third party
service providers.
REDEMPTION RISK. The fund may experience periods of heavy redemptions that
could cause the fund to liquidate its assets at inopportune times or at a loss
or depressed value, particularly during periods of declining or illiquid
markets. Redemption risk is greater to the extent that the fund has investors
with large shareholdings, short investment horizons, or unpredictable cash flow
needs. In addition, redemption risk is heightened during periods of overall
market turmoil. The redemption by one or more large shareholders of their
holdings in the fund could hurt performance and/or cause the remaining
shareholders in the fund to lose money. If one decision maker has control of
fund shares owned by separate fund shareholders, including clients or
affiliates of the fund's adviser, redemptions by these shareholders may further
increase the fund's redemption risk. If the fund is forced to liquidate its
assets under unfavorable conditions or at inopportune times, the value of your
investment could decline.
CYBERSECURITY RISK. Cybersecurity failures by and breaches of the fund's
adviser, transfer agent, distributor, custodian, fund accounting agent and
other service providers may disrupt fund operations, interfere with the fund's
ability to calculate its NAV, prevent fund shareholders from purchasing,
redeeming or exchanging shares or receiving distributions, cause loss of or
unauthorized access to private shareholder information, and result in financial
losses, regulatory fines, penalties, reputational damage, or additional
45
More on the risks of investing in the fund
compliance costs. Substantial costs may be incurred in order to prevent any
cyber incidents in the future. The fund and its shareholders could be
negatively impacted as a result.
CASH MANAGEMENT RISK. The value of the investments held by the fund for cash
management or temporary defensive purposes may be affected by market risks,
changing interest rates and by changes in credit ratings of the investments. To
the extent that the fund has any uninvested cash, the fund would be subject to
credit risk with respect to the depository institution holding the cash. If the
fund holds cash uninvested, the fund will not earn income on the cash and the
fund's yield will go down. During such periods, it may be more difficult for
the fund to achieve its investment objectives.
EXPENSE RISK. Your actual costs of investing in the fund may be higher than the
expenses shown in "Annual fund operating expenses" for a variety of reasons.
For example, expense ratios may be higher than those shown if overall net
assets decrease. Net assets are more likely to decrease and fund expense ratios
are more likely to increase when markets are volatile.
To learn more about the fund's investments and risks, you should obtain and
read the statement of additional information. Please note that there are many
other factors that could adversely affect your investment and that could
prevent the fund from achieving its goals.
DISCLOSURE OF PORTFOLIO HOLDINGS
The fund's policies and procedures with respect to disclosure of the fund's
securities are described in the statement of additional information.
46
Management
INVESTMENT ADVISER
Amundi Pioneer, the fund's investment adviser, selects the fund's investments
and oversees the fund's operations.
Amundi Pioneer is an indirect, wholly owned subsidiary of Amundi and Amundi's
wholly owned subsidiary, Amundi USA, Inc. Amundi, one of the world's largest
asset managers, is headquartered in Paris, France. As of March 31, 2018, Amundi
had more than $1.7 trillion in assets under management worldwide. As of March
31, 2018, Amundi Pioneer (and its U.S. affiliates) had over $89 billion in
assets under management.
Amundi Pioneer's main office is at 60 State Street, Boston, Massachusetts
02109.
The firm's U.S. mutual fund investment history includes creating in 1928 one of
the first mutual funds.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world, including the fund's
investment adviser. Prior to July 3, 2017, Pioneer Investments was owned by
Pioneer Global Asset Management S.p.A., a wholly owned subsidiary of UniCredit
S.p.A. Prior to July 3, 2017, the fund's investment adviser was named Pioneer
Investment Management, Inc. A new investment management contract between the
fund and the investment adviser became effective on July 3, 2017.
Amundi Pioneer has received an order from the Securities and Exchange
Commission that permits Amundi Pioneer, subject to the approval of the fund's
Board of Trustees, to hire and terminate a subadviser that is not affiliated
with Amundi Pioneer (an "unaffiliated subadviser") or to materially modify an
existing subadvisory contract with an unaffiliated subadviser for the fund
without shareholder approval. Amundi Pioneer retains the ultimate
responsibility to oversee and recommend the hiring, termination and replacement
of any unaffiliated subadviser.
PORTFOLIO MANAGEMENT
Day-to-day management of the fund's portfolio is the responsibility of Kenneth
J. Taubes. Mr. Taubes is supported by Brad Komenda and Timothy Rowe. Mr.
Taubes, Mr. Komenda and Mr. Rowe are supported by the fixed income team.
Members of this team manage other Pioneer funds investing primarily in fixed
income securities. The portfolio managers and the team also may draw upon the
research and investment management expertise of the global
47
Management
research teams, which provide fundamental and quantitative research on
companies and include members from one or more of Amundi Pioneer's affiliates.
Mr. Taubes, Executive Vice President and Chief Investment Officer, U.S. of
Amundi Pioneer, is responsible for overseeing the U.S. and global fixed income
teams. He joined Amundi Pioneer as a senior vice president in September 1998
and has been an investment professional since 1982. Mr. Taubes has served as
portfolio manager of the fund since 1998.
Mr. Komenda, Senior Vice President and Deputy Director of Investment Grade
Corporates of Amundi Pioneer, joined Amundi Pioneer in 2008 and has been a
portfolio manager of the fund since February 2018.
Mr. Rowe, Managing Director and Deputy Director of Multi-Sector Fixed Income of
Amundi Pioneer, joined Amundi Pioneer in 1988 and has been a portfolio manager
of the fund since June 2018.
The fund's statement of additional information provides additional information
about the portfolio managers' compensation, other accounts managed by the
portfolio managers, and the portfolio managers' ownership of shares of the
fund.
MANAGEMENT FEE
The fund pays Amundi Pioneer a fee for managing the fund and to cover the cost
of providing certain services to the fund.
Amundi Pioneer's annual fee is equal to 0.40% of the fund's average daily net
assets up to $500 million, 0.35% of the next $500 million of the fund's average
daily net assets, 0.30% of the next $1 billion of the fund's average daily net
assets, 0.25% of the next $8 billion of the fund's average daily net assets,
and 0.225% of the fund's average daily net assets over $10 billion. The fee is
accrued daily and paid monthly. Prior to October 1, 2018, Amundi Pioneer's
annual fee was equal to 0.40% of the fund's average daily net assets.
For the fiscal year ended June 30, 2018, the fund paid management fees
(excluding waivers and/or assumption of expenses) equivalent to 0.40% of the
fund's average daily net assets.
A discussion regarding the basis for the Board of Trustees' approval of the
management contract will be available in the fund's semiannual report to
shareholders, for the period ended December 31, 2018.
48
DISTRIBUTOR
Amundi Pioneer Distributor, Inc. is the fund's distributor. The fund
compensates the distributor for its services. The distributor is an affiliate
of Amundi Pioneer. Prior to July 3, 2017, the fund's distributor was named
Pioneer Funds Distributor, Inc.
49
Pricing of shares
NET ASSET VALUE
The fund's net asset value is the value of its securities plus any other assets
minus its accrued operating expenses and other liabilities. The fund calculates
a net asset value for each class of shares every day the New York Stock
Exchange is open as of the scheduled close of regular trading (normally 4:00
p.m. Eastern time). If the New York Stock Exchange closes at another time, the
fund will calculate a net asset value for each class of shares as of the
scheduled closing time. On days when the New York Stock Exchange is closed for
trading, including certain holidays listed in the statement of additional
information, a net asset value is not calculated. The fund's most recent net
asset value is available on the fund's website, us.amundipioneer.com.
The fund generally values debt securities and certain derivative instruments by
using the prices supplied by independent third party pricing services. A
pricing service may use market prices or quotations from one or more brokers or
other sources, or may use a pricing matrix or other fair value methods or
techniques to provide an estimated value of the security or instrument. A
pricing matrix is a means of valuing a debt security on the basis of current
market prices for other debt securities, historical trading patterns in the
market for fixed income securities and/or other factors. Non-U.S. debt
securities that are listed on an exchange will be valued at the bid price
obtained from an independent third party pricing service.
Senior loans are valued at the mean between the last available bid and asked
prices for one or more brokers or dealers as obtained from an independent third
party pricing service. If no reliable prices are available from either the
primary or an alternative pricing service, broker quotes will be solicited.
Event linked bonds are valued at the bid price obtained from an independent
third party pricing service. Other insurance-linked securities may be valued at
the bid price obtained from an independent third party pricing service, or
through a third party using a pricing matrix, insurance industry valuation
models, or other fair value methods or techniques to provide an estimated value
of the instrument.
The fund generally values its equity securities and certain derivative
instruments that are traded on an exchange using the last sale price on the
principal exchange on which they are traded. Equity securities that are not
traded on the date of valuation, or securities for which no last sale prices
are available, are valued at the mean between the last bid and asked prices or,
if both last bid and asked prices are not available, at the last quoted bid
price.
50
Last sale, bid and asked prices are provided by independent third party pricing
services. In the case of equity securities not traded on an exchange, prices
are typically determined by independent third party pricing services approved
by the Board of Trustees using a variety of techniques and methods. The fund
may use a fair value model developed by an independent pricing service to value
non-U.S. equity securities.
To the extent that the fund invests in shares of other mutual funds that are
not traded on an exchange, such shares of other mutual funds are valued at
their net asset values as provided by those funds. The prospectuses for those
funds explain the circumstances under which those funds will use fair value
pricing methods and the effects of using fair value pricing methods.
The valuations of securities traded in non-U.S. markets and certain fixed
income securities will generally be determined as of the earlier closing time
of the markets on which they primarily trade. When the fund holds securities or
other assets that are denominated in a foreign currency, the fund will normally
use the currency exchange rates as of 3:00 p.m. (Eastern time). Non-U.S.
markets are open for trading on weekends and other days when the fund does not
price its shares. Therefore, the value of the fund's shares may change on days
when you will not be able to purchase or redeem fund shares.
When independent third party pricing services are unable to supply prices for
an investment, or when prices or market quotations are considered by Amundi
Pioneer to be unreliable, the value of that security may be determined using
quotations from one or more broker-dealers. When such prices or quotations are
not available, or when they are considered by Amundi Pioneer to be unreliable,
the fund uses fair value methods to value its securities pursuant to procedures
adopted by the Board of Trustees. The fund also may use fair value methods if
it is determined that a significant event has occurred between the time at
which a price is determined and the time at which the fund's net asset value is
calculated. Because the fund may invest in securities rated below investment
grade - some of which may be thinly traded and for which prices may not be
readily available or may be unreliable - the fund may use fair value methods
more frequently than funds that primarily invest in securities that are more
widely traded. Valuing securities using fair value methods may cause the net
asset value of the fund's shares to differ from the net asset value that would
be calculated only using market prices.
51
Pricing of shares
The prices used by the fund to value its securities may differ from the amounts
that would be realized if these securities were sold, and these differences may
be significant, particularly for securities that trade in relatively thin
markets and/or markets that experience extreme volatility.
52
Choosing a class of shares
The fund offers five classes of shares through this prospectus. Each class has
different eligibility requirements, sales charges and expenses, allowing you to
choose the class that best meets your needs.
Factors you should consider include:
o The eligibility requirements that apply to purchases of a particular share
class
o The expenses paid by each class
o The initial sales charges and contingent deferred sales charges (CDSCs), if
any, applicable to each class
o Whether you qualify for any reduction or waiver of sales charges
o How long you expect to own the shares
o Any services you may receive from a financial intermediary
When choosing between Class A or Class C shares, you should be aware that,
generally speaking, the longer your investment horizon, the more likely it will
be that Class C shares will not be as advantageous as Class A shares. The
annual distribution and service fees on Class C shares may cost you more over
the longer term than the initial sales charge and distribution and service fees
you would have paid for purchases of Class A shares.
If you are eligible to purchase Class K or Class Y shares, you should be aware
that Class K and Class Y shares are not subject to an initial sales charge,
CDSC or distribution and service fees and generally have lower annual expenses
than Class A or Class C shares. However, if you invest in Class K shares or
Class Y shares through an investment professional or financial intermediary,
that investment professional or financial intermediary may charge you a
commission in an amount determined and separately disclosed to you by that
investment professional or financial intermediary.
Class R shares generally are available only through certain tax-deferred
retirement plans and related accounts, and are not subject to an initial sales
charge but are subject to distribution and service fees.
Your investment professional can help you determine which class meets your
goals. Your investment professional or financial intermediary may receive
different compensation depending upon which class you choose, and may impose
its own investment fees and practices for purchasing and selling fund shares,
which are not described in this prospectus or in the statement of additional
information. Consult your investment professional or financial intermediary
about the availability of fund shares, the investment professional or financial
intermediary's practices, and other information.
53
Choosing a class of shares
Please note that the fund does not charge any initial sales charge, CDSC or
other asset-based fee for sales or distribution of Class K shares or Class Y
shares. However, if you invest in Class K shares or Class Y shares through an
investment professional or financial intermediary, that investment professional
or financial intermediary may charge you a commission in an amount determined
and separately disclosed to you by that investment professional or financial
intermediary.
Because the fund is not party to any commission arrangement between you and
your investment professional or financial intermediary, any purchases and
redemptions of Class K shares or Class Y shares will be made by the fund at the
applicable net asset value (before imposition of the sales commission). Any
commissions charged by an investment professional or financial intermediary are
not reflected in the fees and expenses listed in the fee table or expense
example in this prospectus nor are they reflected in the performance in the bar
chart and table in this prospectus because these commissions are not charged by
the fund.
For information on the fund's expenses, please see "Fund Summary."
The availability of certain sales charge waivers and discounts may depend on
whether you purchase and sell your shares directly from the fund or through a
financial intermediary. Specific intermediaries may have different policies and
procedures regarding the availability of front-end sales charge waivers or
contingent deferred (back-end) sales charge (CDSC) waivers, which are discussed
under "Intermediary defined sales charge waiver policies." In all instances, it
is your responsibility to notify the fund or your financial intermediary at the
time of purchase of any relationship or other facts qualifying you for sales
charge waivers or discounts. For waivers and discounts not available through a
particular intermediary, you will have to purchase fund shares directly from
the fund or through another intermediary to receive these waivers or discounts.
Please see the "Intermediary defined sales charge waiver policies" section to
determine any sales charge discounts and waivers that may be available to you
through your financial intermediary.
CLASS A SHARES
o You pay a sales charge of up to 4.50% of the offering price, which is reduced
or waived for large purchases and certain types of investors. At the time of
your purchase, your investment firm may receive a commission from the
distributor of up to 4%, declining as the size of your investment increases.
54
o There is no contingent deferred sales charge, except in certain circumstances
when no initial sales charge is charged.
o Distribution and service fees of 0.25% of average daily net assets.
CLASS C SHARES
o A 1% contingent deferred sales charge is assessed if you sell your shares
within one year of purchase. Your investment firm may receive a commission
from the distributor at the time of your purchase of up to 1%.
o Distribution and service fees of 1.00% of average daily net assets.
o Maximum purchase amount (per transaction) of $499,999.
o Effective September 1, 2018, Class C shares automatically convert to Class A
shares after 10 years
CLASS K SHARES
o No initial or contingent deferred sales charge. However, if you invest in
Class K shares through an investment professional or financial intermediary,
that investment professional or financial intermediary may charge you a
commission in an amount determined and separately disclosed to you by that
investment professional or financial intermediary.
o Initial investments by discretionary accounts and direct investors are
subject to a $5 million investment minimum, which may be waived in some
circumstances.
o There is no investment minimum for other eligible investors.
CLASS R SHARES
o No initial or contingent deferred sales charge.
o Distribution fees of 0.50% of average daily net assets. Separate service plan
provides for payment to financial intermediaries of up to 0.25% of average
daily net assets.
o Generally, available only through certain tax-deferred retirement plans and
related accounts.
CLASS Y SHARES
o No initial or contingent deferred sales charge. However, if you invest in
Class Y shares through an investment professional or financial intermediary,
that investment professional or financial intermediary may charge you a
commission in an amount determined and separately disclosed to you by that
investment professional or financial intermediary.
55
Choosing a class of shares
o Initial investments are subject to a $5 million investment minimum, which may
be waived in some circumstances.
SHARE CLASS ELIGIBILITY
CLASS K SHARES
Class K shares are available to certain discretionary accounts at Amundi
Pioneer or its affiliates, certain direct investors, other Pioneer funds, and
certain tax-deferred retirement plans (including 401(k) plans,
employer-sponsored 403(b) plans, 457 plans, health savings accounts, profit
sharing and money purchase pension plans, defined benefit plans and
non-qualified deferred compensation plans) held in plan level or omnibus
accounts.
Direct investors may be individuals, institutions, trusts, foundations and
other institutional investors.
Class K shares are also available to certain mutual fund programs. See "Minimum
investment amounts - Waivers of the minimum investment amount for Class K."
CLASS R SHARES
Class R shares are available to certain tax-deferred retirement plans
(including 401(k) plans, employer-sponsored 403(b) plans, 457 plans, profit
sharing and money purchase pension plans, defined benefit plans and
non-qualified deferred compensation plans) held in plan level or omnibus
accounts. Class R shares also are available to IRAs that are rollovers from
eligible retirement plans that offered one or more Class R share Pioneer funds
as investment options and to individual 401(k) plans. Class R shares are not
available to non-retirement accounts, traditional or Roth IRAs, Coverdell
Education Savings Accounts, SEPs, SAR-SEPs, SIMPLE IRAs, individual 403(b)s and
most individual retirement accounts or retirement plans that are not subject to
the Employee Retirement Income Security Act of 1974 (ERISA).
AUTOMATIC CONVERSION OF CLASS C SHARES
Effective September 1, 2018, Class C shares automatically convert to Class A
shares after 10 years. Conversions occur during the month of or following the
10-year anniversary of the share purchase date. Class C shares held for longer
than 10 years as of September 1, 2018 converted to Class A shares in September
2018. The automatic conversion is based on the relative net asset values of the
two share classes without the imposition of a sales charge or fee. Generally,
in order for your Class C shares to be
56
eligible for automatic conversion to Class A shares, the fund or the financial
intermediary through which you purchased your shares must have records which
confirm that your Class C shares have been held for 10 years. Class C shares
held through group retirement plan recordkeeping platforms of certain financial
intermediaries who hold such shares in an omnibus account and do not track
participant level share lot aging to facilitate such a conversion will not be
eligible for automatic conversion to Class A shares. Specific intermediaries
may have different policies and procedures regarding the conversion of Class C
shares to Class A shares.
57
Distribution and service arrangements
DISTRIBUTION PLAN
The fund has adopted a distribution plan for Class A, Class C and Class R
shares in accordance with Rule 12b-1 under the Investment Company Act of 1940.
Under the plan, the fund pays distribution and service fees to the distributor.
Because these fees are an ongoing expense of the fund, over time they increase
the cost of your investment and your shares may cost more than shares that are
subject to other types of sales charges.
CLASS R SHARES SERVICE PLAN
The fund has adopted a separate service plan for Class R shares. Under the
service plan, the fund may pay securities dealers, plan administrators or other
financial intermediaries who agree to provide certain services to plans or plan
participants holding shares of the fund a service fee of up to 0.25% of average
daily net assets attributable to Class R shares held by such plan participants.
The services provided under the service plan include acting as a shareholder of
record, processing purchase and redemption orders, maintaining participant
account records and answering participant questions regarding the fund.
ADDITIONAL PAYMENTS TO FINANCIAL INTERMEDIARIES
Your financial intermediary may receive compensation from the fund, Amundi
Pioneer or its affiliates for the sale of fund shares and related services.
Compensation may include sales commissions and distribution and service (Rule
12b-1) fees, as well as compensation for administrative services and
transaction processing.
Amundi Pioneer or its affiliates may make additional payments to your financial
intermediary. These payments may provide your financial intermediary with an
incentive to favor the Pioneer funds over other mutual funds or assist the
distributor in its efforts to promote the sale of the fund's shares. Financial
intermediaries include broker-dealers, banks (including bank trust
departments), registered investment advisers, financial planners, retirement
plan administrators and other types of intermediaries.
Amundi Pioneer or its affiliates make these additional payments (sometimes
referred to as "revenue sharing") to financial intermediaries out of its own
assets, which may include profits derived from services provided to the fund,
or from the retention of a portion of sales charges or distribution and
58
service fees. Amundi Pioneer may base these payments on a variety of criteria,
including the amount of sales or assets of the Pioneer funds attributable to
the financial intermediary or as a per transaction fee.
Not all financial intermediaries receive additional compensation and the amount
of compensation paid varies for each financial intermediary. In certain cases,
these payments may be significant. Amundi Pioneer determines which firms to
support and the extent of the payments it is willing to make, generally
choosing firms that have a strong capability to effectively distribute shares
of the Pioneer funds and that are willing to cooperate with Amundi Pioneer's
promotional efforts. Amundi Pioneer also may compensate financial
intermediaries (in addition to amounts that may be paid by the fund) for
providing certain administrative services and transaction processing services.
Amundi Pioneer may benefit from revenue sharing if the intermediary features
the Pioneer funds in its sales system (such as by placing certain Pioneer funds
on its preferred fund list or giving access on a preferential basis to members
of the financial intermediary's sales force or management). In addition, the
financial intermediary may agree to participate in the distributor's marketing
efforts (such as by helping to facilitate or provide financial assistance for
conferences, seminars or other programs at which Amundi Pioneer personnel may
make presentations on the Pioneer funds to the intermediary's sales force). To
the extent intermediaries sell more shares of the Pioneer funds or retain
shares of the Pioneer funds in their clients' accounts, Amundi Pioneer receives
greater management and other fees due to the increase in the Pioneer funds'
assets. The intermediary may earn a profit on these payments if the amount of
the payment to the intermediary exceeds the intermediary's costs.
The compensation that Amundi Pioneer pays to financial intermediaries is
discussed in more detail in the fund's statement of additional information.
Your intermediary may charge you additional fees or commissions other than
those disclosed in this prospectus. Intermediaries may categorize and disclose
these arrangements differently than in the discussion above and in the
statement of additional information. You can ask your financial intermediary
about any payments it receives from Amundi Pioneer or the Pioneer funds, as
well as about fees and/or commissions it charges.
Amundi Pioneer and its affiliates may have other relationships with your
financial intermediary relating to the provision of services to the Pioneer
funds, such as providing omnibus account services or effecting portfolio
transactions for the Pioneer funds. If your intermediary provides these
59
Distribution and service arrangements
services, Amundi Pioneer or the Pioneer funds may compensate the intermediary
for these services. In addition, your intermediary may have other relationships
with Amundi Pioneer or its affiliates that are not related to the Pioneer
funds.
60
Sales charges
INITIAL SALES CHARGES (CLASS A SHARES ONLY)
You pay the offering price (the net asset value per share plus any initial
sales charge) when you buy Class A shares unless you qualify to purchase shares
at net asset value. You pay a lower sales charge as the size of your investment
increases. You do not pay a sales charge when you reinvest dividends or capital
gain distributions paid by the fund.
SALES CHARGES FOR CLASS A SHARES
SALES CHARGE AS % OF
----------------------
OFFERING NET AMOUNT
AMOUNT OF PURCHASE PRICE INVESTED
--------------------------------- ---------- -----------
Less than $100,000 4.50 4.71
--------------------------------- ---- ----
$100,000 but less than $250,000 3.50 3.63
--------------------------------- ---- ----
$250,000 but less than $500,000 2.50 2.56
--------------------------------- ---- ----
$500,000 or more -0- -0-
--------------------------------- ---- ----
The dollar amount of the sales charge is the difference between the offering
price of the shares purchased (based on the applicable sales charge in the
table) and the net asset value of those shares. Since the offering price is
calculated to two decimal places using standard rounding methodology, the
dollar amount of the sales charge as a percentage of the offering price and of
the net amount invested for any particular purchase of fund shares may be
higher or lower due to rounding.
REDUCED SALES CHARGES - CLASS A SHARES
You may qualify for a reduced Class A sales charge if you own or are purchasing
shares of Pioneer mutual funds. The investment levels required to obtain a
reduced sales charge are commonly referred to as "breakpoints." Amundi Pioneer
offers two principal means of taking advantage of breakpoints in sales charges
for aggregate purchases of Class A shares of the Pioneer funds over time if:
o The amount of shares you own of the Pioneer funds plus the amount you are
investing now is at least $100,000 (Rights of accumulation)
o You plan to invest at least $100,000 over the next 13 months (Letter of
intent)
RIGHTS OF ACCUMULATION - CLASS A SHARES ONLY
If you qualify for rights of accumulation, your sales charge will be based on
the combined value (at the current offering price) of all your Pioneer mutual
fund shares, the shares of your spouse and the shares of any children under the
age of 21.
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Sales charges
LETTER OF INTENT - CLASS A SHARES ONLY
You can use a letter of intent to qualify for reduced sales charges in
two situations:
o If you plan to invest at least $100,000 (excluding any reinvestment of
dividends and capital gain distributions) in the fund's Class A shares
during the next 13 months
o If you include in your letter of intent the value (at the current offering
price) of all of your Class A shares of the fund and Class A or Class C
shares of all other Pioneer mutual fund shares held of record in the amount
used to determine the applicable sales charge for the fund shares you plan
to buy
Completing a letter of intent does not obligate you to purchase additional
shares, but if you do not buy enough shares to qualify for the projected level
of sales charges by the end of the 13-month period (or when you sell your
shares, if earlier), the distributor will recalculate your sales charge. Any
share class for which no sales charge is paid cannot be included under the
letter of intent. For more information regarding letters of intent, please
contact your investment professional or obtain and read the statement of
additional information.
QUALIFYING FOR A REDUCED CLASS A SALES CHARGE
In calculating your total account value in order to determine whether you have
met sales charge breakpoints, you can include your Pioneer mutual fund shares,
those of your spouse and the shares of any children under the age of 21. Amundi
Pioneer will use each fund's current offering price to calculate your total
account value. Certain trustees and fiduciaries may also qualify for a reduced
sales charge.
To receive a reduced sales charge, you or your investment professional must, at
the time of purchase, notify the distributor of your eligibility. In order to
verify your eligibility for a discount, you may need to provide your investment
professional or the fund with information or records, such as account numbers
or statements, regarding shares of the fund or other Pioneer mutual funds held
in all accounts by you, your spouse or children under the age of 21 with that
investment professional or with any other financial intermediary. Eligible
accounts may include joint accounts, retirement plan accounts, such as IRA and
401(k) accounts, and custodial accounts, such as ESA, UGMA and UTMA accounts.
62
It is your responsibility to confirm that your investment professional has
notified the distributor of your eligibility for a reduced sales charge at the
time of sale. If you or your investment professional do not notify the
distributor of your eligibility, you will risk losing the benefits of a reduced
sales charge.
For this purpose, Pioneer mutual funds include any fund for which the
distributor is principal underwriter and, at the distributor's discretion, may
include funds organized outside the U.S. and managed by Amundi Pioneer or an
affiliate.
You can locate information regarding the reduction or waiver of sales charges
free of charge on Amundi Pioneer's website at us.amundipioneer.com. The website
includes hyperlinks that facilitate access to this information.
CLASS A PURCHASES AT NET ASSET VALUE
You may purchase Class A shares at net asset value (without a sales charge) as
follows. If you believe you qualify for any of the Class A sales charge waivers
discussed below, contact your investment professional or the distributor. You
are required to provide written confirmation of your eligibility. You may not
resell these shares except to or on behalf of the fund.
INVESTMENTS OF $500,000 OR MORE AND CERTAIN RETIREMENT PLANS
You do not pay a sales charge when you purchase Class A shares if you are
investing $500,000 or more, are a participant in an employer-sponsored
retirement plan with at least $500,000 in total plan assets or are a
participant in certain employer-sponsored retirement plans with accounts
established with Amundi Pioneer on or before March 31, 2004 with 100 or more
eligible employees or at least $500,000 in total plan assets. However, you may
pay a contingent deferred sales charge if you sell your Class A shares within
12 months of purchase. The sales charge is equal to 1% of your investment or
your sale proceeds, whichever is less.
CLASS A PURCHASES AT NET ASSET VALUE ARE AVAILABLE TO:
o Current or former trustees and officers of the fund;
o Partners and employees of legal counsel to the fund (at the time of initial
share purchase);
o Directors, officers, employees or sales representatives of Amundi Pioneer and
its affiliates (at the time of initial share purchase);
o Directors, officers, employees or sales representatives of any subadviser or
a predecessor adviser (or their affiliates) to any investment company for
which Amundi Pioneer serves as investment adviser (at the time of initial
share purchase);
63
Sales charges
o Officers, partners, employees or registered representatives of broker-dealers
(at the time of initial share purchase) which have entered into sales
agreements with the distributor;
o Employees of Regions Financial Corporation and its affiliates (at the time of
initial share purchase);
o Members of the immediate families of any of the persons above;
o Any trust, custodian, pension, profit sharing or other benefit plan of the
foregoing persons;
o Insurance company separate accounts;
o Certain wrap accounts for the benefit of clients of investment professionals
or other financial intermediaries adhering to standards established by the
distributor;
o Other funds and accounts for which Amundi Pioneer or any of its affiliates
serves as investment adviser or manager;
o Investors in connection with certain reorganization, liquidation or
acquisition transactions involving other investment companies or personal
holding companies;
o Certain unit investment trusts;
o Group employer-sponsored retirement plans with at least $500,000 in total
plan assets. Waivers for group employer-sponsored retirement plans do not
apply to traditional IRAs, Roth IRAs, SEPs, SARSEPs, SIMPLE IRAs, KEOGHs,
individual 401(k) or individual 403(b) plans, or to brokerage relationships
in which sales charges are customarily imposed;
o Group employer-sponsored retirement plans with accounts established with
Amundi Pioneer on or before March 31, 2004 with 100 or more eligible
employees or at least $500,000 in total plan assets;
o Participants in an employer-sponsored 403(b) plan or employer-sponsored 457
plan if (i) your employer has made special arrangements for your plan to
operate as a group through a single broker, dealer or financial intermediary
and (ii) all participants in the plan who purchase shares of a Pioneer
mutual fund do so through a single broker, dealer or other financial
intermediary designated by your employer;
o Investors purchasing shares pursuant to the reinstatement privilege
applicable to Class A shares; and
o Shareholders of record (i.e., shareholders whose shares are not held in the
name of a broker or an omnibus account) on the date of the reorganization of
a predecessor Safeco fund into a corresponding Pioneer fund, shareholders
who owned shares in the name of an omnibus account provider on that
64
date that agrees with the fund to distinguish beneficial holders in the same
manner, and retirement plans with assets invested in the predecessor Safeco
fund on that date.
In addition, Class A shares may be purchased at net asset value through certain
mutual fund programs sponsored by qualified intermediaries, such as
broker-dealers and investment advisers. In each case, the intermediary has
entered into an agreement with Amundi Pioneer to include the Pioneer funds in
their program without the imposition of a sales charge. The intermediary
provides investors participating in the program with additional services,
including advisory, asset allocation, recordkeeping or other services. You
should ask your investment firm if it offers and you are eligible to
participate in such a mutual fund program and whether participation in the
program is consistent with your investment goals. The intermediaries sponsoring
or participating in these mutual fund programs also may offer their clients
other classes of shares of the funds and investors may receive different levels
of services or pay different fees depending upon the class of shares included
in the program. Investors should consider carefully any separate transaction
and other fees charged by these programs in connection with investing in each
available share class before selecting a share class. Such mutual fund programs
include certain self-directed brokerage services accounts held through
qualified intermediaries that may or may not charge participating investors
transaction fees.
CONTINGENT DEFERRED SALES CHARGES (CDSCS)
CLASS A SHARES
Purchases of Class A shares of $500,000 or more may be subject to a contingent
deferred sales charge upon redemption. A contingent deferred sales charge is
payable to the distributor in the event of a share redemption within 12 months
following the share purchase at the rate of 1% of the lesser of the value of
the shares redeemed (exclusive of reinvested dividend and capital gain
distributions) or the total cost of such shares. However, the contingent
deferred sales charge is waived for redemptions of Class A shares purchased by
an employer-sponsored retirement plan that has at least $500,000 in total plan
assets (or that has 1,000 or more eligible employees for plans with accounts
established with Amundi Pioneer on or before March 31, 2004).
65
Sales charges
CLASS C SHARES
You buy Class C shares at net asset value per share without paying an initial
sales charge. However, if you sell your Class C shares within one year of
purchase, upon redemption you will pay the distributor a contingent deferred
sales charge of 1% of the current market value or the original cost of the
shares you are selling, whichever is less.
PAYING THE CONTINGENT DEFERRED SALES CHARGE (CDSC)
Several rules apply for calculating CDSCs so that you pay the lowest possible
CDSC.
o The CDSC is calculated on the current market value or the original cost of
the shares you are selling, whichever is less
o You do not pay a CDSC on reinvested dividends or distributions
o If you sell only some of your shares, the transfer agent will first sell your
shares that are not subject to any CDSC and then the shares that you have
owned the longest
o You may qualify for a waiver of the CDSC normally charged. See "Waiver or
reduction of contingent deferred sales charges"
WAIVER OR REDUCTION OF CONTINGENT DEFERRED SALES CHARGES
It is your responsibility to confirm that your investment professional has
notified the distributor of your eligibility for a reduced sales charge at the
time of sale. If you or your investment professional do not notify the
distributor of your eligibility, you will risk losing the benefits of a reduced
sales charge.
The distributor may waive or reduce the CDSC for Class A shares that are
subject to a CDSC or for Class C shares if:
o The distribution results from the death of all registered account owners or a
participant in an employer-sponsored plan. For UGMAs, UTMAs and trust
accounts, the waiver applies only upon the death of all beneficial owners;
o You become disabled (within the meaning of Section 72 of the Internal Revenue
Code of 1986, as amended (the "Internal Revenue Code")) after the purchase
of the shares being sold. For UGMAs, UTMAs and trust accounts, the waiver
only applies upon the disability of all beneficial owners;
o The distribution is made in connection with limited automatic redemptions as
described in "Systematic withdrawal plans" (limited in any year to 10% of
the value of the account in the fund at the time the withdrawal plan is
established);
o The distribution is from any type of IRA, 403(b) or employer-sponsored plan
described under Section 401(a) or 457 of the Internal Revenue Code and, in
connection with the distribution, one of the following applies:
66
- It is part of a series of substantially equal periodic payments made over
the life expectancy of the participant or the joint life expectancy of the
participant and his or her beneficiary (limited in any year to 10% of the
value of the participant's account at the time the distribution amount is
established);
- It is a required minimum distribution due to the attainment of age 70 1/2,
in which case the distribution amount may exceed 10% (based solely on
total plan assets held in Pioneer mutual funds);
- It is rolled over to or reinvested in another Pioneer mutual fund in the
same class of shares, which will be subject to the CDSC of the shares
originally held; or
- It is in the form of a loan to a participant in a plan that permits loans
(each repayment applied to the purchase of shares will be subject to a
CDSC as though a new purchase);
o The distribution is to a participant in an employer-sponsored retirement plan
described under Section 401(a) of the Internal Revenue Code or to a
participant in an employer-sponsored 403(b) plan or employer-sponsored 457
plan if (i) your employer has made special arrangements for your plan to
operate as a group through a single broker, dealer or financial intermediary
and (ii) all participants in the plan who purchase shares of a Pioneer
mutual fund do so through a single broker, dealer or other financial
intermediary designated by your employer and is or is in connection with:
- A return of excess employee deferrals or contributions;
- A qualifying hardship distribution as described in the Internal Revenue
Code;
- Due to retirement or termination of employment;
- From a qualified defined contribution plan and represents a participant's
directed transfer, provided that this privilege has been preauthorized
through a prior agreement with the distributor regarding participant
directed transfers;
o The distribution is made pursuant to the fund's right to liquidate or
involuntarily redeem shares in a shareholder's account;
o The distribution is made to pay an account's advisory or custodial fees; or
o The distributor does not pay the selling broker a commission normally paid at
the time of the sale.
Please see the fund's statement of additional information for more information
regarding reduced sales charges and breakpoints.
67
Sales charges
The availability of certain sales charge waivers and discounts may depend on
whether you purchase your shares directly from the fund or through a financial
intermediary. Please see the "Intermediary defined sales charge waiver
policies" section for more information.
CLASS K SHARES
Class K shares are purchased at net asset value with no initial sales charge
and no CDSC when redeemed. However, if you invest in Class K shares through an
investment professional or financial intermediary, that investment professional
or financial intermediary may charge you a commission in an amount determined
and separately disclosed to you by that investment professional or financial
intermediary.
CLASS Y SHARES
Class Y shares are purchased at net asset value with no initial sales charge
and no CDSC when redeemed. However, if you invest in Class Y shares through an
investment professional or financial intermediary, that investment professional
or financial intermediary may charge you a commission in an amount determined
and separately disclosed to you by that investment professional or financial
intermediary.
68
Buying, exchanging and selling shares
OPENING YOUR ACCOUNT
You may open an account by completing an account application and sending it to
the fund by mail or by fax. Please call the fund to obtain an account
application. Certain types of accounts, such as retirement accounts, have
separate applications.
Use your account application to select options and privileges for your account.
You can change your selections at any time by sending a completed account
options form to the fund. You may be required to obtain a signature guarantee
to make certain changes to an existing account.
Call or write to the fund for account applications, account options forms and
other account information:
PIONEER FUNDS
P.O. Box 219427
Kansas City, MO 64121-9427
Telephone 1-800-225-6292
Please note that there may be a delay in receipt by the fund's transfer agent
of applications submitted by regular mail to a post office address.
Each fund is generally available for purchase in the United States, Puerto
Rico, Guam, American Samoa and the U.S. Virgin Islands. Except to the extent
otherwise permitted by the funds' distributor, the funds will only accept
accounts from U.S. citizens with a U.S. address (including an APO or FPO
address) or resident aliens with a U.S. address (including an APO or FPO
address) and a U.S. taxpayer identification number.
IDENTITY VERIFICATION
To help the government fight the funding of terrorism and money laundering
activities, federal law requires all financial institutions to obtain, verify
and record information that identifies each person who opens an account. When
you open an account, you will need to supply your name, address, date of birth,
and other information that will allow the fund to identify you.
The fund may close your account if we cannot adequately verify your identity.
The redemption price will be the net asset value on the date of redemption.
INVESTING THROUGH FINANCIAL INTERMEDIARIES AND RETIREMENT PLANS
If you invest in the fund through your financial intermediary or through a
retirement plan, the options and services available to you may be different
from those discussed in this prospectus. Shareholders investing through
69
Buying, exchanging and selling shares
financial intermediaries, programs sponsored by financial intermediaries and
retirement plans may only purchase funds and classes of shares that are
available. When you invest through an account that is not in your name, you
generally may buy and sell shares and complete other transactions only through
the account. Ask your investment professional or financial intermediary for
more information.
Additional conditions may apply to your investment in the fund, and the
investment professional or intermediary may charge you a transaction-based,
administrative or other fee for its services. These conditions and fees are in
addition to those imposed by the fund and its affiliates. You should ask your
investment professional or financial intermediary about its services and any
applicable fees.
SHARE PRICES FOR TRANSACTIONS
If you place an order to purchase, exchange or sell shares that is received in
good order by the fund's transfer agent or an authorized agent by the close of
regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern
time), the share price for your transaction will be based on the net asset
value determined as of the scheduled close of regular trading on the New York
Stock Exchange on that day (plus or minus any applicable sales charges). If
your order is received by the fund's transfer agent or an authorized agent
after the scheduled close of regular trading on the New York Stock Exchange, or
your order is not in good order, the share price will be based on the net asset
value next determined after your order is received in good order by the fund or
authorized agent. The authorized agent is responsible for transmitting your
order to the fund in a timely manner.
GOOD ORDER MEANS THAT:
o You have provided adequate instructions
o There are no outstanding claims against your account
o There are no transaction limitations on your account
o Your request includes a signature guarantee if you:
- Are selling over $100,000 or exchanging over $500,000 worth of shares
- Changed your account registration or address within the last 30 days
- Instruct the transfer agent to mail the check to an address different from
the one on your account
- Want the check paid to someone other than the account's record owner(s)
- Are transferring the sale proceeds to a Pioneer mutual fund account with a
different registration
70
TRANSACTION LIMITATIONS
Your transactions are subject to certain limitations, including the limitation
on the purchase of the fund's shares within 30 calendar days of a redemption.
See "Excessive trading."
BUYING
You may buy fund shares from any financial intermediary that has a sales
agreement or other arrangement with the distributor.
You can buy shares at net asset value per share plus any applicable sales
charge. The distributor may reject any order until it has confirmed the order
in writing and received payment. Normally, your financial intermediary will
send your purchase request to the fund's transfer agent. CONSULT YOUR
INVESTMENT PROFESSIONAL FOR MORE INFORMATION. Your investment firm receives a
commission from the distributor, and may receive additional compensation from
Amundi Pioneer, for your purchase of fund shares.
MINIMUM INVESTMENT AMOUNTS
CLASS A, AND CLASS C SHARES
Your initial investment must be at least $1,000. Additional investments must be
at least $100 for Class A shares and $500 for Class C shares.
You may qualify for lower initial or subsequent investment minimums if you are
opening a retirement plan account, establishing an automatic investment plan or
placing your trade through your investment firm. The fund may waive the initial
or subsequent investment minimums. Minimum investment amounts may be waived
for, among other things, share purchases made through certain mutual fund
programs (e.g., asset based fee program accounts) sponsored by qualified
intermediaries, such as broker-dealers and investment advisers, that have
entered into an agreement with Amundi Pioneer.
CLASS K SHARES
Initial investments by discretionary accounts and direct investors in Class K
shares must be at least $5 million. There is no investment minimum for other
eligible investors. This amount may be invested in one or more of the Pioneer
mutual funds that currently offer Class K shares. There is no minimum
additional investment amount. The fund may waive the initial investment amount,
if applicable.
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Buying, exchanging and selling shares
WAIVERS OF THE MINIMUM INVESTMENT AMOUNT FOR CLASS K
The fund will accept an initial investment of less than $5 million if:
(a) The investment is made by a retirement plan that is an eligible
investor in Class K shares; or
(b) The investment is made by another Pioneer fund; or
(c) The investment is made through certain mutual fund programs
sponsored by qualified intermediaries, such as broker-dealers and
investment advisers. In each case, the intermediary has an
arrangement with Amundi Pioneer to include Class K shares of the
Pioneer mutual funds in their program. In one model, the
intermediary provides investors participating in the program with
additional services, including advisory, asset allocation,
recordkeeping or other services, as a combined service offering. In
another model, a brokerage firm may provide transactional services
in accordance with a commission schedule set by the firm. You should
ask your investment firm if it offers and you are eligible to
participate in such a mutual fund program and whether participation
in the program is consistent with your investment goals. The
intermediaries sponsoring or participating in these mutual fund
programs also may offer their clients other classes of shares of the
funds, and investors may receive different levels of services or pay
different fees depending upon the class of shares included in the
program. Investors should consider carefully any separate
transaction and other fees charged by these programs in connection
with investing in each available share class before selecting a
share class.
The fund reserves the right to waive the initial investment minimum in other
circumstances.
CLASS R SHARES
There is no minimum investment amount for Class R shares, although investments
are subject to the fund's policies regarding small accounts.
CLASS Y SHARES
Your initial investment in Class Y shares must be at least $5 million. This
amount may be invested in one or more of the Pioneer mutual funds that
currently offer Class Y shares. There is no minimum additional investment
amount. The fund may waive the initial investment amount.
WAIVERS OF THE MINIMUM INVESTMENT AMOUNT FOR CLASS Y
The fund will accept an initial investment of less than $5 million if:
72
(a) The investment is made by a trust company or bank trust department
which is initially investing at least $1 million in any of the
Pioneer mutual funds and, at the time of the purchase, such assets
are held in a fiduciary, advisory, custodial or similar capacity
over which the trust company or bank trust department has full or
shared investment discretion; or
(b) The investment is at least $1 million in any of the Pioneer mutual
funds and the purchaser is an insurance company separate account; or
(c) The account is not represented by a broker-dealer and the investment
is made by (1) an ERISA-qualified retirement plan that meets the
requirements of Section 401 of the Internal Revenue Code, (2) an
employer-sponsored retirement plan that meets the requirements of
Sections 403 or 457 of the Internal Revenue Code, (3) a private
foundation that meets the requirements of Section 501(c)(3) of the
Internal Revenue Code or (4) an endowment or other organization that
meets the requirements of Section 509(a)(1) of the Internal Revenue
Code; or
(d) The investment is made by an employer-sponsored retirement plan
established for the benefit of (1) employees of Amundi Pioneer or
its affiliates, or (2) employees or the affiliates of broker-dealers
who have a Class Y shares sales agreement with the distributor; or
(e) The investment is made through certain mutual fund programs
sponsored by qualified intermediaries, such as broker-dealers and
investment advisers. In each case, the intermediary has a specific
arrangement with Amundi Pioneer to include Class Y shares of the
Pioneer mutual funds in its program. In one model, the intermediary
provides investors participating in the program with additional
services, including advisory, asset allocation, recordkeeping or
other services, as a combined service offering. In another model, a
brokerage firm may provide transactional services in accordance with
a commission schedule set by the firm.
You should ask your investment firm if it offers and you are eligible to
participate in such a mutual fund program and whether participation in the
program is consistent with your investment goals. The intermediaries
sponsoring or participating in these mutual fund programs also may offer
their clients other classes of shares of the funds, and investors may
receive different levels of services or pay different fees depending upon
the class of shares included in the program. Investors should
73
Buying, exchanging and selling shares
consider carefully any separate transaction and other fees charged by
these programs in connection with investing in each available share class
before selecting a share class.
(f) The investment is made by another Pioneer fund.
The fund reserves the right to waive the initial investment minimum in other
circumstances.
MAXIMUM PURCHASE AMOUNTS
Purchases of fund shares are limited to $499,999 for Class C shares. This limit
is applied on a per transaction basis. Class A, Class K, Class R and Class Y
shares are not subject to a maximum purchase amount.
RETIREMENT PLAN ACCOUNTS
You can purchase fund shares through tax-deferred retirement plans for
individuals, businesses and tax-exempt organizations.
Your initial investment for most types of retirement plan accounts must be at
least $250. Additional investments for most types of retirement plans must be
at least $100.
You may not use the account application accompanying this prospectus to
establish an Amundi Pioneer retirement plan. You can obtain retirement plan
applications from your investment firm or by calling the Retirement Plans
Department at 1-800-622-0176.
HOW TO BUY SHARES
THROUGH YOUR INVESTMENT FIRM
Normally, your investment firm will send your purchase request to the fund's
distributor and/or transfer agent. CONSULT YOUR INVESTMENT PROFESSIONAL FOR
MORE INFORMATION. Your investment firm receives a commission from the
distributor, and may receive additional compensation from Amundi Pioneer, for
your purchase of fund shares.
BY PHONE OR ONLINE
YOU CAN USE THE TELEPHONE OR ONLINE PURCHASE PRIVILEGE IF you have an existing
non-retirement account. Certain IRAs can use the telephone purchase privilege.
If your account is eligible, you can purchase additional fund shares by phone
or online if:
o You established your bank account of record at least 30 days ago
74
o Your bank information has not changed for at least 30 days
o You are not purchasing more than $100,000 worth of shares per account per day
o You can provide the proper account identification information
When you request a telephone or online purchase, the fund's transfer agent will
electronically debit the amount of the purchase from your bank account of
record. The fund's transfer agent will purchase fund shares for the amount of
the debit at the offering price determined after the fund's transfer agent
receives your telephone or online purchase instruction and good funds. It
usually takes three business days for the fund's transfer agent to receive
notification from your bank that good funds are available in the amount of your
investment.
IN WRITING, BY MAIL
You can purchase fund shares for an existing fund account by MAILING A CHECK TO
THE FUND. Make your check payable to the fund. Neither initial nor subsequent
investments should be made by third party check, travelers check, or credit
card check. Your check must be in U.S. dollars and drawn on a U.S. bank.
Include in your purchase request the fund's name, the account number and the
name or names in the account registration. Please note that there may be a
delay in receipt by the fund's transfer agent of purchase orders submitted by
regular mail to a post office address.
BY WIRE (CLASS K OR CLASS Y SHARES ONLY)
If you have an existing (Class K or Class Y shares only) account, you may wire
funds to purchase shares. Note, however, that:
o State Street Bank must receive your wire no later than 11:00 a.m. Eastern
time on the business day after the fund receives your request to purchase
shares
o If State Street Bank does not receive your wire by 11:00 a.m. Eastern time on
the next business day, your transaction will be canceled at your expense and
risk
o Wire transfers normally take two or more hours to complete and a fee may be
charged by the sending bank
o Wire transfers may be restricted on holidays and at certain other times
75
Buying, exchanging and selling shares
INSTRUCT YOUR BANK TO WIRE FUNDS TO:
Receiving Bank: State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02101
ABA Routing No. 011000028
For further credit to: Shareholder Name
Existing Pioneer Account No.
Bond Fund
The fund's transfer agent must receive your account application before you send
your initial check or federal funds wire. In addition, you must provide a bank
wire address of record when you establish your account.
EXCHANGING
You may, under certain circumstances, exchange your shares for shares of the
same class of another Pioneer mutual fund.
Your exchange request must be for at least $1,000. The fund allows you to
exchange your shares at net asset value without charging you either an initial
or contingent deferred sales charge at the time of the exchange. Shares you
acquire as part of an exchange will continue to be subject to any contingent
deferred sales charge that applies to the shares you originally purchased. When
you ultimately sell your shares, the date of your original purchase will
determine your contingent deferred sales charge.
Before you request an exchange, consider each fund's investment objective and
policies as described in the fund's prospectus. You generally will have to pay
income taxes on an exchange.
SAME-FUND EXCHANGE PRIVILEGE
Certain shareholders may be eligible to exchange their shares for shares of
another class. If eligible, no sales charges or other charges will apply to any
such exchange. Generally, shareholders will not recognize a gain or loss for
federal income tax purposes upon such an exchange. Investors should contact
their financial intermediary to learn more about the details of this privilege.
76
HOW TO EXCHANGE SHARES
THROUGH YOUR INVESTMENT FIRM
Normally, your investment firm will send your exchange request to the fund's
transfer agent. CONSULT YOUR INVESTMENT PROFESSIONAL FOR MORE INFORMATION ABOUT
EXCHANGING YOUR SHARES.
BY PHONE OR ONLINE
After you establish an eligible fund account, YOU CAN EXCHANGE FUND SHARES BY
PHONE OR ONLINE IF:
o You are exchanging into an existing account or using the exchange to
establish a new account, provided the new account has a registration
identical to the original account
o The fund into which you are exchanging offers the same class of shares
o You are not exchanging more than $500,000 worth of shares per account per day
o You can provide the proper account identification information
IN WRITING, BY MAIL OR BY FAX
You can exchange fund shares by MAILING OR FAXING A LETTER OF INSTRUCTION TO
THE FUND. You can exchange fund shares directly through the fund only if your
account is registered in your name. However, you may not fax an exchange
request for more than $500,000. Include in your letter:
o The name and signature of all registered owners
o A signature guarantee for each registered owner if the amount of the exchange
is more than $500,000
o The name of the fund out of which you are exchanging and the name of the fund
into which you are exchanging
o The class of shares you are exchanging
o The dollar amount or number of shares you are exchanging
Please note that there may be a delay in receipt by the fund's transfer agent
of exchange requests submitted by regular mail to a post office address.
SELLING
Your shares will be sold at the share price (net asset value less any
applicable sales charge) next calculated after the fund or its authorized
agent, such as a broker-dealer, receives your request in good order. If a
signature guarantee is required, you must submit your request in writing.
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Buying, exchanging and selling shares
If the shares you are selling are subject to a deferred sales charge, it will
be deducted from the sale proceeds. The fund generally will send your sale
proceeds by check, bank wire or electronic funds transfer. Your redemption
proceeds normally will be sent within 1 business day after your request is
received in good order, but in any event within 7 days, regardless of the
method the fund uses to make such payment. If you recently sent a check to
purchase the shares being sold, the fund may delay payment of the sale proceeds
until your check has cleared. This may take up to 10 calendar days from the
purchase date.
Your redemption proceeds may be delayed, or your right to receive redemption
proceeds suspended, if the New York Stock Exchange is closed (other than on
weekends or holidays) or trading is restricted, if the Securities and Exchange
Commission determines an emergency or other circumstances exist that make it
impracticable for the fund to sell or value its portfolio securities, or
otherwise as permitted by the rules of or by the order of the Securities and
Exchange Commission.
If you are selling shares from a non-retirement account or certain IRAs, you
may use any of the methods described below. If you are selling shares from a
retirement account other than an IRA, you must make your request in writing.
You generally will have to pay income taxes on a sale.
If you must use a written request to exchange or sell your shares and your
account is registered in the name of a corporation or other fiduciary you must
include the name of an authorized person and a certified copy of a current
corporate resolution, certificate of incumbency or similar legal document
showing that the named individual is authorized to act on behalf of the record
owner.
Under normal circumstances, the fund expects to meet redemption requests by
using cash or cash equivalents in its portfolio and/or selling portfolio assets
to generate cash. Under stressed or abnormal market conditions or
circumstances, including circumstances adversely affecting the liquidity of the
fund's investments, the fund may be more likely to be forced to sell portfolio
assets to meet redemptions than under normal market circumstances. Under such
circumstances, the fund could be forced to liquidate assets at inopportune
times or at a loss or depressed value. The fund also may pay redemption
proceeds using cash obtained through a committed, unsecured revolving credit
facility, or an interfund lending facility, if available, and other borrowing
arrangements that may be available from time to time.
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The fund reserves the right to redeem in kind, that is, to pay all or a portion
of your redemption proceeds by giving you securities. If the fund redeems in
kind, it generally will deliver to you a proportionate share of the portfolio
securities owned by the fund. Securities you receive this way may increase or
decrease in value while you hold them and you may incur brokerage and
transaction charges and tax liability when you convert the securities to cash.
The fund may redeem in kind at a shareholder's request or if, for example, the
fund reasonably believes that a cash redemption may have a substantial impact
on the fund and its remaining shareholders.
During periods of deteriorating or stressed market conditions, when an
increased portion of the fund's portfolio may be comprised of less-liquid
investments, or during extraordinary or emergency circumstances, the fund may
be more likely to pay redemption proceeds with cash obtained through short-term
borrowing arrangements (if available) or by giving you securities.
HOW TO SELL SHARES
THROUGH YOUR INVESTMENT FIRM
Normally, your investment firm will send your request to sell shares to the
fund's transfer agent. Please note that your investment firm may have its own
earlier deadlines for the receipt of a request to sell shares. CONSULT YOUR
INVESTMENT PROFESSIONAL FOR MORE INFORMATION. The fund has authorized the
distributor to act as its agent in the repurchase of fund shares from qualified
investment firms. The fund reserves the right to terminate this procedure at
any time.
BY PHONE OR ONLINE
IF YOU HAVE AN ELIGIBLE NON-RETIREMENT ACCOUNT, YOU MAY SELL UP TO $100,000 PER
ACCOUNT PER DAY BY PHONE OR ONLINE. You may sell fund shares held in a
retirement plan account by phone only if your account is an eligible IRA (tax
penalties may apply). You may not sell your shares by phone or online if you
have changed your address (for checks) or your bank information (for wires and
transfers) in the last 30 days.
You may receive your sale proceeds:
o By check, provided the check is made payable exactly as your account is
registered
o By bank wire or by electronic funds transfer, provided the sale proceeds are
being sent to your bank address of record
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Buying, exchanging and selling shares
For Class Y shares, shareholders may sell up to $5 million per account per day
if the proceeds are directed to your bank account of record ($100,000 per
account per day if the proceeds are not directed to your bank account of
record).
IN WRITING, BY MAIL OR BY FAX
You can sell some or all of your fund shares by WRITING DIRECTLY TO THE FUND
only if your account is registered in your name. Include in your request your
name, the fund's name, your fund account number, the class of shares to be
sold, the dollar amount or number of shares to be sold and any other applicable
requirements as described below. The fund's transfer agent will send the sale
proceeds to your address of record unless you provide other instructions. Your
request must be signed by all registered owners and be in good order.
The fund's transfer agent will not process your request until it is received in
good order.
You may sell up to $100,000 per account per day by fax.
Please note that there may be a delay in receipt by the fund's transfer agent
of redemption requests submitted by regular mail to a post office address.
HOW TO CONTACT US
BY PHONE
For information or to request a telephone transaction between 8:00 a.m. and
7:00 p.m. (Eastern time) by speaking with a shareholder services
representative call
1-800-225-6292
To request a transaction using FactFone/SM/ call
1-800-225-4321
BY MAIL
Send your written instructions to:
PIONEER FUNDS
P.O. Box 219427
Kansas City, MO 64121-9427
AMUNDI PIONEER WEBSITE
us.amundipioneer.com
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BY FAX
Fax your exchange and sale requests to:
1-800-225-4240
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Account options
See the account application form for more details on each of the following
services or call the fund for details and availability.
TELEPHONE TRANSACTION PRIVILEGES
If your account is registered in your name, you can buy, exchange or sell fund
shares by telephone. If you do not want your account to have telephone
transaction privileges, you must indicate that choice on your account
application or by writing to the fund.
When you request a telephone transaction the fund's transfer agent will try to
confirm that the request is genuine. The transfer agent records the call,
requires the caller to provide validating information for the account and sends
you a written confirmation. The fund may implement other confirmation
procedures from time to time. Different procedures may apply if you have a
non-U.S. account or if your account is registered in the name of an
institution, broker-dealer or other third party. If the fund's confirmation
procedures are followed, neither the fund nor its agents will bear any
liability for these transactions.
ONLINE TRANSACTION PRIVILEGES
If your account is registered in your name, you may be able to buy, exchange or
sell fund shares online. Your investment firm may also be able to buy, exchange
or sell your fund shares online.
To establish online transaction privileges:
o For new accounts, complete the online section of the account application
o For existing accounts, complete an account options form, write to the
fund or complete the online authorization screen at us.amundipioneer.com
To use online transactions, you must read and agree to the terms of an online
transaction agreement available on the Amundi Pioneer website. When you or your
investment firm requests an online transaction, the fund's transfer agent
electronically records the transaction, requires an authorizing password and
sends a written confirmation. The fund may implement other procedures from time
to time. Different procedures may apply if you have a non-U.S. account or if
your account is registered in the name of an institution, broker-dealer or
other third party. You may not be able to use the online transaction privilege
for certain types of accounts, including most retirement accounts.
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PERIODIC INVESTMENTS
You can make periodic investments in the fund by setting up monthly bank
drafts, government allotments, payroll deductions, or an Automatic Investment
Plan. Periodic investments may be made only through U.S. banks. You may use a
periodic investment plan to establish a Class A share account with a small
initial investment. If you have a Class C or Class R share account and your
balance is at least $1,000, you may establish an periodic investment plan.
AUTOMATIC INVESTMENT PLAN (AIP)
If you establish an Automatic Investment Plan with Amundi Pioneer, the fund's
transfer agent will make a periodic investment in fund shares by means of a
preauthorized electronic funds transfer from your bank account. Your plan
investments are voluntary. You may discontinue your plan at any time or change
the plan's dollar amount, frequency or investment date by calling or writing to
the fund's transfer agent. You should allow up to 30 days for the fund's
transfer agent to establish your plan.
AUTOMATIC EXCHANGES
You can automatically exchange your fund shares for shares of the same class of
another Pioneer mutual fund. The automatic exchange will begin on the day you
select when you complete the appropriate section of your account application or
an account options form. In order to establish automatic exchange:
o You must select exchanges on a monthly or quarterly basis
o Both the originating and receiving accounts must have identical registrations
o The originating account must have a minimum balance of $5,000
You may have to pay income taxes on an exchange.
DISTRIBUTION OPTIONS
The fund offers three distribution options. Any fund shares you buy by
reinvesting distributions will be priced at the applicable net asset value per
share.
(1) Unless you indicate another option on your account application, any
dividends and capital gain distributions paid to you by the fund will
automatically be invested in additional fund shares.
(2) You may elect to have the amount of any dividends paid to you in cash and
any capital gain distributions reinvested in additional shares.
83
Account options
(3) You may elect to have the full amount of any dividends and/or capital
gain distributions paid to you in cash.
Options (2) and (3) are not available to retirement plan accounts or accounts
with a current value of less than $500.
If you are under 59 1/2, taxes and tax penalties may apply.
If your distribution check is returned to the fund's transfer agent or you do
not cash the check for six months or more, the fund's transfer agent may
reinvest the amount of the check in your account and automatically change the
distribution option on your account to option (1) until you request a different
option in writing. If the amount of a distribution check would be less than
$25, the fund may reinvest the amount in additional shares of the fund instead
of sending a check. Additional shares of the fund will be purchased at the
then-current net asset value.
DIRECTED DIVIDENDS
You can invest the dividends paid by one of your Pioneer mutual fund accounts
in a second Pioneer mutual fund account. The value of your second account must
be at least $1,000. You may direct the investment of any amount of dividends.
There are no fees or charges for directed dividends. If you have a retirement
plan account, you may only direct dividends to accounts with identical
registrations.
SYSTEMATIC WITHDRAWAL PLANS
When you establish a systematic withdrawal plan for your account, the transfer
agent will sell the number of fund shares you specify on a periodic basis and
the proceeds will be paid to you or to any person you select. You must obtain a
signature guarantee to direct payments to another person after you have
established your systematic withdrawal plan. Payments can be made either by
check or by electronic transfer to a U.S. bank account you designate.
To establish a systematic withdrawal plan:
o Your account must have a total value of at least $10,000 when you establish
your plan
o You may not request a periodic withdrawal of more than 10% of the value of
any Class C or Class R share account (valued at the time the plan is
implemented)
84
These requirements do not apply to scheduled (Internal Revenue Code Section
72(t) election) or mandatory (required minimum distribution) withdrawals from
IRAs and certain retirement plans.
Systematic sales of fund shares may be taxable transactions for you. While you
are making systematic withdrawals from your account, you may pay unnecessary
initial sales charges on additional purchases of Class A shares or contingent
deferred sales charges.
DIRECT DEPOSIT
If you elect to take dividends or dividends and capital gain distributions in
cash, or if you establish a systematic withdrawal plan, you may choose to have
those cash payments deposited directly into your savings, checking or NOW bank
account.
VOLUNTARY TAX WITHHOLDING
You may have the fund's transfer agent withhold 28% of the dividends and
capital gain distributions paid from your fund account (before any
reinvestment) and forward the amount withheld to the Internal Revenue Service
as a credit against your federal income taxes. Voluntary tax withholding is not
available for retirement plan accounts or for accounts subject to backup
withholding.
85
Shareholder services and policies
EXCESSIVE TRADING
Frequent trading into and out of the fund can disrupt portfolio management
strategies, harm fund performance by forcing the fund to hold excess cash or to
liquidate certain portfolio securities prematurely and increase expenses for
all investors, including long-term investors who do not generate these costs.
An investor may use short-term trading as a strategy, for example, if the
investor believes that the valuation of the fund's portfolio securities for
purposes of calculating its net asset value does not fully reflect the
then-current fair market value of those holdings. The fund discourages, and
does not take any intentional action to accommodate, excessive and short-term
trading practices, such as market timing. Although there is no generally
applied standard in the marketplace as to what level of trading activity is
excessive, we may consider trading in the fund's shares to be excessive for a
variety of reasons, such as if:
o You sell shares within a short period of time after the shares were
purchased;
o You make two or more purchases and redemptions within a short period of time;
o You enter into a series of transactions that indicate a timing pattern or
strategy; or
o We reasonably believe that you have engaged in such practices in connection
with other mutual funds.
The fund's Board of Trustees has adopted policies and procedures with respect
to frequent purchases and redemptions of fund shares by fund investors.
Pursuant to these policies and procedures, we monitor selected trades on a
daily basis in an effort to detect excessive short-term trading. If we
determine that an investor or a client of a broker or other intermediary has
engaged in excessive short-term trading that we believe may be harmful to the
fund, we will ask the investor, broker or other intermediary to cease such
activity and we will refuse to process purchase orders (including purchases by
exchange) of such investor, broker, other intermediary or accounts that we
believe are under their control. In determining whether to take such actions,
we seek to act in a manner that is consistent with the best interests of the
fund's shareholders.
While we use our reasonable efforts to detect excessive trading activity, there
can be no assurance that our efforts will be successful or that market timers
will not employ tactics designed to evade detection. If we are not successful,
your return from an investment in the fund may be adversely affected.
Frequently, fund shares are held through omnibus accounts maintained by
financial intermediaries such as brokers and retirement plan administrators,
86
where the holdings of multiple shareholders, such as all the clients of a
particular broker or other intermediary, are aggregated. Our ability to monitor
trading practices by investors purchasing shares through omnibus accounts may
be limited and dependent upon the cooperation of the broker or other
intermediary in taking steps to limit this type of activity.
The fund may reject a purchase or exchange order before its acceptance or the
issuance of shares. The fund may also restrict additional purchases or
exchanges in an account. Each of these steps may be taken for any transaction,
for any reason, without prior notice, including transactions that the fund
believes are requested on behalf of market timers. The fund reserves the right
to reject any purchase or exchange request by any investor or financial
institution if the fund believes that any combination of trading activity in
the account or related accounts is potentially disruptive to the fund. A
prospective investor whose purchase or exchange order is rejected will not
achieve the investment results, whether gain or loss, that would have been
realized if the order had been accepted and an investment made in the fund. A
fund and its shareholders do not incur any gain or loss as a result of a
rejected order. The fund may impose further restrictions on trading activities
by market timers in the future.
To limit the negative effects of excessive trading on the fund, the fund has
adopted the following restriction on investor transactions. If an investor
redeems $5,000 or more (including redemptions that are a part of an exchange
transaction) from the fund, that investor shall be prevented (or "blocked")
from purchasing shares of the fund (including purchases that are a part of an
exchange transaction) for 30 calendar days after the redemption. This policy
does not apply to systematic purchase or withdrawal plan transactions,
transactions made through employer-sponsored retirement plans described under
Section 401(a), 403(b) or 457 of the Internal Revenue Code or employee benefit
plans, scheduled (Internal Revenue Code Section 72(t) election) or mandatory
(required minimum distribution) withdrawals from IRAs, rebalancing transactions
made through certain asset allocation or "wrap" programs, transactions by
insurance company separate accounts or transactions by other funds that invest
in the fund. This policy does not apply to purchase or redemption transactions
of less than $5,000 or to Pioneer U.S. Government Money Market Fund or Pioneer
Multi-Asset Ultrashort Income Fund.
87
Shareholder services and policies
We rely on financial intermediaries that maintain omnibus accounts to apply to
their customers either the fund's policy described above or their own policies
or restrictions designed to limit excessive trading of fund shares. However, we
do not impose this policy at the omnibus account level.
Purchases pursuant to the reinstatement privilege (for Class A shares) are
subject to this policy.
PURCHASES IN KIND
You may use securities you own to purchase shares of the fund provided that
Amundi Pioneer, in its sole discretion, determines that the securities are
consistent with the fund's objectives and policies and their acquisition is in
the best interests of the fund. If the fund accepts your securities, they will
be valued for purposes of determining the number of fund shares to be issued to
you in the same way the fund will value the securities for purposes of
determining its net asset value. For federal income tax purposes, you may be
taxed in the same manner as if you sold the securities that you use to purchase
fund shares for cash in an amount equal to the value of the fund shares that
you purchase. Your broker may also impose a fee in connection with processing
your purchase of fund shares with securities.
REINSTATEMENT PRIVILEGE (CLASS A SHARES)
If you recently sold all or part of your Class A shares, you may be able to
reinvest all or part of your sale proceeds without a sales charge in Class A
shares of any Pioneer mutual fund. To qualify for reinstatement:
o You must send a written request to the fund no more than 90 days after
selling your shares and
o The registration of the account in which you reinvest your sale proceeds must
be identical to the registration of the account from which you sold your
shares.
Purchases pursuant to the reinstatement privilege are subject to limitations on
investor transactions, including the limitation on the purchase of the fund's
shares within 30 calendar days of redemption. See "Excessive trading."
When you elect reinstatement, you are subject to the provisions outlined in the
selected fund's prospectus, including the fund's minimum investment
requirement. Your sale proceeds will be reinvested in shares of the fund at the
Class A net asset value per share determined after the fund receives your
written request for reinstatement. You may realize a gain or loss for
88
federal income tax purposes as a result of your sale of fund shares, and
special tax rules may apply if you elect reinstatement. Consult your tax
adviser for more information.
AMUNDI PIONEER WEBSITE
US.AMUNDIPIONEER.COM
The website includes a full selection of information on mutual fund investing.
You can also use the website to get:
o Your current account information
o Prices, returns and yields of all publicly available Pioneer mutual funds
o Prospectuses, statements of additional information and shareowner reports for
all the Pioneer mutual funds
o A copy of Amundi Pioneer's privacy notice
If you or your investment firm authorized your account for the online
transaction privilege, you may buy, exchange and sell shares online.
FACTFONE/SM/ 1-800-225-4321
You can use FactFone/SM/ to:
o Obtain current information on your Pioneer mutual fund accounts
o Inquire about the prices of all publicly available Pioneer mutual funds
o Make computer-assisted telephone purchases, exchanges and redemptions for
your fund accounts
o Request account statements
If you plan to use FactFone/SM/ to make telephone purchases and redemptions,
first you must activate your personal identification number and establish your
bank account of record. If your account is registered in the name of a
broker-dealer or other third party, you may not be able to use FactFone/SM/.
If your account is registered in the name of a broker-dealer or other third
party, you may not be able to use FactFone/SM/ to obtain account information.
HOUSEHOLD DELIVERY OF FUND DOCUMENTS
With your consent, Amundi Pioneer may send a single proxy statement, prospectus
and shareowner report to your residence for you and any other member of your
household who has an account with the fund. If you wish to revoke your consent
to this practice, you may do so by notifying Amundi Pioneer, by phone or in
writing (see "How to contact us"). Amundi Pioneer will begin mailing separate
proxy statements, prospectuses and shareowner reports to you within 30 days
after receiving your notice.
89
Shareholder services and policies
CONFIRMATION STATEMENTS
The fund's transfer agent maintains an account for each investment firm or
individual shareowner and records all account transactions. You will be sent
confirmation statements showing the details of your transactions as they occur,
except automatic investment plan transactions, which are confirmed quarterly.
If you have more than one Pioneer mutual fund account registered in your name,
the Pioneer combined account statement will be mailed to you each quarter.
TAX INFORMATION
Early each year, the fund will mail you information about the tax status of the
dividends and distributions paid to you by the fund.
TAX INFORMATION FOR IRA ROLLOVERS
In January (or by the applicable Internal Revenue Service deadline) following
the year in which you take a reportable distribution, the fund's transfer agent
will mail you a tax form reflecting the total amount(s) of distribution(s)
received by the end of January.
PRIVACY
The fund has a policy designed to protect the privacy of your personal
information. A copy of Amundi Pioneer's privacy notice was given to you at the
time you opened your account. The fund will send you a copy of the privacy
notice each year. You may also obtain the privacy notice by calling the fund or
through Amundi Pioneer's website.
SIGNATURE GUARANTEES AND OTHER REQUIREMENTS
You are required to obtain a signature guarantee when:
o Requesting certain types of exchanges or sales of fund shares
o Requesting certain types of changes for your existing account
You can obtain a signature guarantee from most broker-dealers, banks, credit
unions (if authorized under state law) and federal savings and loan
associations. You cannot obtain a signature guarantee from a notary public.
The Pioneer funds generally accept only medallion signature guarantees. A
medallion signature guarantee may be obtained from a domestic bank or trust
company, broker, dealer, clearing agency, savings association, or other
financial institution that is participating in a medallion program recognized
by the Securities Transfer Association. Signature guarantees from financial
90
institutions that are not participating in one of these programs are not
accepted as medallion signature guarantees. The fund may accept other forms of
guarantee from financial intermediaries in limited circumstances.
Fiduciaries and corporations are required to submit additional documents to
sell fund shares.
MINIMUM ACCOUNT SIZE
The fund requires that you maintain a minimum account value of $500. If you
hold less than $500 in your account, the fund reserves the right to notify you
that it intends to sell your shares and close your account. You will be given
60 days from the date of the notice to make additional investments to avoid
having your shares sold. This policy does not apply to certain qualified
retirement plan accounts.
TELEPHONE AND WEBSITE ACCESS
You may have difficulty contacting the fund by telephone or accessing
us.amundipioneer.com during times of market volatility or disruption in
telephone or Internet service. On New York Stock Exchange holidays or on days
when the exchange closes early, Amundi Pioneer will adjust the hours for the
telephone center and for online transaction processing accordingly. If you are
unable to access us.amundipioneer.com or reach the fund by telephone, you
should communicate with the fund in writing.
SHARE CERTIFICATES
The fund does not offer share certificates. Shares are electronically recorded.
OTHER POLICIES
The fund and the distributor reserve the right to:
o reject any purchase or exchange order for any reason, without prior notice
o charge a fee for exchanges or to modify, limit or suspend the exchange
privilege at any time without notice. The fund will provide 60 days' notice
of material amendments to or termination of the exchange privilege
o revise, suspend, limit or terminate the account options or services available
to shareowners at any time, except as required by the rules of the
Securities and Exchange Commission
The fund reserves the right to:
o charge transfer, shareholder servicing or similar agent fees, such as an
account maintenance fee for small balance accounts, directly to accounts
91
Shareholder services and policies
upon at least 30 days' notice. The fund may do this by deducting the fee
from your distribution of dividends and/or by redeeming fund shares to the
extent necessary to cover the fee
o close your account after a period of inactivity, as determined by state law,
and transfer your shares to the appropriate state
92
Dividends, capital gains and taxes
DIVIDENDS AND CAPITAL GAINS
The fund declares dividends daily. The daily dividends consist of substantially
all of the fund's net income (excluding any net short- and long-term capital
gains). You begin to earn dividends on the first business day following receipt
of payment for shares. You continue to earn dividends up to and including the
date of sale. Dividends are normally paid on the last business day of each
month.
The fund generally pays any distribution of net short- and long-term capital
gains in November. The fund may also pay dividends and capital gain
distributions at other times if necessary for the fund to avoid U.S. federal
income or excise tax. If you invest in the fund shortly before a distribution
described in this paragraph, generally you will pay a higher price per share
and, unless you are exempt from tax, you will pay taxes on the amount of the
distribution whether you reinvest the distribution in additional shares or
receive it as cash.
TAXES
You will normally have to pay federal income taxes, and any state or local
taxes, on the dividends and other distributions you receive from the fund,
whether you take the distributions in cash or reinvest them in additional
shares. For U.S. federal income tax purposes, distributions from the fund's net
capital gains (if any) are considered long-term capital gains and are generally
taxable to noncorporate shareholders at rates of up to 20%. Distributions from
the fund's net short-term capital gains are generally taxable as ordinary
income. Other dividends are generally taxable as ordinary income. Since the
fund's income is derived primarily from sources that do not pay dividends, it
is not expected that a substantial portion of the dividends paid by the fund
will qualify either for the dividends-received deduction for corporations or
for any favorable U.S. federal income tax rate available to noncorporate
shareholders on "qualified dividend income."
The fund will report to shareholders annually the U.S. federal income tax
status of all fund distributions.
If the fund declares a dividend in October, November or December, payable to
shareholders of record in such a month, and pays it in January of the following
year, you will be taxed on the dividend as if you received it in the year in
which it was declared.
93
Dividends, capital gains and taxes
Sales and exchanges generally will be taxable transactions to shareowners. When
you sell or exchange fund shares you will generally recognize a capital gain or
capital loss in an amount equal to the difference between the net amount of
sale proceeds (or, in the case of an exchange, the fair market value of the
shares) that you receive and your tax basis for the shares that you sell or
exchange.
A 3.8% Medicare contribution tax generally applies to all or a portion of the
net investment income of a shareholder who is an individual and not a
nonresident alien for federal income tax purposes and who has adjusted gross
income (subject to certain adjustments) that exceeds a threshold amount. This
3.8% tax also applies to all or a portion of the undistributed net investment
income of certain shareholders that are estates and trusts. For these purposes,
dividends, interest and certain capital gains are generally taken into account
in computing a shareholder's net investment income.
You must provide your social security number or other taxpayer identification
number to the fund along with the certifications required by the Internal
Revenue Service when you open an account. If you do not or if it is otherwise
legally required to do so, the fund will apply "backup withholding" tax on your
dividends and other distributions, sale proceeds and any other payments to you
that are subject to backup withholding. The backup withholding rate is
currently 24%.
Shareholders that are exempt from U.S. federal income tax, such as retirement
plans that are qualified under Section 401 of the Internal Revenue Code,
generally are not subject to U.S. federal income tax on fund dividends or other
distributions or on sales or exchanges of fund shares. However, in the case of
fund shares held through a nonqualified deferred compensation plan, fund
dividends and other distributions received by the plan and sales and exchanges
of fund shares by the plan generally will be taxable to the employer sponsoring
such plan in accordance with U.S. federal income tax laws that are generally
applicable to shareholders receiving such dividends and other distributions
from regulated investment companies such as the fund or effecting such sales or
exchanges.
Plan participants whose retirement plan invests in the fund generally are not
subject to federal income tax on fund dividends or other distributions received
by the plan or on sales or exchanges of fund shares by the plan. However,
distributions to plan participants from a retirement plan generally are taxable
to plan participants as ordinary income.
94
Distributions derived from interest on U.S. government obligations (but
generally not distributions of gain from the sale of such obligations) may be
exempt from certain state and local taxes.
You should ask your tax adviser about any federal, state, local and foreign tax
considerations relating to an investment in the fund. You may also consult the
fund's statement of additional information for a more detailed discussion of
the U.S. federal income tax considerations that may affect the fund and its
shareowners.
95
Financial highlights
The financial highlights table helps you understand the fund's financial
performance for the past five years.
Certain information reflects financial results for a single fund share. The
total returns in the table represent the rate that you would have earned or
lost on an investment in Class A, Class C, Class K, Class R and Class Y shares
of the fund (assuming reinvestment of all dividends and distributions).
The information below for the fiscal years ended June 30, 2018 and June 30,
2017 has been audited by Ernst & Young LLP, independent registered public
accounting firm, whose report is included in the fund's annual report along
with the fund's financial statements. The information below for the periods
ended on June 30, 2014 through June 30, 2016 was audited by another independent
registered public accounting firm. The fund's annual report is incorporated by
reference in the statement of additional information and is available upon
request.
96
PIONEER BOND FUND
CLASS A SHARES
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
6/30/18 6/30/17 6/30/16* 6/30/15* 6/30/14*
---------------- ---------------- ---------------- -------------- ------------
Net asset value, beginning of
period $ 9.71 $ 9.76 $ 9.68 $ 9.88 9.67
---------- ---------- ---------- ---------- ----
Increase (decrease) from
investment operations:
Net investment income (loss) $ 0.26(a) $ 0.25(a) $ 0.25(a) $ 0.27 0.35
Net realized and unrealized
gain (loss) on investments (0.24) (0.01) 0.12 (0.14) 0.24
---------- ---------- ---------- ---------- ----
Net increase (decrease) from
investment operations $ 0.02 $ 0.24 $ 0.37 $ 0.13 0.59
Distributions to shareowners:
Net investment income $ (0.28) $ (0.29) $ (0.27) $ (0.29) (0.38)
Net realized gain - - (0.02) (0.04) -
---------- ---------- ---------- ---------- -----
Total distributions $ (0.28) $ (0.29) $ (0.29) $ (0.33) (0.38)
---------- ---------- ---------- ---------- -----
Net increase (decrease) in net
asset value $ (0.26) $ (0.05) $ 0.08 $ (0.20) 0.21
---------- ---------- ---------- ---------- -----
Net asset value, end of period $ 9.45 $ 9.71 $ 9.76 $ 9.68 $ 9.88
---------- ---------- ---------- ---------- --------
Total return(b) 0.14% 2.48% 3.93% 1.32% 6.19%
Ratio of net expenses to average
net assets 0.85% 0.85% 0.85% 0.85% 0.85%
Ratio of net investment income
(loss) to average net assets 2.71% 2.60% 2.58% 2.68% 3.52%
Portfolio turnover rate 45% 44% 43% 81% 41%
Net assets, end of period (in
thousands) $1,081,121 $1,156,940 1,177,941 $1,044,659 $706,962
Ratios with no waiver of fees and
assumption of expense by the
Adviser and no reduction for fees
paid indirectly:
Total expenses to average net
assets 0.96% 0.99% 0.98% 0.93% 1.00%
Net investment income (loss)
to average net assets 2.60% 2.46% 2.45% 2.60% 3.37%
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of
each period, reinvestment of all distributions and the complete
redemption of the investment at net asset value at the end of each
period and no sales charges. Total return would be reduced if sales
charges were taken into account.
97
Financial highlights
PIONEER BOND FUND
CLASS C SHARES
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
6/30/18 6/30/17 6/30/16* 6/30/15* 6/30/14*
-------------- -------------- -------------- ------------ -----------
Net asset value, beginning of period $ 9.60 $ 9.66 $ 9.57 $ 9.77 $ 9.57
------- ------- -------- -------- -------
Increase (decrease) from investment
operations:
Net investment income (loss) $ 0.19(a) $ 0.18(a) $ 0.17(a) $ 0.19 $ 0.26
Net realized and unrealized gain
(loss) on investments (0.24) (0.03) 0.14 (0.14) 0.23
------- ------- -------- -------- -------
Net increase (decrease) from
investment operations $ (0.05) 0.15 $ 0.31 $ 0.05 $ 0.49
Distributions to shareowners:
Net investment income $ (0.20) $ (0.21) $ (0.20) $ (0.21) $ (0.29)
Net realized gain - - (0.02) (0.04) -
------- ------- -------- -------- -------
Total distributions $ (0.20) $ (0.21) $ (0.22) $ (0.25) $ (0.29)
------- ------- -------- -------- -------
Net increase (decrease) in net asset
value $ (0.25) $ (0.06) $ 0.09 $ (0.20) $ 0.20
------- ------- -------- -------- -------
Net asset value, end of period $ 9.35 $ 9.60 $ 9.66 $ 9.57 $ 9.77
------- ------- -------- -------- -------
Total return(b) (0.52)% 1.62% 3.28% 0.49% 5.20%
Ratio of net expenses to average net
assets 1.60% 1.59% 1.60% 1.63% 1.73%
Ratio of net investment income (loss) to
average net assets 1.96% 1.84% 1.84% 1.89% 2.69%
Portfolio turnover rate 45% 44% 43% 81% 41%
Net assets, end of period (in thousands) $79,308 $96,547 $134,299 $114,222 $73,224
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of
each period, reinvestment of all distributions and the complete
redemption of the investment at net asset value at the end of each
period and no sales charges. Total return would be reduced if sales
charges were taken into account.
98
PIONEER BOND FUND
CLASS K SHARES
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
6/30/18 6/30/17 6/30/16* 6/30/15* 6/30/14*
-------------- -------------- -------------- ------------ -----------
Net asset value, beginning of period $ 9.71 $ 9.76 $ 9.68 $ 9.87 $ 9.67
-------- -------- -------- -------- ------
Increase (decrease) from investment
operations:
Net investment income (loss) $ 0.30(a) $ 0.29(a) $ 0.29(a) $ 0.30 $ 0.40
Net realized and unrealized gain
(loss) on investments (0.25) (0.01) 0.12 (0.13) 0.20
-------- -------- -------- -------- ------
Net increase (decrease) from
investment operations $ 0.05 $ 0.28 $ 0.41 $ 0.17 $ 0.60
Distributions to shareowners:
Net investment income $ (0.31) $ (0.33) $ (0.31) $ (0.32) $(0.40)
Net realized gain - - (0.02) (0.04) -
-------- -------- -------- -------- ------
Total distributions $ (0.31) $ (0.33) $ (0.33) $ (0.36) $(0.40)
-------- -------- -------- -------- ------
Net increase (decrease) in net asset
value $ (0.26) $ (0.05) $ 0.08 $ (0.19) $ 0.20
-------- -------- -------- -------- ------
Net asset value, end of period $ 9.45 $ 9.71 $ 9.76 $ 9.68 $ 9.87
-------- -------- -------- -------- ------
Total return(b) 0.54% 2.87% 4.32% 1.80% 6.37%
Ratio of net expenses to average net
assets 0.46% 0.47% 0.47% 0.47% 0.56%
Ratio of net investment income (loss)
to average net assets 3.11% 3.01% 2.98% 3.03% 3.59%
Portfolio turnover rate 45% 44% 43% 81% 41%
Net assets, end of period (in
thousands) $939,272 $726,063 $340,096 $179,135 $4,398
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of
each period, reinvestment of all distributions and the complete
redemption of the investment at net asset value at the end of each
period.
99
Financial highlights
PIONEER BOND FUND
CLASS R SHARES
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
6/30/18 6/30/17 6/30/16* 6/30/15* 6/30/14*
-------------- -------------- -------------- ------------ -----------
Net asset value, beginning of period $ 9.80 $ 9.85 $ 9.77 $ 9.97 $ 9.76
-------- -------- -------- -------- -------
Increase (decrease) from investment
operations:
Net investment income (loss) $ 0.24(a) $ 0.23(a) $ 0.23(a) $ 0.25 $ 0.32
Net realized and unrealized gain
(loss) on investments (0.25) (0.01) 0.12 (0.15) 0.23
-------- -------- -------- -------- -------
Net increase (decrease) from
investment operations $ (0.01) $ 0.22 $ 0.35 $ 0.10 $ 0.55
Distributions to shareowners:
Net investment income $ (0.25) $ (0.27) $ (0.25) $ (0.26) $ (0.34)
Net realized gain - - (0.02) (0.04) -
-------- -------- -------- -------- -------
Total distributions $ (0.25) $ (0.27) $ (0.27) $ (0.30) $ (0.34)
-------- -------- -------- -------- -------
Net increase (decrease) in net asset
value $ (0.26) $ (0.05) $ 0.08 $ (0.20) $ 0.21
-------- -------- -------- -------- -------
Net asset value, end of period $ 9.54 $ 9.80 $ 9.85 $ 9.77 $ 9.97
-------- -------- -------- -------- -------
Total return(b) (0.08)% 2.23% 3.66% 1.06% 5.75%
Ratio of net expenses to average net
assets 1.10% 1.10% 1.10% 1.10% 1.25%
Ratio of net investment income (loss)
to average net assets 2.46% 2.35% 2.33% 2.43% 3.12%
Portfolio turnover rate 45% 44% 43% 81% 41%
Net assets, end of period (in
thousands) $179,729 $178,770 $156,110 $116,815 $48,264
Ratios with no waiver of fees and
assumption of expense by the
Adviser and no reduction for fees paid
indirectly:
Total expenses to average net assets 1.21% 1.24% 1.21% 1.21% 1.32%
Net investment income (loss) to
average net assets 2.35% 2.21% 2.22% 2.32% 3.05%
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of
each period, reinvestment of all distributions and the complete
redemption of the investment at net asset value at the end of each
period.
100
PIONEER BOND FUND
CLASS Y SHARES
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
6/30/18 6/30/17 6/30/16* 6/30/15* 6/30/14*
---------------- ---------------- ---------------- -------------- -----------
Net asset value, beginning of
period $ 9.62 $ 9.67 $ 9.59 $ 9.79 $ 9.58
---------- ---------- ---------- ---------- --------
Increase (decrease) from
investment operations:
Net investment income (loss) $ 0.28(a) $ 0.28(a) $ 0.27(a) $ 0.30 $ 0.36
Net realized and unrealized
gain (loss) on investments (0.24) (0.02) 0.12 (0.15) 0.24
---------- ---------- ---------- ---------- --------
Net increase (decrease) from
investment operations $ 0.04 $ 0.26 $ 0.39 $ 0.15 $ 0.60
Distributions to shareowners:
Net investment income $ (0.30) $ (0.31) $ (0.29) $ (0.31) $ (0.39)
Net realized gain - - (0.02) (0.04) -
---------- ---------- ---------- ---------- --------
Total distributions $ (0.30) $ (0.31) $ (0.31) $ (0.35) $ (0.39)
---------- ---------- ---------- ---------- --------
Net increase (decrease) in net
asset value $ (0.26) $ (0.05) $ 0.08 $ (0.20) $ 0.21
---------- ---------- ---------- ---------- --------
Net asset value, end of period $ 9.36 $ 9.62 $ 9.67 $ 9.59 $ 9.79
---------- ---------- ---------- ---------- --------
Total return(b) 0.40% 2.76% 4.22% 1.59% 6.41%
Ratio of net expenses to average
net assets 0.58% 0.58% 0.58% 0.58% 0.66%
Ratio of net investment income
(loss) to average net assets 2.98% 2.87% 2.85% 2.95% 3.72%
Portfolio turnover rate 45% 44% 43% 81% 41%
Net assets, end of period (in
thousands) $2,708,766 $2,558,262 $2,136,681 $1,644,161 $871,801
Ratios with no waiver of fees and
assumption of expense by the
Adviser and no reduction for fees
paid indirectly:
Total expenses to average net
assets 0.58% 0.59% 0.59% 0.58% 0.66%
Net investment income (loss)
to average net assets 2.98% 2.86% 2.84% 2.95% 3.72%
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of
each period, reinvestment of all distributions and the complete
redemption of the investment at net asset value at the end of each
period.
101
Intermediary defined sales charge waiver policies
AMERIPRISE FINANCIAL
Effective July 1, 2018, shareholders purchasing fund shares through an
Ameriprise Financial platform or account will be eligible only for the
following front-end sales charge waivers with respect to Class A shares, which
may differ from and may be more limited than those disclosed elsewhere in this
fund's prospectus or statement of additional information.
CLASS A SHARES FRONT-END SALES CHARGE WAIVERS AVAILABLE AT AMERIPRISE
FINANCIAL:
o Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, profit sharing and money purchase pension
plans and defined benefit plans). For purposes of this provision,
employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or
SAR-SEPs.
o Shares purchased through an Ameriprise Financial investment advisory program
(if an Advisory or similar share class for such investment advisory program
is not available).
o Shares purchased by third party investment advisors on behalf of their
advisory clients through Ameriprise Financial's platform (if an Advisory or
similar share class for such investment advisory program is not available).
o Shares purchased through reinvestment of capital gains distributions and
dividend reinvestment when purchasing shares of the same fund (but not any
other fund within the same fund family).
o Shares exchanged from Class C shares of the same fund in the month of or
following the 10-year anniversary of the purchase date. To the extent that
this prospectus elsewhere provides for a waiver with respect to such shares
following a shorter holding period, that waiver will apply to exchanges
following such shorter period. To the extent that this prospectus elsewhere
provides for a waiver with respect to exchanges of Class C shares for load
waived shares, that waiver will also apply to such exchanges.
o Employees and registered representatives of Ameriprise Financial or its
affiliates and their immediate family members.
o Shares purchased by or through qualified accounts (including IRAs, Coverdell
Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and
defined benefit plans) that are held by a covered family member, defined as
an Ameriprise financial advisor and/or the advisor's spouse, advisor's
lineal ascendant (mother, father, grandmother, grandfather, great
grandmother, great grandfather), advisor's lineal descendant (son,
102
step-son, daughter, step-daughter, grandson, granddaughter, great grandson,
great granddaughter) or any spouse of a covered family member who is a
lineal descendant.
o Shares purchased from the proceeds of redemptions within the same fund
family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and
(3) redeemed shares were subject to a front-end or deferred sales load
(i.e., Rights of Reinstatement).
MERRILL LYNCH
Effective April 10, 2017, shareholders purchasing fund shares through a Merrill
Lynch platform or account will be eligible only for the following sales charge
waivers (front-end sales charge waivers and CDSC waivers) and discounts, which
may differ from those disclosed elsewhere in this prospectus or the fund's
statement of additional information.
FRONT-END SALES CHARGE WAIVERS FOR CLASS A SHARES AVAILABLE AT MERRILL LYNCH
o Employer-sponsored retirement, deferred compensation and employee benefit
plans (including health savings accounts) and trusts used to fund those
plans, provided that the plan is a group plan (more than one participant),
the shares are not held in a commission-based brokerage account and shares
are held in the name of the plan through an omnibus account
o Shares purchased by or through a 529 Plan
o Shares purchased through a Merrill Lynch affiliated investment advisory
program
o Shares purchased by third party investment advisors on behalf of their
advisory clients through Merrill Lynch's platform
o Shares of funds purchased through the Merrill Edge Self-Directed platform (if
applicable)
o Shares purchased through reinvestment of capital gains distributions and
dividend reinvestment when purchasing shares of the same fund (but not any
other fund within the fund family)
o Shares exchanged from Class C (i.e., level-load) shares of the same fund in
the month of or following the 10-year anniversary of the purchase date
o Employees and registered representatives of Merrill Lynch or its affiliates
and their family members
o Trustees of the fund, and employees of the fund's investment adviser or any
of its affiliates, as described in this prospectus
103
Intermediary defined sales charge waiver policies
o Shares purchased from the proceeds of redemptions within the Pioneer fund
family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and
(3) redeemed shares were subject to a front-end or deferred sales load
(known as Rights of Reinstatement)
CDSC WAIVERS ON CLASS A AND C SHARES AVAILABLE AT MERRILL LYNCH
o Death or disability of the shareholder
o Shares sold as part of a systematic withdrawal plan as described in the
fund's prospectus
o Return of excess contributions from an IRA Account
o Shares sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching age 70 1/2
o Shares sold to pay Merrill Lynch fees but only if the transaction is
initiated by Merrill Lynch
o Shares acquired through a right of reinstatement
o Shares held in retirement brokerage accounts, that are exchanged for a lower
cost share class due to transfer to certain fee based accounts or platforms
(applicable to Class A and C shares only)
FRONT-END SALES CHARGE DISCOUNTS FOR CLASS A SHARES AVAILABLE AT MERRILL LYNCH:
BREAKPOINTS, RIGHTS OF ACCUMULATION AND LETTERS OF INTENT
o Breakpoints as described in this prospectus.
o Rights of Accumulation (ROA), which entitle shareholders to breakpoint
discounts, will be automatically calculated based on the aggregated holding
of Pioneer fund family assets held by accounts within the purchaser's
household at Merrill Lynch. Eligible Pioneer fund family assets not held at
Merrill Lynch may be included in the ROA calculation only if the shareholder
notifies his or her financial advisor about such assets
o Letters of Intent (LOI) which allow for breakpoint discounts based on
anticipated purchases within the Pioneer fund family, through Merrill Lynch,
over a 13-month period of time (if applicable)
MORGAN STANLEY
Effective July 1, 2018, shareholders purchasing fund shares through a Morgan
Stanley Wealth Management transactional brokerage account will be eligible only
for the following front-end sales charge waivers with respect to Class A
shares, which may differ from and may be more limited than those disclosed
elsewhere in this fund's prospectus or statement of additional information.
104
FRONT-END SALES CHARGE WAIVERS ON CLASS A SHARES AVAILABLE AT MORGAN STANLEY
WEALTH MANAGEMENT
o Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, profit sharing and money purchase pension
plans and defined benefit plans). For purposes of this provision,
employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs,
SAR-SEPs or Keogh plans
o Morgan Stanley employee and employee-related accounts according to Morgan
Stanley's account linking rules
o Shares purchased through reinvestment of dividends and capital gains
distributions when purchasing shares of the same fund
o Shares purchased through a Morgan Stanley self-directed brokerage account
o Class C (i.e., level-load) shares that are no longer subject to a contingent
deferred sales charge and are converted to Class A shares of the same fund
pursuant to Morgan Stanley Wealth Management's share class conversion
program
o Shares purchased from the proceeds of redemptions within the same fund
family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and
(3) redeemed shares were subject to a front-end or deferred sales charge.
RAYMOND JAMES
RAYMOND JAMES & ASSOCIATES, INC., RAYMOND JAMES FINANCIAL SERVICES, INC., &
RAYMOND JAMES AFFILIATES ("RAYMOND JAMES")
Effective March 1, 2019, shareholders purchasing fund shares through a Raymond
James platform or account will be eligible only for the following load waivers
(front-end sales charge waivers and contingent deferred, or back-end, sales
charge waivers) and discounts, which may differ from those disclosed elsewhere
in this fund's prospectus or SAI.
FRONT-END SALES LOAD WAIVERS ON CLASS A SHARES AVAILABLE AT RAYMOND JAMES
o Shares purchased in an investment advisory program.
o Shares purchased through reinvestment of capital gains distributions and
dividend reinvestment when purchasing shares of the same fund (but not any
other fund within the fund family).
o Employees and registered representatives of Raymond James or its affiliates
and their family members as designated by Raymond James.
105
Intermediary defined sales charge waiver policies
o Shares purchased from the proceeds of redemptions within the same fund
family, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same account, and
(3) redeemed shares were subject to a front-end or deferred sales load
(known as rights of reinstatement).
o A shareholder in the fund's Class C shares will have their shares converted
at net asset value to Class A shares (or the appropriate share class) of the
fund if the shares are no longer subject to a CDSC and the conversion is in
line with the policies and procedures of Raymond James.
CDSC WAIVERS ON CLASS A AND CLASS C SHARES AVAILABLE AT RAYMOND JAMES
o Death or disability of the shareholder.
o Shares sold as part of a systematic withdrawal plan as described in the
fund's prospectus.
o Return of excess contributions from an IRA Account.
o Shares sold as part of a required minimum distribution for IRA and retirement
accounts due to the shareholder reaching age 70 1/2 as described in the
fund's prospectus.
o Shares sold to pay Raymond James fees but only if the transaction is
initiated by Raymond James.
o Shares acquired through a right of reinstatement.
FRONT-END LOAD DISCOUNTS AVAILABLE AT RAYMOND JAMES: BREAKPOINTS, AND/OR RIGHTS
OF ACCUMULATION
o Breakpoints as described in this prospectus.
o Rights of accumulation which entitle shareholders to breakpoint discounts
will be automatically calculated based on the aggregated holding of fund
family assets held by accounts within the purchaser's household at Raymond
James. Eligible fund family assets not held at Raymond James may be included
in the rights of accumulation calculation only if the shareholder notifies
his or her financial advisor about such assets.
106
Notes
107
Notes
108
Pioneer
Bond Fund
YOU CAN OBTAIN MORE FREE INFORMATION about the fund from your investment firm
or by writing to Pioneer Funds, 60 State Street, Boston, Massachusetts 02109.
You may also call 1-800-225-6292 for more information about the fund, to
request copies of the fund's statement of additional information and shareowner
reports, and to make other inquiries.
VISIT OUR WEBSITE
us.amundipioneer.com
The fund makes available the statement of additional information and shareowner
reports, free of charge, on the fund's website at us.amundipioneer.com. You
also may find other information and updates about Amundi Pioneer and the fund,
including fund performance information and the fund's most recent net asset
value, on the fund's website.
SHAREOWNER REPORTS
Annual and semiannual reports to shareowners, and quarterly reports filed with
the Securities and Exchange Commission, provide additional information about
the fund's investments. The annual report discusses market conditions and
investment strategies that significantly affected the fund's performance during
its last fiscal year.
STATEMENT OF ADDITIONAL INFORMATION
The statement of additional information provides more detailed information
about the fund.
The statement of additional information, dated November 1, 2018, as may be
amended from time to time, and filed with the Securities and Exchange
Commission, is incorporated by reference into this prospectus.
You can also review and copy the fund's shareowner reports, prospectus and
statement of additional information at the Securities and Exchange Commission's
Public Reference Room in Washington, D.C. Call 1-202-551-8090 for information.
The Commission charges a fee for copies. You can get the same information free
from the Commission's EDGAR database on the Internet (http://www.sec.gov). You
may also e-mail requests for these documents to [email protected] or make a
request in writing to the Commission's Public Reference Section, Washington,
D.C. 20549-1520.
(Investment Company Act file no. 811-02864)
[GRAPHIC APPEARS HERE]
AMUNDI PIONEER DISTRIBUTOR, INC.
60 STATE STREET 20049-14-1118
BOSTON, MA 02109 (Copyright)2018 Amundi Pioneer Distributor, Inc.
US.AMUNDIPIONEER.COM Member SIPC
[GRAPHIC APPEARS HERE]
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
This is not part of the prospectus.
20049-14-1118
(Copyright)2018 Amundi Pioneer Distributor, Inc.
Underwriter of Pioneer mutual funds
Member SIPC
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