Pioneer Short Term Income Fund
With interest rates potentially on the rise, investors seeking a high level of current income consistent with relatively
high principal stability may wish to consider Pioneer Short Term Income Fund.
The Fund’s goals and investment features include:
- High Current Income – Invests in high-quality securities,
with a portion of Fund holdings in lower-quality securities, to
pursue attractive yield.
- Principal Stability – Invests in securities with shorter
durations, striving to protect investors from rising rates and
increasing inflation. As of June 30, 2013, the Fund’s duration
was 0.89 years. (Duration is an investment’s measure of price
sensitivity to changes in interest rates.)
- Competitive Performance – The Fund captured 128% of
the short-term bond market’s upside, and just over 30% of
its downside over the five-year period ended June 30, 2013.
(Market: measured by the Barclays 1- to 3-Year Government/
Expense Ratio: (As of prospectus dated August 1, 2013) Gross: 1.20%
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent month-end performance results. Current performance may be lower or
higher than the performance data quoted.
The performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. POP returns reflect deduction of a maximum 2.50% sales charge. All results are
historical and assume the reinvestment of dividends and capital gains. Other share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the periods shown. Without such waivers fund performance would be lower. Waivers may not be in effect for all funds. Certain fee waivers are contractual through a specified period. Otherwise, fee waivers can be rescinded at any time. See the prospectus and financial statements for more information.
The Barclays One- to Three-Year Government/Credit Index is an unmanaged index that measures the performance of the short-term (1 to 3 years) government and investment-grade corporate bond markets. Index returns are calculated monthly, assume reinvestment of dividends and, unlike mutual fund returns, do not reflect any fees or expenses associated with a mutual fund. It is not possible to invest directly in an index.
A word from portfolio managers Charles Melchreit and
We believe the Fund remains well positioned, given its short
duration in a low-interest-rate environment. The portfolio
maintains overweight allocations to both credit and structured
securities. Despite their recent strong performance, we believe
that these securities can continue to provide the Fund with an
excellent source of excess yield.
We recognize that the Fed’s next moves, whenever they are made,
likely will be the gradual removal of accommodation. As a result,
we believe that the Fund is also positioned to benefit from that potential
development, given that more than a third of the portfolio’s
assets are invested in floating-rate instruments.
A Word about Risk:
When interest rates rise, the prices of fixed-income securities in the Fund will generally fall. Conversely, when interest rates fall, the prices of fixed-income securities in the Fund will generally rise. Investments in the Fund are subject to possible loss due to the financial failure of issuers of underlying securities and their inability to meet their debt obligations. Prepayment risk is the chance that mortgage-backed bonds will be paid off early if falling interest rates prompt homeowners to refinance their mortgages. Forced to reinvest the unanticipated proceeds at lower interest rates, the Fund would experience a decline in income and lose the opportunity for additional price appreciation associated with falling interest rates. Investments in high-yield or lower-rated securities are subject to greater-than-average price volatility, illiquidity and possibility of default. The securities issued by U.S. Government sponsored entities (i.e., FNMA, Freddie Mac) are neither guaranteed nor issued by the U.S. Government. The portfolio may invest in mortgage-backed securities, which, during times of fluctuating interest rates, may increase or decrease more than other fixed-income securities. Mortgage-backed securities are also subject to prepayments. Investing in foreign and/or emerging markets securities involves risks relating to interest rates, currency exchange rates, economic, and political conditions. At times, the Fund’s investments may represent industries or industry sectors that are interrelated or have common risks, making the Fund more susceptible to any economic, political, or regulatory developments or other risks affecting those industries and sectors. These risks may increase share price volatility.