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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21448
Pioneer Tax Advantaged Balanced Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: November 30
Date of reporting period: December 1, 2006 through May 31, 2007
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
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PIONEER
-----------
TAX ADVANTAGED
BALANCED
TRUST
Semiannual
Report
5/31/07
[LOGO] PIONEER
Investments
Table of Contents
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Letter to Shareowners 2
Portfolio Summary 4
Prices and Distributions 5
Performance Update 6
Portfolio Management Discussion 7
Schedule of Investments 12
Financial Statements 27
Notes to Financial Statements 32
Trustees, Officers and Service Providers 43
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. Those
were particularly useful guides during the past year, as U.S. and global stock
and bond markets grew strongly during the period.
In the 12 months ending May 31, 2007, global stock markets were supported by
relatively low short-term interest rates and generally strong economies. The
U.S. stock market, as measured by the Standard & Poor's 500 Stock Index, gained
approximately 23% over the 12-month period. International developed and emerging
markets equities performed even better, with MSCI's indexes of those regions
rising approximately 27% and 39%, respectively. The general U.S. bond market, as
measured by the Lehman Brothers Aggregate Bond Index, returned roughly 7%. The
high yield market, as measured by the Merrill Lynch High Yield Bond Master II
Index, returned approximately 13% during the same period.
While still strong, the rate of U.S. economic growth has slowed over the past
year. That was due in large part to a slowdown in new home construction and in
part to the lagging effects of rising energy and commodity prices as well as
rising short-term interest rates. But slowing economic activity is also due in
part to the natural maturation of the cyclical expansion as U.S. factories
approach full utilization and the labor markets approach full employment.
We have enjoyed a cyclical recovery with strong economic growth, and while U.S.
economic growth has slowed, we believe that continuing growth at a slower rate
appears to be more likely than a recession. The Federal Reserve Board has
indicated a reduced likelihood of future rate hikes, but continues to highlight
its commitment to keeping inflationary pressures contained. This is in keeping
with "best practices" among the world's central banks: low and stable inflation
is believed to be the best backdrop for stable economic growth and low average
unemployment.
In Europe, healthy labor markets are supporting growing consumption and solid
GDP growth, helped by productivity gains and a positive operating environment
for European companies that are finding strong export markets for their goods
and services around the globe. European inflationary pressures appear to be
largely under control, with
2
Letter
the European Central bank remaining strongly vigilant. Japanese economic growth
continues to make progress, and the country has become a more attractive market
as deflationary problems recede. Economic growth in emerging market countries
remains faster than in the developed world as they continue to "catch up."
Leading the way is China, which continues its rise as a world economic power.
Looking forward, we believe that the overall climate for investors generally
will continue to be positive, although valuations are less attractive than they
were a year ago and a correction after a period of strong performance is
possible. Sudden swings in the markets are always to be expected. Just as
staying diversified and invested are important investment principles, it is also
important to pay attention to asset allocation. As always, we encourage
shareholders to work closely with their financial advisor to find the mix of
stocks, bonds and money market assets that is aligned to their particular risk
tolerance and investment objective.
Respectfully,
/S/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of the opinion of Trust 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.
Please consider the Trust's investment objectives, risks, charges and expenses.
Contact your advisor or Pioneer Investments for a prospectus containing this
information. Please read the information carefully.
3
Pioneer Tax Advantaged Balanced Trust
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PORTFOLIO SUMMARY 5/31/07
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Portfolio Maturity
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(As a percentage of total debt holdings)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
0-1 Year 3.3%
1-3 Years 6.0%
3-6 Years 56.9%
6-8 Years 10.0%
8-10 Years 1.5%
10+ Years 22.3%
Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
Tax Exempt Obligations 51.9%
Common Stocks 27.9%
Non-Convertible Preferred Stocks 18.4%
Convertible Preferred Stocks 1.7%
Temporary Cash Investment 0.1%
The portfolio is actively managed, and current holdings may be different.
10 Largest Holdings
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(As a percentage of total long-term holdings)*
1. Verizon Communications, Inc. 2.74%
2. Loews Corp. - Carolina Group 2.08
3. Atmos Energy Corp. 1.98
4. Windstream Corp. 1.84
5. Georgia Municipal Electric Authority Power Revenue, RIB,
6.548%, 1/1/20 (144A) 1.77
6. Merck & Co., Inc. 1.76
7. Golden State Tobacco Securitization Corp., RIB, 5.11%,
6/1/45 (144A) 1.62
8. Bristol-Myers Squibb Co. 1.55
9. Altria Group, Inc. 1.48
10. Washington Mutual, Inc. 1.39
* This list excludes temporary cash and derivative instruments. 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.
4
Pioneer Tax Advantaged Balanced Trust
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PRICES AND DISTRIBUTIONS
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Share Prices and Distributions
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Market Price 5/31/07 11/30/06
per Common Share $15.23 $14.00
Net Asset Value 5/31/07 11/30/06
per Common Share $16.50 $16.17
Net
Distributions Investment Short-Term Long-Term
per Common Share Income Capital Gains Capital Gains
(12/1/06 - 5/31/07) $0.3659 $ - $0.0116
5
Pioneer Tax Advantaged Balanced Trust
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PERFORMANCE UPDATE 5/31/07
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Investment Returns
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The mountain chart on the right shows the change in market value, including
reinvestment of dividends and distributions, of a $10,000 investment made in
common shares of Pioneer Tax Advantaged Balanced Trust at public offering price,
compared to that of the Lehman Brothers Municipal Bond Index and the S&P 500
Index.
Cumulative Total Returns
(As of May 31, 2007)
Net Asset Market
Period Value (NAV) Price
Life-of-Trust
(1/30/04) 38.88% 22.46%
1 Year 17.57 29.47
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[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART]
Value of $10,000 Investment
Lehman
Pioneer Tax Brothers Standard &
Advantaged Municipal Poor's
Balanceed Bond 500
Trust Index Index
1/04 $10,000 $10,000 $10,000
5/04 $8,123 $9,840 $9,964
5/05 $9,487 $10,623 $10,784
5/06 $9,459 $10,824 $11,715
5/07 $12,246 $11,349 $14,383
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below net asset value ("NAV"), due to such factors as
interest rate changes, and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Closed-end funds, unlike open-end funds, are not continuously offered. There is
a one-time public offering and once issued, shares of closed-end funds are sold
in the open market through a stock exchange and frequently trade at prices lower
than their NAV. NAV is total assets less total liabilities, which includes
preferred shares, divided by the number of common shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends are
assumed to be reinvested at prices obtained under the Trust's dividend
reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the redemption of Trust
shares.
Index comparisons begin January 31, 2004. The Lehman Brothers Municipal Bond
Index is a broad measure of the municipal bond market. The Standard & Poor's 500
Stock Index (the S&P 500) is a commonly used measure of the broad U.S. stock
market. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Trust returns, do not reflect any fees, expenses or charges. You
cannot invest directly in an Index.
6
Pioneer Tax Advantaged Balanced Trust
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/07
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During the six months ended May 31, 2007, shareowners in Pioneer Tax Advantaged
Balanced Trust benefited from the performance of two high-quality asset classes
- municipal bonds and dividend-paying stocks. Over the period, the Trust's
well-diversified portfolio provided a dividend yield that was greater than those
of the S&P 500 Index and the Dow Jones Industrial Average. In most instances,
the dividends received from the bonds in the portfolio are exempt from federal
taxes; and the dividends derived from the portfolio's equities are likely to
qualify for the more favorable federal income tax rate of 15%. In the following
interview, David Eurkus, who is responsible for the Trust's fixed-income
portion, and Walter Hunnewell, Jr., who is responsible for the Trust's equity
portion, discuss the Trust's investment strategy and outlook.
Q: How did the Trust perform during the period?
A: For the six months ended May 31, 2007, Pioneer Tax Advantaged Balanced
Trust returned 4.71% at net asset value and 11.63% at market price. As of
May 31, 2007, the Trust was selling at a discount of market price to net
asset value of 7.70%, compared with a discount of 16.20% on May 31, 2006.
For the same period, the Lehman Brothers Municipal Bond Index returned
0.30%, and the S&P 500 Index returned 10.29%. Unlike open-end funds, a
closed-end fund's share price goes up and down based on supply and demand,
independent of a fund's net asset value, or NAV, per share. It isn't
unusual to find closed-end funds trading at a discount. At the end of the
period, closed-end funds on average were trading at a discount to their
actual net asset value.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher
than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
Information regarding the Trust's principal investment risks is contained
in the Trust's prospectus. Please refer to those documents when considering
the Trust's risks.
7
Pioneer Tax Advantaged Balanced Trust
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/07 (continued)
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There can be no assurance as to the portion of the Trust's dividends that
will be tax-exempt or tax-qualified.
A portion of income may be subject to state, federal, and/or alternative
minimum tax. Capital gains, if any are subject to a capital gains tax. When
interest rates rise, the prices of fixed-income securities in the Trust
will generally fall. Conversely, when interest rates fall the prices of
fixed-income securities in the Trust will generally rise. By concentrating
in municipal securities, the portfolio is more susceptible to adverse
economic, political or regulatory developments than is a portfolio that
invests more broadly. Investments in the Trust are subject to possible loss
due to the financial failure of underlying securities and their inability
to meet their debt obligations.
The Trust may invest in derivative securities, which may include futures
and options. These types of instruments can increase price fluctuation.
The Trust may use leverage through the issuance of preferred shares with an
aggregate liquidation preference of up to 331/3% of the Trust's total
assets after such issuance. Leverage creates significant risks, including
the risk that the Trust's income or capital appreciation will not be
sufficient to cover the cost of leverage, which may adversely affect the
return for the holders of common shares.
Q: What strategies did you use in managing the Trust?
A: We continued to focus on providing income with about a 55%/45% mix of
municipal bonds and dividend-paying equity securities. In the fixed-income
portion of the Trust, we maintained our emphasis on sectors that are vital
components of the U.S. economy. The biggest positions were in health care,
education and various other revenue bonds on which the payment of interest
and principal depends on revenues generated from the particular asset that
the bond was issued to finance. About 23% of the municipal bonds in the
portfolio were insured, which means that the interest and principal of
these AAA-rated securities are guaranteed by private insurance companies.
About 11.5% of the Trust's fixed-income assets were invested in below
investment-grade bonds, which outperformed other types of fixed-income
assets. On May 31, 2007, the Trust had 121 fixed-income issues in 36
states, territories and the
8
Pioneer Tax Advantaged Balanced Trust
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District of Columbia. The average credit quality of the fixed-income
holdings was A-, compared with A six months ago.
In the equity portion of the Trust, we inevitably gravitate to sectors that
tend to pay the biggest dividends. When selecting individual securities, we
focus on well-established corporations that offer attractive current
dividend yields and the best potential for future dividend growth and price
appreciation. In addition to owning common equities, we balance our
dividend income mandate by owning higher-yielding preferred stocks. This
resulted in an approximately equal split between common and preferred
stocks. Because of the favorable interest-rate environment, several of our
preferred stocks were called; and we invested the proceeds from the called
securities in select common and preferred equities with the potential for
high current dividend yields and improving creditworthiness.
During the reporting period, we made adjustments to the Fund's portfolio.
Among equities, we eliminated our position in Ameren, a large regulated
electricity and natural gas utility, on concerns about adverse regulatory
developments in its important Chicago market. After a strong run-up, we
trimmed our overweight in AT&T and used the proceeds to add to Verizon,
which we believe may now be in a better position for longer-term earnings
growth. We sold ServiceMaster, a provider of cleaning, lawn and pest
control services to commercial and consumer customers, when it became the
target of a leveraged takeover bid. We took gains in smokeless tobacco
manufacturer UST when it reached our target price, and we purchased Altria
Group, before it spun off its Kraft Foods subsidiary. We added to
Washington Mutual, a position that we had trimmed on price strength last
year but now view as attractively priced given the market's strong adverse
reaction to sub-prime mortgage woes.
On May 31, 2007, 27% of the Trust was leveraged, which means that we
borrowed funds at lower rates and invested those funds in high-yielding
securities. Our leveraging strategy has aided return for several years.
Over the first half of the fiscal year, short-term rates showed little
volatility; however, a rise in short-term rates in the future would add to
the Trust's borrowing costs, and the ability to sustain present dividend
levels could be affected. Should short-term rates decline, the cost of
borrowing would go down, providing the Trust with a modest amount of
additional income.
9
Pioneer Tax Advantaged Balanced Trust
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/07 (continued)
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Q: What contributed to performance?
A: Being fully invested and maintaining a longer duration than our
fixed-income benchmark, the Lehman Brothers Municipal Bond Index,
contributed to both the Trust's tax-free income and principal appreciation.
(Duration measures a bond's price sensitivity to interest-rate movements.)
In addition, demand for municipal securities was robust, boosting the value
of the portfolio's securities. Our holdings in below investment-grade bonds
also aided return.
Stock investments in the telecommunications, consumer staples and health
care sectors were the largest contributors to total return. In
telecommunications, AT&T and Verizon were standout performers, returning
24% and 27%, respectively, during the reporting period as the market
cheered industry consolidation and the potential for growth from
telecommunications and residential video products. Other companies with
notable performance included Carolina Group (+26%), the tobacco tracking
stock of Lowes, Bristol-Myers Squibb (+25%) and Merck & Co. (+20%).
Q: What detracted from performance?
A: Among our municipal bond investments, there were no notable detractors from
performance; however, the higher quality bonds in the portfolio
underperformed the lower quality securities, which accounted for only about
10% of the Trust's assets.
Adverse stock selection in the marginally weighted energy sector was
negative for return. For example, Duke Energy's natural gas spin-off,
Spectra Energy, declined almost 7.0% during the reporting period. Other
holdings that were disappointing included: Kimball International, a
manufacturer of office and health care furniture; TrustCo Bank, which was
adversely affected by the flat yield-curve environment; and our SLM
preferred holding, which was volatile in the wake of its announced
leveraged acquisition.
10
Pioneer Tax Advantaged Balanced Trust
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Q: What is your outlook?
A: We believe the trend of the economy may be stronger than previously
thought; and while the Federal Reserve has kept interest rates at 5.25%,
the central bank continues to express concerns about the potential for
accelerating inflation. Over the last few weeks, we have seen intermediate
and long-term market interest rates rise. If this trend continues, there
would be more opportunity to increase the portfolio's yield. As always, we
will continue to seek relatively high levels of current income from
fixed-income and dividend-producing preferred and common stocks, while
maintaining our strong emphasis on quality.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of the opinion of Trust 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
the market forecasts discussed will be realized.
11
Pioneer Tax Advantaged Balanced Trust
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SCHEDULE OF INVESTMENTS 5/31/07 (unaudited)
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S&P/Moody's
Principal Ratings
Amount (unaudited) Value
TAX EXEMPT OBLIGATIONS - 70.9% of Net Assets
Alabama - 2.0%
$ 2,990,000+ AAA/Aaa Birmingham Waterworks & Sewer Revenue,
5.0%, 1/1/43 $ 3,150,413
5,000,000 NR/NR Huntsville-Redstone Village Special Care
Facilities Financing Authority, 5.5%, 1/1/43 4,895,800
1,500,000 NR/NR Sylacauga Health Care Authority Revenue,
6.0%, 8/1/35 1,564,710
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$ 9,610,923
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Arizona - 0.9%
1,000,000 BBB/Baa1 Maricopa County Hospital Revenue,
5.0%, 4/1/35 $ 1,003,920
470,000+ NR/Baa3 Pima County Industrial Development Authority,
6.375%, 7/1/31 528,379
530,000 NR/Baa3 Pima County Industrial Development Authority,
6.375%, 7/1/31 569,946
995,000 NR/Baa3 Pima County Industrial Development Authority,
6.75%, 7/1/31 1,062,322
1,000,000 NR/NR Pima County Industrial Development Authority,
7.5%, 7/1/34 1,085,460
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$ 4,250,027
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California - 3.4%
1,000,000 A/A2 California Health Facilities Authority Revenue,
5.25%, 7/1/23 $ 1,037,040
4,000,000+ AAA/Aaa Golden State Tobacco Securitization Corp.,
6.75%, 6/1/39 4,602,360
9,655,000(a) NR/A3 Golden State Tobacco Securitization Corp.,
RIB, 5.11%, 6/1/45 (144A) 10,468,820
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$ 16,108,220
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Colorado - 0.6%
3,000,000 NR/NR Colorado Educational & Cultural Facilities
Authority Revenue, 5.5%, 6/1/37 $ 3,000,000
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Connecticut - 1.2%
4,190,000 BBB-/Baa1 Connecticut State Development Authority
Pollution Control Revenue, 5.85%, 9/1/28 $ 4,356,971
1,500,000 BB/NR Mohegan Tribe Indians Gaming Authority,
5.25%, 1/1/33 1,544,910
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$ 5,901,881
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District of Columbia - 0.9%
4,000,000 BBB/Baa3 District of Columbia Tobacco Settlement
Financing Corp., 6.75%, 5/15/40 $ 4,387,440
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12 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Advantaged Balanced Trust
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S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Florida - 4.5%
$ 1,105,000 A+/A2 Highlands County Health Facilities Authority
Revenue, 5.0%, 11/15/24 $ 1,127,111
5,000,000+ NR/A2 Highlands County Health Facilities Authority
Revenue, 6.0%, 11/15/25 5,490,800
5,000,000 BB/NR Lee County Industrial Development Authority
Revenue, 5.25%, 6/15/27 4,981,450
2,000,000 BB/NR Lee County Industrial Development Authority
Revenue, 5.375%, 6/15/37 1,995,500
600,000 NR/NR Madison County First Mortgage Revenue,
6.0%, 7/1/25 619,212
2,025,000 BB+/NR Miami Beach Health Facilities Authority,
5.375%, 11/15/28 2,043,346
500,000 BB+/Ba1 Miami Beach Health Facilities Authority,
6.7%, 11/15/19 541,860
3,970,000(a) NR/Aaa Tampa-Hillsborough County Expressway
Authority Revenue, RIB, 5.842%,
7/1/23 (144A) 4,642,994
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$ 21,442,273
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Georgia - 4.0%
2,000,000 AAA/Aaa Burke County Development Authority Revenue,
4.75%, 5/1/34 $ 2,011,820
9,580,000(a) NR/Aaa Georgia Municipal Electric Authority Power
Revenue, RIB, 6.548%, 1/1/20 (144A) 11,471,284
2,500,000 BBB/NR Milledgeville-Baldwin County Development
Authority Revenue, 5.5%, 9/1/24 2,659,950
2,500,000 BBB/NR Milledgeville-Baldwin County Development
Authority Revenue, 5.625%, 9/1/30 2,677,450
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$ 18,820,504
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Illinois - 3.8%
3,000,000 AAA/Aaa Chicago Illinois General Obligation,
5.0%, 1/1/28 $ 3,113,970
4,580,000 NR/Baa1 Illinois Development Finance Authority
Revenue, 5.25%, 10/1/24 4,806,847
5,000,000 AA+/Aaa Illinois Educational Facilities Authority
Revenue, 5.0%, 12/1/38 5,168,000
2,000,000 AA+/Aa2 Illinois Finance Authority Revenue,
5.5%, 8/15/43 2,153,640
2,055,000(a) NR/Aa2 Illinois Finance Authority Revenue, RIB,
7.493%, 8/15/43 (144A) 2,591,745
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$ 17,834,202
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The accompanying notes are an integral part of these financial statements. 13
Pioneer Tax Advantaged Balanced Trust
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SCHEDULE OF INVESTMENTS 5/31/07 (continued)
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S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Indiana - 0.9%
$4,135,000 BBB/Ba1 Indiana State Development Finance Authority
Revenue, 5.75%, 10/1/11 $ 4,273,688
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Iowa - 0.8%
4,000,000 NR/NR Iowa Financing Authority Senior Housing
Revenue, 5.625%, 12/1/45 $ 3,916,800
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Kansas - 0.6%
750,000 NR/NR Manhattan Health Care Facilities Revenue,
5.125%, 5/15/37 $ 737,797
2,000,000 NR/NR Manhattan Health Care Facilities Revenue,
5.125%, 5/15/42 1,962,000
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$ 2,699,797
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Louisiana - 1.9%
8,335,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
5.875%, 5/15/39 $ 8,918,867
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Maryland - 1.7%
3,000,000 BBB-/Baa3 Frederick County Educational Facilities
Revenue, 5.625%, 9/1/38 $ 3,186,330
1,000,000 NR/NR Maryland State Economic Development
Revenue, Series A, 5.00%, 12/1/16 1,015,880
750,000 NR/NR Maryland State Economic Development
Revenue, Series B, 5.00%, 12/1/16 761,910
1,000,000 NR/NR Maryland State Economic Development
Revenue, 5.00%, 12/1/31 1,003,750
2,000,000 A/A2 Maryland State Health & Higher Educational
Facilities Authority Revenue,
5.125%, 7/1/34 2,048,200
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$ 8,016,070
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Massachusetts - 3.9%
2,000,000 AA+/Aa1 Massachusetts Health & Educational Facilities
Authority Revenue, 5.0%, 7/1/33 $ 2,075,260
1,550,000 BBB-/Baa3 Massachusetts Health & Educational Facilities
Authority Revenue, 5.25%, 7/15/18 1,573,048
1,600,000 BBB/NR Massachusetts Health & Educational Facilities
Authority Revenue, 5.45%, 11/15/23 1,629,440
2,120,000 BBB/Baa3 Massachusetts Health & Educational Facilities
Authority Revenue, 5.625%, 7/1/20 2,169,841
900,000 BBB/Baa3 Massachusetts Health & Educational Facilities
Authority Revenue, 6.25%, 7/1/22 973,728
14 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Advantaged Balanced Trust
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S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Massachusetts - (continued)
$2,750,000 BBB/Baa2 Massachusetts Health & Educational Facilities
Authority Revenue, 6.625%, 7/1/32 $ 2,976,298
2,000,000 A/NR Massachusetts State Development Finance
Agency, 5.0%, 3/1/36 2,048,260
500,000 BBB-/NR Massachusetts State Development Finance
Agency, 5.5%, 1/1/35 510,850
1,100,000 BBB/Baa2 Massachusetts State Development Finance
Agency, 5.625%, 10/1/24 1,175,790
1,000,000 BBB/Baa2 Massachusetts State Development Finance
Agency, 5.7%, 10/1/34 1,064,160
2,000,000+ AAA/Aaa University of Massachusetts Building Authority
Project Revenue, 5.25%, 11/1/29 2,171,040
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$ 18,367,715
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Michigan - 2.1%
5,000,000 BB/NR Macomb County Hospital Finance Authority
Revenue, 5.875%, 11/15/34 $ 5,283,850
1,600,000 NR/NR Meridian Economic Development Corporate
Ltd. Obligation Revenue, 5.25%, 7/1/26 1,598,208
2,000,000 NR/NR Michigan State Hospital Finance Authority
Revenue, 5.25%, 11/15/25 2,029,820
1,000,000 NR/NR Michigan State Hospital Finance Authority
Revenue, 5.5%, 11/15/35 1,033,060
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$ 9,944,938
-------------
Minnesota - 0.8%
2,000,000 A-/NR Duluth Economic Development Authority
Health Care Facilities Revenue,
5.25%, 2/15/28 $ 2,056,700
1,500,000 A-/NR Duluth Economic Development Authority
Health Care Facilities Revenue,
5.25%, 2/15/33 1,541,655
-------------
$ 3,598,355
-------------
Missouri - 0.4%
1,720,000 AA/Aa3 Missouri State Health & Educational Authority
Health Facilities Revenue, 5.25%, 8/15/28 $ 1,808,236
-------------
Montana - 0.2%
1,000,000 NR/A3 Montana Finance Authority Hospital Facilities
Revenue, 5.0%, 6/1/24 $ 1,017,120
-------------
The accompanying notes are an integral part of these financial statements. 15
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
-------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Nebraska - 1.2%
$ 4,980,000(a) NR/Aaa Nebraska Public Power District Revenue, RIB,
5.839%, 1/1/41 (144A) $ 5,606,484
-------------
Nevada - 0.3%
1,500,000 A/A2 Henderson Nevada Health Care Facilities
Revenue, 5.625%, 7/1/24 $ 1,588,260
-------------
New Hampshire - 0.6%
1,800,000+ NR/NR New Hampshire Business Finance Authority
Revenue, 6.05%, 9/1/29 $ 1,873,242
1,000,000 A+/A2 New Hampshire Health & Education Facilities
Authority Revenue, 5.75%, 10/1/31 1,060,950
-------------
$ 2,934,192
-------------
New Jersey - 7.0%
1,250,000 BBB/Baa3 Camden County Improvement Authority
Revenue, 5.75%, 2/15/34 $ 1,334,063
5,920,000(a) NR/Aaa Garden State Preservation Trust, RIB,
8.345%, 11/1/22 (144A) 8,313,101
710,000 NR/NR New Jersey Economic Development Authority
Revenue, 5.75%, 1/1/25 729,255
1,000,000 NR/NR New Jersey Economic Development Authority
Revenue, 5.875%, 1/1/37 1,029,370
1,000,000 BB/Ba2 New Jersey Health Care Facilities Financing
Authority Revenue, 5.125%, 7/1/14 969,650
5,000,000 BBB/Baa1 New Jersey Health Care Facilities Financing
Authority Revenue, 5.375%, 7/1/33 5,157,900
3,500,000 NR/NR New Jersey Health Care Facilities Financing
Authority Revenue, 7.25%, 7/1/27 3,607,275
9,000,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
5.0%, 6/1/41 8,787,240
3,000,000+ AAA/Aaa Tobacco Settlement Financing Corp.,
6.25%, 6/1/43 3,370,530
-------------
$ 33,298,384
-------------
New Mexico - 0.5%
1,000,000 AA/NR Dona Ana County PILT Revenue,
5.25%, 12/1/25 $ 1,051,190
1,500,000 NR/A3 Farmington New Mexico Hospital Revenue,
5.0%, 6/1/23 1,522,110
-------------
$ 2,573,300
-------------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
New York - 3.1%
$2,000,000 NR/NR Dutchess County Industrial Development
Agency Revenue, 7.5%, 3/1/29 $ 2,213,180
1,000,000 NR/Aa2 New York City Industrial Development Agency,
5.0%, 7/1/27 1,042,320
1,000,000 NR/Aa2 New York City Industrial Development Agency,
5.25%, 7/1/24 1,068,140
5,000,000 AA-/A1 Port Authority of New York & New Jersey
Revenue, 5.0%, 9/1/38 5,208,500
4,900,000 AAA/Aaa Triborough Bridge & Tunnel Authority,
5.25%, 11/15/30 5,191,011
-------------
$ 14,723,151
-------------
North Carolina - 0.7%
1,000,000 AA/Aa3 North Carolina Capital Facilities Finance
Agency Student Revenue, 5.0%, 6/1/27 $ 1,027,930
1,000,000 AA/Aa3 North Carolina Capital Facilities Finance
Agency Student Revenue, 5.0%, 6/1/32 1,025,510
1,000,000 NR/NR North Carolina Medical Care Commission
Health Care Facilities Revenue,
5.0%, 11/1/23 1,018,560
-------------
$ 3,072,000
-------------
Ohio - 1.3%
2,000,000 B-/B3 Cleveland Airport Special Revenue,
5.7%, 12/1/19 $ 2,039,980
3,000,000+ AAA/Aaa Columbus City School District, 5.0%, 12/1/32 3,204,750
1,000,000 AAA/Aaa Hamilton County Hospital Facilities Revenue,
5.125%, 5/15/28 1,046,680
-------------
$ 6,291,410
-------------
Oregon - 0.6%
2,935,000 NR/Aaa Oregon State Housing & Community Services
Department Multi-Family Revenue,
6.0%, 7/1/31 $ 2,985,277
-------------
Pennsylvania - 3.7%
5,000,000 BB+/Ba1 Delaware County Pennsylvania Industrial
Development Authority Revenue,
6.2%, 7/1/19 $ 5,143,700
5,000,000+ AAA/Aaa Pennsylvania State Turnpike Commission Oil
Franchise Tax Revenue, 5.0%, 12/1/31 5,307,200
2,315,000+ A/NR Sayre Health Care Facilities Authority Revenue,
5.875%, 12/1/31 2,517,794
The accompanying notes are an integral part of these financial statements. 17
Pioneer Tax Advantaged Balanced Trust
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
-------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Pennsylvania - (continued)
$ 685,000 A/NR Sayre Health Care Facilities Authority Revenue,
5.875%, 12/1/31 $ 731,190
280,000 B-/NR Scranton-Lackawanna Health & Welfare
Authority Hospital Revenue, 5.9%, 7/1/08 283,259
700,000 B-/NR Scranton-Lackawanna Health & Welfare
Authority Hospital Revenue, 6.0%, 7/1/09 714,553
460,000 B-/NR Scranton-Lackawanna Health & Welfare
Authority Hospital Revenue, 6.05%, 7/1/10 469,563
2,165,000 AA+/Aaa Swarthmore Borough Authority College
Revenue, 5.0%, 9/15/31 2,230,491
-------------
$ 17,397,750
-------------
Puerto Rico - 3.2%
8,000,000+ BBB+/Aaa Puerto Rico Commonwealth Highway &
Transportation Authority Revenue,
5.125%, 7/1/43 $ 8,611,440
5,000,000 BBB-/Baa3 Puerto Rico Public Buildings Authority
Revenue, 5.25%, 7/1/33 5,249,850
1,000,000 BBB-/Ba1 Puerto Rico Public Finance Corp.,
5.75%, 8/1/27 1,062,390
-------------
$ 14,923,680
-------------
Rhode Island - 1.1%
1,640,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
6.125%, 6/1/32 $ 1,758,146
3,100,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
6.25%, 6/1/42 3,388,300
-------------
$ 5,146,446
-------------
South Carolina - 3.7%
6,000,000 A-/A3 Berkeley County School District Installment
Lease, 5.0%, 12/1/28 $ 6,170,880
5,000,000 AAA/Aaa Florence County Hospital Revenue,
5.25%, 11/1/34 5,282,450
3,500,000 A+/A2 Lexington County Health Services District,
Inc., Hospital Revenue, 5.5%, 11/1/32 3,669,190
2,500,000 A-/A3 South Carolina Jobs Economic Development
Authority Revenue, 5.5%, 11/15/23 2,603,750
-------------
$ 17,726,270
-------------
Tennessee - 0.5%
2,500,000 NR/Ba2 Knox County Health Educational & Housing
Facilities Board Hospital Revenue,
6.5%, 4/15/31 $ 2,569,825
-------------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
Texas - 3.3%
$ 1,552,000 NR/Aaa Houston Housing Financing Corp.,
6.25%, 9/20/31 $ 1,657,862
2,885,000(a) NR/Aaa Houston Utility System Revenue, RIB,
6.71%, 5/15/24 (144A) 3,535,625
2,750,000 AAA/Aaa Lower Colorado River Authority,
5.0%, 5/15/31 2,838,743
1,711,000 NR/Aaa Panhandle Regional Housing Finance Corp.,
6.6%, 7/20/31 1,864,015
3,000,000 BBB/Baa2 Richardson Hospital Authority, 6.0%, 12/1/34 3,254,700
1,000,000 BBB-/NR Seguin Higher Education Facilities Corp.
Revenue, 5.0%, 9/1/23 1,017,560
1,500,000 NR/Baa3 Texas State Student Housing Revenue,
6.5%, 9/1/34 1,608,480
-------------
$ 15,776,985
-------------
Vermont - 0.3%
1,295,000 AA/Aa3 Vermont Educational & Health Buildings
Financing Agency Revenue, 5.0%, 7/1/24 $ 1,331,480
-------------
Virginia - 2.1%
1,500,000 NR/A3 Prince William County Industrial Development
Hospital Revenue, 5.2%, 10/1/26 $ 1,550,700
3,925,000 NR/A3 Prince William County Industrial Development
Hospital Revenue, 5.35%, 10/1/36 4,090,714
4,000,000 A-/Baa1 Virginia College Building Authority Revenue,
5.0%, 6/1/26 4,137,680
-------------
$ 9,779,094
-------------
Washington - 2.3%
3,000,000 AAA/Aaa King County Washington Sewer Revenue,
5.0%, 1/1/35 $ 3,093,420
7,000,000 BBB/Baa3 Tobacco Settlement Authority Revenue,
6.625%, 6/1/32 7,784,700
-------------
$ 10,878,120
-------------
Wisconsin - 0.8%
3,500,000 BBB+/NR Wisconsin State Health & Educational
Facilities Authority Revenue, 5.6%, 2/15/29 $ 3,594,255
-------------
TOTAL TAX-EXEMPT OBLIGATIONS
(Cost $319,604,668) (b) $ 336,113,419
-------------
The accompanying notes are an integral part of these financial statements. 19
Pioneer Tax Advantaged Balanced Trust
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SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
-------------------------------------------------------------------------------
Shares Value
COMMON STOCKS - 38.1% of Net Assets
Energy - 0.8%
Oil & Gas Storage & Transportation - 0.8%
142,876 Spectra Energy Corp. $ 3,804,788
-------------
Total Energy $ 3,804,788
-------------
Materials - 0.8%
Diversified Chemicals - 0.4%
94,000 Olin Corp. $ 1,902,560
-------------
Diversified Metals & Mining - 0.4%
56,012 Compass Minerals International, Inc. $ 1,912,810
-------------
Total Materials $ 3,815,370
-------------
Consumer Services & Supplies - 0.7%
Commercial Printing - 0.7%
79,034 R.R. Donnelley & Sons Co. $ 3,384,236
-------------
Total Consumer Services & Supplies $ 3,384,236
-------------
Consumer Durables & Apparel - 1.3%
Home Furnishings - 0.3%
50,000 Bassett Furniture Industries, Inc. $ 717,500
31,486 Kimball International, Inc. 429,784
-------------
$ 1,147,284
-------------
Housewares & Specialties - 1.0%
166,444 Tupperware Corp. $ 4,811,896
-------------
Total Consumer Durables & Apparel $ 5,959,180
-------------
Media - 1.1%
Movies & Entertainment - 1.0%
206,487 Regal Entertainment Group $ 4,724,422
-------------
Publishing - 0.1%
9,905 Idearc, Inc. $ 349,151
-------------
Total Media $ 5,073,573
-------------
Food, Beverage & Tobacco - 6.4%
Packaged Foods & Meats - 1.2%
175,000 B&G Foods, Inc. $ 2,388,750
92,828 Kraft Foods, Inc. 3,141,300
-------------
$ 5,530,050
-------------
20 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Shares Value
Tobacco - 5.2%
134,140 Altria Group, Inc. $ 9,537,354
172,872 Loews Corp. - Carolina Group 13,440,798
29,704 Reynolds American, Inc. 1,931,948
-------------
$ 24,910,100
-------------
Total Food, Beverage & Tobacco $ 30,440,150
-------------
Pharmaceuticals, Biotechnology & Life Sciences - 4.5%
Pharmaceuticals - 4.5%
329,758 Bristol-Myers Squibb Co. $ 9,994,965
216,536 Merck & Co., Inc. 11,357,313
-------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 21,352,278
-------------
Banks - 4.4%
Diversified Banks - 0.3%
28,642 Wachovia Corp. $ 1,552,110
-------------
Regional Banks - 1.8%
81,550 KeyCorp $ 2,903,995
90,000 National City Corp. 3,113,100
67,800 Regions Financial Corp. 2,418,426
-------------
$ 8,435,521
-------------
Thrifts & Mortgage Finance - 2.3%
222,700 TrustCo Bank Corp., NY $ 2,162,417
204,886 Washington Mutual, Inc. 8,957,616
-------------
$ 11,120,033
-------------
Total Banks $ 21,107,664
-------------
Diversified Financials - 0.5%
Diversified Financial Services - 0.5%
42,500 Bank of America Corp. $ 2,155,175
-------------
Total Diversified Financials $ 2,155,175
-------------
Telecommunication Services - 9.8%
Integrated Telecommunication Services - 9.8%
204,553 AT&T, Inc. $ 8,456,221
529,946 Citizens Communications Co. 8,399,644
406,745 Verizon Communications, Inc. 17,705,610
790,184 Windstream Corp. 11,868,564
-------------
otal Telecommunication Services $ 46,430,039
-------------
The accompanying notes are an integral part of these financial statements. 21
Pioneer Tax Advantaged Balanced Trust
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SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
-------------------------------------------------------------------------------
Shares Value
Utilities - 7.8%
Electric Utilities - 1.2%
138,400 Empire District Electric Co. $ 3,264,856
74,383 Great Plains Energy, Inc. 2,314,799
-------------
$ 5,579,655
-------------
Gas Utilities - 3.4%
81,249 AGL Resources, Inc. $ 3,466,082
395,466 Atmos Energy Corp. 12,809,144
-------------
$ 16,275,226
-------------
Multi-Utilities - 3.2%
100,000 Consolidated Edison, Inc. $ 4,882,000
285,753 Duke Energy Corp. 5,583,614
134,112 NSTAR 4,671,121
-------------
$ 15,136,735
-------------
Total Utilities $ 36,991,616
-------------
TOTAL COMMON STOCKS
(Cost $142,911,400) $ 180,514,069
-------------
NON-CONVERTIBLE PREFERRED STOCKS - 25.1% of Net Assets
Energy - 1.0%
Oil & Gas Exploration & Production - 1.0%
49,300 Apache Corp., Series B, 5.68% $ 4,961,059
-------------
Total Energy $ 4,961,059
-------------
Automobiles & Components - 1.0%
Automobile Manufacturers - 1.0%
126,542 Ford Motor Co. Capital Trust II, 6.5% $ 4,613,134
-------------
Total Automobiles & Components $ 4,613,134
-------------
Banks - 6.2%
Diversified Banks - 3.3%
105,000 Bank One Capital VI, 7.2% $ 2,643,646
120,000 Barclays Bank Plc, Series 2, 6.625% 3,102,000
120,000 HSBC Holdings Plc, Series A, 6.2%, 2,978,400
200,000 Royal Bank of Scotland Group Plc,
Series L, 5.75% 4,764,000
71,000 Wachovia Preferred Funding Corp.,
Series A, 7.25% 1,988,000
-------------
$ 15,476,046
-------------
22 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Shares Value
Thrifts & Mortgage Finance - 2.9%
56,980 Countrywide Capital V, 7.0% $ 1,409,262
100,000 Fannie Mae, Series N, 5.5% 4,884,000
57,000 Freddie Mac, 5.81% 2,835,750
39,000 Freddie Mac, Series F, 5.0% 1,741,350
58,000 Freddie Mac, Series K, 5.79% 2,871,000
-------------
$ 13,741,362
-------------
Total Banks $ 29,217,408
-------------
Diversified Financials - 7.5%
Diversified Financial Services - 3.8%
49,000 ABN Amro Capital Fund Trust VII, 6.08% $ 1,178,450
120,000 Bank of America Corp., Series D, 6.204% 3,118,800
55,000 Citigroup, Inc., Series G, 6.213% 2,762,650
81,500 Citigroup, Inc., Series M, 5.864% 4,077,445
120,000 Deustche Bank Capital Funding Trust VIII, 6.375% 3,015,000
150,000 JPMorgan Chase Capital Trust XVI, 6.35% 3,721,500
-------------
$ 17,873,845
-------------
Consumer Finance - 0.8%
18,000 MBNA Capital, Series D, 8.125% $ 452,873
70,000 SLM Holdings Corp., Series A, 6.97% 3,482,500
-------------
$ 3,935,373
-------------
Investment Banking & Brokerage - 2.9%
57,000 Bear Stearns Companies, Inc., Series F, 5.72% $ 2,850,000
40,000 Bear Stearns Companies, Inc., Series G, 5.49% 2,000,000
100,000 Lehman Brothers Holdings, Inc., 6.5% 2,553,000
19,000 Lehman Brothers Holdings, Inc., Series C, 5.94% 948,860
30,000 Lehman Brothers Holdings, Inc., Series D, 5.67% 1,468,500
65,000 Merrill Lynch Preferred Capital Trust IV, 7.12% 1,638,993
87,000 Merrill Lynch Preferred Capital Trust V, 7.28% 2,211,403
-------------
$ 13,670,756
-------------
Total Diversified Financials $ 35,479,974
-------------
Insurance - 3.6%
Life & Health Insurance - 0.8%
159,000 Scottish Re Group, Ltd., 7.25% $ 3,696,750
-------------
Property & Casualty Insurance - 2.0%
110,000 ACE, Ltd., Series C, 7.8% $ 2,818,200
161,000 Berkley W.R. Capital Trust II, 6.75% 3,985,275
109,000 XL Capital, Ltd., Series B, 7.625% 2,770,780
-------------
$ 9,574,255
-------------
The accompanying notes are an integral part of these financial statements. 23
Pioneer Tax Advantaged Balanced Trust
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SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
-------------------------------------------------------------------------------
Shares Value
Reinsurance - 0.8%
170,500 RenaissanceRe Holdings, Ltd., Series C, 6.08% $ 3,907,860
-------------
Total Insurance $ 17,178,865
-------------
Real Estate - 2.7%
Diversification Real Estate Investment Trust - 0.8%
128,000 PS Business Parks, Inc., Series H, 7.0% $ 3,207,680
32,440 PS Business Parks, Inc., Series I, 6.875% 805,809
-------------
$ 4,013,489
-------------
Industrial Real Estate Investment Trust - 0.2%
40,000 Prologis Trust, Series G, 6.75% $ 1,006,400
-------------
Office Real Estate Investment Trust - 0.3%
15,000 Brandywine Realty Trust, Series C, 7.5% $ 378,450
34,500 Brandywine Realty Trust, Series D, 7.375% 882,855
-------------
$ 1,261,305
-------------
Retail Real Estate Investment Trust - 0.8%
94,000 Regency Centers Corp., Series C, 7.45% $ 2,359,400
53,500 Regency Centers Corp., Series E, 6.7% 1,326,800
-------------
$ 3,686,200
-------------
Specialized Real Estate Investment Trust - 0.6%
124,000 Public Storage, Inc., Series F, 6.45% $ 2,992,120
-------------
Total Real Estate $ 12,959,514
-------------
Utilities - 3.1%
Electric Utilities - 2.8%
98,000 Alabama Power Co., 5.3% $ 2,312,800
113,000 Alabama Power Co., 5.83% 2,783,190
78,000 Interstate Power & Light Co., Series B, 8.375% 2,439,060
40,000 Mississippi Power Co., 5.25% 1,003,600
7,700 PPL Electric Utilities Corp., 4.5% 669,130
73,000 Southern California Edison Co., 4.32% 1,460,000
94,000 Virginia Power Capital Trust II, 7.375% 2,353,564
-------------
$ 13,021,344
-------------
Gas Utilities - 0.3%
62,000 Southern Union Co., Series C, 7.55% $ 1,590,300
-------------
Total Utilities $ 14,611,644
-------------
TOTAL NON-CONVERTIBLE PREFERRED STOCKS
(Cost $121,803,711) $ 119,021,598
-------------
24 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Shares Value
CONVERTIBLE PREFERRED STOCKS - 2.4% of Net Assets
Capital Goods - 0.5%
Aerospace & Defense - 0.5%
15,000 Northrop Grumman Corp., 7.0% $ 2,140,500
-------------
Total Capital Goods $ 2,140,500
-------------
Diversified Financials - 1.6%
Diversified Financial Services - 1.6%
161,000 Lazard, Ltd., 6.625% $ 7,436,590
-------------
Total Diversified Financials $ 7,436,590
-------------
Insurance - 0.3%
Property & Casualty Insurance - 0.3%
47,919 XL Capital, Ltd., Class A, 7.0% $ 1,368,567
-------------
Total Insurance $ 1,368,567
-------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $7,130,041) $ 10,945,657
-------------
TAX-EXEMPT MONEY MARKET MUTUAL FUND - 0.1%
of Net Assets
626,432 BlackRock Liquidity Funds MuniFund Portfolio $ 626,432
-------------
TOTAL TAX-EXEMPT MONEY MARKET MUTUAL FUND
(Cost $626,432) $ 626,432
-------------
TOTAL INVESTMENTS IN SECURITIES - 136.6%
(Cost $592,076,252) (c) $ 647,221,175
-------------
OTHER ASSETS AND LIABILITIES - 0.6% $ 3,029,656
-------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE - (37.2%) $(176,447,353)
-------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS - 100.0% $ 473,803,478
=============
The accompanying notes are an integral part of these financial statements. 25
Pioneer Tax Advantaged Balanced Trust
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SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
-------------------------------------------------------------------------------
Portfolio Abbreviations
RIB Residual Interest Bonds
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration.
At May 31, 2007, the value of these securities amounted $46,630,053,
or 9.8% of total net assets.
NR Security not rated by S&P or Moody's.
+ Prerefunded bonds have been collateralized by U.S. Treasury securities or
U.S. Government Agencies, which are held in escrow to pay interest and
principal on the tax exempt issue and to retire the bonds in full at the
earliest refunding date.
(a) The interest rate is subject to change periodically and inversely based
upon prevailing market rates. The interest rate shown is the rate at May
31, 2007.
(b) The concentration of tax-exempt investments by type of obligation/market
sector is as follows:
Insured 23.2%
General Obligation 0.9
Revenue Bonds:
Health Revenue 25.2
Tobacco Revenue 15.9
Development Revenue 11.0
Education Revenue 7.6
Housing Revenue 4.6
Transportation Revenue 4.1
Pollution Control Revenue 2.8
School District Revenue 1.8
Facilities Revenue 1.6
Airport Revenue 0.6
Gaming Revenue 0.5
Other Revenue 0.2
-----
100.0%
=====
(c) At May 31, 2007, the net unrealized gain on investments based on cost for
federal income tax purposes of $591,857,569 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $61,614,099
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (6,250,493)
------------
Net unrealized gain $55,363,606
============
For financial reporting purposes net unrealized gain on investments was
$55,144,923 and cost of investments aggregated $592,076,252.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended May 31, 2007, aggregated $65,631,196 and $57,293,202,
respectively.
26 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 5/31/07 (unaudited)
-------------------------------------------------------------------------------
ASSETS:
Investments in securities, at value (cost $592,076,252) $647,221,175
Receivables -
Dividends and interest 6,747,121
Unrealized appreciation on interest rate swaps 1,734,541
Prepaid expenses 21,402
------------
Total assets $655,724,239
------------
LIABILITIES:
Payables -
Investment securities purchased $ 3,000,000
Due to custodian 1,731,463
Due to affiliate 341,557
Administration fee payable 33,580
Accrued expenses 366,808
------------
Total liabilities $ 5,473,408
------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 7,050
shares, including dividends payable of $197,353 $176,447,353
------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $408,360,057
Undistributed net investment income 612,423
Accumulated net realized gain on investments and interest
rate swaps 7,951,534
Net unrealized gain on investments 55,144,923
Net unrealized gain on interest rate swaps 1,734,541
------------
Net assets applicable to common shareowners $473,803,478
============
NET ASSET VALUE PER SHARE:
No par value, (unlimited number of shares authorized)
Based on $473,803,478/28,706,981 common shares $ 16.50
============
The accompanying notes are an integral part of these financial statements. 27
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
-------------------------------------------------------------------------------
For the Six Months Ended 5/31/07
INVESTMENT INCOME:
Dividends $ 7,379,450
Interest 9,490,257
------------
$ 16,869,707
------------
EXPENSES:
Management fees $ 1,929,101
Administration fees and reimbursement 252,447
Transfer agent fees and expenses 233,775
Auction agent fees 232,765
Custodian fees 20,302
Registration fees 12,355
Professional fees 178,540
Printing expense 17,763
Trustees' fees 6,113
Pricing fees 8,677
Insurance fees 7,256
Miscellaneous 8,487
------------
Total expenses $ 2,907,581
------------
Net investment income $ 13,962,126
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND INTEREST RATE SWAPS:
Net realized gain from:
Investments $ 7,593,831
Interest rate swaps 392,702 $ 7,986,533
------------ ------------
Change in net unrealized gain from:
Investments $ 2,061,846
Interest rate swaps 484,449 $ 2,546,295
------------ ------------
Net gain on investments and interest
rate swaps $ 10,532,828
------------
DIVIDENDS AND DISTRIBUTIONS TO PREFERRED
SHAREOWNERS FROM:
Net investment income $ (4,030,879)
Net realized gains (114,868)
------------
Total distributions $ (4,145,747)
------------
Net increase in net assets applicable
to common shareowners resulting
from operations $ 20,349,207
============
28 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
For the Six Months Ended 5/31/07 and the Year Ended 11/30/06, respectively
Six Months
Ended Year
5/31/07 Ended
(unaudited) 11/30/06
FROM OPERATIONS:
Net investment income $ 13,962,126 $ 27,998,168
Net realized gain on investments and interest
rate swaps 7,986,533 688,474
Change in net unrealized gain on investments
and interest rate swaps 2,546,295 44,563,306
Dividends and distributions to preferred
shareowners from:
Net investment income (4,030,879) (7,360,344)
Net realized gains (114,868) (571,728)
------------ ------------
Net increase in net assets applicable to
common shareowners $ 20,349,207 $ 5,317,876
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO COMMON
SHAREOWNERS:
Net investment income
($0.37 and $0.67 per share, respectively) $(10,503,885) $(19,187,745)
Net realized capital gains
($0.01 and $0.08 per share, respectively) (333,001) (2,315,448)
------------ ------------
Total distributions to common shareowners $(10,836,886) $(21,503,193)
------------ ------------
Net increase in net assets applicable to
common shareowners $ 9,512,321 $ 43,814,683
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS:
Beginning of period 464,291,157 420,476,474
------------ ------------
End of period $473,803,478 $464,291,157
============ ============
Undistributed net investment income $ 612,423 $ 1,185,061
============ ============
The accompanying notes are an integral part of these financial statements. 29
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 5/31/07
-------------------------------------------------------------------------------
For the
Six Months
Ended Year Year 1/30/04 (b)
5/31/07 Ended Ended to
(unaudited) 11/30/06 11/30/05 11/30/04
Per Common Share Operating Performance
Net asset value, beginning of period $ 16.17 $ 14.65 $ 14.55 $ 14.33(c)
-------- -------- -------- --------
Increase (decrease) from investment operations:(a)
Net investment income $ 0.49 $ 0.98 $ 0.95 $ 0.66
Net realized and unrealized gain on investments and
interest rate swaps 0.36 1.57 0.13 0.27
Dividends and distributions to preferred shareowners from:
Net Investment income (0.14) (0.26) (0.19) (0.06)
Net realized gain -(d) (0.02) -(d) -
-------- -------- -------- --------
Net increase from investment operations $ 0.71 $ 2.27 $ 0.89 $ 0.87
Dividends and distributions to common shareowners from:
Net investment income (0.37) (0.67) (0.79) (0.55)
Net realized gain (0.01) (0.08) - -
Capital charge with respect to issuance of:
Common shares - - - (0.03)
Preferred shares - - - (0.07)
-------- -------- -------- --------
Net increase in net asset value $ 0.33 $ 1.52 $ 0.10 $ 0.22
-------- -------- -------- --------
Net asset value, end of period(e) $ 16.50 $ 16.17 $ 14.65 $ 14.55
======== ======== ======== ========
Market value, end of period(e) $ 15.23 $ 14.00 $ 12.18 $ 12.74
-------- -------- -------- --------
Total return(f) 11.63% 21.79% 1.51% (11.26)%
Ratios to average net assets of common shareowners
Net expenses(g) 1.24%(h) 1.12% 1.12% 1.04%(h)
Net investment income before preferred share dividends 5.98%(h) 6.43% 6.32% 5.69%(h)
Preferred share dividends 1.73%(h) 1.69% 1.28% 0.55%(h)
Net investment income available to common shareowners 4.25%(h) 4.74% 5.04% 5.14%(h)
Portfolio turnover 9% 16% 27% 63%
Net assets of common shareowners, end of period
(in thousands) $473,803 $464,291 $420,476 $417,789
Preferred shares outstanding (in thousands) $176,250 $176,250 $176,250 $176,250
Asset coverage per preferred share, end of period $ 92,234 $ 90,870 $ 84,651 $ 84,264
Average market value per preferred share $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per
preferred share $ 25,028 $ 25,015 $ 25,009 $ 25,003
Ratios to average net assets of common shareowners
before reimbursement of organization expenses
Net expenses(g) 1.24%(h) 1.12% 1.12% 1.05%(h)
Net investment income before preferred share dividends 5.98%(h) 6.43% 6.32% 5.68%(h)
Preferred share dividends 1.73%(h) 1.69% 1.28% 0.55%(h)
Net investment income available to common shareowners 4.25%(h) 4.74% 5.04% 5.13%(h)
30 The accompanying notes are an integral part of these financial statements.
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 5/31/07
-------------------------------------------------------------------------------
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Trust shares were first publicly offered on January 30, 2004.
(c) Net asset value immediately after the closing of the first public offering
was $14.30.
(d) Amount is less than $0.01 per common share.
(e) Net asset value and market value are published in Barron's on Saturday, The
Wall Street Journal on Monday and The New York Times on Monday and Saturday.
(f) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
market value on the last day of the periods reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Total
investment return less than a full period is not annualized. Past
performance is not a guarantee of future results.
(g) Expense ratios do not reflect the effect of dividend payments to preferred
shareowners.
(h) Annualized.
The information above represents the operating performance data for a share of
common stock outstanding, total investment return, ratios to average net assets
of common shareowners and other supplemental data for the periods indicated.
This information has been determined based upon financial information provided
in the financial statements and market value data for the Trust's common shares.
The accompanying notes are an integral part of these financial statements. 31
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited)
-------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Tax Advantaged Balanced Trust (the "Trust") was organized as a Delaware
statutory trust on October 16, 2003. Prior to commencing operations on January
30, 2004, the Trust had no operations other than matters relating to its
organization and registration as a diversified, closed-end management investment
company under the Investment Company Act of 1940, as amended. The Trust's
investment objective is to provide a high level of total after-tax return,
including attractive tax-advantaged income.
The Trust may invest in municipal securities with a broad range of maturities
and credit ratings, including both investment grade and below investment grade
municipal securities. By concentrating in municipal securities, the portfolio is
more susceptible to adverse economic, political or regulatory developments than
is a portfolio that invests more broadly. Investments in the Trust are subject
to possible loss due to the financial failure of underlying securities and their
inability to meet their debt obligations. The Trust may also invest in common
stocks and preferred securities that pay tax-qualified dividends. In addition,
the Trust may invest in other securities, including debt instruments, real
estate investment trusts ("REITS") and equity securities, that generate income
taxable at ordinary income rates, rather than long-term capital gain rates.
There can be no assurance as to the portion of the Trust's dividends that will
be tax-exempt or tax-qualified.
A portion of income may be subject to state, federal, and/or alternative minimum
tax. Capital gains, if any, are subject to a capital gains tax. When interest
rates rise, the prices of fixed-income securities in the Trust will generally
fall. Conversely, when interest rates fall the prices of fixed-income securities
in the Trust will generally rise.
The Trust may invest in derivative securities, which may include futures and
options. These types of instruments can increase price fluctuation.
Information regarding the Trust's principal risks is contained in the Trust's
original offering prospectus, with additional information included in the
Trust's shareowner reports. Please refer to those documents when considering the
Trust's risks. At times, the Trust's investments may represent industries or
industry sectors that are interrelated or have common risks, making it more
susceptible to any
32
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, and the reported amounts of income,
expenses and gains and losses on investments during the reporting period. Actual
results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Trust in preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Debt 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.
Equity securities are valued at the last sale price on the principal
exchange where they are traded. The values of interest rate swaps are
determined by obtaining dealer quotations. Securities for which market
quotations are not readily available are valued at their fair values as
determined by, or under the direction of, the Board of Trustees. The Trust
may also 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 accurately reflects the value of the security as of the
close of the exchange. As of May 31, 2007, there were no securities fair
valued. Temporary cash investments are valued at net asset value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Trust becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Discount and premium on debt
securities are accreted or amortized, respectively, daily, on an effective
yield to maturity basis and are included in interest income. Interest
income, including
33
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited) (continued)
-------------------------------------------------------------------------------
income on interest bearing cash accounts, is recorded on an accrual basis.
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 Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the source of the Trust's distributions may be
shown in the accompanying financial statements as either from or in excess
of net investment income or net realized gain on investment transactions,
or from paid-in capital, depending on the type of book/tax differences that
may exist.
The tax character of current year distributions paid to common and
preferred shareowners will be determined at the end of the current fiscal
year. Distributions during the year ended November 30, 2006 were as
follows:
-------------------------------------------------------------------------------
2006
-------------------------------------------------------------------------------
Distributions paid from:
Tax-Exempt income $13,521,779
Ordinary income 13,026,310
Long-term capital gain 2,887,176
-----------
$29,435,265
===========
-------------------------------------------------------------------------------
34
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at November 30, 2006.
-------------------------------------------------------------------------------
2006
-------------------------------------------------------------------------------
Undistributed tax-exempt income $ 590,795
Undistributed ordinary income 555,079
Undistributed long-term gain 446,744
Dividends payable (93,771)
Unrealized appreciation 54,432,253
-----------
Total $55,931,100
===========
-------------------------------------------------------------------------------
The difference between book basis and tax basis unrealized appreciation is
primarily attributable to the difference between book and tax amortization
methods for premiums and discounts on fixed income securities, the
accounting treatment for swap agreements and the deferral of Post-October
losses for tax purposes.
C. Automatic Dividend Reinvestment Plan
All common shareowners automatically participate in the Automatic Dividend
Reinvestment Plan (the "Plan"), under which participants receive all
dividends and capital gain distributions (collectively, "dividends") in
full and fractional common shares of the Trust in lieu of cash. Shareowners
may elect not to participate in the Plan. Shareowners not participating in
the Plan receive all dividends and capital gain distributions in cash.
Participation in the Plan is completely voluntary and may be terminated or
resumed at any time without penalty by notifying American Stock Transfer &
Trust Company, the agent for shareowners in administering the Plan (the
"Plan Agent"), in writing prior to any dividend record date; otherwise such
termination or resumption will be effective with respect to any
subsequently declared dividend or other distribution.
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional
unissued but authorized common shares from the Trust or (ii) by purchase of
outstanding common shares on the New York Stock Exchange or elsewhere. If,
on the payment date for any dividend, the net asset value per common share
is equal to or less than the market price per share plus estimated
brokerage
35
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited) (continued)
-------------------------------------------------------------------------------
trading fees ("market premium"), the Plan Agent will invest the dividend
amount in newly issued common shares. The number of newly issued common
shares to be credited to each account will be determined by dividing the
dollar amount of the dividend by the net asset value per common share on
the date the shares are issued, provided that the maximum discount from the
then current market price per share on the date of issuance does not exceed
5%. If, on the payment date for any dividend, the net asset value per
common share is greater than the market value ("market discount"), the Plan
Agent will invest the dividend amount in common shares acquired in
open-market purchases. There are no brokerage charges with respect to newly
issued common shares. However, each participant will pay a pro rata share
of brokerage trading fees incurred with respect to the Plan Agent's
open-market purchases. Participating in the Plan does not relieve
shareowners from any federal, state or local taxes which may be due on
dividends paid in any taxable year. Shareowners holding Plan shares in a
brokerage account may not be able to transfer the shares to another broker
and continue to participate in the Plan.
2. Management Agreement
Pioneer Investment Management, Inc. ("PIM"), a wholly owned indirect subsidiary
of Unicredito Italiano S.p.A. ("Unicredito Italiano") manages the Trust's
portfolio. Management fees payable under the Trust's Advisory Agreement with PIM
are calculated daily at the annual rate of 0.60% of the Trust's average daily
managed assets. "Managed assets" is the average daily value of the Trust's total
assets minus the sum of the Trust's liabilities, which liabilities exclude debt
related to leverage, short-term debt and the aggregate liquidation preference of
any outstanding preferred shares. Also, PIM has agreed for the first three years
of the Trust's investment operations to limit the Trust's total annual expenses
excluding offering costs for common and preferred shares, interest expense, the
cost of defending or prosecuting any claim or litigation to which the Trust is a
party (together with any amount in judgment or settlement), indemnification
expenses or taxes incurred due to the failure of the Trust to qualify as a
regulated investment company under the Code or any other non-recurring or
non-operating expenses to 0.80% of the Trust's average daily managed assets. The
dividend on any preferred shares is not an expense for this purpose. As of
February 2, 2007, the expense limitation was no longer in effect. For the six
months ended May 31, 2007, the
36
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Trust's expenses were not reduced under such arrangements. For the six months
ended, May 31, 2007, the net management fee was equivalent to 0.60% of the
Trust's average daily managed assets, which was equivalent to 0.83% of the
Trust's average daily net assets attributable to common shareowners.
In addition, under PIM's management and administration agreements, certain other
services and costs are paid by PIM and reimbursed by the Trust. For the six
months ended May 31, 2007, $341,557 was payable to PIM related to management
costs, administrative costs and certain other services and is included in due to
affiliates.
The Trust has retained Princeton Administrators, LLC, ("Princeton") to provide
certain administrative services to the Trust on its behalf. The Trust pays
Princeton a monthly fee at an annual rate of 0.07% of the average daily value of
the Trust's managed assets up to $500 million and 0.03% for average daily
managed assets in excess of $500 million, subject to a minimum monthly fee of
$10,000.
3. Transfer Agents
Pioneer Investment Management Shareholder Services, Inc. ("PIMSS"), a wholly
owned indirect subsidiary of UniCredito Italiano, through a sub-transfer agency
agreement with American Stock Transfer & Trust Company, provides substantially
all transfer agent and shareowner services related to the Trust's common shares
at negotiated rates. Deutsche Bank Trust Company Americas ("Deutsche Bank") is
the transfer agent, registrar, dividend paying agent and redemption agent with
respect to the Trust's Auction Market Preferred Shares ("AMPS"). The Trust pays
Deutsche Bank an annual fee, as is agreed to from time to time by the Trust and
Deutsche Bank, for providing such services.
4. Interest Rate Swaps
The Trust may enter into interest rate swap transactions to attempt to protect
itself from increasing dividend or interest expense on its leverage resulting
from increasing short-term interest rates. The cost of leverage may rise with an
increase in interest rates, generally having the effect of lower yields and
potentially lower dividends to common shareowners. Interest rate swaps can be
used to "lock in" the cost of leverage and reduce the negative impact that
rising short-term interest rates would have on the Trust's leveraging costs.
37
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited) (continued)
-------------------------------------------------------------------------------
An interest rate swap is an agreement between two parties, which involves
exchanging a floating rate and fixed rate interest payments for a specified
period of time. Interest rate swaps involve the accrual of the net interest
payments between the parties on a daily basis, with the net amount recorded
within the unrealized appreciation/ depreciation of interest rate swaps on the
Statement of Assets and Liabilities. Once the interim payments are settled in
cash, at the pre-determined dates specified in the agreement, the net amount is
recorded as realized gain or loss from interest rate swaps on the Statement of
Operations. During the term of the swap, changes in the value of the swap are
recognized as unrealized gains and losses by "marking-to market" the market
value of the swap based on values obtained from dealer quotations. When the swap
is terminated, the Trust will record a realized gain or loss equal to the
difference, if any, between the proceeds from (or cost of) closing the contract
and the cost basis of the contract. The Trust is exposed to credit risk in the
event of non-performance by the other party to the interest rate swap. However,
at May 31, 2007 the Trust does not anticipate non-performance by any
counterparty. Risk may also arise with regard to market movements in the value
of the swap arrangement that do not exactly offset the changes in the related
dividend requirement or interest expense on the Trust's leverage.
Under the terms of the agreement entered into by the Trust, the Trust receives a
floating rate of interest and pays a fixed rate of interest for the term.
Details of the swap agreement outstanding as of May 31, 2007 were as follows:
-------------------------------------------------------------------------------
Termination Notional Unrealized
Counterparty Date Amount (000) Fixed Rate Floating Rate Appreciation
------------- ---- ------------ ---------- ------------- -------------
UBS AG Sept. 1, 2009 $106,000 2.855% 1 month BMA $1,734,541
5. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized. Of the 28,706,981 common shares of beneficial interest outstanding
at May 31, 2007, PIM owned 6,981 shares.
During the six months ended May 31, 2007 and year ended November 30, 2006, there
were no share transactions by the Trust. All reinvested distributions were
satisfied with previously issued shares
38
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
purchased in the open market and by the Plan Agent and credited to shareowner
accounts.
The Trust may classify and reclassify any unissued common shares of beneficial
interest into one or more series of preferred shares of beneficial interest. As
of May 31, 2007, there were 7,050 AMPS as follows: Series T7-2,350, Series
F7-2,350 and Series TH28-2,350.
Dividends on Series T7 and Series F7 are cumulative at a rate which is reset
every seven days based on the results of an auction. Dividends on Series TH28
are also cumulative at a rate reset every 28 days based on the results of an
auction. Dividend rates ranged from 4.00% to 5.30% during the six months ended
May 31, 2007.
The Trust may not declare dividends or make other distributions on its common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, asset coverage with respect to the outstanding
preferred shares would be less than 200%.
The AMPS are redeemable at the option of the Trust, in whole or in part, on any
dividend payment date at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared. The AMPS are also subject to mandatory
redemption at $25,000 per share plus any accumulated or unpaid dividends,
whether or not declared, if certain requirements relating to the composition of
the assets and liabilities of the Trust as set forth in the Agreement and
Declaration of Trust are not satisfied.
The holders of AMPS have voting rights equal to the holders of the Trust's
common shares (one vote per share) and will vote together with holders of the
common shares as a single class. However, holders of AMPS are also entitled to
elect two of the Trust's Trustees. In addition, the Investment Company Act of
1940, as amended, requires that along with approval by shareowners that might
otherwise be required, the approval of the holders of a majority of any
outstanding preferred shares, voting separately as a class, would be required to
(a) adopt any plan of reorganization that would adversely affect the preferred
shares and (b) take any action requiring a vote of security holders, including,
among other things, changes in the Trust's subclassification as a closed-end
investment company or changes in its fundamental investment restrictions.
39
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (continued)
-------------------------------------------------------------------------------
6. New Pronouncements
On July 13, 2006, the Financial Accounting Standards Board ("FASB") released
FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN
48"). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken or expected to be taken in the
course of preparing the Trust's tax returns to determine whether the tax
positions have a "more-likely-than-not" probability of being sustained by the
applicable tax authority. Tax positions deemed to not meet the
more-likely-than-not threshold would be recorded as a tax benefit or expense in
the reporting period in which they are realized. Adoption of FIN 48 is required
for fiscal years beginning after December 15, 2006 and is to be applied to all
open tax years no later than November 30, 2007. At this time, management is
evaluating the implications of FIN 48 and any impact in the financial statements
has not been determined.
In addition, 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. At this time, management is currently evaluating the
implications of SFAS 157 and its impact on the Trust's financial statement
disclosures, if any, has not yet been determined.
7. Subsequent Events
Subsequent to May 31, 2007, the Board of Trustees of the Trust declared a
dividend from undistributed net investment income of $0.061 per common share
payable June 29, 2007 to common shareowners of record on June 15, 2007.
Subsequent to May 31, 2007, dividends declared and paid on preferred shares
totaled $700,371 in aggregate for the three outstanding preferred share series
through July 9, 2007.
On June 19, 2007, the Trustees of the Trust voted to adopt a new level
distribution policy. The Trust's new level distribution policy is meant to
provide investors with a relatively stable monthly distribution out of a
combination of current net investment income and paid-in capital beginning with
the July 2007 payment. The Trust expects to distribute its long term capital
gains in November 2007. The Trust is
40
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
applying to the Securities and Exchange Commission for exemptive relief to allow
the Trust to include long-term capital gains in its monthly distributions.
The exact amount of the level monthly distributions may be adjusted from time to
time by the Trustees to reflect current conditions. However, under the
Investment Company Act of 1940, the Trust is required to estimate and indicate
the source of each monthly distribution to its shareowners. This estimated
source may vary from month to month because it may be materially affected by
changes in the cumulative level and composition of the Trust's actual earnings
from its investment activities and the level of expenses.
Shareowners should understand that distributions from paid-in capital (i.e.
return of capital) are not from earnings of the Trust. Such return of capital
components of the Trust's monthly distributions do not necessarily reflect the
Trust's investment performance and should not be confused with "yield" or
"income" of the Trust. At the Trust's fiscal year end (November 30) the Trust
will determine if any portion of the reported distributions from paid-in capital
need to be re-characterized for tax purposes as taxable ordinary income and
reportable to shareowners and the IRS on Form 1099 DIV.
In January 2008, shareowners will receive a Form 1099 DIV, which will show the
amount and composition of all 2007 distributions paid to them from the Trust.
That form will provide shareowners with information as to the appropriate tax
treatment of each component.
The annual meeting of shareholders of the Trust was held on Friday, June 8,
2007. Shareholders of the common shares and the preferred shares, voting as a
single class, elected Arthur D. Lipson and Robert Ferguson as Trustees. The
election of the Trustee designated to be elected by the holders of the Trust's
preferred shares was adjourned due to a lack of a quorum. The Trust will
disclose detailed voting results in its annual report.
41
Pioneer Tax Advantaged Balanced Trust
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (continued)
-------------------------------------------------------------------------------
ADDITIONAL INFORMATION (unaudited)
During the period, there were no material changes in the Trust's investment
objective or fundamental policies that were not approved by the shareowners.
There were no changes in the Trust's charter or By-Laws that would delay or
prevent a change in control of the Trust which have not been approved by the
shareowners. There have been no changes in the principal risk factors associated
with investment in the Trust. Day-to-day management of the Trust's portfolio of
municipal securities is the responsibility of David Eurkus. Mr. Eurkus is
supported by the fixed-income team. Members of this team manage other Pioneer
funds investing primarily in fixed-income securities. Mr. Eurkus joined Pioneer
as a senior vice president in January 2000 and has been an investment
professional since 1969. Day-to-day management of the Trust's portfolio of
equity securities is the responsibility of Walter Hunnewell, Jr. Mr. Hunnewell
is supported by the domestic equity team. Members of this team manage other
Pioneer funds investing primarily in U.S. equity securities. Mr. Hunnewell, a
vice president, joined Pioneer in August 2001 and has been an investment
professional since 1985. The portfolio managers and each team also may draw upon
the research and investment management expertise of the global research teams,
which provide quantitative and fundamental research on companies and include
members from Pioneer's affiliate, Pioneer Investment Management Limited (PIML).
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its common
shares in the open market.
CEO CERTIFICATION DISCLOSURE (unaudited)
The Trust's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual. In addition, the Trust has filed with the Securities and
Exchange Commission the certification of its Chief Executive Officer and Chief
Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
42
Pioneer Tax Advantaged Balanced Trust
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
-------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Margaret B.W. Graham Vincent Nave, Treasurer
Daniel K. Kingsbury Dorothy E. Bourassa, Secretary
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Shareowner Services and Sub-Transfer Agent
American Stock Transfer & Trust Company
Preferred Share Auction/Transfer Agent and Registrar
Deutsche Bank Trust Company Americas
Sub-Administrator
Princeton Administrators, LLC
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Trust voted proxies relating to portfolio securities during
the most recent 12 months ended June 30, is publicly available to shareowners at
www.pioneerinvestments.com. This information is also available on our web site
and on the Securities and Exchange Commission's web site at http://www.sec.gov.
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This page for your notes.
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HOW TO CONTACT PIONEER
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We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
Account Information 1-800-710-0935
Or write to AST:
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust Company
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
web site www.pioneerinvestments.com.
The Trust files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. 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.
The Trust's Chief Executive Officer is required by the New York Stock Exchange's
Listing Standards to file annually with the Exchange a certification that he is
not aware of any violation by the Trust of the Exchange's Corporate Governance
Standards applicable to the Trust. The Trust has filed such certification.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
N/A
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
N/A
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Information not required in semi annual reports on form NCSR.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
During the period covered by this report, there were no purchases
made by or on behalf of the registrant or any affiliated purchaser
as defined in Rule 10b-18(a)(3) under the Securities Exchange Act
of 1934 (the Exchange Act), of shares of the registrants equity
securities that are registered by the registrant pursuant to
Section 12 of the Exchange Act.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Tax Advantaged Balanced Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date July 31, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date July 31, 2007
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date July 31, 2007
* Print the name and title of each signing officer under his or her signature.