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PIONEER
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TAX FREE
INCOME
FUND
MOMTX
Ticker Symbol
Annual
Report
12/31/07
[LOGO] PIONEER
Investments (R)
Table of Contents
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Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Prices and Distributions 8
Performance Update 9
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 32
Notes to Financial Statements 40
Report of Independent Registered Public Accounting Firm 46
Approval of Investment Advisory Agreement 47
Trustees, Officers and Service Providers 51
President's
Dear Shareowner,
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Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. They
were particularly useful guides in the second half of 2007, when an otherwise
healthy long-term bull market was buffeted by problems in the financial
services industry and the emergence of worries about a slowing economy.
After an extended period of steady growth with sustained low unemployment and
low inflation, the U.S. economy ran into difficulty as 2007 drew to a close.
Problems in the financial system tied to poor practices in the mortgage
financing industry and the end of home price appreciation forced investors and
bankers to xxxx down the value of assets on their balance sheets by over one
hundred billion dollars. A late-summer credit crunch forced central banks in
the United States and Europe to act in the role of "lender of last resort" to
keep credit markets functioning. As the repercussions of the credit crunch and
falling home prices were felt in the real economy, unemployment rose and
consumer confidence fell. Inflation concerns moved to the back burner for the
Federal Reserve, which lowered interest rates, first gradually, then more
rapidly, as concern grew that falling home prices and disruptions in financial
markets posed a significant threat to economic growth.
Even against this "wall of worry" backdrop, the performance of major asset
classes in 2007 was generally positive. Despite several interim setbacks and
poor performance near year-end, the Standard & Poor's 500 Index increased 5% in
2007, the Dow Xxxxx Industrial Average increased 9%, and the NASDAQ Composite
Index increased 10%. International developed and emerging markets equities
performed even better, reflecting both a weakening U.S. dollar, which boosts
returns for U.S. dollar-based investors, and solid local currency returns. The
MSCI EAFE Developed Market Index rose 12%, and the MSCI Emerging Markets Index
rose 40% over the same period. The U.S. bond market, as measured by the Xxxxxx
Aggregate Bond Index, rose 7%, while the U.S. high-yield bond market, as
measured by the Xxxxxxx Xxxxx High Yield Bond Master II Index, rose 2%, as
higher-coupon yields could not compensate for falling bond prices as credit
spreads (differences between yields of higher- and lower-quality bonds) widened
during the second half of 2007.
2
Letter
Looking forward, a growing number of economists are concerned about a
recession. As always, though, emotions can get ahead of reality. Higher
mortgage defaults, a spreading of weakness to other consumer sectors or to
employment, and the possibility of a liquidity/
credit crunch represent risks to the economy. Conversely, economic growth in
the rest of the world remains relatively positive, and a weak U.S. dollar has
significantly benefited U.S. companies competing in the global marketplace.
While falling risk tolerances may continue to depress asset prices in the short
term, equity and corporate bond valuations look reasonable unless the U.S.
economy falls into a severe recession.
Sudden swings in the markets are always to be expected. The history of the
stock market demonstrates that sharp market downturns are frequently followed
by strong recoveries, but they are also difficult to time. Just as staying
diversified and invested are important investment principles, it is also
important to pay attention to asset allocation. As always, we encourage you to
work closely with your financial advisor to find the mix of stocks, bonds and
money market assets that is best aligned to your particular risk tolerance and
investment objective.
Respectfully,
/s/ Xxxxxx X. Xxxxxxxxx
Xxxxxx X. Xxxxxxxxx
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Tax Free Income Fund
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/07
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In the following interview, Xxxxx Xxxxxx, the Fund's portfolio manager,
discusses some of the factors that had an impact for the past year on the
municipal bond market and the Fund.
Q: How did the Fund perform in 2007?
A: For the 12-month period ended December 31, 2007, the total return on
Pioneer Tax Free Income Fund's Class A shares was -1.23% at net asset
value. The Fund's benchmark index, the Xxxxxx Brothers Municipal Bond
Index, generated a return of 3.36% for the same period, and the average
return of the 237 funds in the Lipper General Municipal Debt Funds category
was 1.15%. Lipper is an independent monitor of mutual fund performance. The
Fund's Class A shares generated a 30-day SEC tax-free yield of 3.84% on
December 31, 2007. That translates into a taxable equivalent yield of
5.91%, based on the maximum federal income tax rate of 35%. At the end of
the period, the Fund had 205 issues in 42 states, and the average credit
quality of the portfolio was AA-. At a time when only the highest quality
investments outperformed, the portfolio's below investment-grade and
lower-rated investment-grade securities held back returns.
Call 0-000-000-0000 or visit xxx.xxxxxxxxxxxxxxxxxx.xxx 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.
Q: What was the investment environment like during 2007?
A: The major event of 2007 was the mid-summer turmoil in the subprime mortgage
sector that led to a loss of confidence in the fixed-income markets. As
some large financial institutions were forced to take write-downs on their
subprime mortgage debt, bond credit agencies became concerned that bond
insurers, which insure both taxable and tax-free bonds, would suffer the
same fate; that is, they would not have enough capital to cover the
defaults on taxable bonds backed by subprime mortgages. In this
environment, credit agencies issued warnings to insurers that their
4
Pioneer Tax Free Income Fund
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AAA credit quality ratings could be downgraded. The actions of the credit
agencies led to a "flight to quality" to the Treasury market and to a
significant decline in virtually every other type of fixed-income asset
class, including municipal bonds.
Q: How did you manage the Fund in this environment?
A: As we closed out the fiscal year, 10% of the portfolio was invested in
high-yield bonds, which until the latter part of 2007 had been the
best-performing area of the municipal bond market. The rest of the
portfolio was invested in investment-grade bonds.
Throughout the fiscal year, the Fund maintained an emphasis on market
sectors that underpin the U.S. economy. Health care (26.9% of net assets),
education (10.1% of net assets) and special revenue, or tobacco bonds
(10.4% of net assets) were among the largest positions in the portfolio.
Nearly all of the Fund's assets were invested in revenue bonds, on which
the payment of interest and principal depends on the revenues derived from
the particular asset the bond was issued to finance. Only 3.7% of Fund
holdings were in general obligation bonds, whose principal and interest are
guaranteed by the financial resources and taxing power of the issuing
municipality.
Q: What affected performance?
A: The portfolio's lower-quality investment-grade bonds were instrumental in
the underperformance relative to the Xxxxxx Brothers Municipal Bond Index.
These included hospital and tobacco bonds, which accounted for about 37% of
the Fund's total net assets and which were rated Baa and BBB. On a more
positive note, we were able to provide shareholders with a relatively high
level of tax-free income by remaining fully invested throughout the
12-month period.
Q: What is your outlook for 2008?
A: We expect economic growth to weaken over the next several months, with
the problems in the housing sector having the biggest negative impact.
Because of rising oil prices and an upturn in unemployment, consumer
spending is also likely to decline. Given this backdrop, the Federal
Reserve seems poised to continue to add more liquidity to the economy
through further interest rate
5
Pioneer Tax Free Income Fund
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/07 (continued)
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cuts. At the close of 2007, the municipal bond market was at parity with
the taxable bond market, which means that high quality municipal bonds were
cheap. We are taking advantage of these more attractive valuations of
municipal bonds and the opportunity to add value to the portfolio.
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. A
portion of income may be subject to local, state, federal, and/or alternative
minimum tax. Capital gains, if any, are subject to a capital gains tax. At
times, the Fund's investments may represent industries or industry sectors that
are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
6
Pioneer Tax Free Income Fund
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PORTFOLIO SUMMARY 12/31/07
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Portfolio Quality
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(As a percentage of total investment portfolio based on S&P ratings)
AAA 38.6%
AA 4.5%
A 18.3%
BBB 28.6%
BB & Lower 10.0%
Portfolio Maturity
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(Effective life as a percentage of total investment portfolio)
0-1 Year 3.7%
1-3 Years 3.6%
3-6 Years 25.2%
6-8 Years 11.1%
8-10 Years 6.7%
10+ Years 49.7%
10 Largest Holdings*
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(As a percentage of debt holdings)
1. Hobart Indiana Building Corp., 6.5%, 1/15/29 3.22%
2. Louisiana Public Facilities Authority, 5.5%, 5/15/47 2.61
3. Massachusetts Bay Transportation Authority, 4.0%, 7/1/33 2.58
4. Philadelphia Pennsylvania Hospital, 5.0%, 7/1/34 2.36
5. Dallas-Fort Worth Texas International Airport, 6.0%, 11/1/14 2.35
6. Connecticut State Health & Educational, 5.0%, 7/1/42 1.85
7. Golden State Tobacco Security Corp., California, 5.125%,
6/1/47 1.80
8. Illinois Finance Authority, 5.0%, 5/1/25 1.78
9. California State Department of Veteran Affairs, 4.6%, 12/1/28 1.76
10. Reno Nevada Hospital Revenue, 5.25%, 6/1/41 1.71
* This list excludes temporary cash investments and derivative investments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
7
Pioneer Tax Free Income Fund
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PRICES AND DISTRIBUTIONS
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Net Asset Value Per Share
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Class 12/31/07 12/31/06
------- ---------- ---------
A $11.13 $11.75
B $11.04 $11.65
C $10.96 $11.57
Y $11.07 $11.69
Distributions Per Share
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1/1/07 - 12/31/07
-----------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
------- ---------------- --------------- --------------
A $0.4790 $ - $ -
B $0.3842 $ - $ -
C $0.3860 $ - $ -
Y $0.5134 $ - $ -
8
Pioneer Tax Free Income Fund
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PERFORMANCE UPDATE 12/31/07 CLASS A SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Tax Free Income Fund at public offering price,
compared to that of the Xxxxxx Brothers Municipal Bond Index.
[The following data was represented as a mountain chart in the printed
material.]
12/97 9,550 10,000
10,145 10,648
12/99 9,709 10,429
10,838 11,648
12/01 11,286 12,245
12,083 13,421
12/03 12,784 14,134
13,392 14,768
12/05 13,935 15,286
14,675 16,026
12/07 14,494 16,564
Average Annual Total Returns
(As of December 31, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
10 Years 4.26% 3.78%
5 Years 3.71 2.75
1 Year -1.23 -5.65
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Expense Ratio
(Per prospectus dated May 1, 2007)
Gross Net
0.86% 0.86%
Call 0-000-000-0000 or visit xxx.xxxxxxxxxxxxxxxxxx.xxx 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. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.5% 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 performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Xxxxxx Brothers Municipal Bond Index is a broad measure of the municipal
bond market. You cannot invest directly in an Index.
9
Pioneer Tax Free Income Fund
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PERFORMANCE UPDATE 12/31/07 CLASS B SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Tax Free Income Fund, compared to that of the Xxxxxx
Brothers Municipal Bond Index.
[The following data was represented as a mountain chart in the printed
material.]
12/97 10,000 10,000
10,542 10,648
12/99 10,014 10,429
11,094 11,648
12/01 11,469 12,245
12,176 13,421
12/03 12,782 14,134
13,302 14,768
12/05 13,723 15,286
14,346 16,026
12/07 14,063 16,564
Average Annual Total Returns
(As of December 31, 2007)
If If
Period Held Redeemed
10 Years 3.47% 3.47%
5 Years 2.92 2.92
1 Year -1.97 -5.76
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Expense Ratio
(Per prospectus dated May 1, 2007)
Gross Net
1.62% 1.62%
Call 0-000-000-0000 or visit xxx.xxxxxxxxxxxxxxxxxx.xxx 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.
"If Held" results represent the percent change in net asset per share. Returns
would have been lower had sales charges been reflected. "If redeemed" returns
reflect the deduction of applicable contingent deferred sales charge (CDSC).
Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus
for details. Note: Shares purchased prior to December 1, 2004 remain subject to
the CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
xxx.xxxxxxxxxxxxxxxxxx.xxx/xxxxxxx.
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 performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Xxxxxx Brothers Municipal Bond Index is a broad measure of the municipal
bond market. You cannot invest directly in an Index.
10
Pioneer Tax Free Income Fund
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PERFORMANCE UPDATE 12/31/07 CLASS C SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Tax Free Income Fund, compared to that of the Xxxxxx
Brothers Municipal Bond Index.
[The following data was represented as a mountain chart in the printed
material.]
12/97 10,000 10,000
10,533 10,648
12/99 10,014 10,429
11,075 11,648
12/01 11,450 12,245
12,175 13,421
12/03 12,788 14,134
13,302 14,768
12/05 13,741 15,286
14,369 16,026
12/07 14,085 16,564
Average Annual Total Returns
(As of December 31, 2007)
If If
Period Held Redeemed
10 Years 3.48% 3.48%
5 Years 2.96 2.96
1 Year -1.97 -1.97
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Expense Ratio
(Per prospectus dated May 1, 2007)
Gross Net
1.61% 1.61%
Call 0-000-000-0000 or visit xxx.xxxxxxxxxxxxxxxxxx.xxx 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.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). 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.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. 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 performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Xxxxxx Brothers Municipal Bond Index is a broad measure of the municipal
bond market. You cannot invest directly in an Index.
11
Pioneer Tax Free Income Fund
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PERFORMANCE UPDATE 12/31/07 CLASS Y SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Tax Free Income Fund, compared to that of the Xxxxxx
Brothers Municipal Bond Index.
[The following data was represented as a mountain chart in the printed
material.]
12/97 10,000 10,000
10,620 10,648
12/99 10,164 10,429
11,346 11,648
12/01 11,815 12,245
12,610 13,421
12/03 13,392 14,134
14,081 14,768
12/05 14,701 15,286
15,537 16,026
12/07 15,391 16,564
Average Annual Total Returns
(As of December 31, 2007)
If If
Period Held Redeemed
10 Years 4.41% 4.41%
5 Years 4.07 4.07
1 Year -0.94 -0.94
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Expense Ratio
(Per prospectus dated May 1, 2007)
Gross Net
0.52% 0.52%
Call 0-000-000-0000 or visit xxx.xxxxxxxxxxxxxxxxxx.xxx 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.
Performance for periods prior to the inception of Class Y shares reflects the
NAV performance of the Fund's Class A shares. The performance does not reflect
differences in expenses, including the Rule 12b-1 fees applicable to Class A
shares. Since fees for Class A shares are generally higher than those of Class
Y shares, the performance shown for Class Y shares prior to its inception would
have been higher. Class Y shares are not subject to sales charges and are
available for limited groups of eligible investors, including institutional
investors. 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 performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Xxxxxx Brothers Municipal Bond Index is a broad measure of the municipal
bond market. You cannot invest directly in an Index.
12
Pioneer Tax Free Income Fund
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COMPARING ONGOING FUND EXPENSES
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As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Tax Free Income Fund
Based on actual returns from July 1, 2007 through December 31, 2007
Share Class A B C Y
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Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value On 7/1/07
Ending Account Value $ 999.70 $ 995.63 $ 995.63 $1,001.11
On 12/31/07
Expenses Paid During Period* $ 4.23 $ 8.50 $ 8.05 $ 2.72
* Expenses are equal to the Fund's annualized expense ratio of 0.84%, 1.69%,
1.60%, and 0.54%, for Class A, Class B, Class C, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
13
Pioneer Tax Free Income Fund
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COMPARING ONGOING FUND EXPENSES (continued)
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Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Tax Free
Income Fund
Based on a hypothetical 5% return per year before expenses, reflect
ing the period from July 1, 2007 through December 31, 2007
Share Class A B C Y
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Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value On 7/1/07
Ending Account Value $1,020.97 $1,016.69 $1,017.14 $1,022.48
On 12/31/07
Expenses Paid During Period* $ 4.28 $ 8.59 $ 8.13 $ 2.75
* Expenses are equal to the Fund's annualized expense ratio of 0.84%, 1.69%,
1.60%, and 0.54%, for Class A, Class B, Class C, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
14
Pioneer Tax Free Income Fund
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SCHEDULE OF INVESTMENTS 12/31/07
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S&P/
Floating Xxxxx'x
Rate (b) Ratings
Shares (unaudited) (unaudited) Value
COMMON STOCKS - 0.4%
Transportation - 0.4%
Airlines - 0.4%
153,656 Northwest Airlines* $ 2,229,548
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TOTAL COMMON STOCK
(Cost $4,839,466) $ 2,229,548
------------
Principal
Amount MUNICIPAL BONDS - 99.8%
No State - 0.9%
$ 5,000,000 NR/NR Northern Mariana Islands,
5.0%, 6/1/17 $ 4,937,050
------------
$ 4,937,050
------------
Alabama - 2.4%
7,500,000 A+/A1 DCH Health Care Authority,
5.125%, 6/1/36 $ 7,318,800
405,000 AAA/Aaa Florence Alabama Water General,
4.4%, 12/1/08 410,229
550,000 AA/Aa2 Hunstville Alabama Electric System,
4.6%, 12/1/09 561,655
1,445,000 AA+/Aa1 Huntsville Alabama General,
4.75%, 11/1/18 1,472,845
1,895,000 AA+/Aa1 Huntsville Alabama, 5.125%, 5/1/20 2,037,599
725,000 AAA/Aaa Madison Alabama Water & Waste
Water Board, 4.6%, 12/1/11 752,217
645,000 NR/NR Mobile Alabama Regulation General,
0.0%, 2/15/09 647,522
500,000 NR/Aaa Southeast, Alabama Gas District,
5.3%, 6/1/12 534,450
------------
$ 13,735,317
------------
Arizona - 3.4%
1,000,000 AAA/Aaa Maricopa County School District,
7.0%, 7/1/08 $ 1,019,600
10,000,000 AAA/Aaa Phoenix Arizona Civic Corp.,
5.50%, 7/1/43* 8,346,600
4,000,000 AAA/Aaa Phoenix Arizona Civic Corp., District
Revenue, 0.0%, 7/1/25* 3,328,160
The accompanying notes are an integral part of these financial statements. 15
Pioneer Tax Free Income Fund
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SCHEDULE OF INVESTMENTS 12/31/07 (continued)
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
Arizona - (continued)
$ 8,005,000 AAA/Aaa Phoenix Arizona Civic Corp., District
Revenue, 0.0%, 7/1/26* $ 6,648,953
------------
$ 19,343,313
------------
California - 11.9%
5,000,000 AAA/Aaa Alhambra California Certificates
Partnership, 6.75%, 9/1/23 $ 5,769,900
10,000,000 AAA/Aaa California State Department of
Veteran Affairs, 4.6%, 12/1/28 9,922,600
1,000,000 AAA/Aaa California State, 4.25%, 8/1/33 926,380
4,875,000 NR/Baa2 California Statewide Communities
Development Authority,
5.0%, 5/15/30 4,551,251
5,125,000 NR/Baa2 California Statewide Communities
Development Authority,
5.0%, 5/15/38 4,636,741
20,000,000 AAA/Aaa Foothill Eastern Transportation
Corridor Agency Toll Road Revenue,
0.0%, 1/1/28* 7,882,600
1,000,000 NR/Aaa Xxxxxxxx-XxXxxxxx California School
District, 6.0%, 7/1/16 1,178,010
4,525,000 AAA/Aaa Golden State Tobacco Securitization,
7.8%, 6/1/42 5,449,548
1,000,000 AAA/Aaa Golden State Tobacco Securitization,
7.875%, 6/1/42 1,207,650
3,000,000 AAA/Aaa Golden State Tobacco Securitization,
7.9%, 6/1/42 3,626,280
12,000,000 BBB/Baa3 Golden State Tobacco Security Corp.,
California, 5.125%, 6/1/47 10,106,160
10,000,000 NR/NR Inland Empire Tobacco Securitization
Authority California Tobacco,
0.0%, 6/1/36* 1,435,000
1,175,000 NR/Aaa Lucia Mar University School District,
0.0%, 8/1/20* 651,667
165,000 AAA/Aaa Sacramento California Municipal Util-
ity District, 5.5%, 2/1/11 170,108
3,600,000 AAA/Aaa Saugus California University School
District, 0.0%, 8/1/23* 1,682,568
16 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
California - (continued)
$ 1,210,000 AAA/Aaa Saugus California University School
District, 0.0%, 8/1/24* $ 533,985
5,000,000 BBB/Baa3 Tobacco Securitization Authority
Southern California Tobacco Settle-
ment, 5.125%, 6/1/46 4,215,850
3,000,000 AAA/Aaa West VY Mission Community College
California, 5.0%, 8/1/30 3,136,140
------------
$ 67,082,438
------------
Colorado - 1.6%
2,500,000 A-/A3 Colorado Health Facilities Revenue,
5.25%, 6/1/36 $ 2,449,275
10,000 NR/A2 Colorado Housing Finance Authority,
Series A-3, 7.0%, 11/1/16 10,314
15,000 NR/Aa2 Colorado Housing Finance Authority,
Series B-2, 7.45%, 11/1/27 15,250
70,000 NR/Aa2 Colorado Housing Finance Authority,
Series B-3, 6.55%, 5/1/25 71,720
3,575,000 AAA/Aaa Xxxxxxx County School District
Regional, 7.0%, 12/15/13 4,259,470
10,000,000 AAA/Aaa E-470 Public Highway Authority
Colorado, 0.0%, 9/1/37* 2,052,300
------------
$ 8,858,329
------------
Connecticut - 2.0%
1,000,000 AA/NR Connecticut State Health &
Education, 5.5%, 7/1/17 $ 1,044,780
10,000,000 AAA/Aaa Connecticut State Health &
Educational, 5.0%, 7/1/42 10,400,100
------------
$ 11,444,880
------------
District of Columbia - 1.6%
8,825,000 BBB/Baa3 District of Columbia Tobacco
Settlement Financing Corp.,
6.75%, 5/15/40 $ 9,014,296
------------
$ 9,014,296
------------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (continued)
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
Florida - 1.8%
$ 1,000,000 AAA/Aaa Dade County Florida General,
7.7%, 10/1/12 $ 1,178,660
500,000 BBB+/NR Halifax Hospital Medical Center
Florida, 5.375%, 6/1/46 476,175
5,435,000 BB/XX Xxx County Florida Industrial Develop-
ment Authority, 4.75%, 6/15/14 5,255,917
1,535,000 NR/A2 Xxxxxx County Florida Hospital
District Development,
5.0%, 10/1/16 1,595,540
2,000,000 NR/NR Sarasota County Florida Health,
5.75%, 7/1/45 1,806,900
------------
$ 10,313,192
------------
Georgia - 1.7%
10,000,000 NR/A2 Houston County Georgia Hospital
Authority Revenue, 5.0%, 10/1/42 $ 9,431,400
------------
$ 9,431,400
------------
Illinois - 5.5%
000,000 XXX/XX Xxxxxxx Xxxxxxxx Tax Increment,
5.0%, 11/15/10 $ 487,060
4,000,000 NR/CAA1 Chicago Illinois X'Xxxx International
Airport, 5.5%, 12/1/30 3,424,920
170,000 NR/Aaa Chicago Illinois Single Family
Mortgage, 6.45%, 9/1/29 172,424
10,775,000 NR/Baa3 Illinois Finance Authority,
5.0%, 5/1/25 9,995,213
5,000,000 NR/Baa1 Illinois Finance Authority,
5.0%, 4/1/31 4,692,450
5,000,000 NR/Baa1 Illinois Finance Authority,
5.0%, 4/1/36 4,609,600
1,145,000 A+/A1 Illinois Housing Development
Authority Revenue Multi-Family
Housing, 7.0%, 7/1/23 1,470,695
20,000,000 Aaa/AAA Metropolitan Pier & Exposition
Authority Illinois Dedicated State
Tax, 0.0%, 6/15/39* 4,295,800
18 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
Illinois - (continued)
$ 3,000,000 AAA/Aaa Will County Illinois Forest
Preservation District,
0.0%, 12/1/18* $ 1,855,500
------------
$ 31,003,662
------------
Indiana - 6.3%
15,000,000 AAA/Aaa Hobart Indiana Building Corp.,
6.5%, 1/15/29 $ 18,151,050
5,000,000 A+/A2 Indiana Health & Educational Facility
Authority, 5.0%, 2/15/36 4,719,000
5,000,000 A+/A2 Indiana Health & Educational Facility
Authority, 5.0%, 2/15/39 4,678,450
1,250,000 BBB+/Ba1 Indiana State Development Finance,
5.75%, 10/1/11 1,259,075
1,400,000 AA/NR Indianapolis Local Public
Improvement Board Board
Revenue, 6.75%, 2/1/14 1,569,498
3,400,000 AA/Aa2 Indianapolis Local Public
Improvement Board Revenue,
6.0%, 1/10/20 3,927,272
1,000,000 AA/A2 Xxxxxxxx Township Metropolitan
School District Revenue, 6.75%,
7/5/13 1,153,490
------------
$ 35,457,835
------------
Kentucky - 0.4%
165,000 NR/NR Kentucky Economic Development
Finance, 6.25%, 10/1/12 $ 179,695
335,000 NR/NR Kentucky Economic Development
Finance, 6.25%, 10/1/12 353,475
2,000,000 A-/NR Louisville & Jefferson County
Kentucky Metro Government Health
Systems Revenue,
5.25%, 10/1/36 1,939,240
------------
$ 2,472,410
------------
The accompanying notes are an integral part of these financial statements. 19
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (continued)
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
Louisiana - 3.8%
$ 425,000 NR/NR Louisiana Public Facilities Authority
Revenue, 6.25%, 10/1/11 $ 421,906
15,000,000 NR/A3 Louisiana Public Facilities Authority
Revenue, 5.5%, 5/15/47 14,698,500
1,085,000 AAA/Aaa Louisiana Local Government Environ-
ment Community, 5.25%, 12/1/18 1,188,878
5,000,000 BBB+/Baa1 St. Xxxx Baptist Parish Louisiana
Revenue, 5.125%, 6/1/37 4,787,600
------------
$ 21,096,884
------------
Massachusetts - 13.4%
16,070,000 BBB/NR Massachusetts Bay Transportation
Authority, 4.0%, 7/1/33 $ 14,528,244
4,990,000 BBB/NR Massachusetts Bay Transportation
Authority, 5.0%, 7/1/31 5,425,777
8,170,000 A+/NR Massachusetts State Dedicated Tax,
5.5%, 1/1/29 9,296,480
750,000 NR/NR Massachusetts State Development
Finance Agency, 4.5%, 9/1/36 687,720
1,680,000 AAA/Aaa Massachusetts State Development
Finance Agency, 5.25%, 10/1/29 1,604,400
3,320,000 AAA/Aa2 Massachusetts State Development
Finance Agency, 5.25%, 10/1/37 3,102,341
16,070,000 AAA/Aaa Noblesville Independent Revenue,
5.25%, 2/1/30 6,837,868
5,500,000 BBB/Baa2 Massachusetts State Development
Finance Agency, 5.75%, 1/1/42 6,609,130
2,635,000 BBB/Baa3 Massachusetts State Development
Finance Agency, 6.25%, 10/15/17 2,545,041
1,500,000 BBB/Baa2 Massachusetts State Development
Finance Agency, 6.375%, 7/1/23 1,742,805
2,000,000 A/NR Massachusetts State Health &
Educational Facilities Authority,
6.625%, 7/1/31 2,070,440
2,500,000 BBB-/NR Massachusetts State Health &
Educational Facilities Authority,
5.5%, 7/1/40 2,322,175
20 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
Massachusetts - (continued)
$ 5,090,000 BBB/Baa3 Massachusetts State Health &
Educational Facilities Authority,
5.75%, 7/1/32 $ 5,569,173
200,000 BBB+/NR Massachusetts State Health &
Educational Facilities Authority,
5.75%, 7/1/32 211,990
40,000 AAA/Aaa Massachusetts State Health &
Educational Facilities Authority,
6.0%, 7/1/18 42,856
1,250,000 AA/Aa2 Massachusetts State Health &
Educational Facilities Authority,
6.25% 7/1/22 1,283,263
2,000,000 AAA/Aaa Massachusetts State Health &
Educational Facilities Authority,
6.5%, 7/1/21 2,086,440
1,000,000 A-/A3 Massachusetts State Health &
Educational Facilities Authority,
6.75%, 7/1/16 1,062,810
1,145,000 AA/Aa2 Massachusetts State Health &
Educational Facilities Authority,
6.25%, 10/1/31 1,187,296
6,215,000 AA/Aa2 Massachusetts State Health and
Educational Facilities Authority,
5.25%, 7/1/33 7,082,117
------------
$ 75,298,366
------------
Maryland - 0.8%
4,600,000 NR/NR Maryland Health Department,
4.75% 1/1/13 $ 4,399,670
------------
$ 4,399,670
------------
Maine - 0.1%
300,000 AAA/Aaa Maine Municipal Bond Bank,
5.0%, 11/1/09 $ 307,866
------------
$ 307,866
------------
The accompanying notes are an integral part of these financial statements. 21
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (continued)
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
Michigan - 1.3%
$ 1,500,000 BBB-/NR Xxxx Xxxxxxx Health System,
6.0%, 9/15/23 $ 1,520,355
400,000 AAA/Aaa Michigan State Trunk Line,
5.5%, 11/1/10 425,572
4,000,000 BBB-/Ba1 Michigan State Hospital Finance
Authority, 6.0%, 2/1/24 4,001,280
1,500,000 AAA/Aaa Southfield Michigan Public Schools,
4.5%, 5/1/27 1,494,165
------------
$ 7,441,372
------------
Minnesota - 1.2%
5,000,000 A/A2 Becker Minnesota Pollution Control
Revenue Northern States Power
"A" Conversions, 8.5%, 4/1/30 $ 5,876,400
1,000,000 NR/Baa3 Laurentian Energy Authority
Minnesota Cogeneration,
5.0%, 12/1/15 1,013,660
------------
$ 6,890,060
------------
Missouri - 0.1%
295,000 AAA/NR Missouri State Housing Development
Common Mortgage Revenue, Single
Family, Series B-2, 6.4%, 3/1/29 $ 303,349
------------
$ 303,349
------------
Mississippi - 1.5%
1,800,000 NR/NR Columbus Mississippi Industrial
Development Revenue, 5.9%,
12/1/11 $ 1,831,302
6,000,000 BBB/Baa2 Lowndes County Mississippi Solid
Waste Disposal & Pollution Control
Revenue, 6.8%, 4/1/22 6,603,360
------------
$ 8,434,662
------------
Montana - 0.1%
500,000 BBB+/Baa1 Forsyth Pollution Control Revenue,
5.2%, 5/1/33 $ 505,890
------------
$ 505,890
------------
22 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
North Carolina - 0.8%
$ 2,250,000 NR/NR North Carolina Capital Facilities
Finance, 4.5%, 10/1/26 $ 1,976,670
2,250,000 AA+/Aa1 University North Carolina Revenues,
5.0%, 12/1/36 2,357,460
------------
$ 4,334,130
------------
North Dakota - 0.2%
280,000 NR/Aa1 North Dakota State Housing Finance
Agency Revenue, 5.8%, 7/1/18 $ 285,519
575,000 NR/Aa1 North Dakota State Housing Finance
Agency Revenue, 6.0%, 7/1/20 582,055
------------
$ 867,574
------------
Nebraska - 0.9%
1,648,869 NR/NR Energy America Nebraska Natural
Gas Revenue, 5.45%, 4/15/08 $ 1,642,043
1,325,000 AAA/Aaa Municipal Energy Agency, 6.0%,
4/1/08 1,334,514
2,050,000 7.75 AAA/Aaa Nebraska Investment Finance
Authority Single Family, Floating
Rate Note, 3/1/26 2,092,558
------------
$ 5,069,115
------------
New Hampshire - 2.3%
5,000,000 A-/NR New Hampshire Health & Educational
Facilities Authority Revenue,
5.0%, 10/1/37 $ 4,601,300
5,000,000 A-/NR New Hampshire Health & Educational
Facilities Authority Revenue,
5.0%, 10/1/32 4,663,700
1,250,000 A+/A2 New Hampshire Health & Educational
Facilities Authority Revenue, 5.75%,
10/1/31 1,282,425
2,000,000 BBB+/Baa1 New Hampshire Health & Educational
Facilities Authority Revenue,
5.75%, 7/1/22 2,059,500
140,000 NR/Aa2 New Hampshire State Housing
Finance Authority, 6.125%, 1/1/20 143,333
------------
$ 12,750,258
------------
The accompanying notes are an integral part of these financial statements. 23
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (continued)
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
New Jersey - 4.8%
$ 500,000 NR/NR New Jersey Economic Development
Authority, 5.3%, 11/1/26 $ 448,720
450,000 NR/NR New Jersey Economic Development
Authority, 5.375%, 11/1/36 392,792
5,060,000 B/B3 New Jersey Economic Development
Authority Special Facility Revenue,
7.0%, 11/15/30 5,091,170
2,000,000 A+/A2 New Jersey Health Care Facilities
Financing Authority, 5.0%, 7/1/24 2,019,580
4,140,000 BBB-/Baa3 New Jersey Health Care Facilities
Financing Authority, 5.25%, 7/1/30 3,811,988
1,000,000 AAA/Aaa Tobacco Settlement Financing Corp.,
New Jersey, 6.25%, 6/1/43 1,137,860
5,215,000 AAA/Aaa Tobacco Settlement Financing Corp.,
New Jersey, 6.75%, 6/1/39 6,061,812
9,500,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
5.0%, 6/1/41 7,922,905
------------
$ 26,886,827
------------
Nevada - 1.7%
10,000,000 A-/A3 Reno Nevada Hospital Revenue,
5.25%, 6/1/41 $ 9,619,100
------------
$ 9,619,100
------------
New York - 4.0%
1,000,000 NR/Ba2 Albany Individual Development,
6.0%, 7/1/19 $ 1,016,820
400,000 AA-/A1 Metropolitan Transportation Authority
New York, 5.5%, 7/1/14 440,532
2,000,000 5.50 AAA/Aa1 New York City Transportation Finance
Authority Revenue, Floating Rate
Note, 11/1/26 2,154,140
4,400,000 A+/A1 New York State Dorm Authority,
0.0%, 7/1/39* 3,627,668
8,465,000 AAA/Aaa New York State Dorm Authority,
5.0%, 7/1/25 9,038,842
24 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
New York - (continued)
$ 5,515,000 AAA/Aaa New York State Dorm Authority,
5.25%, 7/1/24 $ 6,122,643
------------
$ 22,400,645
------------
Ohio - 0.2%
400,000 AAA/Aaa Ohio State Building Authority
Revenue, 5.5%, 10/1/11 $ 430,340
500,000 AA/Aa2 Ohio State Building Authority
Revenue, 6.0%, 10/1/08 511,130
------------
$ 941,470
------------
Oklahoma - 0.3%
1,530,000 AAA/Aaa Moore Oklahoma General Obligation,
5.75%, 4/1/12 $ 1,637,222
------------
$ 1,637,222
------------
Oregon - 0.8%
1,165,000 AAA/Aaa Xxxxxxx County School District No. 4,
5.5%, 6/15/17 $ 1,254,752
315,000 BBB/NR Klamath Falls Inter-Community
Hospital Authority Revenue,
6.125%, 9/1/22 353,991
185,000 BBB/NR Klamath Falls Inter-Community
Hospital Authority Revenue,
6.125%, 9/1/22 194,548
1,000,000 NR/Aaa Portland Urban Development,
5.75%, 6/15/08 1,062,640
1,650,000 AAA/Aaa Wasco County School District,
5.5%, 6/15/19 1,896,939
------------
$ 4,762,870
------------
Pennsylvania - 4.4%
4,000,000 BB+/B1 Allentown Pennsylvania Area Hospital
Authority, 6.0%, 11/15/16 $ 3,994,240
1,165,000 A-/XX Xxxxxxx County Pennsylvania Health
& Education Faculty,
5.0%, 11/1/19 1,184,898
1,650,000 A-/XX Xxxxxxx County Pennsylvania Health
& Education Faculty,
5.0%, 11/1/31 1,576,889
The accompanying notes are an integral part of these financial statements. 25
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (continued)
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
Pennsylvania - (continued)
$ 1,220,000 A-/XX Xxxxxxx County Pennsylvania
Health & Education Facility,
5.0%, 11/1/20 $ 1,235,567
1,000,000 B/NR Columbia County Pennsylvania
Hospital Authority, 5.8%, 6/1/19 918,590
1,000,000 BBB/XX Xxxxxxxxxx County Pennsylvania
Industrial, 5.0%, 12/1/24 943,250
1,000,000 BBB/XX Xxxxxxxxxx County Pennsylvania
Industrial, 5.0%, 12/1/30 899,230
15,000,000 BBB/Baa3 Philadelphia Pennsylvania Hospital,
5.0%, 7/1/34 13,275,000
500,000 AAA/Aaa Philadelphia Pennsylvania Parking,
4.875%, 9/1/09 513,220
65,000 A/XX Xxxxx Pennsylvania Health Care
Facilities Authority,
5.75%, 12/1/21 67,907
185,000 A/XX Xxxxx Pennsylvania Health Care
Facilities Authority,
5.75%, 12/1/21 203,792
------------
$ 24,812,583
------------
Puerto Rico - 1.0%
5,000,000 AAA/Aaa Puerto Rico Electric Power,
0.0%, 7/1/17* $ 3,322,150
3,305,000 AAA/Aaa Puerto Rico Electric Power,
0.0%, 7/1/17* 2,195,941
------------
$ 5,518,091
------------
Rhode Island - 0.5%
000,000 X-/X0 Xxxxx Xxxxxx Xxxxx Health &
Education Facilities Authorities,
6.5%, 8/15/32 $ 284,025
415,000 A-/A3 Rhode Island State Health &
Educational Building Corp.,
6.375%, 8/15/21 469,842
65,000 A-/A3 Rhode Island State Health &
Educational Building Corp.,
6.375%, 8/15/21 69,150
26 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
Rhode Island - (continued)
$ 2,100,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
6.25%, 6/1/42 $ 2,105,460
------------
$ 2,928,477
------------
South Carolina - 0.6%
500,000 BBB+/Baa1 SC Jobs Economic Development
Authority, 6.0%, 8/1/13 $ 530,315
95,000 NR/Aa2 South Carolina Housing Finance &
Development Authority Mortgage
Revenue, Series A-1, 6.2%, 7/1/09 95,168
440,000 BBB+/Baa1 South Carolina Jobs Economic,
6.875%, 8/1/27 515,068
2,500,000 BBB/Baa3 Tobacco Settlement Revenue
Management, 6.375%, 5/15/30 2,504,200
------------
$ 3,644,751
------------
South Dakota - 0.0%
65,000 NR/Aaa South Dakota Conservancy District
Revenue, 5.625%, 8/1/17 $ 65,129
------------
$ 65,129
------------
Tennessee - 3.5%
1,570,000 NR/Aaa Clarksville Tennessee Water and Gas,
5.15%, 2/1/14 $ 1,716,811
1,000,000 BBB+/Baa1 Johnson City Tennessee Health
& Education, 5.5%, 7/1/36 978,880
1,000,000 NR/Ba2 Xxxx County Health Facility,
6.375%, 4/15/22 1,020,750
1,500,000 NR/Ba2 Xxxx County Health Facility,
6.5%, 4/15/31 1,532,700
750,000 AA/Aa2 Knoxville County Tennessee Series A,
5.0%, 5/1/13 753,000
750,000 AAA/Aaa Knoxville County Tennessee Health
Education & Housing, 7.25%,
1/1/08 750,000
1,000,000 AA/Aa3 Metro Government Nashville/
Davidson County Tennessee,
5.5%, 5/15/12 1,088,550
The accompanying notes are an integral part of these financial statements. 27
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (continued)
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
Tennessee - (continued)
$ 1,000,000 AA/Aa3 Metro Government Nashville/
Davidson County Tennessee,
5.5%, 5/15/14 $ 1,115,420
1,500,000 AA/Aa2 Metro Government Nashville/
Davidson County Tennessee,
6.0%, 12/1/09 1,583,160
1,000,000 AAA/Aaa Metro Government Nashville/
Davidson County Tennessee,
7.5%, 11/15/12 1,170,090
1,000,000 NR/Aaa Tennessee County Tennessee
General, 5.5%, 4/1/19 1,051,270
5,960,000 NR/XX Xxxxxx Court Tennessee Health
Educational, 5.5%, 11/1/46 5,577,070
550,000 NR/Aa1 Xxxxxxxxxx County Tennessee
General, 5.1%, 3/1/14 572,622
500,000 NR/Aa1 Xxxxxxxxxx County Tennessee
General, 6.0%, 3/1/08 502,480
------------
$ 19,412,803
------------
Texas - 8.2%
3,000,000 CCC/CAA1 Brazos River Authority Pollution
Control Revenue, 7.7%, 4/1/33 $ 3,102,810
750,000 AAA/Aaa Xxxxxxx Independent School District,
6.75%, 8/15/21 951,308
850,000 AAA/Aaa Xxxxxxx Independent School District,
6.75%, 8/15/22 1,086,062
13,885,000 CCC+/CAA1 Dallas-Fort Worth Texas International
Airport, 6.0%, 11/1/14 13,233,377
1,000,000 A/A2 Xxxxxx County Health Facilities
Development Authority,
6.375%, 6/1/29 1,107,150
10,000 AA+/Aa1 San Antonio Texas General,
4.75%, 2/1/19 10,183
505,000 AA+/Aa1 San Antonio Texas General,
4.75%, 2/1/19 510,994
300,000 AAA/Aaa San Xxxxxx Del Rio Texas
Conservation, 5.0%, 8/15/12 314,163
28 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
Texas - (continued)
$ 2,310,000 AAA/Aaa Texas Clear Creek Independent
School District General Obligation,
0.0%, 2/1/10* $ 2,156,408
2,050,000 NR/Aaa Texas Xxxxxx Independent School
District General Obligation,
0.0%, 8/15/10* 1,879,461
5,500,000 AAA/Aaa Texas Public Finance Authority
Building Revenue, 0.0%, 2/1/08* 5,485,700
2,750,000 AAA/Aaa Texas Public Finance Authority
Building Revenue, 0.0%, 2/1/10* 2,566,108
3,500,000 6.20 AA/Aa1 Texas State, Floating Rate Note,
9/30/11 4,187,820
1,000,000 AAA/Aaa Texas Water Development Board,
5.0%, 7/15/27 1,049,490
1,335,000 AAA/Aaa Texas Water Development Board
5.0%, 7/15/26 1,404,260
500,000 AAA/Aaa Tomball Texas Independent Schools,
5.0%, 2/15/11 526,600
3,500,000 BBB+/NR Weslaco Health Facilities,
6.25%, 6/1/25 3,645,985
2,000,000 BBB+/NR Weslaco Health Facilities,
6.25%, 6/1/32 2,065,900
980,000 NR/Aaa Whitehouse Texas Independent
School District, 4.8%, 2/15/12 982,107
20,000 NR/Aaa Whitehouse Texas Independent
School District, 4.8%, 2/15/12 20,038
------------
$ 46,285,924
------------
Utah - 0.1%
500,000 NR/NR Utah County Utah Charter School
Revenue, 5.35%, 7/15/17 $ 494,115
------------
$ 494,115
------------
Virginia - 0.6%
2,500,000 7.32 AAA/Aaa Henrico County Virginia, Floating
Rate Note, 8/23/27 $ 3,296,600
------------
$ 3,296,600
------------
The accompanying notes are an integral part of these financial statements. 29
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (continued)
--------------------------------------------------------------------------------
S&P/
Floating Xxxxx'x
Principal Rate (b) Ratings
Amount (unaudited) (unaudited) Value
Washington - 2.8%
$ 1,000,000 NR/Baa2 Skagit County Washington Public
Health, 5.75%, 12/1/32 $ 979,210
1,095,000 AAA/Aaa King County Washington Public
Hospital District, 5.25%, 12/1/13 1,126,427
300,000 AAA/Aaa King County Washington School
District No. 415, 5.5%, 6/1/13 331,575
1,000,000 NR/Aaa Xxxxxx County Washington School
District, 4.0%, 12/1/09 1,017,350
500,000 AAA/Aaa Renton Washington Water & Sewer,
4.4%, 12/1/15 525,830
2,250,000 AAA/Aaa Washington Mukilted School,
5.7%, 12/1/11+ 2,455,802
2,500,000 NR/Aaa Snohomish County Public Utility
District Revenue, 6.8%, 1/1/20 3,051,975
3,500,000 BBB/Baa3 Tobacco Settlement Authority
Washington, 6.625%, 6/1/32 3,570,525
2,500,000 NR/XX Xxxxxxxxxx State Housing,
5.25%, 1/1/17 2,449,150
------------
$ 15,507,844
------------
Wisconsin - 0.3%
1,430,000 AAA/Aaa Xxxxx-Friendship School District,
6.5%, 4/1/16 $ 1,724,194
------------
$ 1,724,194
------------
TOTAL MUNICIPAL BONDS
(Cost $557,191,852) $560,731,963
------------
TOTAL INVESTMENT IN SECURITIES - 100.2%
(Cost $562,031,318) (a)(c) $562,961,511
------------
OTHER ASSETS AND
LIABILITIES - (0.2)% $ (1,238,466)
------------
TOTAL NET ASSETS - 100.0% $561,723,045
============
30 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
* Pre-refunded bonds have been collateralized by U.S. Treasury securities
which are held in escrow and used to pay principal and interest on the
tax-exempt issue and to retire the bonds in full at the earliest refunding
date.
NR Not rated.
+ Escrowed to maturity in U.S. Government Securities
(a) The concentration of investments by type of obligation/market sector is as
follows (unaudited):
Insured
FGIC 10.7%
MBIA 8.2
AmBac 5.4
FSA 3.0
ACA 0.1
----
27.4
Escrowed in U.S. Government Securities 4.4
General Obligation 3.7
Revenue Bonds:
Health Revenue 26.9
Special Revenue 10.4
Various Revenues 8.9
Pollution Control Revenue 2.9
Transportation Revenue 3.1
Power 0.7
Housing 1.1
Education Revenue 10.1
Water and Sewer 0.4
-----
100.0%
=====
(b) Debt obligation with a variable interest rate. Rate shown is rate at period
end
(c) At December 31, 2007, the net unrealized gain on investments based on cost
for federal income tax purposes of $562,310,165 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $19,108,672
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (18,457,326)
-----------
Net unrealized gain $ 651,346
===========
Purchase and sales of securities (excluding temporary cash investments) for the
year ended December 31, 2007 aggregated $426,381,692 and $470,722,912,
respectively.
The accompanying notes are an integral part of these financial statements. 31
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 12/31/07
--------------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (cost $562,031,318) $562,961,511
Receivables -
Investment securities sold 46,132
Fund shares sold 1,380,533
Interest 7,194,031
Other 51,920
------------
Total assets $571,634,127
------------
LIABILITIES:
Payables -
Investment securities purchased $ 2,442,445
Fund shares repurchased 1,529,115
Dividends 1,185,830
Due to bank 4,640,780
Due to affiliates 62,048
Accrued expenses 50,864
------------
Total liabilities $ 9,911,082
------------
NET ASSETS:
Paid-in capital $570,120,050
Undistributed net investment income 284,485
Accumulated net realized loss on investments (9,611,683)
Net unrealized gain on investments 930,193
------------
Total net assets $561,723,045
============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $313,705,643/28,179,852 shares) $ 11.13
============
Class B (based on $14,622,470/1,324,866 shares) $ 11.04
============
Class C (based on $13,580,501/1,239,065 shares) $ 10.96
============
Class Y (based on $219,814,431/19,858,193 shares) $ 11.07
============
MAXIMUM OFFERING PRICE:
Class A ($11.13 [divided by] 95.5%) $ 11.65
============
32 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
For the Year Ended 12/31/07
INVESTMENT INCOME:
Interest $ 30,943,440
------------
EXPENSES:
Management fees $2,985,435
Transfer agent fees and expenses
Class A 233,111
Class B 19,721
Class C 10,786
Class Y 3,597
Distribution fees
Class A 833,565
Class B 161,084
Class C 136,632
Administrative reimbursements 142,272
Custodian fees 21,196
Registration fees 70,573
Professional fees 66,468
Printing expense 21,590
Interest expense 4,392
Fees and expenses of nonaffiliated trustees 11,476
Miscellaneous 37,032
----------
Total expenses $ 4,758,930
Less fees paid indirectly (12,492)
------------
Net expenses $ 4,746,438
------------
Net investment income $ 26,197,002
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $ 1,855,800
------------
Change in net unrealized gain on investments $(35,099,680)
------------
Net loss on investments $(33,243,880)
------------
Net decrease in net assets resulting from operations $ (7,046,878)
============
The accompanying notes are an integral part of these financial statements. 33
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
For the Years Ended 12/31/07 and 12/31/06, respectively
Year Ended Year Ended
12/31/07 12/31/06
FROM OPERATIONS:
Net investment income $ 26,197,002 $ 27,174,024
Net realized gain on investments 1,855,800 1,010,751
Change in net unrealized gain (loss) on investments (35,099,680) 5,927,066
-------------- --------------
Net increase (decrease) in net assets resulting
from operations $ (7,046,878) $ 34,111,841
-------------- --------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.48 and $0.47 per share, respectively) $ (14,126,381) $ (12,940,338)
Class B ($0.38 and $0.37 per share, respectively) (545,848) (681,571)
Class C ($0.39 and $0.38 per share, respectively) (467,609) (447,945)
Investor Class ($0.00 and $0.48 per share,
respectively) - (343,022)
Class Y ($0.51 and $0.51 per share, respectively) (11,927,188) (12,697,789)
-------------- --------------
Total distributions to shareowners $ (27,067,026) $ (27,110,665)
-------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 122,757,979 $ 119,982,240
Reinvestment of distributions 11,216,220 10,962,474
Cost of shares repurchased (195,187,071) (143,799,330)
-------------- --------------
Net decrease in net assets resulting from Fund
share transactions $ (61,212,872) $ (12,854,616)
-------------- --------------
Net decrease in net assets $ (95,326,776) $ (5,853,440)
NET ASSETS:
Beginning of year 657,049,821 662,903,261
-------------- --------------
End of year $ 561,723,045 $ 657,049,821
============== ==============
Undistributed net investment income $ 284,485 $ 277,072
============== ==============
34 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
CLASS A
Shares sold 3,744,108 $ 42,584,681 5,186,888 $ 60,516,604
Reinvestment of distributions 817,381 9,346,227 791,333 9,202,860
Conversion from Investor
class shares - - 700,263 8,270,107
Less shares repurchased (6,143,218) (69,857,173) (4,099,369) (47,663,271)
---------- -------------- ---------- -------------
Net increase (decrease) (1,581,729) $ (17,926,265) 2,579,115 $ 30,326,300
========== ============== ========== =============
CLASS B
Shares sold 232,076 $ 2,626,046 363,813 $ 4,159,710
Reinvestment of distributions 26,073 295,815 33,526 386,150
Less shares repurchased (450,067) (5,110,697) (788,524) (9,093,116)
---------- -------------- ---------- -------------
Net decrease (191,918) $ (2,188,836) (391,185) $ (4,547,256)
========== ============== ========== =============
CLASS C
Shares sold 444,452 $ 4,991,606 594,551 $ 6,783,020
Reinvestment of distributions 21,984 247,272 20,403 233,660
Less shares repurchased (346,219) (3,863,090) (549,388) (6,309,610)
---------- -------------- ---------- -------------
Net increase 120,217 $ 1,375,788 65,566 $ 707,070
========== ============== ========== =============
INVESTOR CLASS
Shares sold - $ - - $ -
Reinvestment of distributions - - 25,352 294,474
Conversion to Class A shares - - (700,155) (8,270,107)
Less shares repurchased - - (58,922) (685,604)
---------- -------------- ---------- -------------
Net decrease - $ - (733,725) $ (8,661,237)
========== ============== ========== =============
CLASS Y
Shares sold 6,396,471 $ 72,555,646 4,191,432 $ 48,522,906
Reinvestment of distributions 117,279 1,326,906 73,020 845,330
Less shares repurchased (10,334,089) (116,356,111) (6,922,861) (80,047,729)
----------- -------------- ---------- -------------
Net decrease (3,820,339) $ (42,473,559) (2,658,409) $ (30,679,493)
========== ============== ========== =============
The accompanying notes are an integral part of these financial statements. 35
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
12/31/07 12/31/06 12/31/05 12/31/04 12/31/03
CLASS A
Net asset value, beginning of period $ 11.75 $ 11.62 $ 11.67 $ 11.70 $ 11.61
------- -------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.46 $ 0.47 $ 0.51 $ 0.56 $ 0.56
Net realized and unrealized gain (loss) on investments (0.60) 0.13 (0.04) (0.02) 0.09
------- -------- -------- -------- --------
Net increase (decrease) from investment operations $ (0.14) $ 0.60 $ 0.47 $ 0.54 $ 0.65
Distributions to shareowners:
Net investment income (0.48) (0.47) (0.52) (0.57) (0.56)
------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ (0.62) $ 0.13 $ (0.05) $ (0.03) $ 0.09
------- -------- -------- -------- --------
Net asset value, end of period $ 11.13 $ 11.75 $ 11.62 $ 11.67 $ 11.70
======= ======== ======== ======== ========
Total return* (1.23)% 5.31% 4.05% 4.75% 5.80%
Ratio of net expenses to average net assets+ 0.84% 0.86% 0.91% 0.91% 0.93%
Ratio of net investment income to average net assets+ 4.05% 4.08% 4.36% 4.88% 4.88%
Portfolio turnover rate 68% 66% 26% 39% 80%
Net assets, end of period (in thousands) $313,706 $349,683 $315,855 $307,463 $326,173
Ratios with reductions for fees paid indirectly:
Net expenses 0.84% 0.86% 0.91% 0.91% 0.93%
Net investment income 4.05% 4.08% 4.36% 4.88% 4.88%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account. + Ratio with no reduction for fees paid indirectly.
36 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
12/31/07 12/31/06 12/31/05 12/31/04 12/31/03
CLASS B
Net asset value, beginning of period $ 11.65 $ 11.51 $ 11.57 $ 11.59 $ 11.51
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.36 $ 0.39 $ 0.41 $ 0.48 $ 0.46
Net realized and unrealized gain (loss) on investments (0.59) 0.12 (0.05) (0.02) 0.09
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ (0.23) $ 0.51 $ 0.36 $ 0.46 $ 0.55
Distributions to shareowners:
Net investment income (0.38) (0.37) (0.42) (0.48) (0.47)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.61) $ 0.14 $ (0.06) $ (0.02) $ 0.08
------- ------- ------- ------- -------
Net asset value, end of period $ 11.04 $ 11.65 $ 11.51 $ 11.57 $ 11.59
======= ======= ======= ======= =======
Total return* (1.97)% 4.54% 3.16% 4.07% 4.98%
Ratio of net expenses to average net assets+ 1.69% 1.62% 1.72% 1.67% 1.70%
Ratio of net investment income to average net assets+ 3.21% 3.33% 3.51% 4.12% 4.10%
Portfolio turnover rate 68% 66% 26% 39% 80%
Net assets, end of period (in thousands) $14,622 $17,667 $21,962 $17,285 $20,363
Ratios with reduction for fees paid indirectly:
Net expenses 1.69% 1.62% 1.72% 1.67% 1.70%
Net investment income 3.21% 3.33% 3.51% 4.12% 4.10%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 37
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
12/31/07 12/31/06 12/31/05 12/31/04 12/31/03
CLASS C
Net asset value, beginning of period $ 11.57 $ 11.44 $ 11.49 $ 11.52 $ 11.44
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.37 $ 0.38 $ 0.41 $ 0.47 $ 0.48
Net realized and unrealized gain (loss) on investments (0.59) 0.13 (0.04) (0.02) 0.08
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ (0.22) $ 0.51 $ 0.37 $ 0.45 $ 0.56
Distributions to shareowners:
Net investment income (0.39) (0.38) (0.42) (0.48) (0.48)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.61) $ 0.13 $ (0.05) $ (0.03) $ 0.08
------- ------- ------- ------- -------
Net asset value, end of period $ 10.96 $ 11.57 $ 11.44 $ 11.49 $ 11.52
======= ======= ======= ======= =======
Total return* (1.97)% 4.57% 3.30% 4.02% 5.04%
Ratio of net expenses to average net assets+ 1.60% 1.61% 1.64% 1.64% 1.66%
Ratio of net investment income to average net assets+ 3.29% 3.33% 3.63% 4.15% 4.11%
Portfolio turnover rate 68% 66% 26% 39% 80%
Net assets, end of period (in thousands) $13,581 $12,941 $12,054 $12,577 $11,266
Ratios with reduction for fees paid indirectly:
Net expenses 1.60% 1.61% 1.64% 1.64% 1.66%
Net investment income 3.29% 3.33% 3.63% 4.15% 4.11%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges.
Total return would be reduced if sales charges were taken into account.
+ Ratio with no reduction for fees paid indirectly.
38 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
12/31/07 12/31/06 12/31/05 12/31/04 12/31/03
CLASS Y
Net asset value, beginning of period $ 11.69 $ 11.56 $ 11.61 $ 11.64 $ 11.56
------- -------- -------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.49 $ 0.51 $ 0.54 $ 0.57 $ 0.62
Net realized and unrealized gain (loss) on investments (0.60) 0.13 (0.04) 0.01 0.07
------- -------- -------- ------- -------
Net increase (decrease) from investment operations $ (0.11) $ 0.64 $ 0.50 $ 0.58 $ 0.69
Distributions to shareowners:
Net investment income (0.51) (0.51) (0.55) (0.61) (0.61)
------- -------- -------- ------- -------
Net increase (decrease) in net asset value $ (0.62) $ 0.13 $ (0.05) $ (0.03) $ 0.08
------- -------- -------- ------- -------
Net asset value, end of period $ 11.07 $ 11.69 $ 11.56 $ 11.61 $ 11.64
======= ======== ======== ======= =======
Total return* (0.94)% 5.69% 4.40% 5.14% 6.21%
Ratio of net expenses to average net assets+ 0.54% 0.52% 0.54% 0.55% 0.57%
Ratio of net investment income to average net assets+ 4.35% 4.42% 4.22% 5.26% 5.21%
Portfolio turnover rate 68% 66% 26% 39% 80%
Net assets, end of period (in thousands) $219,814 $276,760 $304,507 $ 393 $ 1,387
Ratios with reduction for fees paid indirectly:
Net expenses 0.54% 0.52% 0.54% 0.55% 0.57%
Net investment income 4.35% 4.42% 4.22% 5.26% 5.21%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 39
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/07
--------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Tax Free Income Fund (the Fund) is a Delaware statutory trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is to seek
as high a level of current income exempt from federal income taxes, as possible
consistent with the preservation of capital.
The Fund offers four classes of shares designated as Class A, Class B, Class C,
and Class Y shares. As planned on December 10, 2006, Investor Class shares
converted to Class A shares. Each class of shares represents an interest in the
same portfolio of investments of the Fund and have equal rights to voting,
redemptions, dividends and liquidations, except that each class of shares can
bear different transfer agent and distribution fees and has exclusive voting
rights with respect to the distribution plans that have been adopted by Class
A, Class B and Class C shareowners, respectively. There is no distribution plan
for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses, and gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. The Fund's prospectuses contain information regarding
the Fund's principal risks. Please refer to those documents when considering
the Fund's risks.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
40
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Securities
are valued at prices supplied by independent pricing services, which
consider such factors as Treasury spreads, yields, maturities and ratings.
Valuations may be supplemented by dealers and other sources, as required.
Securities for which there are no other readily available valuation methods
are valued at their fair values as determined by, or under the direction of
the Board of Trustees. The Fund also may use the fair value of a security
including a non-U.S. security, when the closing market price on the
principal exchange where the security is traded no longer reflects the
value of the security. At December 31, 2007 there were no securities fair
valued.
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis with
a corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis. Temporary cash
investments are valued at cost which approximates market value.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal tax provision is required. Tax years
prior to 2004 are closed (not subject to examination by tax authorities)
due to the expiration of statute of limitations; all other tax years are
open.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as either from or in excess
of net investment income or net
41
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/07 (continued)
--------------------------------------------------------------------------------
realized gain on investment transactions, or from paid-in capital,
depending on the type of book/tax differences that may exist.
At December 31, 2007, the Fund has reclassified $877,437 to decrease
accumulated net investment loss and $877,437 to increase accumulated net
realized loss on investments. The reclassification has no impact on the net
assets of the Fund and presents the Fund's capital accounts on a tax basis.
At December 31, 2007, the Fund had a net capital loss carryforward of
$9,300,052 of which the following amounts will expire between 2011 and 2012
if not utilized: $7,713,482 in 2011 and $1,586,570 in 2012.
The Fund has elected to defer $32,784 of capital losses recognized between
November 1, 2007 and December 31, 2007 to its fiscal year ending December
31, 2008.
The tax character of distributions paid during the years ended December 31,
2007 and December 31, 2006 was as follows:
2007 2006
-----------------------------------------------------------
Distributions paid from:
Taxable income $ 562,300 $ 667,510
Tax exempt income 26,504,726 26,443,155
----------- -----------
Total $27,067,026 $27,110,665
----------- -----------
The following shows the components of distributable earnings on a
federal income tax basis at December 31, 2007:
2007
-----------------------------------------------------------
Undistributed tax-exempt income $ 284,485
Capital loss carry forward (9,300,052)
Post-October loss deferral (32,784)
Unrealized appreciation 651,346
----------
Total $8,397,005
----------
The difference between book basis and tax-basis unrealized appreciation is
attributable to the tax deferral of premium and amortization.
42
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.,
(UniCredito Italiano), earned $29,608 in underwriting commissions on the
sale of Class A shares during the year ended December 31, 2007.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning
of the day. Distribution fees are calculated based on the average daily net
asset value attributable to Class A, Class B and Class C shares of the
Fund, respectively (see Note 4). Class Y shares are not subject to a
distribution plan. Shareowners of each class share all expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services, which are allocated based on the
number of accounts in each class and the ratable allocation of related
out-of-pocket expenses (see Note 3).
The Fund declares, as daily dividends, substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner, at the same time, and in the same
amount, except that Class A, Class B, Class C, and Class Y shares can bear
different transfer agent and distribution expense rates.
2. Management Agreement
Pioneer Investment Management, Inc., (PIM), a wholly owned indirect subsidiary
of UniCredito Italiano, the Fund's investment adviser manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.50% of
the Fund's average daily net assets up to $250 million; 0.48% of the next $50
million; and 0.45% of the excess over $300 million. For the year ended December
31, 2007, the net management fee was equivalent to 0.47% of average net assets.
43
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/07 (continued)
--------------------------------------------------------------------------------
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. Included in "Due to Affiliates" reflected on
the Statement of Assets and Liabilities is $22,946 in management fees,
administrative costs and certain other services payable to PIM at December 31,
2007.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareholder services to the Fund at
negotiated rates. Included in "Due to Affiliates" reflected on the Statement of
Assets and Liabilities is $30,392 in transfer agent fees payable to PIMSS at
December 31, 2007.
4. Distribution Plans
The Fund adopted a Plan of Distribution with respect to Class A, Class B and
Class C shares (Class A Plan, Class B Plan and Class C Plan) in accordance with
Rule 12b-1 of the Investment Company Act of 1940. Currently under the Class A
Plan, PFD is reimbursed for distribution expenses in an amount up to 0.25% of
the average daily net assets attributable to Class A shares. Pursuant to the
Class B Plan and the Class C Plan, the Fund pays PFD 1.00% of the average daily
net assets attributable to each class of shares. The fee consists of a 0.25%
service fee and a 0.75% distribution fee paid as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class B and Class C shares. Included in "Due to Affiliates" reflected
on the Statements of Assets and Liabilities is $8,710 in distribution fees
payable to PFD at December 31, 2007.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase. Class B shares that are redeemed within five
years of purchase are subject to a CDSC at declining rates beginning at 4.00%,
based on the lower of cost or market value of shares being redeemed.
Redemptions of Class C shares within one year of purchase are subject to a CDSC
of 1.00%. Proceeds from the CDSCs are paid to PFD. For the year ended December
31, 2007, CDSCs in the amount of $41,902 were paid to PFD.
44
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended December 31, 2007, the Fund's expenses
were reduced by $12,492 under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $200 million committed, unsecured
revolving line of credit facility. Borrowings are used solely for temporary or
emergency purposes. The Fund may borrow up to the lesser of $200 million or the
limits set by its prospectus for borrowings. Interest on collective borrowings
is payable at the Federal Funds Rate plus 1/2% on an annualized basis. The
Funds pay an annual commitment fee for this facility. The commitment fee is
allocated among such Funds based on their respective borrowing limits. For the
year ended December 31, 2007, the Fund had no borrowings under this agreement.
7. New Pronouncement
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact the adoption of
SFAS 157 will have on the Fund's financial statement disclosures.
ADDITIONAL INFORMATION (unaudited)
The percentages of the Fund's ordinary income distributions that are exempt
from nonresident alien (NRA) tax withholding resulting from qualified interest
income and qualified short term gains were 97.33% and 0%, respectively.
45
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
--------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of
Pioneer Tax Free Income Fund:
We have audited the accompanying statement of assets and liabilities of Pioneer
Tax Free Income Fund (the "Fund"), including the schedule of investments, as of
December 31, 2007, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Fund's internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of December 31, 2007, by correspondence
with the custodian and brokers or by other appropriate auditing procedures
where replies from brokers were not received. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Tax Free Income Fund at December 31, 2007, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and financial highlights for each of
the five years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
February 19, 2008
46
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
--------------------------------------------------------------------------------
Pioneer Investment Management, Inc. (PIM) serves as the Fund's investment
adviser pursuant to an investment advisory agreement between PIM and the Fund.
The Trustees of the Fund, as required by law, determine annually whether to
continue the investment advisory agreement for the Fund.
In connection with their most recent consideration of the investment advisory
agreement for the Fund, the Trustees received and reviewed a substantial amount
of information provided by PIM in response to requests of the independent
Trustees and their independent legal counsel. The independent Trustees met on a
number of occasions with PIM and also separately with their independent legal
counsel to evaluate and discuss the information provided to them by PIM. At a
meeting held on November 13, 2007, based on their evaluation of the information
provided by PIM, the Trustees, including the independent Trustees voting
separately, unanimously approved the continuation of the investment advisory
agreement for another year.
In considering the continuation of the investment advisory agreement, the
Trustees considered various factors that they determined were relevant,
including the factors described below. The Trustees did not identify any single
factor as the controlling factor in determining to approve the continuation of
the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services provided
by PIM to the Fund, taking into account the investment objective and strategy
of the Fund and the information related to the Fund provided to the Trustees at
each quarterly meeting. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for
the Fund and its research process. The Trustees considered the resources of PIM
and the personnel of PIM who provide investment management services to the
Fund. They also considered PIM's compliance and legal resources and personnel.
In addition, the Trustees considered the other services that PIM provides to
the Fund under the investment advisory agreement and that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. It was noted that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including
officers) as are necessary
47
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (continued)
--------------------------------------------------------------------------------
for the Fund's operations. The Trustees considered the fees paid to PIM for the
provision of such services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services provided by PIM to the Fund were satisfactory and
consistent with the terms of the investment advisory agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
average performance of its peer group of funds as classified by Morningstar,
Inc. (Morningstar), an independent provider of investment company data, and
with the performance of the Fund's benchmark index. The Trustees considered
that the Fund's annualized total return was in the fourth quintile of its
Morningstar category for the one year period ended June 30, 2007 and in the
first quintile of its Morningstar category for the three, five and ten year
periods ended June 30, 2007. (In all quintile rankings referred to throughout
this disclosure, first quintile is most favorable to the Fund's shareowners.
Thus, highest relative performance would be first quintile and lowest relative
expenses would also be first quintile.) The Trustees also considered that the
twelve-month yield of the Fund, before deduction of expenses, exceeded the
yield of its benchmark index for the same period. After discussing the reasons
for the Fund's short-term underperformance with PIM, the Trustees concluded
that the investment performance of the Fund was satisfactory.
Management Fee and Expenses
The Trustees considered information on the fees and expenses of the Fund in
comparison to the management fees of its peer group of funds as classified by
Morningstar and the expense ratios of a peer group of funds selected on the
basis of criteria determined by the independent Trustees for this purpose using
data provided by Strategic Insight Mutual Fund Research and Consulting, LLC
(Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2007 was in the second quintile relative to the management fees
paid by other funds in its peer group Morningstar category for the comparable
period. The Trustees also considered that the Fund's expense ratio for the
twelve months ended June 30, 2007 was in the fourth quintile relative to its
Strategic
48
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Insight peer group. The Trustees noted PIM's agreement to lower its management
fee for assets in excess of $250 million effective January 1, 2008 and
considered the impact of the lower fee on the Fund's expense ratio. It was
noted that PIM did not currently manage any accounts with an investment
objective and strategies that were similar to the Fund.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of services provided, taking
into account the fees charged by other advisers for managing comparable mutual
funds with similar strategies and PIM's agreement to lower the management fee
for assets in excess of $250 million. The Trustees also concluded that the
Fund's expense ratio was reasonable, taking into account the size of the Fund,
the quality of services provided by PIM and the investment performance of the
Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
recognized that PIM should be entitled to earn a reasonable level of profit for
the services provided to the Fund. The Trustees concluded that PIM's
profitability with respect to the management of the Fund was not unreasonable.
Economies of Scale
The Trustees considered the economies of scale with respect to the management
of the Fund, whether the Fund had appropriately benefited from any economies of
scale, and whether there was potential for realization of any further economies
of scale. The Trustees noted PIM's agreement to lower its management fee for
assets in excess of $250 million and to add a breakpoint in the management fee
for assets in excess of $750 million. The Trustees
49
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (continued)
--------------------------------------------------------------------------------
concluded that, because of the breakpoints in the management fee schedule and
the reduced fee rates above certain asset levels, any perceived or potential
economies of scale would be shared between PIM and the Fund.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with
the Fund. The Trustees considered that affiliates of PIM serve as the Fund's
transfer agent and distributor. The Trustees considered the receipt by PIM and
its affiliates of sales loads and payments under Rule 12b-1 plans in respect of
the Fund and the other Pioneer funds. The Trustees further considered the
intangible benefits to PIM by virtue of its relationship with the Fund and the
other Pioneer funds. The Trustees concluded that the receipt of these benefits
was reasonable in the context of the overall relationship between PIM and the
Fund.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including all of the independent Trustees, concluded that the
terms of the investment advisory agreement between PIM and the Fund, including
the fees payable thereunder, were fair and reasonable and voted to approve the
proposed continuation of the investment advisory agreement for the Fund.
50
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
--------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Xxxxx Brothers Xxxxxxxx & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Xxxxxxx XxXxxxxxx LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Board of Trustees provides broad supervision over the Fund's affairs. The
officers of the Fund are responsible for the Fund's operations. The Trustees
and officers are listed below, together with their principal occupations during
the past five years. Trustees who are interested persons of the Fund within the
meaning of the 1940 Act are referred to as Interested Trustees. Trustees who
are not interested persons of the Fund are referred to as Independent Trustees.
Each of the Trustees (except Xx. Xxxx) serves as a trustee of each of the 77
U.S. registered investment portfolios for which Pioneer serves as investment
adviser (the "Pioneer Funds"). Xx. Xxxx serves as Trustee of 76 of the 77
Pioneer Funds. The address for all Trustees and all officers of the Fund is 00
Xxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000.
The Fund's statement of additional information provides more detailed
information regarding the Fund's Trustees and is available upon request,
without charge, by calling 0-000-000-0000.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (0-000-000-0000). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at xxx.xxxxxxxxxxxxxxxxxx.xxx and on the SEC's web site at
xxxx://xxx.xxx.xxx.
51
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
INTERESTED TRUSTEES
--------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
Xxxx X. Xxxxx, Xx. (81)* Chairman of the Trustee since 1993.
Board, Trustee and Serves until a succes-
President sor trustee is elected
or earlier retirement or
removal.
--------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
Xxxx X. Xxxxx, Xx. (81)* Deputy Chairman and a Director of Pioneer Global Asset None
Management S.p.A. ("PGAM"); Non-Executive Chairman
and a Director of Pioneer Investment Management USA
Inc. ("PIM-USA"); Chairman and a Director of Pioneer;
Chairman and Director of Pioneer Institutional Asset
Management, Inc. (since 2006); Director of Pioneer
Alternative Investment Management Limited (Dublin);
President and a Director of Pioneer Alternative Investment
Management (Bermuda) Limited and affiliated funds; Direc-
tor of PIOGLOBAL Real Estate Investment Fund (Russia)
(until June 2006); Director of Nano-C, Inc. (since 2003);
Director of Xxxx Management Inc. (since 2004); Director of
Fiduciary Counseling, Inc.; President and Director of
Pioneer Funds Distributor, Inc. ("PFD") (until May 2006);
President of all of the Pioneer Funds; and Of Counsel,
Xxxxxx Xxxxxx Xxxxxxxxx Xxxx and Xxxx LLP
* Xx. Xxxxx is an Interested Trustee because he is an officer or director of the
Fund's investment adviser and certain of its affiliates.
-----------------------------------------------------------------------------------------------------------------
52
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
--------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
Xxxxx X. Xxxx (64) Trustee Trustee since 2005.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
--------------------------------------------------------------------------------
Xxxx X. Xxxx (59) Trustee Trustee since 1997.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
--------------------------------------------------------------------------------
Xxxxxxxx X.X. Xxxxxx (60) Trustee Trustee since 1993.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
--------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
Xxxxx X. Xxxx (64) Executive Vice President and Chief Financial Officer, I-trax, Director of The Enterprise
Inc. (publicly traded health care services company) (2004 Social Investment
- present); Partner, Federal City Capital Advisors (boutique Company (privately-held
merchant bank) (1997 to 2004); and Executive Vice affordable housing
President and Chief Financial Officer, Pedestal Inc. finance company); and
(internet-based mortgage trading company) (2000 - 2002) Director of New York
Mortgage Trust (publicly
traded mortgage REIT)
------------------------------------------------------------------------------------------------------------------------
Xxxx X. Xxxx (59) President, Xxxx International, LLC (international financial Director of Brady Corpora-
advisory firm) tion (industrial identifica-
tion and specialty coated
material products
manufacturer); Director of
Xxxxxx & Xxxxxxxx Co.
(engine manufacturer);
Director of UAL Corpora-
tion (airline holding
company) Director of
Mantech International
Corporation (national
security, defense, and
intelligence technology
firm): and Member, Board
of Governors, Investment
Company Institute
------------------------------------------------------------------------------------------------------------------------
Xxxxxxxx X.X. Xxxxxx (60) Founding Director, Vice-President and Corporate Secretary, None
The Winthrop Group, Inc. (consulting firm); and Xxxxxxxxx
Faculty of Management, XxXxxx University
------------------------------------------------------------------------------------------------------------------------
53
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
--------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
Xxxxxx X. Xxxxx (57) Trustee Trustee since 2006.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
--------------------------------------------------------------------------------
Xxxxxxxxxx X. Xxxxx (59) Trustee Trustee since 1993.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
--------------------------------------------------------------------------------
Xxxx Xxxxxxxx (71) Trustee Trustee since 1993.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
--------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
Xxxxxx X. Xxxxx (57) Private investor (2004 - present); and Senior Executive Director of Quadriserv
Vice President, The Bank of New York (financial and securi- Inc. (technology products
ties services) (1986 - 2004) for securities lending
industry)
------------------------------------------------------------------------------------------------------------------------
Xxxxxxxxxx X. Xxxxx (59) President and Chief Executive Officer, Newbury, Piret & Director of New America
Company, Inc. (investment banking firm) High Income Fund, Inc.
(closed-end investment
company)
------------------------------------------------------------------------------------------------------------------------
Xxxx Xxxxxxxx (71) President, Xxxx Xxxxxxxx & Co., Inc. (private investment None
firm)
------------------------------------------------------------------------------------------------------------------------
54
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
FUND OFFICERS
--------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
Xxxxxx X. Xxxxxxxxx (49)* Executive Vice Since March 2007.
President Serves at the discre-
tion of the Board
--------------------------------------------------------------------------------
Xxxxxxx X. Xxxxxxxx (60) Secretary Since 2003. Serves at
the discretion of the
Board
--------------------------------------------------------------------------------
Xxxxxxxxxxx X. Xxxxxx (43) Assistant Secretary Since 2003. Serves at
the discretion of the
Board
--------------------------------------------------------------------------------
Xxxxxxx Xxxx (62) Treasurer Since 2000. Serves at
the discretion of the
Board
--------------------------------------------------------------------------------
Xxxx X. Xxxxxxx (48) Assistant Treasurer Since 2004. Serves at
the discretion of the
Board
--------------------------------------------------------------------------------
Xxxx X. Xxxxxxxx (42) Assistant Treasurer Since 2000. Serves at
the discretion of the
Board
--------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Officer
Xxxxxx X. Xxxxxxxxx (49)* Director, CEO and President of Pioneer Investment None
Management USA Inc., Pioneer Investment Management,
Inc. and Pioneer Institutional Asset Management, Inc.
(since March 2007); Executive Vice President of all of the
Pioneer Funds (since March 2007); Director of Pioneer
Global Asset Management S.p.A. (since March 2007);
Head of New Markets Division, Pioneer Global Asset
Management S.p.A. (2000 - 2007)
-------------------------------------------------------------------------------------------------------------------
Xxxxxxx X. Xxxxxxxx (60) Secretary of PIM-USA; Senior Vice President - Legal of None
Pioneer; Secretary/Clerk of most of PIM-USA's subsidiar-
ies; and Secretary of all of the Pioneer Funds since
September 2003 (Assistant Secretary from November
2000 to September 2003)
-------------------------------------------------------------------------------------------------------------------
Xxxxxxxxxxx X. Xxxxxx (43) Associate General Counsel of Pioneer since January 2008 None
and Assistant Secretary of all of the Pioneer Funds since
September 2003; Vice President and Senior Counsel of
Pioneer from July 2002 to December 2007
-------------------------------------------------------------------------------------------------------------------
Xxxxxxx Xxxx (62) Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Treasurer of all of
the Pioneer Funds
-------------------------------------------------------------------------------------------------------------------
Xxxx X. Xxxxxxx (48) Deputy Treasurer of Pioneer since 2004 and Assistant None
Treasurer of all of the Pioneer Funds since November
2004; Treasurer and Senior Vice President, CDC IXIS
Asset Management Services from 2002 to 2003
-------------------------------------------------------------------------------------------------------------------
Xxxx X. Xxxxxxxx (42) Assistant Vice President - Fund Accounting, Administration None
and Controllership Services of Pioneer; and Assistant
Treasurer of all of the Pioneer Funds
-------------------------------------------------------------------------------------------------------------------
55
Pioneer Tax Free Income Fund
--------------------------------------------------------------------------------
FUND OFFICERS
--------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
Xxxx Xxxxxxxx (49) Assistant Treasurer Since 2002. Serves at
the discretion of the
Board
--------------------------------------------------------------------------------
Xxxxxxxxx Xxx Xxxxxxxx (34) Assistant Treasurer Since 2003. Serves at
the discretion of the
Board
--------------------------------------------------------------------------------
Xxxx X. Xxxxxxxxx (48) Chief Compliance Since January 2007.
Officer Serves at the discre-
tion of the Board
--------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Officer
Xxxx Xxxxxxxx (49) Fund Accounting Manager - Fund Accounting, Administra- None
tion and Controllership Services of Pioneer; and Assistant
Treasurer of all of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------
Xxxxxxxxx Xxx Xxxxxxxx (34) Fund Administration Manager - Fund Accounting, None
Administration and Controllership Services since June
2003 and Assistant Treasureer of all of the Pioneer Funds
since September 2003; Assistant Vice President - Mutual
Fund Operations of State Street Corporation from June
2002 to June 20003 (formerly Deutsche Bank Asset
Management)
------------------------------------------------------------------------------------------------------------------------
Xxxx X. Xxxxxxxxx (48) Chief Compliance Officer of Pioneer since December 2006 None
and of all the Pioneer Funds since January 2007; Vice
President and Compliance Officer, MFS Investment
Management (August 2005 to December 2006); Consult-
ant, Fidelity Investments (February 2005 to July 2005);
Independent Consultant (July 1997 to February 2005)
------------------------------------------------------------------------------------------------------------------------
The outstanding capital stock of PFD, Pioneer and PIMSS is indirectly wholly
owned by UniCredito Italiano S.p.A. ("UniCredito Italiano"), one of the largest
banking groups in Italy. Pioneer, the Fund's investment adviser, provides
investment management and financial services to mutual funds, institutional and
other clients.
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HOW TO CONTACT PIONEER
--------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us
for assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 0-000-000-0000
FactFone(SM) for automated fund yields, prices,
account information and transactions 0-000-000-0000
Retirement plans information 0-000-000-0000
Telecommunications Device for the Deaf (TDD) 0-000-000-0000
Write to us:
PIMSS, Inc.
X.X. Xxx 00000
Xxxxxx, Xxxxxxxxxxxxx 00000-0000
Our toll-free fax 0-000-000-0000
Our internet e-mail address xxx.xxxxxxx@xxxxxxxxxxxxxxxxxx.xxx
(for general questions about Pioneer only)
Visit our web site: xxx.xxxxxxxxxxxxxxxxxx.xxx
Before investing consider the Fund's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year
on Form N-Q. Shareholders may view the filed Form N-Q by visiting the
Commission's web site at xxxx://xxx.xxx.xxx. The filed form may also be
viewed and copied at the Commission's Public Reference Room in Washington,
DC. Information regarding the operations of the Public Reference Room may
be obtained by calling 1-800-SEC-0330.
