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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 811-21823
Pioneer Series Trust V
(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: August 31
Date of reporting period: September 1, 2006 through February 28, 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
-----------------------
GLOBAL
SELECT EQUITY
FUND
Semiannual
Report
2/28/07
[LOGO]PIONEER
INVESTMENTS(R)
Table of Contents
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Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 20
Notes to Financial Statements 27
Factors Considered by the Independent Trustees in Approving
the Management Contract 33
Trustees, Officers and Service Providers 38
Chairman's
Dear Shareowner,
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As the global economy reacted to good and bad news of 2006, overall it managed
to keep chugging along with fairly stable growth. Looking back, the economic
stories included slowing economic growth bringing monetary tightening to an end
in the United States, price action in oil and other commodity markets
threatening to unsettle global growth and inflation, geopolitical uncertainties
and corporate earnings growth surpassing market expectations.
Global growth surpassed most analyst expectations in 2006. The International
Monetary Fund estimates world output increased by 5.1% in 2006, up from 4.9% in
2005 and above the 3.7% average annual pace of growth of the previous 20 years.
Growth is estimated to slow modestly in 2007 but to remain well above the
long-term average.
U.S. economic growth slowed gradually over 2006, with full-year growth of GDP
of 3.1%, modestly below 2005 growth but still strong enough to lower the
unemployment rate to 4.5%. While many observers were concerned that a weakening
housing sector could be a drag on consumer spending, the consumer has shown
resilience supported by a strong labor market and associated income growth and
by oil and gasoline prices falling from record highs in the second half of
2006. Corporate America has also proved resilient in the face of the slowing
housing sector, with business investment growing at its fastest rate since
2000.
The Federal Reserve stopped increasing interest rates in mid-2006, but has
retained its bias to tighten rates, reflecting upside risks to inflation,
particularly from the tight labor market, and confidence that the economy
remained on solid ground. Consumers welcomed the relief from oil prices that
peaked at mid-year and fell sharply towards year-end. Likewise, in the second
half of 2006, they benefited from the modest easing of core inflation (which
excludes energy and food items), though such core inflation remains above what
is generally considered the central bank's "comfort zone."
The European economy surpassed many economists' expectations in 2006. Eurozone
GDP grew at a 3% pace, much stronger than its 1.8% average annual growth pace
since 2000. Underlying this strength has been buoyant and broad-based strength
in business sentiment and investment and in exports. While household
consumption showed mixed results, the unemployment rate fell to 7.7% by the end
of 2006. The European Central Bank raised interest rates gradually to 3.5% over
the course of 2006, reflecting firm economic growth, steadily tightening labor
market conditions, and fast growing money supply. Core inflation in the
Eurozone remains reasonably benign, at roughly 1.5% per annum. European stock
markets posted strong returns; appreciation of the Euro relative to both the
dollar and Yen made the Eurozone stock market the top performer of 2006.
The Japanese economy continued to grow firmly in 2006. Business investment was
the major driver of expansion as increasing capacity utilization and better
sentiment encouraged a new wave of investment. As deflation ended, the Bank of
Japan ended its zero interest rate policy, although it has raised rates to only
0.25% in 2006. After a strong showing in 2005, the Japanese stock market posted
only muted gains in 2006.
Emerging economies enjoyed strong, relatively uninterrupted economic growth in
2006. Good financing conditions, buoyant commodity prices, which boosted income
and investment in commodity exporting countries, and strong export demand from
developed economies drove this growth. The emerging market stock
2
Letter
index was very strong in early 2006, sold off to near start-of-year levels,
then rallied to finish the year only marginally behind the Eurozone. We believe
similar growth can be expected in the emerging markets if current domestic
economic and political conditions prevail.
While global economic momentum has started to slow, we expect the global
economy to continue growing firmly in 2007, supported by business investment,
rising employment, and lower energy prices. A slowdown in the U.S. growth rate
would be welcome, since rapid growth could increase the risk of inflationary
pressures, which would force the Federal Reserve to raise interest rates. We
expect Europe and Japan to grow similarly, while emerging market economies are
expected to continue their strong growth. In this scenario, fixed-income assets
are expected to produce total returns generally in line with their current
yields, while equities are expected to produce returns generally in line with
earnings growth, which we forecast to be moderately above bond yields.
Our cautiously optimistic outlook on most regions of the world and asset
classes reinforces the importance of Pioneer Investments' message that
investors should remain diversified, take a long-term view rather than
over-reacting to breaking news, and base investment decisions on economic and
market fundamentals rather than on emotion. Our investment philosophy and
approach continue to be based on the use of fundamental research to identify a
range of opportunities that offer an attractive balance of risk and reward to
help Fund shareowners work toward achieving their long-term goals.
Respectfully,
/s/John F. Cogan, Jr.
John F. Cogan, Jr., Chairman
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Global Select Equity Fund
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PORTFOLIO MANAGEMENT DISCUSSION 2/28/07
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In the following interview, portfolio manager Piergaetano Iaccarino discusses
the factors that influenced performance for the semiannual period ended
February 28, 2007.
Q: How did the Fund perform over the six-month period ended February 28, 2007?
A: The Fund's Class A shares had a total return of 9.19% (of net asset value,
for the six months) as compared to 10.58% for the MSCI World Index. The
global environment for equities was generally positive for the six-month
period, and that was reflected in the Fund's performance.
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.
Q: Can you review the Fund's overall investment approach?
A: We look at mid- and large-capitalization stocks in more than 30 countries
and from that universe build a somewhat focused portfolio of less than 50
stocks. Each stock that we hold will generally be overweighted by at
least one percent versus the MSCI World Index. In selecting securities
for the portfolio, we look for "growth at a reasonable price," and so
there is a strong value component to our analysis. We try to find
companies that not only are benefiting from operating efficiencies, as
reflected in things like increased market share and revenues, but that
also use their capital efficiently. In particular, we look for strong
free cash flow, because this gives a company the flexibility to do things
like share buybacks, reinvest in the business, make acquisitions, and
raise dividends. Finally, we try to assess not only the potential price
gains for each stock but also the potential for a decline in price if
things go wrong, and favor those stocks with the highest upside relative
to their downside.
4
Pioneer Global Select Equity Fund
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Q: Could you characterize the global equity markets over the period?
A: Global equity markets in the aggregate enjoyed positive returns over the
period, driven by strong returns over the first five months. Markets
declined sharply during the final week of February erasing the gains
achieved in January. The drop began with a sharp decline in Chinese
equities, based on rumors that the government would seek to tighten stock
market investment rules and introduce a capital gains tax. The release of
some weaker-than-expected U.S. economic data and evidence of mounting
problems in the sub-prime U.S. mortgage market further added to a sense
of unease among investors. As equity markets weakened, the Japanese yen
rose strongly against the U.S. dollar, which suggested that the
broad-based decline in equities was partially due to the unwinding of
so-called carry trades funded through borrowing at low Japanese interest
rates.
European equities outperformed both U.S. and Japanese equities in the
period, helped by the strength of the euro relative to the U.S. dollar.
From a sector perspective, the strongest areas in the global equity
markets were telecommunication services, materials and consumer
discretionary stocks, while the weakest returns were in the energy and
healthcare sectors.
Q: What strategies or holdings helped and hurt performance over the period?
A: While the Fund provided solid positive returns over the period, it modestly
lagged the benchmark. Unrewarding stock selection within the consumer,
pharmaceutical and technology hardware areas were the principal factors
in the underperformance. Within consumer durables, our holdings in
Japanese homebuilders Sekisui Chemical and Daito Trust Construction
detracted from returns as they reported weaker-than-expected orders in
November. Sporting goods maker Adidas proved a drag on returns after
lowering its 2007 profit guidance due to plans to increase spending on
its Reebok brand. In pharmaceuticals, our positions in AstraZeneca and
Pfizer were the key sources of underperformance. AstraZeneca endured a
weak quarter after it cancelled in October further development of a new
drug designed to treat stroke victims and subsequently lost patent
protection on an ulcer
5
Pioneer Global Select Equity Fund
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PORTFOLIO MANAGEMENT DISCUSSION 2/28/07 (continued)
- --------------------------------------------------------------------------------
drug in Europe. Shares in U.S.-based Pfizer dropped sharply in December
after it stopped development on a new cholesterol drug designed to replace
its leading drug Lipitor upon expiration of its patent. Finally,
technology hardware holding Samsung Electronics was a source of weakness.
On the positive side of the ledger, strong stock selection within capital
goods helped performance. Deere rose on evidence that demand from overseas
markets for its agricultural equipment was strengthening, as well as on
its ability to pass along price increases. Elsewhere in the capital goods
sector, our holding in German industrials group Siemens performed
strongly. Its results have exceeded market expectations and investor
sentiment was further buoyed by the decision to divest its VDO automotive
unit through an initial public offering. Finally, within automobiles/
components, our position in Porsche aided returns. Results for Porsche
were strongly ahead on a year-over-year basis thanks to higher sales
volumes on its 911 and Cayman models, a more profitable product mix and
cost savings driven by efficiency gains. The company's outlook for 2007
appears positive notwithstanding an expected slowdown in U.S. demand.
Q: What is your outlook and how is it reflected in the Fund?
A: We continue to be positioned relatively cautiously in recognition of the
challenges faced by global equity markets. In recent months, further
evidence has emerged that the U.S. economy is slowing, weighed down in
part by a significant decline in residential homebuilding activity.
Inflation has continued to moderate aided by falling energy prices.
Turning abroad, both the European and U.K. central banks remain wary
about the upside risks to inflation posed by strong rates of economic
growth. In Japan, economic growth has been less consistent.
While equities in the aggregate continue to appear reasonably valued, we
believe the potential for earnings to disappoint at the individual company
level remains significant. Thus our focus is on holding companies where
valuations are reasonable and earnings expectations are likely to be met.
In this respect, we continue to see more opportunities among larger
companies and in areas such as consumer staples and pharmaceuticals, where
valuations have the potential to be impacted positively as interest rates
peak.
6
Pioneer Global Select Equity Fund
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- --------------------------------------------------------------------------------
Going forward, we will continue to look globally for stocks that we
believe are both reasonably priced and positioned to benefit from the
underlying company's growth and efficient use of capital.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
Investments in mid-sized companies may offer the potential for higher returns,
but are also subject to greater short-term price fluctuations than larger, more
established companies. The Fund is non-diversified and invests in a limited
number of securities and, as a result, the Fund's performance may be more
volatile than the performance of funds holding more securities. At times, the
Fund's investments may represent industries or industry sectors that are
interrelated or have common risks, making it more susceptible to any economic,
political, or regulatory developments or other risks affecting those industries
and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These 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.
7
Pioneer Global Select Equity Fund
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PORTFOLIO SUMMARY 2/28/07
- --------------------------------------------------------------------------------
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
Financials 32.1%
Consumer Discretionary 14.3%
Industrials 11.1%
Information Technology 11.1%
Energy 8.7%
Health Care 7.9%
Consumer Staples 4.5%
Telecommunication Services 4.0%
Materials 3.3%
Utilities 3.0%
Geographical Distribution
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(As a percentage of equity holdings)
[THE FOLLOWING DATA IS A REPRESENTATION OF A BAR CHART IN THE PRINTED MATERIAL]
United States 44.7%
United Kingdom 13.4%
Japan 12.7%
Germany 8.1%
France 5.5%
Switzerland 4.4%
Bermuda 4.3%
Spain 2.0%
Netherlands 1.4%
Australia 1.4%
South Korea 1.2%
Singapore 0.9%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Citigroup, Inc. 3.87%
2. Microsoft Corp. 3.84
3. Sumitomo Mitsui Financial Group, Inc. 3.48
4. ConocoPhillips 3.16
5. Exelon Corp. 2.99
6. United Technologies Corp. 2.81
7. Porsche AG 2.74
8. American International Group, Inc. 2.73
9. Canon, Inc. 2.46
10. Accenture, Ltd. 2.41
* 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.
8
Pioneer Global Select Equity Fund
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PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 2/28/07 8/31/06
- ------- --------- --------
A $11.94 $11.18
B $11.85 $11.10
C $11.85 $11.10
Distributions Per Share
- -- -----------------------------------------------------------------------------
9/1/06 - 2/28/07
--------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
- ------- ----------- --------------- --------------
A $0.0509 $0.2070 $ -
B $0.0089 $0.2070 $ -
C $ - $0.2070 $ -
9
Pioneer Global Select Equity Fund
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PERFORMANCE UPDATE 2/28/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Select Equity Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) World
Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of February 28, 2007)
Public
Net Asset Offering
Period Value (NAV) Price (POP)
Life-of-Class
(12/15/05) 17.99% 12.34%
1 Year 17.04 10.27
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Expense Ratio
(As of January 1, 2007)
Gross Net
11.05% 1.30%
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[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE
PRINTED MATERIAL]
VALUE OF $10,000 INVESTMENT
Pioneer Global MSCI World Index
Select Equity Fund
12/05 9,425 10,000
02/06 10,420 10,437
02/07 11,516 12,152
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.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/09 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an Index.
10
Pioneer Global Select Equity Fund
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PERFORMANCE UPDATE 2/28/07 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Select Equity Fund, compared to that of the
Morgan Stanley Capital International (MSCI) World Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of February 28, 2007)
Period If Held If Redeemed
Life-of-Class
(12/15/05) 16.93% 13.70%
1 Year 15.99 11.99
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Expense Ratio
(As of March 1, 2007)
Gross Net
1.96% 1.96%
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[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE
PRINTED MATERIAL]
VALUE OF $10,000 INVESTMENT
Pioneer Global MSCI World Index
Select Equity Fund
12/05 10,000 10,000
02/06 10,420 10,437
02/07 11,687 12,152
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.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus for details.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 3/1/08 for Class B Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an Index.
11
Pioneer Global Select Equity Fund
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PERFORMANCE UPDATE 2/28/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Select Equity Fund, compared to that of the
Morgan Stanley Capital International (MSCI) World Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of February 28, 2007)
Period If Held If Redeemed
Life-of-Class
(12/15/05) 16.85% 16.85%
1 Year 15.90 14.90
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Expense Ratio
(As of March 1, 2007)
Gross Net
1.89% 1.89%
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[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE
PRINTED MATERIAL]
VALUE OF $10,000 INVESTMENT
Pioneer Global MSCI World Index
Select Equity Fund
12/05 10,000 10,000
02/06 10,420 10,437
02/07 12,077 12,152
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.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 3/1/08 for Class C Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an Index.
12
Pioneer Global Select Equity Fund
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COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments
and redemption fees.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global Select Equity Fund
Based on actual returns from September 1, 2006 through
February 28, 2007
Share Class A B C
- --------------------------------------------------------------------------------
Beginning Account Value On 9/1/06 $1,000.00 $1,000.00 $1,000.00
Ending Account Value (after expenses) $1,091.90 $1,087.80 $1,087.00
On 2/28/07
Expenses Paid During Period* $ 6.74 $ 11.39 $ 11.38
* Expenses are equal to the Fund's annualized expense ratio of 1.30%, 2.20% and
2.20% for Class A, Class B and Class C shares, respectively, multiplied by
the average account value over the period, multiplied by 181/365 (to
reflect the period since inception).
13
Pioneer Global Select Equity Fund
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COMPARING ONGOING FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) or redemption fees that are charged at the time of the
transaction. Therefore, the table below is useful in comparing ongoing costs
only and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs were included, your
costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global Select Equity Fund
Based on a hypothetical 5% return before expenses, reflecting the
period from September 1, 2006 through February 28, 2007
Share Class A B C
- --------------------------------------------------------------------------------
Beginning Account Value On 9/1/06 $1,000.00 $1,000.00 $1,000.00
Ending Account Value (after expenses) $1,018.35 $1,013.88 $1,013.88
On 2/28/07
Expenses Paid During Period* $ 6.51 $ 10.99 $ 10.99
* Expenses are equal to the Fund's annualized expense ratio of 1.30%, 2.20% and
2.20% for Class A, Class B and Class C shares, respectively, multiplied by
the average account value over the period, multiplied by 181/365 (to
reflect the period since inception).
14
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
PREFERRED STOCK - 2.5%
Automobiles & Components - 2.5%
Automobile Manufacturers - 2.5%
64 Porsche AG $ 84,224
----------
TOTAL PREFERRED STOCK
(Cost $61,987) $ 84,224
----------
COMMON STOCKS - 89.8%
Energy - 8.0%
Integrated Oil & Gas - 8.0%
1,487 ConocoPhillips $ 97,280
1,128 Occidental Petroleum Corp. 52,091
1,969 Repsol SA 62,357
820 Total SA 55,232
----------
$ 266,960
----------
Total Energy $ 266,960
----------
Materials - 3.1%
Diversified Chemical - 1.2%
392 BASF AG $ 39,869
----------
Diversified Metals & Mining - 1.9%
1,145 Rio Tinto Plc $ 61,857
----------
Total Materials $ 101,726
----------
Capital Goods - 10.2%
Aerospace & Defense - 2.6%
1,317 United Technologies Corp. $ 86,435
----------
Construction & Farm Machinery & Heavy
Trucks - 2.0%
608 Deere & Co. $ 65,919
----------
Industrial Conglomerates - 3.9%
677 Siemens $ 71,039
1,916 Tyco International, Ltd. 59,070
----------
$ 130,109
----------
Industrial Machinery - 1.7%
1,343 Ingersoll-Rand Co. $ 58,165
----------
Total Capital Goods $ 340,628
----------
The accompanying notes are an integral part of these financial statements. 15
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Automobiles & Components - 1.4%
Automobile Manufacturers - 1.4%
700 Toyota Motor Co. $ 45,817
----------
Total Automobiles & Components $ 45,817
----------
Consumer Durables & Apparel - 4.0%
Apparel, Accessories & Luxury Goods - 1.6%
1,108 Adidas-Salomon AG $ 54,407
----------
Homebuilding - 2.4%
800 Daito Trust Construction Co., Ltd. $ 38,821
5,000 Sekisui Chemical Co., Ltd. 41,155
----------
$ 79,976
----------
Total Consumer Durables & Apparel $ 134,383
----------
Retailing - 5.3%
Apparel Retail - 2.4%
736 Abercrombie & Fitch Co. $ 57,533
1,098 Gap, Inc. 21,071
----------
$ 78,604
----------
Home Improvement Retail - 1.4%
1,214 Home Depot, Inc. $ 48,074
----------
Specialty Stores - 1.5%
1,454 Office Depot, Inc.* $ 48,505
----------
Total Retailing $ 175,183
----------
Food & Drug Retailing - 3.0%
Drug Retail - 1.6%
1,692 CVS Corp. $ 53,146
----------
Hypermarkets & Supercenters - 1.4%
940 Wal-Mart Stores, Inc. $ 45,402
----------
Total Food & Drug Retailing $ 98,548
----------
Food, Beverage & Tobacco - 1.2%
Tobacco - 1.2%
9 Japan Tobacco, Inc. $ 41,073
----------
Total Food, Beverage & Tobacco $ 41,073
----------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Pharmaceuticals & Biotechnology - 7.3%
Biotechnology - 0.9%
1,005 Vertex Pharmaceuticals, Inc.* $ 30,843
----------
Pharmaceuticals - 6.4%
1,318 Astrazeneca Plc $ 73,961
2,551 Bristol-Myers Squibb Co. 67,321
403 Roche Holdings AG* 71,796
----------
$ 213,078
----------
Total Pharmaceuticals & Biotechnology $ 243,921
----------
Banks - 13.3%
Diversified Banks - 13.3%
1,233 ABN AMRO Holding NV* $ 43,273
4,110 Barclays Plc 59,529
545 BNP Paribas SA 56,706
2,000 Development Bank of Singapore, Ltd. 27,930
1,525 Royal Bank of Scotland Group Plc 60,011
11 Sumitomo Mitsui Financial Group, Inc. 106,995
822 Wachovia Corp. 45,514
2,071 Westpac Banking Corp. 41,694
----------
$ 441,652
----------
Total Banks $ 441,652
----------
Diversified Financials - 7.3%
Diversified Capital Markets - 1.9%
929 CS Group $ 64,384
----------
Investment Banking & Brokerage - 1.8%
727 Merrill Lynch & Co., Inc. $ 60,835
----------
Diversified Financial Services - 3.6%
2,362 Citigroup, Inc. $ 119,045
----------
Total Diversified Financials $ 244,264
----------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Insurance - 7.9%
Multi-Line Insurance - 6.0%
1,250 American International Group, Inc. $ 83,875
3,632 Aviva Plc 58,451
1,383 AXA 58,560
----------
$ 200,886
----------
Property & Casualty Insurance - 1.9%
920 MBIA, Inc. $ 61,152
----------
Total Insurance $ 262,038
----------
Real Estate - 1.2%
Real Estate Management & Development - 1.2%
1,000 Sumitomo Realty* $ 39,745
----------
Total Real Estate $ 39,745
----------
Software & Services - 5.8%
IT Consulting & Other Services - 2.2%
2,078 Accenture, Ltd. $ 74,185
----------
Systems Software - 3.6%
4,192 Microsoft Corp. $ 118,089
----------
Total Software & Services $ 192,274
----------
Technology Hardware & Equipment - 3.4%
Electronic Equipment & Instruments - 1.1%
124 Samsung Electronics (144A) $ 37,052
----------
Office Electronics - 2.3%
1,400 Canon, Inc. $ 75,765
----------
Total Technology Hardware & Equipment $ 112,817
----------
Semiconductors - 1.0%
13,868 ARM Holdings Plc* $ 34,860
----------
Total Semiconductors $ 34,860
----------
Telecommunication Services - 3.7%
Integrated Telecommunication Services - 1.9%
1,695 AT&T Corp. $ 62,377
----------
Wireless Telecommunication Services - 1.8%
21,914 Vodafone Group Plc $ 61,059
----------
Total Telecommunication Services $ 123,436
----------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Utilities - 2.8%
Electric Utilities - 2.8%
1,396 Exelon Corp. $ 92,038
----------
Total Utilities $ 92,038
----------
TOTAL COMMON STOCKS
(Cost $2,794,632) $2,991,363
----------
TOTAL INVESTMENT IN SECURITIES - 92.3%
(Cost $2,856,620)(a)(b) $3,075,587
----------
OTHER ASSETS AND LIABILITIES - 7.7% $ 256,873
----------
TOTAL NET ASSETS - 100.0% $3,332,460
==========
* Non-income producing security.
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
February 28, 2007, the value of these securities amounted to $37,052 or
1.1% of total net assets.
(A.D.R.) American Depositary Receipt
(a) Distributions of investments by country of issue (excluding temporary
cash investments) as a percentage of total investment in equity
securities, is as follows:
United States 44.7%
United Kingdom 13.4
Japan 12.7
Germany 8.1
France 5.5
Switzerland 4.4
Bermuda 4.3
Spain 2.0
Netherlands 1.4
Australia 1.4
South Korea 1.2
Singapore 0.9
----
100%
====
(b) At February 28, 2007, the net unrealized gain on investments based on
cost for federal income tax purposes of $2,857,950 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $242,967
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (25,330)
-----------
Net unrealized gain $217,637
===========
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended February 28, 2007 aggregated $1,903,520 and $693,974,
respectively.
The accompanying notes are an integral part of these financial statements. 19
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 2/28/07 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (cost $2,856,620) $3,075,587
Cash 99,205
Foreign currencies, at value (cost $2) 2
Receivables -
Fund shares sold 132,793
Dividends, interest and foreign taxes withheld 5,715
Due from Pioneer Investment Management, Inc. 8,382
Other 47,986
----------
Total assets $3,369,670
----------
LIABILITIES:
Payables -
Fund shares repurchased $ 1,137
Due to affiliates 8,615
Accrued expenses 27,458
----------
Total liabilities $ 37,210
----------
NET ASSETS:
Paid-in capital $3,059,348
Undistributed net investment income 882
Accumulated net realized gain on investments 53,243
Net unrealized gain on investments 218,967
Net unrealized gain on forward foreign currency
contracts and other assets and liabilities
denominated in foreign currencies 20
----------
Total net assets $3,332,460
==========
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $1,783,634/149,329 shares) $ 11.94
==========
Class B (based on $900,682/76,022 shares) $ 11.85
==========
Class C (based on $648,144/54,673 shares) $ 11.85
==========
MAXIMUM OFFERING PRICE:
Class A ($11.94 [divided by] 94.25%) $ 12.67
==========
20 The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 2/28/07
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $824) $ 19,050
Interest 4,131
Income from securities loaned, net 1
--------
Total investment income $ 23,182
---------
EXPENSES:
Management fees $ 9,588
Transfer agent fees and expenses
Class A 783
Class B 459
Class C 291
Distribution fees
Class A 1,380
Class B 3,709
Class C 2,592
Custodian fees 6,445
Professional fees 18,844
Printing expense 9,128
Fees and expenses of nonaffiliated trustees 3,320
Miscellaneous 2,975
--------
Total expenses $ 59,514
Less management fees waived and
expenses reimbursed by Pioneer Investment
Management, Inc. (37,226)
---------
Net expenses $ 22,288
---------
Net investment income $ 894
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 60,370
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (2,027) $ 58,343
-------- ---------
Change in net unrealized gain on:
Investments $134,947
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 12 $ 134,959
-------- ---------
Net gain on investments $ 193,302
---------
Net increase in net assets resulting from operations $ 194,196
=========
The accompanying notes are an integral part of these financial statements. 21
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 2/28/07 and the period from 12/15/05
(Commencement of Operations) to 8/31/06
Six Months 12/15/05
Ended to
2/28/07 8/31/06
(unaudited)
FROM OPERATIONS:
Net investment income $ 894 $ 7,598
Net realized gain on investments and foreign
currency transactions 58,343 38,444
Change in net unrealized gain on investments foreign
currency transactions 134,959 84,028
---------- ----------
Net increase in net assets resulting from
operations $ 194,196 $ 130,070
---------- ----------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.05 and $0.00 per share, respectively) $ (6,410) $ -
Class B ($0.01 and $0.00 per share, respectively) (608) -
Net realized gain:
Class A ($0.21 and $0.00 per share, respectively) (22,527) -
Class B ($0.21 and $0.00 per share, respectively) (14,640) -
Class C ($0.21 and $0.00 per share, respectively) (8,900) -
---------- ----------
Total distributions to shareowners $ (53,085) $ -
---------- ----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $1,731,240 $ 819,540
Reinvestment of distributions 26,833 -
Cost of shares repurchased (393,413) (123,209)
Redemption fees - 288
---------- ----------
Net increase in net assets resulting from
Fund share transactions $1,364,660 $ 696,619
---------- ----------
Net increase in net assets $1,505,771 $ 826,689
NET ASSETS:
Beginning of period 1,826,689 1,000,000
---------- ----------
End of period $3,332,460 $1,826,689
========== ==========
Undistributed net investment income $ 882 $ 7,006
========== ==========
22 The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
(unaudited) (unaudited)
CLASS A
Shares sold 93,550 $1,103,946 52,303 $569,499
Reinvestment of distributions 1,621 18,769 - -
Less shares repurchased (20,264) (241,297) (11,215) (120,171)
------- --------- ------- --------
Net increase 74,907 $ 881,418 41,088 $449,328
======= ========= ======= ========
CLASS B
Shares sold 36,164 $ 419,600 16,299 $175,190
Reinvestment of distributions 543 6,184 - -
Less shares repurchased (10,136) (114,978) (181) (1,964)
------- --------- ------- --------
Net increase 26,571 $ 310,806 16,118 $173,226
======= ========= ======= ========
CLASS C
Shares sold 17,571 $ 207,694 6,870 $ 74,851
Reinvestment of distributions 165 1,880 - -
Less shares repurchased (3,167) (37,138) (99) (1,074)
------- --------- ------- --------
Net increase 14,569 $ 172,436 6,771 $ 73,777
======= ========= ======= ========
The accompanying notes are an integral part of these financial statements. 23
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months 12/15/05 (a)
Ended to
2/28/07 8/31/06
(unaudited)
CLASS A
Net asset value, beginning of period $ 11.18 $ 10.00
-------- --------
Increase from investment operations:
Net investment income $ 0.01 $ 0.07
Net realized and unrealized gain on investments
and foreign currency transactions 1.01 1.11
-------- --------
Net increase from investment operations $ 1.02 $ 1.18
Distribution to shareowners:
Net investment income (0.05) -
Net realized gain (0.21) -
-------- --------
Net increase in net asset value $ 0.76 $ 1.18
-------- --------
Net asset value, end of period $ 11.94 $ 11.18
======== ========
Total return* 9.19% 11.80%(b)
Ratio of net expenses to average net assets+ 1.30%** 1.30%**
Ratio of net investment income to average
net assets+ 0.53%** 1.42%**
Portfolio turnover rate 58%** 35%(b)
Net assets, end of period (in thousands) $ 1,784 $ 832
Ratios with no waiver of management fees and
assumption of expenses by PIM
Net expenses 4.29%** 11.05%**
Net investment loss (2.46)%** (8.33)%**
(a) Class A shares were first publicly offered on December 15, 2005.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
24 The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months 12/15/05 (a)
Ended to
2/28/07 8/31/06
(unaudited)
CLASS B
Net asset value, beginning of period $ 11.10 $ 10.00
-------- --------
Increase from investment operations:
Net investment income (loss) $ (0.03) $ 0.03
Net realized and unrealized gain on investments
and foreign currency transactions 1.00 1.07
-------- --------
Net increase from investment operations $ 0.97 $ 1.10
Distribution to shareowners:
Net investment income (0.01) -
Net realized gain (0.21) -
-------- --------
Net increase in net asset value $ 0.75 $ 1.10
-------- --------
Net asset value, end of period $ 11.85 $ 11.10
======== ========
Total return* 8.78% 11.00%(b)
Ratio of net expenses to average net assets+ 2.20%** 2.20%**
Ratio of net investment income (loss) to average
net assets+ (0.39)%** 0.45%**
Portfolio turnover rate 58%** 35%(b)
Net assets, end of period (in thousands) $ 901 $ 549
Ratios with no waiver of management fees and
assumption of expenses by PIM
Net expenses 5.04%** 11.40%**
Net investment loss (3.23)%** (8.75)%**
(a) Class B shares were first publicly offered on December 15, 2005.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 25
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months 12/15/05 (a)
Ended to
2/28/07 8/31/06
(unaudited)
CLASS C
Net asset value, beginning of period $ 11.10 $ 10.00
-------- --------
Increase from investment operations:
Net investment income (loss) $ (0.03) $ 0.03
Net realized and unrealized gain on investments
and foreign currency transactions 0.99 1.07
-------- --------
Net increase from investment operations $ 0.96 $ 1.10
Distribution to shareowners:
Net realized gain (0.21) -
-------- --------
Net increase in net asset value $ 0.75 $ 1.10
-------- --------
Net asset value, end of period $ 11.85 $ 11.10
======== ========
Total return* 8.70% 11.00%(b)
Ratio of net expenses to average net assets+ 2.20%** 2.20%**
Ratio of net investment income (loss) to average
net assets+ (0.42)%** 0.45%**
Portfolio turnover rate 58%** 35%(b)
Net assets, end of period (in thousands) $ 648 $ 445
Ratios with no waiver of management fees and
assumption of expenses by PIM
Net expenses 5.01%** 10.98%**
Net investment loss (3.23)%** (8.33)%**
(a) Class C shares were first publicly offered on December 15, 2005.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
26 The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Global Select Equity Fund (the Fund), is one of three portfolios
comprising Pioneer Series Trust V, a Delaware statutory business trust
registered under the Investment Company Act of 1940 an open-end management
investment company. The Fund is non-diversified. The Fund was organized on
October 12, 2005, and commenced operations on December 15, 2005. Prior to
October 12, 2005, the Fund had no operations other than those relating to
organizational matters and the initial capitalization of the Fund by Pioneer
Funds Distributor, Inc. (PFD). The fund's investment objective is to seek
long-term capital growth.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. Information regarding the Fund's principal risk is
contained in the Fund's prospectus(es). Please refer to those documents when
considering the Fund's risks.
The Fund offers three classes of shares - Class A, Class B and Class C shares.
Each class of shares represents an interest in the same portfolio of
investments of the Fund and has equal rights to voting, redemptions, dividends
and liquidation, except that each class of shares can bear different transfer
agent and distribution fees and has exclusive voting rights with respect to the
distribution plans that have been adopted by Class A, Class B and Class C
shareowners, respectively.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting periods. Actual results could differ from those estimates. The
following is a summary of significant accounting policies followed by the Fund
in the preparation of its financial statements which are
27
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
consistent with those policies generally accepted in the investment company
industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value
of the Fund is computed once daily, on each day the New York Stock
Exchange (NYSE) is open, as of the close of regular trading on the NYSE.
In computing the net asset value, securities are valued using the last
sale price on the principal exchange where they are traded. Securities
that have not traded on the date of valuation, or securities for which
sale prices are not generally reported, are valued using the mean between
the last bid and asked prices. 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 Fund invests primarily
in securities of non-U.S. issuers. The principal exchanges and markets for
such securities have closing times prior to the close of the NYSE.
However, the value of these securities may be influenced by changes in
global markets occurring after the closing times of the local exchanges
and markets up to the time the Fund determines its net asset value.
Consequently, the Board of Trustees of the Fund has determined that the
use of daily fair valuations as provided by a pricing service is
appropriate for the Fund. The Fund may also take into consideration other
significant events in determining the fair value of these securities.
Thus, the Fund's securities valuations may differ from prices reported by
the various local exchanges and markets. Temporary cash investments are
valued at amortized cost.
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 Fund becomes aware of the ex-dividend data
in exercise of reasonable diligence. Interest income, including interest
on income bearing cash accounts, is recorded on the accrual basis, net of
unrecoverable foreign taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
28
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareowners. Therefore, no federal 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 sources of the Fund's distributions may
be shown in the accompanying financial statements as either from or in
excess of net investment income or net 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 payable will be determined
at the end of the current fiscal year. There were no distributions paid by
the Fund during the period ended August 31, 2006.
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2006.
- -------------------------------------------------------------------------------
2006
- --------------------------------------------------------------------------------
Undistributed ordinary income $ 49,303
Unrealized appreciation 82,698
--------
Total $132,001
========
- -------------------------------------------------------------------------------
The difference between book basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales and the mark to
market of forward currency contracts.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.,
(UniCredito Italiano), earned $634 in underwriting commissions on the sale
of Class A shares during the six months ended February 28, 2007.
29
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
D. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates. Net realized gains and losses on foreign currency
transactions, if any, represent, among other things, the net realized
gains and losses on foreign currency contracts, disposition of foreign
currencies and the difference between the amount of income accrued and the
U.S. dollars actually received. Further, the effects of changes in foreign
currency exchange rates on investments are not segregated in the statement
of operations from the effects of changes in market price of those
securities but are included with the net realized and unrealized gain or
loss on investments.
E. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio
hedges). All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized gains or losses are recorded
in the Fund's financial statements. The Fund records realized gains and
losses at the time a portfolio hedge is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar.
At February 28, 2007, the Fund had no outstanding portfolio hedges.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary
of UniCredito Italiano, manages the Fund's portfolio. Management fees are
calculated daily at the annual rate of 0.75% of the Fund's average daily net
assets up to $500 million; 0.70% of the next $500 million and 0.65% of the
excess over $1 billion. For the six months ended February 28, 2007, the net
management fee was equivalent to 0.75% of the average daily net assets.
PIM has agreed not to impose all or a portion of its management fee and to
assume other operating expenses of the Fund to the extent
30
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
necessary to limit the Fund's expenses to 1.30%, 2.20% and 2.20% of the average
daily net assets attributable to Class A, Class B and Class C shares,
respectively. These expense limitations are in effect through January 1, 2009
for Class A and through January 1, 2008 for Class B and Class C shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At February 28, 2007, $63 was payable to PIM
related to management fees, administrative costs and certain other services and
is included in due to affiliates.
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly
owned indirect subsidiary of UniCredito Italiano, provides substantially all
transfer agent and shareowner services to the Fund at negotiated rates.
Included in due to affiliates is $8,499 in transfer agent fees payable to PIMSS
at February 28, 2007.
4. Distribution Plans and Service Plans
The Fund adopted a Plan of Distribution in accordance with Rule 12b-1 of the
Investment Company Act of 1940. The Fund pays PFD a service fee of up to 0.25%
of the average daily net assets attributable to Class A shares in reimbursement
of its actual expenditures to finance activities primarily intended to result
in the sale of Class A shares. Pursuant to the Class B Plan and the Class C
Plan, the Fund pays PFD 1.00% of the average daily net assets attributable to
each class of shares. The fee consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class
C shares. Included in due to affiliates is $53 in distribution fees payable to
PFD at February 28, 2007
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within 18 months of
purchase. Class B shares that are redeemed within five years of purchase are
subject to a CDSC at declining rates beginning at 4.00% based on the lower of
cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%.
31
Pioneer Global Select Equity Fund
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NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited) (continued)
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Proceeds from the CDSCs are paid to PFD. For the six months ended February 28,
2007, CDSCs in the amount of $156 were paid to PFD.
5. 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 Fund'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 as of no
later than June 29, 2007. At this time, management is evaluating the
implications of FIN 48 and any impact in the financial statements has not yet
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. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund's financial statement disclosures.
32
Pioneer Global Select Equity Fund
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FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT
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The Investment Company Act of 1940 requires that both the Board of Trustees and
a majority of the Independent Trustees (collectively "the Trustees"), voting
separately, annually approve the Fund's management contract (the "Management
Contract"). The Trustees have determined that the terms of the Management
Contract are fair and reasonable and that renewal of the contract: (i) will
enable the Fund to receive quality investment advisory services at a fee deemed
reasonable; and (ii) is in the best interests of the Fund and its shareowners.
In making such determinations, the Independent Trustees relied upon the
assistance of counsel to the Independent Trustees and counsel to the Fund.
Throughout the year, the Independent Trustees regularly met in executive
session, separately from the Interested Trustees of the Fund and any officer of
Pioneer Investment Management, Inc., the Fund's adviser (the "Investment
Adviser"), or its affiliates. While the Trustees, including the Interested
Trustees, act on all major matters relating to the Fund, a significant portion
of the activities of the Board of Trustees (including certain of those
described herein) is conducted through committees, the members of which are
comprised exclusively of Independent Trustees. Such committee meetings are
attended by officers of the Fund and/or officers of the Investment Adviser to
the extent requested by the members of the committee.
In evaluating the Management Contract, the Trustees conducted a review that was
specifically focused upon the renewal of the Management Contract, and also
relied upon their knowledge, resulting from their meetings throughout the year,
of the Investment Adviser, its services and the Fund. Both in meetings
specifically dedicated to renewal of the Management Contract and at other
meetings during the course of the year, the Trustees, including the Independent
Trustees, received materials relating to the Investment Adviser's investment
and management services under the Management Contract. These materials included
information on (i) the investment performance of the Fund, a peer group of
funds as classified by Morningstar, Inc., an independent evaluation service
("Morningstar") and an index considered appropriate by the Independent Trustees
for this purpose, (ii) sales and redemption activity in respect of the Fund,
(iii) the general investment outlook in the markets in which the Fund invests,
(iv) arrangements in respect of the distribution of the Fund's shares, (v) the
procedures employed to determine the value of each of the Fund's assets, (vi)
the Investment Adviser's management of the
33
Pioneer Global Select Equity Fund
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FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
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relationships with the Fund's unaffiliated service providers, (vii) the record
of compliance with the Fund's investment policies and restrictions and with the
Fund's Code of Ethics and the structure and responsibilities of the Investment
Adviser's compliance department and (viii) the nature, cost and character of
non-investment management services provided by the Investment Adviser and its
affiliates.
Specifically in connection with the Independent Trustees' review of the
Management Contract, the Independent Trustees requested, and the Investment
Adviser provided, additional information in order to evaluate the quality of
the Investment Adviser's services and the reasonableness of the fee under the
Management Contract. Among other items, this information included data or
analyses of (1) investment performance for one year period for the Fund and a
peer group of funds selected on the basis of criteria considered appropriate by
the Independent Trustees for this purpose, (2) management and other fees
incurred by a peer group of funds selected on the basis of criteria considered
appropriate by the Independent Trustees for this purpose, (3) the advisory fees
of comparable portfolios of other clients of the Investment Adviser, (4)
expense ratios for the Fund and a peer group of funds selected on the basis of
criteria considered appropriate by the Independent Trustees for this purpose,
(5) the overall organization of the Investment Adviser, (6) the Investment
Adviser's financial results and condition, including its and certain of its
affiliates' profitability in providing services to the Fund, (7) transfer
agency fees and administrative reimbursements paid to the Investment Adviser or
affiliates, (8) investment management staffing, and (9) operating expenses paid
by the Funds to third parties. The Trustees also reviewed information regarding
the potential for each of the Fund and the Investment Adviser to benefit from
further economies of scale in the management of the Fund in light of reasonable
growth expectations for the Fund and certain of the Fund's expenses that are
incurred on a basis other than as a percentage of net assets.
The following summarizes factors considered by the Trustees in connection with
reviewing the information described above and their renewal of the Fund's
Management Contract. The Trustees did not identify any single factor as
all-important or controlling, and the summary does not detail all the matters
that were considered.
34
Pioneer Global Select Equity Fund
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A. Ancillary Benefits to Shareowners. The Trustees considered the benefits to
shareowners of investing in a Fund that is part of a large number of
investment companies offering a variety of investment disciplines and
providing for a large variety of Fund and shareowner services.
B. Compliance and Investment Performance. The Trustees determined that the
Investment Adviser had policies and systems reasonably designed to achieve
compliance with the Fund's investment objective and regulatory
requirements. The Trustees also reviewed the Fund's absolute investment
performance based upon total return, as well as the Fund's performance
relative to the performance of both a peer group and an index considered
appropriate by the Independent Trustees for this purpose. The Fund's
performance, based upon total return, was in the first quintile of its
Morningstar category peer group for the period ended June 30, 2006. (In
all quintile rankings referred to throughout this discussion first
quintile is most favorable to the Fund's shareowners. Thus, highest
relative performance would be first quintile and lowest relative expenses
also would be first quintile.) The Trustees concluded that the performance
of the Fund was strong during the short period since its inception.
C. The Investment Adviser's Personnel and Methods. The Trustees reviewed the
background of members of the team responsible for the daily management of
the Fund and the Fund's investment objective and discipline. The
Independent Trustees also have had discussions with senior management of
the Investment Adviser responsible for investment operations and the
senior management of the Investment Adviser's equities group. Among other
things, the Trustees considered the size, education and experience of the
Investment Adviser's investment staff and their use of technology and
emphasis on analytics in view of the risk profile of securities in which
the Fund invests. The Trustees concluded that the Investment Adviser had
the quality and depth of personnel and the well-developed methods
essential to perform its duties under the Management Contract.
D. Nature and Quality of Other Services. The Trustees considered the nature,
quality and extent of other services provided to shareowners of the Fund,
including administrative and shareowner services performed by the
Investment Adviser under the Management
35
Pioneer Global Select Equity Fund
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FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
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Contract. The Trustees also considered the reasonableness of the
arrangements for reimbursement of the Investment Adviser's out-of-pocket
costs and expenses, including overhead, for certain administrative
services that the Investment Adviser is not required to provide under the
Management Contract. The Trustees also considered the nature and extent of
the other services provided by the Investment Adviser or its affiliates
under other contracts, as well as the Investment Adviser's supervision of
third party service providers. Based on these considerations, the Trustees
concluded that the nature, quality and extent of such services are
satisfactory and reliable and serve the shareowners of the Fund well.
E. Management Fee and Expenses. The Trustees considered the Investment
Adviser's fee under the Management Contract relative to the management
fees charged by its Morningstar category peer group. The Fund's management
fee for the period ended June 30, 2006 was in the second quintile relative
to the management fees paid by the other funds in that peer group for the
comparable period. The Trustees also considered the Fund's expense ratio
for the period ended June 30, 2006 and expense ratios for the comparable
period of the peer group of funds selected on the basis of criteria
considered appropriate by the Independent Trustees for this purpose using
data provided by Strategic Insight Mutual Fund Research and Consulting,
LLC, an independent third party. The Trustees found the Fund's expense
ratio for the period ended June 30, 2006 to be in the first quintile,
according to data for the applicable peer group for the most recent fiscal
year.
F. Profitability. The Trustees considered the level of the Investment
Adviser's profits with respect to the management of the Pioneer Funds,
including a review of the Investment Adviser's methodology in allocating
certain of its costs to the management of each Fund, as well as the
financial results realized by the Investment Adviser in connection with
the operation of the Fund. They further considered the profits realized by
the Investment Adviser and its affiliates from non-fund businesses that
may benefit from or be related to the Fund's business. The Trustees
considered the Investment Adviser's profit margins in comparison with the
limited industry data available. The Trustees concluded that the
Investment Adviser's profits from management of the Pioneer Funds,
including the financial results derived from the Fund, bear a reasonable
relationship to the services rendered and are fair for the management of
the Fund.
36
Pioneer Global Select Equity Fund
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G. Economies of Scale. The Trustees considered the economies of scale with
respect to the management of the Fund, whether the Fund had appropriately
benefited from any economies of scale, and whether there was potential for
realization of any further economies of scale. The Trustees concluded that
in light of anticipated growth of the Fund, break points in the management
fee were not necessary at this time. However, the Trustees would evaluate
the need for break points from time to time.
H. Other Benefits to the Investment Adviser. The Trustees also considered the
character and amount of fees paid by the Fund, other than under the
Management Contract, for services provided by the Investment Adviser and
affiliates, including fees for services such as shareowner services. The
Trustees also considered the receipt of sales loads and payments under
Rule 12b-1 plans in respect of the Pioneer Funds (including the Fund), and
benefits to the Investment Adviser from the use of "soft" commission
dollars to pay for research services. The Trustees further considered the
revenues and profitability of the Investment Adviser's businesses other
than the fund business, including the Investment Adviser's institutional
investment advisory business. The Trustees considered the intangible
benefits that accrue to the Investment Adviser and its affiliates by
virtue of its relationship with the Fund and the Pioneer Funds as a group.
The Trustees concluded that all these types of benefits accruing to the
Investment Adviser were reasonable in the context of the overall
relationship between the Investment Adviser and the Fund.
Conclusion. In light of the Investment Adviser's overall performance, the
Trustees considered it appropriate to continue to retain the management
services of the Investment Adviser. Based on their review of the overall nature
and quality of services provided by the Investment Adviser and the fees charged
by other funds in the Fund's relevant peer group, and taking into account all
material factors deemed relevant by the Trustees as well as the advice of
independent counsel, the Trustees concluded that the Management Contract with
the Fund, including the fee payable thereunder, was fair and reasonable and
that its renewal was in the best interests of the Fund and its shareholders.
Accordingly, the Trustees voted to approve the continuation of the Management
Contract for another year.
37
Pioneer Global Select Equity Fund
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Vincent Nave, Treasurer
Mary K. Bush Dorothy E. Bourassa, Secretary
Margaret B.W. Graham
Thomas J. Perna
Marguerite A. Piret
John Winthrop
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.pioneerinvestments.com. This information is also available
on the Securities and Exchange Commission's web site at
http://www.sec.gov.
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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.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the
Commission's web site at 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.
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[LOGO] PIONEER
---------
OAK RIDGE
ALL CAP
GROWTH
FUND
Semiannual
Report
2/28/07
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 20
Notes to Financial Statements 26
Trustees, Officers and Service Providers 31
Chairman's
Dear Shareowner,
- --------------------------------------------------------------------------------
Welcome to Pioneer. We thank you for your investment in Pioneer Oak Ridge All
Cap Growth Fund and are pleased to provide you with the Fund's first
shareholder report since its inception on October 17, 2006. In managing the
Pioneer Oak Ridge All Cap Growth Fund, we seek to identify what we believe are
the "best of the best" from the three portfolios in order to create a fund of
about 40-60 stocks in the growth universe. In an interview on page 6 of this
report, Lead Portfolio Manager Robert McVicker, discusses the investment
strategies used over the abbreviated fiscal period since October 17, 2006.
As the global economy reacted to good and bad news of 2006, overall it managed
to keep chugging along with fairly stable growth. Looking back, the economic
stories included slowing economic growth bringing monetary tightening to an end
in the United States, price action in oil and other commodity markets
threatening to unsettle global growth and inflation, geopolitical uncertainties
and corporate earnings growth surpassing market expectations.
Global growth surpassed most analyst expectations in 2006. The International
Monetary Fund estimates world output increased by 5.1% in 2006, up from 4.9% in
2005 and above the 3.7% average annual pace of growth of the previous 20 years.
Growth is estimated to slow modestly in 2007 but to remain well above the
long-term average.
U.S. economic growth slowed gradually over 2006, with full-year growth of GDP
of 3.1%, modestly below 2005 growth but still strong enough to lower the
unemployment rate to 4.5%. While many observers were concerned that a weakening
housing sector could be a drag on consumer spending, the consumer has shown
resilience supported by a strong labor market and associated income growth and
by oil and gasoline prices falling from record highs in the second half of
2006. Corporate America has also proved resilient in the face of the slowing
housing sector, with business investment growing at its fastest rate since
2000.
The Federal Reserve stopped increasing interest rates in mid-2006, but has
retained its bias to tighten rates, reflecting upside risks to inflation,
particularly from the tight labor market, and confidence that the economy
remained on solid ground. Consumers welcomed the relief from oil prices that
peaked at mid-year and fell sharply towards year-end. Likewise, in the second
half of 2006, they benefited from the modest easing of core inflation (which
excludes energy and food items), though such core inflation remains above what
is generally considered the central bank's "comfort zone."
The European economy surpassed many economists' expectations in 2006. Eurozone
GDP grew at a 3% pace, much stronger than its 1.8% average annual growth pace
since 2000. Underlying this strength has been buoyant and broad-based strength
in business sentiment and investment and in exports. While household
consumption showed mixed results, the unemployment rate fell to 7.7% by the end
of 2006. The European Central Bank raised interest rates gradually to 3.5% over
the course of 2006, reflecting firm economic growth, steadily tightening labor
market conditions, and fast growing money supply. Core inflation in the
Eurozone remains reasonably benign, at roughly 1.5% per annum. European stock
markets posted strong returns; appreciation of the Euro relative to both the
dollar and Yen made the Eurozone stock market the top performer of 2006.
The Japanese economy continued to grow firmly in 2006. Business investment was
the major driver of expansion as increasing capacity utilization and better
2
Letter
sentiment encouraged a new wave of investment. As deflation ended, the Bank of
Japan ended its zero interest rate policy, although it has raised rates to only
0.25% in 2006. After a strong showing in 2005, the Japanese stock market posted
only muted gains in 2006.
Emerging economies enjoyed strong, relatively uninterrupted economic growth in
2006. Good financing conditions, buoyant commodity prices, which boosted income
and investment in commodity exporting countries, and strong export demand from
developed economies drove this growth. The emerging market stock index was very
strong in early 2006, sold off to near start-of-year levels, then rallied to
finish the year only marginally behind the Eurozone. We believe similar growth
can be expected in the emerging markets if current domestic economic and
political conditions prevail.
While global economic momentum has started to slow, we expect the global
economy to continue growing firmly in 2007, supported by business investment,
rising employment, and lower energy prices. A slowdown in the U.S. growth rate
would be welcome, since rapid growth could increase the risk of inflationary
pressures, which would force the Federal Reserve to raise interest rates. We
expect Europe and Japan to grow similarly, while emerging market economies are
expected to continue their strong growth. In this scenario, fixed-income assets
are expected to produce total returns generally in line with their current
yields, while equities are expected to produce returns generally in line with
earnings growth, which we forecast to be moderately above bond yields.
Our cautiously optimistic outlook on most regions of the world and asset
classes reinforces the importance of Pioneer Investments' message that
investors should remain diversified, take a long-term view rather than
over-reacting to breaking news, and base investment decisions on economic and
market fundamentals rather than on emotion. Our investment philosophy and
approach continue to be based on the use of fundamental research to identify a
range of opportunities that offer an attractive balance of risk and reward to
help Fund shareowners work toward achieving their long-term goals.
Respectfully,
/s/John F. Cogan, Jr.
John F. Cogan, Jr., Chairman
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Oak Ridge All Cap Growth Fund
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PORTFOLIO MANAGEMENT DISCUSSION 2/28/07
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In the following interview, Robert McVicker, Pioneer Oak Ridge All Cap Growth
Fund's Lead Portfolio Manager, discusses the factors that influenced
performance during the period from the Fund's inception date of October 17,
2006 through February 28, 2007.
Q: How did the market and the Fund perform during the reporting period?
A: Despite a downturn in the final week of February, the market backdrop was
exceptionally favorable during the four-plus months since we started the
Fund. The US economy continued to grow at a steady pace, yet with a low
enough level of inflation to dissuade the Federal Reserve Board from
raising interest rates. Strength in corporate earnings continued to support
the market as well: the fourth quarter of 2006 marked the fourteenth
consecutive quarter of double-digit profit growth for US companies. Adding
a further spark to the rally was the high level of liquidity in the global
financial system; or in other words, the large amount of cash available to
be put to work in the markets. The flood of liquidity fueled a variety of
positive trends, such as a frenzy of merger and acquisition activity, a
surge in stock buybacks by corporations, and rising risk appetites among
investors.
In this environment, the Fund's Class A shares returned 3.10%,
outperforming the 3.05% return of its benchmark - the Russell 3000 Growth
Index.
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.
Q: How is the Fund managed?
A: The Fund includes stocks selected from the three portfolios managed by Oak
Ridge Investments - Pioneer Oak Ridge Large Cap Growth Fund, Pioneer Oak
Ridge Small Cap Growth Fund, and the mid-cap growth portfolio that we run
for private accounts. Each of
4
Pioneer Oak Ridge All Cap Growth Fund
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these portfolios invests in high-quality, fast-growing, and reasonably
valued companies within their respective asset classes. The All Cap Growth
Fund then seeks to identify what we believe are the "best of the best" from
the three portfolios in order to create a fund of about 40-60 stocks in the
growth universe. We believe this focused portfolio allows us to reap the
benefits if our stock selection proves effective, yet at the same time we
strive to manage risk by maintaining an appropriate level of sector and
market cap diversification. Our goal is to invest in stocks for the
long-term, thereby limiting the Fund's portfolio turnover rate.
In order to select stocks for the Fund, we use three main criteria. First,
we look for superior companies that are taking market share and forcing
their competitors to adjust. Second, we invest only in companies with a
history of consistent earnings growth and a high likelihood of consistent
future earnings growth. Third, we only buy stocks at valuations that are
reasonable relative to the company's earnings prospects and fundamentals.
For instance, we will only buy a stock if its price-to-earnings ratio is no
more than two times its growth rate.
We believe this extensive filtration process, along with our flexibility to
select stocks across all market capitalizations in order to find the best
investment ideas, will hold the Fund's shareholders in good stead over
time.
Q: What factors helped performance during the abbreviated reporting period?
A: The Fund benefited from our stock selection in the energy sector, where two
natural gas drillers - XTO Energy (a large cap) and Southwestern Energy (a
mid cap) both outperformed their industry peers by a wide margin. We also
generated outperformance in the industrials and technology sectors.
The top individual contributor was Cognizant Technology Solutions, which as
a provider of information technology (IT) outsourcing services has
benefited greatly from US companies' growing propensity to move elements of
their IT functions to India in order to reduce costs. Precision Castparts
also was a strong performer for the Fund. A manufacturer of highly
engineered airplane parts, the company has capitalized on both growing
demand from the emerging markets as well as airlines' need to replace
planes in
5
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 2/28/07 (continued)
- --------------------------------------------------------------------------------
their aging fleets. The third-best contributor was Stericycle, which as the
largest player in the tightly-regulated hospital waste services industry
has been able to both gain market share and exercise pricing power with its
customers. In addition, the company's contract-based business has enabled
it to deliver consistent and reliable earnings growth over time. Rounding
out the list of top contributors was Marriott International, which has
delivered rising earnings on the strength of increased corporate spending
on business travel.
Q: What elements of the Fund's positioning detracted from performance?
A: The Fund's holdings in the materials sector underperformed. Our avoidance
of cyclical stocks weighed on relative performance at a time when sectors
such as aluminum, steel and metals surged. Our stock picks in the consumer
discretionary sector also underperformed, the result of the Fund's lack of
a position in the specialty retailers group. The best performers in this
segment were the teen retailers, but we avoid this area on the basis that
even the best fundamental stock research will not be able accurately to
predict teen fashion trends. We focused instead on steadier businesses such
as Gamestop, which sells new and used video games; O'Reilly Automotive,
which provides auto parts and services to the commercial and retail
markets; and Staples, which - like Marriott - is positioned to take
advantage of the continued strength in corporate spending. While by no
means cutting-edge, these businesses represent the type of stable growers
in which we prefer to invest.
Among the most significant individual detractors from performance was
Sallie Mae, the student loan provider that is facing increased political
headwinds in the form of the new Congressional inquiries. Believing this
development reduced the visibility regarding the company's growth outlook,
we elected to sell the position. Also detracting was East/West Bancorp, a
small-cap bank with a focus on the Asian market on the West Coast. The
company's earnings were pressured by the decline in long-term interest
rates relative to short-term rates, a development that resulted in
declining margins between the rate it can earn on loans versus what it pays
out on deposits. As with Sallie Mae, the cloudier outlook for East/West's
earnings prompted us to eliminate the stock from the portfolio.
6
Pioneer Oak Ridge All Cap Growth Fund
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Q: What is your outlook for growth stocks?
A: As the reporting period drew to a close, investor psychology seemed to be
characterized by a great deal of caution regarding the outlook for the rest
of this year. In contrast to that consensus view, we are fairly optimistic.
Despite superior earnings, growth stocks remain at historically low
valuation levels relative to traditional "value" stocks. In addition, we
believe decelerating profit growth for the overall market will lead to
rising investor demand for stocks that can produce reliable growth.
Specifically, we believe companies that can deliver earnings via strong
top-line sales growth, and not just cost-cutting, will become increasingly
attractive to investors.
With that as a backdrop, we will be looking to take advantage of market
volatility to purchase stocks whose valuations have declined to attractive
levels. Our investment style can be characterized as "growth at a
reasonable price," or GARP, strategy. While growth has been relatively easy
to find in recent years, the "reasonable price" element of the equation has
been more difficult. We are optimistic that rising risk aversion among
investors will bring a larger number of stocks into our buy zone as the
year progresses.
Thank you for your interest in Pioneer Oak Ridge All Cap Growth Fund. We
look forward to the opportunity to communicate regularly with shareholders
in the months and years ahead.
The Fund invests in a limited number of securities and, as a result, the Fund's
performance may be more volatile than the performance of other funds holding
more securities. At times, the Fund's investments may represent industries or
industry sectors that are interrelated or have common risks, making it more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These 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.
7
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 2/28/07
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING IS REPRESENTED IN THE PRINTED MATERIAL AS A PIE CHART]
U.S. Common Stocks 98.0%
Depositary Receipts for International Stocks 2.0%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of total equity holdings)
[THE FOLLOWING IS REPRESENTED IN THE PRINTED MATERIAL AS A PIE CHART]
Information Technology 30.5%
Idustrials 22.3%
Health Care 17.0%
Consumer Discretionary 13.3%
Consumer Staples 7.0%
Energy 4.3%
Financials 4.0%
Materials 1.6%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of total equity holdings)*
1. Cognizant Tech Solutions Corp. 4.94%
2. Google, Inc. 3.51
3. Stericycle, Inc. 3.11
4. Genentech, Inc. 2.86
5. Procter & Gamble Co. 2.73
6. Cisco Systems, Inc. 2.63
7. General Electric Co. 2.53
8. Staples, Inc. 2.46
9. Danaher Corp. 2.43
10. FedEx Corp. 2.38
* 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.
8
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 2/28/07 10/17/06
- ------- ------- ---------
A $10.31 $10.00
C $10.28 $10.00
Y $10.28 $10.00
Distributions Per Share
- --------------------------------------------------------------------------------
10/17/06 - 2/28/07
------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- ------ ------------- --------------
A $ - $ - $ -
C $ - $ - $ -
Y $ - $ - $ -
- --------------------------------------------------------------------------------
INDEX DEFINITIONS
- --------------------------------------------------------------------------------
The Russell 3000 Growth Index measures the performance of large-cap U.S. growth
stocks. Index returns assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
The index defined here pertains to the "Value of $10,000 Investment" charts on
pages 10-12.
9
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 2/28/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Oak Ridge All Cap Growth Fund at public offering
price, compared to that of the Russell 3000 Growth Index.
[THE FOLLOWING IS REPRESENTED IN THE PRINTED MATERIAL AS A MOUNTAIN CHART]
Value of $10,000 Investment
Pioneer Oak
Ridge All Cap Russell 3000
Growth Fund Growth Index
10/06 9,425 10,000
2/07 9,681 10,305
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of February 28, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(10/17/06) 3.10% -2.83%
- --------------------------------------------------------------------------------
Expense Ratio
(As of October 13, 2006)
Gross Net
1.35% 1.25%
- --------------------------------------------------------------------------------
Call 1-800-225-6292 or visit 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.
POP returns reflect deduction of maximum 5.75% sales charge. NAV results
represent the percent change in net asset value per share. Returns would have
been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Some expenses are based on estimated amounts for the current fiscal year.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/09 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 2/28/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Oak Ridge All Cap Growth Fund, compared to that of
the Russell 3000 Growth Index.
[THE FOLLOWING IS REPRESENTED IN THE PRINTED MATERIAL AS A MOUNTAIN CHART]
Value of $10,000 Investment
Pioneer Oak
Ridge All Cap Russell 3000
Growth Fund Growth Index
10/6 10,000 10,000
2/07 10,139 10,305
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of February 28, 2007)
Period If Held If Redeemed
Life-of-Class
(10/17/06) 2.80% 1.80%
- --------------------------------------------------------------------------------
Expense Ratio
(As of October 13, 2006)
Gross Net
2.25% 2.15%
- --------------------------------------------------------------------------------
Call 1-800-225-6292 or visit 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.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Some expenses are based on estimated amounts for the current fiscal year.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/08 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
11
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 2/28/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Oak Ridge All Cap Growth Fund, compared to that of
the Russell 3000 Growth Index.
[THE FOLLOWING IS REPRESENTED IN THE PRINTED MATERIAL AS A MOUNTAIN CHART]
Value of $10,000 Investment
Pioneer Oak
Ridge All Cap Russell 3000
Growth Fund Growth Index
10/06 9,425 10,000
2/07 10,259 10,305
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of February 28, 2007)
Period If Held If Redeemed
Life-of-Class
(10/17/06) 2.80% 2.80%
- --------------------------------------------------------------------------------
Expense Ratio
(As of October 13, 2006)
Gross Net
0.90% 0.90%
- --------------------------------------------------------------------------------
Call 1-800-225-6292 or pioneerinvestments.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. Class Y shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends, and capital gains. Other share classes
are available for which performance and expenses will differ.
Some expenses are based on estimated amounts for the current fiscal year.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Oak Ridge Large Cap Growth Fund
Based on actual returns from October 17, 2006 through February 28, 2007
Actual
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value On 10/17/06
Ending Account $1,031.00 $1,028.00 $1,028.00
Value On 2/28/07
Expenses Paid $ 4.69 $ 8.06 $ 7.73
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%,
and 2.06%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
135/365 (to reflect the partial year period).
13
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Oak Ridge Large Cap Growth Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from October 17, 2006 through February 28, 2007
Hypothetical
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value On 10/17/06
Ending Account $1,013.87 $1,010.54 $1,010.87
Value On 2/28/07
Expenses Paid $ 4.66 $ 7.99 $ 7.66
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%,
and 2.06%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
135/365 (to reflect the partial year period).
14
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
COMMON STOCKS - 92.9%
Energy - 3.9%
Oil & Gas Exploration & Production - 3.9%
640 Southwestern Energy Co.* $ 24,960
465 XTO Energy, Inc. 24,022
----------
$ 48,982
----------
Total Energy $ 48,982
----------
Materials - 1.5%
Specialty Chemicals - 1.5%
430 Ecolab, Inc. $ 18,189
----------
Total Materials $ 18,189
----------
Capital Goods - 10.4%
Aerospace & Defense - 2.0%
275 Precision Castparts Corp. $ 25,017
----------
Industrial Conglomerates - 2.4%
835 General Electric Co. $ 29,158
----------
Industrial Machinery - 6.0%
390 Danaher Corp. $ 27,940
755 Gardner Denver, Inc.* 25,572
400 Idex Corp. 20,804
----------
$ 74,316
----------
Total Capital Goods $ 128,491
----------
Commercial Services & Supplies- 6.4%
Diversified Commercial Services - 1.4%
330 CRA International, Inc.* $ 17,091
----------
Environmental & Facilities Services - 5.0%
460 Stericycle, Inc.* $ 35,793
595 Waste Connections, Inc.* 26,311
----------
$ 62,104
----------
The accompanying notes are an integral part of these financial statements. 15
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Total Commercial Services & Supplies $ 79,195
----------
Transportation - 3.9%
Air Freight & Couriers - 3.9%
240 FedEx Corp. $ 27,403
680 UTI Worldwide, Inc. 20,495
----------
$ 47,898
----------
Total Transportation $ 47,898
----------
Consumer Services - 2.1%
Hotels, Resorts & Cruise Lines - 2.1%
530 Marriott International, Inc. $ 25,392
----------
Total Consumer Services $ 25,392
----------
Media - 3.2%
Broadcasting & Cable Television - 1.5%
735 Comcast Corp.* $ 18,904
----------
Movies & Entertainment - 1.7%
920 News Corp, Inc.* $ 20,728
----------
Total Media $ 39,632
----------
Retailing - 7.2%
Automotive Retail - 1.7%
600 O'Reilly Automotive, Inc.* $ 20,658
----------
Computer & Electronics Retail - 1.6%
380 Gamestop Corp.* $ 19,920
----------
General Merchandise Stores - 1.6%
320 Target Corp. $ 19,690
----------
Specialty Stores - 2.3%
1,090 Staples, Inc. $ 28,362
----------
Total Retailing $ 88,630
----------
Food, Beverage & Tobacco - 2.0%
Soft Drinks - 2.0%
400 PepsiCo, Inc. $ 25,260
----------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Total Food, Beverage & Tobacco $ 25,260
----------
Household & Personal Products - 4.4%
Household Products - 4.4%
490 Church & Dwight Co., Inc. $ 23,496
495 Procter & Gamble Co. 31,428
----------
Total Household & Personal Products $ 54,924
----------
Health Care Equipment & Services - 8.1%
Health Care Distributors - 1.6%
385 Henry Schein, Inc.* $ 20,085
----------
Health Care Equipment - 5.0%
350 Palomar Medical Technologies* $ 14,308
420 ResMed, Inc.* 20,068
320 Zimmer Holdings, Inc.* 26,986
----------
$ 61,362
----------
Health Care Services - 1.5%
430 American Healthways, Inc.* $ 18,701
----------
Total Health Care Equipment & Services $ 100,148
----------
Pharmaceuticals & Biotechnology - 7.7%
Biotechnology - 3.6%
195 Amgen, Inc.* $ 12,531
390 Genentech, Inc.* 32,904
----------
$ 45,435
----------
Life Sciences Tools & Services - 2.2%
595 Thermo Fisher Scientific, Inc.* $ 26,936
----------
Pharmaceuticals - 1.9%
420 Novartis AG (A.D.R.) $ 23,281
----------
Total Pharmaceuticals & Biotechnology $ 95,652
----------
Diversified Financials - 3.7%
Consumer Finance - 2.1%
455 American Express Co. $ 25,876
----------
Investment Banking & Brokerage - 1.6%
1,065 Charles Schwab Corp. $ 19,681
----------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Total Diversified Financials $ 45,557
----------
Software & Services - 17.8%
Application Software - 3.9%
300 Adobe Systems, Inc.* $ 11,775
590 Amdocs, Ltd.* 20,420
320 Ansys, Inc.* 16,326
----------
$ 48,521
----------
Data Processing & Outsourced Services - 1.7%
550 Global Payments, Inc. $ 21,159
----------
Internet Software & Services - 5.7%
570 aQuantive, Inc.* $ 14,444
90 Google, Inc.* 40,451
630 J2 Global Communications, Inc.* 15,145
----------
$ 70,040
----------
IT Consulting & Other Services - 4.6%
630 Cognizant Tech Solutions Corp.* $ 56,821
----------
Systems Software - 1.9%
835 Microsoft Corp. $ 23,522
----------
Total Software & Services $ 220,063
----------
Technology Hardware & Equipment - 7.5%
Communications Equipment - 5.6%
1,165 Cisco Systems, Inc.* $ 30,220
700 Corning, Inc.* 14,441
625 Qualcomm, Inc. 25,175
----------
$ 69,836
----------
Computer Hardware - 1.9%
285 Apple, Inc.* $ 24,114
----------
Total Technology Hardware & Equipment $ 93,950
----------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Semiconductors - 3.1%
535 Microchip Technology $ 19,046
640 Texas Instruments, Inc. 19,814
----------
$ 38,860
----------
Total Semiconductors $ 38,860
----------
TOTAL COMMON STOCKS
(Cost $1,110,879) $1,150,823
----------
TOTAL INVESTMENT IN SECURITIES - 92.9%
(Cost $1,110,879) (a) $1,150,823
----------
OTHER ASSETS AND LIABILITIES - 7.1% $ 87,849
----------
TOTAL NET ASSETS - 100.0% $1,238,672
==========
(A.D.R.) American Depositary Receipt
* Non-income producing security.
(a) At February 28, 2007, the net unrealized gain on investments based on cost
for federal income tax purposes of $1,110,879 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $ 59,501
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (19,557)
Net unrealized gain ---------
$ 39,944
=========
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended February 28, 2007 aggregated $1,255,353 and $139,184,
respectively.
The accompanying notes are an integral part of these financial statements. 19
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 2/28/07 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (cost $1,110,879) $1,150,823
Cash 84,493
Receivables -
Fund shares sold 4,998
Dividends, interest and foreign taxes withheld 462
Due from Pioneer Investment Management, Inc. 6,847
Other 3,843
----------
Total assets $1,251,466
----------
LIABILITIES:
Payables -
Fund shares repurchased $ 4,878
Due to affiliates 468
Accrued expenses 7,448
----------
Total liabilities $ 12,794
----------
NET ASSETS:
Paid-in capital $1,207,593
Accumulated net investment loss (3,575)
Accumulated net realized loss on investments (5,290)
Net unrealized gain on investments 39,944
----------
Total net assets $1,238,672
==========
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $499,947/48,478 shares) $ 10.31
==========
Class C (based on $395,990/38,509 shares) $ 10.28
==========
Class Y (based on $342,735/33,333 shares) $ 10.28
==========
MAXIMUM OFFERING PRICE:
Class A ($10.31 [divided by] 94.25%) $ 10.94
==========
20 The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the period from 10/17/06 (Commencement of Operations) to 2/28/07
INVESTMENT INCOME:
Dividends $2,091
Interest 1,865
------
Total investment income $ 3,956
-------
EXPENSES:
Management fees $3,188
Transfer agent fees and expenses
Class A 294
Class C 184
Class Y 92
Distribution fees
Class A 414
Class C 1,334
Administrative reimbursements 93
Custodian fees 4,439
Registration fees 1,795
Professional fees 15,014
Printing expense 6,005
Fees and expenses of nonaffiliated trustees 2,373
Miscellaneous 750
------
Total expenses $35,975
Less management fees waived and
expenses reimbursed by Pioneer Investment
Management, Inc. (28,444)
-------
Net expenses $ 7,531
-------
Net investment loss $(3,575)
=======
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized loss on investments $(5,290)
-------
Change in net unrealized gain on investments $39,944
-------
Net gain on investments $34,654
-------
Net increase in net assets resulting from operations $31,079
=======
The accompanying notes are an integral part of these financial statements. 21
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the period from 10/17/06 (Commencement of Operations) to 2/28/07
10/17/06
to
2/28/07
(unaudited)
FROM OPERATIONS:
Net investment loss $ (3,575)
Net realized loss on investments (5,290)
Change in net unrealized gain on investments 39,944
----------
Net increase in net assets resulting from operations $ 31,079
----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 220,553
Cost of shares repurchased (12,960)
----------
Net increase in net assets resulting from fund share transactions $ 207,593
----------
Net increase in net assets $ 238,672
NET ASSETS:
Beginning of period (initial capitalization - 100,000 shares) $1,000,000
----------
End of period $1,238,672
==========
Accumulated net investment loss $ (3,575)
==========
'07 Shares '07 Amount
(unaudited) (unaudited)
CLASS A
Shares sold 16,396 $ 167,177
Less shares repurchased (1,251) (12,960)
------ ---------
Net increase 15,145 $ 154,217
====== =========
CLASS C
Shares sold 5,176 $ 53,491
------ ---------
Net increase 5,176 $ 53,491
====== =========
CLASS Y
Less shares repurchased - $ (115)
------ ---------
Net increase - $ (115)
====== =========
22 The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
10/17/06 (a)
to
2/28/07
(unaudited)
CLASS A
Net asset value, beginning of period $ 10.00
--------
Increase (decrease) from investment operations:
Net investment loss $ (0.01)
Net realized and unrealized gain on investments 0.32
--------
Net increase in net assets from investment operations $ 0.31
--------
Net asset value, end of period $ 10.31
========
Total return* 3.10%
Ratio of net expenses to average net assets 1.25%**
Ratio of net investment loss to average net assets (0.32)%**
Portfolio turnover rate 35%**
Net assets, end of period (in thousands) $ 500
Ratios with no waiver of management fees and assumption
of expenses by PIM
Net expenses 8.36%**
Net investment loss (7.43)%**
(a) Class A shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 23
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
10/17/06 (a)
to
2/28/07
(unaudited)
CLASS C
Net asset value, beginning of period $ 10.00
--------
Increase (decrease) from investment operations:
Net investment loss $ (0.04)
Net realized and unrealized gain on investments 0.32
--------
Net increase in net assets from investment operations $ 0.28
--------
Net asset value, end of period $ 10.28
========
Total return* 2.80%
Ratio of net expenses to average net assets 2.15%**
Ratio of net investment loss to average net assets (1.22)%**
Portfolio turnover rate 35%**
Net assets, end of period (in thousands) $ 396
Ratios with no waiver of management fees and assumption
of expenses by PIM
Net expenses 9.06%**
Net investment loss (8.13)%**
(a) Class C shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
24 The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
10/17/06 (a)
to
2/28/07
(unaudited)
CLASS Y
Net asset value, beginning of period $ 10.00
--------
Increase (decrease) from investment operations:
Net investment loss $ (0.04)
Net realized and unrealized gain on investments 0.32
--------
Net increase in net assets from investment operations $ 0.28
--------
Net asset value, end of period $ 10.28
========
Total return* 2.80%
Ratio of net expenses to average net assets 2.06%**
Ratio of net investment loss to average net assets (1.13)%**
Portfolio turnover rate 35%**
Net assets, end of period (in thousands) $ 343
Ratios with no waiver of management fees and assumption
of expenses by PIM
Net expenses 7.97%**
Net investment loss (7.04)%**
(a) Class Y shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 25
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Oakridge All Cap Growth Fund (the Fund) is one of five series of
portfolios comprising Pioneer Series Trust V, a Delaware statutory trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is capital
appreciation.
The Fund offers three classes of shares - Class A, Class C and Class Y shares.
Class A and Class C shares were first publicly offered on October 17, 2006. Each
class of shares represents an interest in the same portfolio of investments of
the Fund and has equal rights to voting, redemptions, dividends and liquidation,
except that the level of transfer agent and distribution fees may differ among
classes. Class A, Class C and Class Y shareowners have exclusive voting rights
with respect to the distribution plan for each class. There is no distribution
plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and 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
Fund in the 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. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the Exchange. In
computing the net asset value, securities are valued at the last sale price
on the principal exchange where they are traded. Securities that have not
traded on the date of valuation, or securities for which sale prices are
not generally reported, are valued at the mean between the last bid and
asked prices. Securities for which market quotations are not readily
available are valued at their fair values as determined by, or under the
26
Pioneer Oak Ridge All Cap Growth Fund
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direction of, the Board of Trustees. Trading in foreign securities is
substantially completed each day at various times prior to the close of the
NYSE. The values of such securities used in computing the net asset value
of the Fund's shares are determined as of such times. The Fund also may use
the fair value of a security, including a non-U.S. security, when the
closing market price on the principal exchange where the security is traded
no longer reflects the value of the security. At February 28, 2007, there
were no securities fair valued. Temporary cash investments are valued at
amortized cost.
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 Fund becomes aware of the ex-dividend
data in exercise of reasonable diligence. Dividend and interest income is
recorded on the accrual basis, net of unrecoverable foreign taxes withheld
at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal 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 sources of the Fund's distributions may be
shown in the accompanying financial statements as either from or in excess
of net investment income or net 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 will be determined at
the end of the current fiscal year.
27
Pioneer Oak Ridge All Cap Growth Fund
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NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited) (continued)
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C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.
(UniCredito Italiano), earned approximately $8 in underwriting commissions
on the sale of Class A shares for the period ended February 28, 2007.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, and Class C shares of the Fund, respectively (see
Note 4). Class Y shares are not subject to a distribution plan. Shareowners
of each class share all expenses and fees paid to the transfer agent,
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), for its
services, which are allocated based on the number of accounts in each class
and the ratable allocation of related out-of-pocket expenses (see Note 3).
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning
of the day.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, on the same day, and in
the same amount, except that Class A, Class C, and Class Y shares bear
different transfer agent and distribution fees.
2. Management Agreement
PIM, a wholly owned subsidiary of UniCredito Italino, manages the Fund's
portfolio. PIM receives a basic fee that is calculated at the annual rate of
0.75% of the Fund's average daily net assets up to $500 million; and 0.70% on
assets over $500 million. The management fees were equivalent to 0.75% of the
average daily net assets for the period.
Pioneer has contractually agreed to limit ordinary operating expenses to the
extent required to reduce Fund expenses to 1.25% and 2.15% of the average daily
net assets attributable to Class A and Class C shares, respectively. These
expense limitations are in effect through
28
Pioneer Oak Ridge All Cap Growth Fund
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January 1, 2009 for Class A shares and through January 1, 2008 for Class C
shares. There is no expense limitation in effect for Class Y shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. On February 28, 2007, there were no management
fees, administrative costs or other services payable to PIM.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in due to affiliates is $454 in transfer agent fees
payable to PIMSS at February 28, 2007.
4. Distribution and Service Plan
The Fund adopted a Plan of Distribution for Class A and Class C shares (Class A
Plan, and Class C Plan) in accordance with Rule 12b-1 under the Investment
Company Act of 1940. Pursuant to the Class A Plan, the Fund pays PFD a service
fee of up to 0.25% of the average daily net assets attributable to Class A
shares in reimbursement of its actual expenditures to finance activities
primarily intended to result in the sale of Class A shares. Pursuant to the
Class C Plan, the Fund pays PFD 1.00% of the average daily net assets
attributable to each class of shares. The fee consists of a 0.25% service fee
and a 0.75% distribution fee paid as compensation for personal services and/or
account maintenance services or distribution services with regard to Class C
shares. Included in due to affiliates is $14 in distribution fees payable to PFD
at February 28, 2007.
In addition, redemptions of Class A and Class C shares may be subject to a
contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on
redemptions of certain net asset value purchases of Class A shares within 18
months of purchase. Redemptions of Class C shares within one year of purchase
are subject to a CDSC of 1.00%. Proceeds from the CDSCs are paid to PFD. For the
period ended February 28, 2007, no CDSCs were paid to PFD.
29
Pioneer Oak Ridge All Cap Growth Fund
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NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
5. Expense Offset Arrangements
The Fund has entered into an expense offset arrangement with PIMSS resulting in
a reduction in the Fund's total expenses due to interest earned on cash held by
PIMSS. For the period ended February 28, 2007, the Fund's expenses were not
reduced under such arrangement.
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 Fund'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 as of no
later than June 29, 2007. At this time, management is evaluating the
implications of FIN 48 and any impact in the financial statements has not yet
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. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund's financial statement disclosures.
30
Pioneer Oak Ridge All Cap Growth Fund
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Vincent Nave, Treasurer
Mary K. Bush Dorothy E. Bourassa, Secretary
Margaret B.W. Graham
Thomas J. Perna
Marguerite A. Piret
John Winthrop
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Subadviser
Oak Ridge Investments, LLC
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at www.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at http://www.sec.gov.
31
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This page for your notes.
32
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This page for your notes.
33
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This page for your notes.
34
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This page for your notes.
35
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This page for your notes.
36
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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.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the
Commission's web site at 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.
PIONEER
--------
SELECT
RESEARCH
GROWTH
FUND
Semiannual
Report
2/28/07
[LOGO] PIONEER
Investments(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Prices and Distributions 8
Performance Update 9
Comparing Ongoing Fund Expenses 10
Schedule of Investments 12
Financial Statements 17
Notes to Financial Statements 21
Factors Considered by the Independent Trustees in Approving
the Management Contract 26
Trustees, Officers and Service Providers 31
Chairman's
Dear Shareowner,
- --------------------------------------------------------------------------------
As the global economy reacted to good and bad news of 2006, overall it managed
to keep chugging along with fairly stable growth. Looking back, the economic
stories included slowing economic growth bringing monetary tightening to an end
in the United States, price action in oil and other commodity markets
threatening to unsettle global growth and inflation, geopolitical uncertainties
and corporate earnings growth surpassing market expectations.
Global growth surpassed most analyst expectations in 2006. The International
Monetary Fund estimates world output increased by 5.1% in 2006, up from 4.9% in
2005 and above the 3.7% average annual pace of growth of the previous 20 years.
Growth is estimated to slow modestly in 2007 but to remain well above the
long-term average.
U.S. economic growth slowed gradually over 2006, with full-year growth of GDP of
3.1%, modestly below 2005 growth but still strong enough to lower the
unemployment rate to 4.5%. While many observers were concerned that a weakening
housing sector could be a drag on consumer spending, the consumer has shown
resilience supported by a strong labor market and associated income growth and
by oil and gasoline prices falling from record highs in the second half of 2006.
Corporate America has also proved resilient in the face of the slowing housing
sector, with business investment growing at its fastest rate since 2000.
The Federal Reserve stopped increasing interest rates in mid-2006, but has
retained its bias to tighten rates, reflecting upside risks to inflation,
particularly from the tight labor market, and confidence that the economy
remained on solid ground. Consumers welcomed the relief from oil prices that
peaked at mid-year and fell sharply towards year-end. Likewise, in the second
half of 2006, they benefited from the modest easing of core inflation (which
excludes energy and food items), though such core inflation remains above what
is generally considered the central bank's "comfort zone."
The European economy surpassed many economists' expectations in 2006. Eurozone
GDP grew at a 3% pace, much stronger than its 1.8% average annual growth pace
since 2000. Underlying this strength has been buoyant and broad-based strength
in business sentiment and investment and in exports. While household consumption
showed mixed results, the unemployment rate fell to 7.7% by the end of 2006. The
European Central Bank raised interest rates gradually to 3.5% over the course of
2006, reflecting firm economic growth, steadily tightening labor market
conditions, and fast growing money supply. Core inflation in the Eurozone
remains reasonably benign, at roughly 1.5% per annum. European stock markets
posted strong returns; appreciation of the Euro relative to both the dollar and
Yen made the Eurozone stock market the top performer of 2006.
The Japanese economy continued to grow firmly in 2006. Business investment was
the major driver of expansion as increasing capacity utilization and better
sentiment encouraged a new wave of investment. As deflation ended, the Bank of
Japan ended its zero interest rate policy, although it has raised rates to only
0.25% in 2006. After a strong showing in 2005, the Japanese stock market posted
only muted gains in 2006.
Emerging economies enjoyed strong, relatively uninterrupted economic growth in
2006. Good financing conditions, buoyant commodity prices, which boosted income
and investment in commodity exporting countries, and strong export demand from
developed economies drove this growth. The emerging market stock
2
Letter
index was very strong in early 2006, sold off to near start-of-year levels, then
rallied to finish the year only marginally behind the Eurozone. We believe
similar growth can be expected in the emerging markets if current domestic
economic and political conditions prevail.
While global economic momentum has started to slow, we expect the global economy
to continue growing firmly in 2007, supported by business investment, rising
employment, and lower energy prices. A slowdown in the U.S. growth rate would be
welcome, since rapid growth could increase the risk of inflationary pressures,
which would force the Federal Reserve to raise interest rates. We expect Europe
and Japan to grow similarly, while emerging market economies are expected to
continue their strong growth. In this scenario, fixed-income assets are expected
to produce total returns generally in line with their current yields, while
equities are expected to produce returns generally in line with earnings growth,
which we forecast to be moderately above bond yields.
Our cautiously optimistic outlook on most regions of the world and asset classes
reinforces the importance of Pioneer Investments' message that investors should
remain diversified, take a long-term view rather than over-reacting to breaking
news, and base investment decisions on economic and market fundamentals rather
than on emotion. Our investment philosophy and approach continue to be based on
the use of fundamental research to identify a range of opportunities that offer
an attractive balance of risk and reward to help Fund shareowners work toward
achieving their long-term goals.
Respectfully,
/s/ JOHN F. COGAN, JR.
John F. Cogan, Jr., Chairman
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 2/28/07
- --------------------------------------------------------------------------------
The U.S. stock market registered strong gains during the six months ended
February 28, 2007, supported by a durable economic expansion, growing corporate
profits, modest inflation and a relatively benign interest-rate environment. In
the following interview, members of the team responsible for managing Pioneer
Select Research Growth Fund review the period. Discussing the factors that
affected Fund performance during the six months are: Diego Franzin, Head of
Pioneer's U.S. Quantitative Research & Management Group; Ashesh Savla, a
Quantitative Analyst at Pioneer; and John Peckham, CFA, Head of U.S. Equity
Research at Pioneer.
Q: How did the Pioneer Select Research Growth Fund perform during the six months
ended February 28, 2007?
A: The Fund performed very well. Class A shares had a total return of 10.38%, at
net asset value, for the six months. During the same period, the benchmark
Russell 1000 Growth Index gained 9.54% while the average performance of the
752 funds in Lipper's Large Cap Growth category was 8.33%.
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.
Q: What were the principal factors that affected the Fund's performance during
the six months?
A: The market environment was very positive. Investors were relieved that the
Federal Reserve Board decided to pause in its interest-rate-hike cycle, while
energy prices began receding after rising dramatically before the period.
Corporations continued to report reasonable profit growth in the face of a
supportive economic environment of persistent growth, relatively benign
interest rates and modest inflationary pressures by historical standards.
Helped by strong employment trends, consumer spending proved to be resilient,
despite softness in the housing market.
4
Pioneer Select Research Growth Fund
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Consistent with the management style of the Fund, stock selection drove
performance, led by holdings in the information technology, industrials and
consumer discretionary sectors. Our picks in the financials and materials
sectors tended to be less supportive of performance. We select the Fund's
approximately 50 holdings from the 100 stocks in the Pioneer Research Fund
portfolio. Our sector weightings are equal to those of the benchmark Russell
1000 Growth Index. In our selection process, we rank stocks by using
quantitative screens based on Pioneer's proprietary analysis of the superior
characteristics of stocks in 17 different sectors and industries.
Q: What individual investments had the greatest impact on performance, either
positive or negative?
A: Among our information technology holdings, we had especially good results
from our positions in Freescale, Sun Microsystems and Apple. Freescale, a
leading producer of semiconductors used in components of automobiles, mobile
phones and other devices, received a significant buyout offer from a private
equity firm. Sun Microsystems began to reap the benefits of its new
energy-efficient product line for corporate information technology systems.
Apple, meanwhile, introduced its new iPhone which created another growth
opportunity for its line of iPod-related devices.
In the industrials sector, strong performers included railroad company
Norfolk Southern and equipment manufacturer Terex. Norfolk Southern - a stock
that we sold before period's end - enjoyed the benefits of a healthy economy
that created a steady demand for rail shipments. Terex, meanwhile, benefited
from healthy demand for heavy equipment from its industrial and utility
customers. In the consumer discretionary sector, our selections in the
retailing industry performed especially well, led by Target, JC Penney, and
McDonald's. Target and JC Penney, aided by their strong franchises, generated
better-than-expected sales. McDonald's continued to benefit from a new menu
and healthy growth in its international business.
Among our selections in the financials and materials sectors, performance was
held back by not owning some of the better-performing companies. For example,
in financials we had a position in Merrill Lynch, which was less exposed to
investment
5
Pioneer Select Research Growth Fund
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PORTFOLIO MANAGEMENT DISCUSSION 2/28/07 (continued)
- --------------------------------------------------------------------------------
banking activities such as mergers-and-acquisitions and initial public stock
offerings. Heavy transaction-related activity led to very strong performance
by companies such as Goldman Sachs, a company that we did not own. Similarly,
in the materials sector, we were underweighted in mining and metals
companies, which were among the top performers.
Q: What is your investment outlook?
A: We see good potential for a continued supportive environment for equities.
Stock valuations are not high, by historical standards, while the economy
continues to grow, although at a moderating pace. Inflation and interest
rates remain moderate by historical standards, and continued heavy
mergers-and-acquisition activity provides a base of support for equity
prices. We see the most significant near-term concerns coming from the
slumping housing industry and the potential fall-out on sub-prime mortgage
providers. However, we believe strong employment trends, if they persist,
should give the market to ability to withstand any pressures from the weak
housing industry.
Overall, we remain positive about stocks.
Investing in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies. The Fund invests in a limited number of
securities and, as a result, the Fund's performance may be more volatile than
the performance of other funds holding more securities. At times, the Fund's
investments may represent industries or industry sectors that are interrelated
or have common risks, making it more susceptible to any economic, political, or
regulatory developments or other risks affecting those industries and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
6
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 2/28/07
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[DATA BELOW IS REPRESENTED BY A PIE CHART IN THE ORIGINAL REPORT]
U.S. Common Stocks 98.0%
Depositary Receipts for International Stocks 2.0%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[DATA BELOW IS REPRESENTED BY A PIE CHART IN THE ORIGINAL REPORT]
Information Technology 26.3%
Health Care 17.4%
Industrials 14.3%
Consumer Discretionary 14.2%
Consumer Staples 9.8%
Financials 8.3%
Energy 3.8%
Materials 3.4%
Utilities 1.5%
Telecommunication Services 1.0%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
- --------------------------------------------
1. Cisco Systems, Inc. 3.95%
- --------------------------------------------
2. Microsoft Corp. 3.46
- --------------------------------------------
3. Apple, Inc. 3.14
- --------------------------------------------
4. Target Corp. 3.10
- --------------------------------------------
5. Oracle Corp. 2.90
- --------------------------------------------
6. United Technologies Corp. 2.78
- --------------------------------------------
7. 3M Co. 2.59
- --------------------------------------------
8. Schering-Plough Corp. 2.54
- --------------------------------------------
9. Eli Lilly & Co. 2.52
- --------------------------------------------
10. Franklin Resources, Inc. 2.50
- --------------------------------------------
* This list excludes temporary cash and derivative instruments. Portfolio
holdings will vary for other periods. The holdings listed should not be
considered recommendations to buy or sell any securities listed.
7
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 2/28/07 8/31/06
----- ------- -------
A $11.17 $10.18
Distributions Per Share
- --------------------------------------------------------------------------------
9/1/06 - 2/28/07
----------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- -------------- ------------- -------------
A $0.0328 $ - $ -
8
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 2/28/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Select Research Growth Fund at public offering
price, compared to that of the Russell 1000 Growth Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of February 28, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(12/15/05) 10.15% 4.88%
1 Year 12.59 6.10
- --------------------------------------------------------------------------------
Expense Ratio
(As of January 1, 2007)
Gross Net
21.63% 1.25%
- --------------------------------------------------------------------------------
[DATA BELOW IS REPRESENTED BY A MOUNTAIN CHART IN THE ORIGINAL REPORT]
Pioneer
Select Research Russell 1000
Growth Fund Growth Index
- ----------------------------------------------------------------
12/05 9,425 10,000
2/06 9,587 10,159
2/07 10,794 10,977
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.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/09 for Class A Shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in an Index.
9
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number in
the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Select Research Growth Fund
Based on actual returns from September 1, 2006 through February 28, 2007
Share Class A
- ------------------------------------------------
Beginning Account Value On 9/1/06 $1,000.00
Ending Account Value On 2/28/07 $1,103.80
Expenses Paid During Period* $ 6.52
* Expenses are equal to the Fund's annualized expense ratio of 1.25% for Class A
shares, multiplied by the average account value over the period, multiplied by
181/365 (to reflect the one-half year period).
10
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Select Research Growth Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2006 through February 28, 2007
Share Class A
- -----------------------------------------------
Beginning Account Value On 9/1/06 $1,000.00
Ending Account Value On 2/28/07 $1,018.60
Expenses Paid During Period* $ 6.26
* Expenses are equal to the Fund's annualized expense ratio of 1.25% for Class A
shares multiplied by the average account value over the period, multiplied by
181/365 (to reflect the one-half year period).
11
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
COMMON STOCKS - 99.3%
Energy - 3.8%
Integrated Oil & Gas - 3.8%
158 ConocoPhillips $ 10,336
121 USX-Marathon Group, Inc. 10,980
--------
$ 21,316
--------
Total Energy $ 21,316
--------
Materials - 3.4%
Diversified Chemical - 1.3%
166 Dow Chemical Co. $ 7,271
--------
Diversified Metals & Mining - 1.1%
111 Freeport-McMoRan Copper & Gold, Inc. (Class B) $ 6,373
--------
Steel - 1.0%
90 Nucor Corp. $ 5,478
--------
Total Materials $ 19,122
--------
Capital Goods - 10.8%
Aerospace & Defense - 4.9%
164 Northrop Grumman Corp. $ 11,783
235 United Technologies Corp. 15,423
--------
$ 27,206
--------
Construction, Farm Machinery & Heavy Trucks - 2.2%
191 Terex Corp.* $ 12,575
--------
Electrical Component & Equipment - 1.1%
116 Thomas & Betts Corp.* $ 5,895
--------
Industrial Conglomerates - 2.6%
194 3M Co. $ 14,372
--------
Total Capital Goods $ 60,048
--------
Transportation - 3.5%
Air Freight & Couriers - 1.6%
128 United Parcel Service $ 8,984
--------
Railroads - 1.9%
105 Union Pacific Corp. $ 10,356
--------
Total Transportation $ 19,340
--------
12 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Consumer Durables & Apparel - 1.0%
Footwear - 1.0%
56 Nike, Inc. $ 5,850
--------
Total Consumer Durables & Apparel $ 5,850
--------
Consumer Services - 2.9%
Hotels, Resorts & Cruise Lines - 1.3%
157 Carnival Corp. $ 7,288
--------
Restaurants - 1.6%
210 McDonald's Corp. $ 9,181
--------
Total Consumer Services $ 16,469
--------
Media - 2.6%
Broadcasting & Cable TV - 0.7%
152 Comcast Corp.* $ 3,897
--------
Publishing - 1.9%
165 McGraw-Hill Co., Inc. $ 10,661
--------
Total Media $ 14,558
--------
Retailing - 7.5%
Apparel Retail - 2.0%
140 Abercrombie & Fitch Co. $ 10,944
--------
Department Stores - 2.4%
167 J.C. Penney Co., Inc. $ 13,545
--------
General Merchandise Stores - 3.1%
280 Target Corp. $ 17,228
--------
Total Retailing $ 41,717
--------
Food & Drug Retailing - 3.6%
Drug Retail - 3.6%
307 CVS Corp. $ 9,643
238 Walgreen Co. 10,641
--------
$ 20,284
--------
Total Food & Drug Retailing $ 20,284
--------
Food, Beverage & Tobacco - 6.1%
Brewers - 2.0%
226 Anheuser-Busch Companies, Inc. $ 11,092
--------
The accompanying notes are an integral part of these financial statements. 13
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Soft Drinks - 2.0%
177 PepsiCo, Inc. $ 11,178
--------
Tobacco - 2.1%
165 Loews Corp Carolina Group $ 11,885
--------
Total Food, Beverage & Tobacco $ 34,155
--------
Health Care Equipment & Services - 7.3%
Health Care Equipment - 1.5%
166 Edwards Lifesciences Group* $ 8,378
--------
Health Care Services - 2.2%
158 Laboratory Corporation of America Holdings* $ 12,601
--------
Health Care Technology - 1.9%
361 IMS Health, Inc. $ 10,426
--------
Managed Health Care - 1.7%
174 Coventry Health Care, Inc.* $ 9,469
--------
Total Health Care Equipment & Services $ 40,874
--------
Pharmaceuticals & Biotechnology - 9.9%
Biotechnology - 0.8%
223 Cubist Pharmaceuticals, Inc.* $ 4,467
--------
Pharmaceuticals - 9.1%
440 Bristol-Myers Squibb Co. $ 11,612
266 Eli Lilly & Co. 14,002
601 Schering-Plough Corp. 14,111
316 Teva Pharmaceutical Industries, Ltd. 11,237
--------
$ 50,962
--------
Total Pharmaceuticals & Biotechnology $ 55,429
--------
Banks - 1.0%
Diversified Banks - 0.5%
49 Wachovia Corp. $ 2,713
--------
Regional Banks - 0.5%
39 PNC Bank Corp. $ 2,859
--------
Total Banks $ 5,572
--------
14 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Diversified Financials - 5.3%
Asset Management & Custody Banks - 3.5%
151 Federated Investors, Inc. $ 5,401
118 Franklin Resources, Inc. 13,852
--------
$ 19,253
--------
Investment Banking & Brokerage - 1.8%
122 Merrill Lynch & Co., Inc. $ 10,209
--------
Total Diversified Financials $ 29,462
--------
Insurance - 1.9%
Multi-Line Insurance - 0.9%
80 American International Group, Inc. $ 5,368
--------
Property & Casualty Insurance - 1.0%
107 The Traveler Companies, Inc.* $ 5,431
--------
Total Insurance $ 10,799
--------
Software & Services - 11.5%
Application Software - 2.2%
380 Citrix Systems, Inc.* $ 12,236
--------
Systems Software - 9.3%
230 Macrovision Corp.* $ 5,674
682 Microsoft Corp. 19,212
980 Oracle Corp.* 16,101
633 Symantec Corp.* 10,824
--------
$ 51,811
--------
Total Software & Services $ 64,047
--------
Technology Hardware & Equipment - 10.2%
Communications Equipment - 5.6%
846 Cisco Systems, Inc.* $ 21,946
463 Corning, Inc.* 9,552
--------
$ 31,498
--------
Computer Hardware - 4.6%
206 Apple, Inc.* $ 17,430
1,319 Sun Microsystems, Inc.* 8,085
--------
$ 25,515
--------
Total Technology Hardware & Equipment $ 57,013
--------
The accompanying notes are an integral part of these financial statements. 15
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Semiconductors - 4.5%
461 National Semiconductor Corp. $ 11,811
427 Texas Instruments, Inc. 13,220
--------
$ 25,031
--------
Total Semiconductors $ 25,031
--------
Telecommunication Services - 1.0%
Integrated Telecommunication Services - 1.0%
149 Verizon Communications, Inc. $ 5,577
--------
Total Telecommunication Services $ 5,577
--------
Utilities - 1.5%
Gas Utilities - 1.5%
98 Questar Corp. $ 8,246
--------
Total Utilities $ 8,246
--------
TOTAL COMMON STOCKS
(Cost $515,586) $554,909
--------
TOTAL INVESTMENT IN SECURITIES - 99.3%
(Cost $515,586) (a) $554,909
--------
OTHER ASSETS AND LIABILITIES - 0.7% $ 3,835
--------
TOTAL NET ASSETS - 100.0% $558,744
========
* Non-income producing security.
(a) At February 28, 2007, the net unrealized gain on investments based on cost
for federal income tax purposes of $515,586 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $ 49,845
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (10,522)
---------
Net unrealized gain $ 39,323
=========
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended February 28, 2007 aggregated $253,899 and $256,873,
respectively.
16 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 2/28/07 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (cost $515,586) $554,909
Cash 15,011
Receivables -
Dividends and foreign taxes withheld 929
Due from Pioneer Investment Management, Inc. 5,944
Other 4,226
--------
Total assets $581,019
--------
LIABILITIES:
Due to affiliates $ 5,081
Accrued expenses 17,194
--------
Total liabilities $ 22,275
--------
NET ASSETS:
Paid-in capital $500,000
Undistributed net investment income (31)
Accumulated net realized gain on investments 19,452
Net unrealized gain on investments 39,323
--------
Total net assets $558,744
========
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $558,744/50,000 shares) $ 11.17
========
MAXIMUM OFFERING PRICE:
Class A ($11.17 [divided by] 94.25%) $ 11.85
========
The accompanying notes are an integral part of these financial statements. 17
Pioneer Select Research Growth Fund
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- -----------------------------------------------------------------------------
For the Six Months Ended 2/28/07
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $5) $3,541
Interest 457
Income from securities loaned, net 6
------
Total investment income $ 4,004
-------
EXPENSES:
Management fees $2,031
Transfer agent fees and expenses 19
Custodian fees 6,069
Registration fees 442
Professional fees 8,838
Printing expense 6,040
Fees and expenses of nonaffiliated trustees 3,269
Miscellaneous 764
------
Total expenses $27,472
Less management fees waived and
expenses reimbursed by Pioneer Investment
Management, Inc. (24,086)
-------
Net expenses $ 3,386
-------
Net investment income $ 618
-------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $19,212
-------
Change in net unrealized gain on investments $31,504
-------
Net gain on investments $50,716
-------
Net increase in net assets resulting from operations $51,334
=======
18 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 2/28/07 and the period from 12/15/05
(Commencement of Operations) to 8/31/06
Six Months 12/15/05
Ended to
2/28/07 8/31/06
(unaudited)
FROM OPERATIONS:
Net investment income $ 618 $ 1,056
Net realized gain on investments 19,212 240
Change in net unrealized gain on investments 31,504 7,819
-------- --------
Net increase in net assets resulting
from operations $ 51,334 $ 9,115
-------- --------
DISTRIBUTIONS TO SHAREOWNERS
Net investment income:
Class A ($0.03 and $0.00 per share, respectively) $ (1,705) $ -
-------- --------
Total distributions to shareowners $ (1,705) $ -
-------- --------
Net increase in net assets $ 49,629 $ 9,115
-------- --------
NET ASSETS:
Beginning of period (initial capitalization -
50,000 shares) $509,115 $500,000
-------- --------
End of period $558,744 $509,115
-------- --------
Undistributed (distributions in excess of) net
investment income $ (31) $ 1,056
======== ========
The accompanying notes are an integral part of these financial statements. 19
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months 12/15/05 (a)
Ended to
2/28/07 8/31/06
(unaudited)
CLASS A
Net asset value, beginning of period $10.18 $ 10.00
------ -------
Increase from investment operations:
Net investment income $ 0.01 $ 0.02
Net realized and unrealized gain on investments 1.01 0.16
------ -------
Net increase from investment operations $ 1.02 $ 0.18
Distributions to shareowners:
Net investment income (0.03) -
------ -------
Net increase in net asset value $ 0.99 $ 0.18
------ -------
Net asset value, end of period $11.17 $ 10.18
====== =======
Total return* 10.38% 1.80%(b)
Ratio of net expenses to average net assets+ 1.25%** 1.25%**
Ratio of net investment income to average
net assets+ 0.23%** 0.30%**
Portfolio turnover rate 95%** 73%(b)
Net assets, end of period (in thousands) $ 559 $ 509
Ratios with no waiver of management fees
and assumption of expenses by PIM and no
reduction for fees paid indirectly
Net expenses 10.14%** 21.63%**
Net investment loss (8.66)%** (20.08)%**
(a) The Fund commenced operations on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
20 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Select Research Growth Fund (the Fund) is one of three portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust registered under
the Investment Company Act of 1940 as a diversified, open-end management
investment company. The Fund was organized on October 12, 2005, and commenced
operations on December 15, 2005. Prior to December 15, 2005, the Fund had no
operations other than those relating to organizational matters and the initial
capitalization of the Fund by Pioneer Funds Distributor, Inc. (PFD). To date, no
shares have been offered to the public. The Fund shares outstanding at February
28, 2007, are owned by PFD. The Fund's investment objective is long-term capital
growth.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. Information regarding the Fund's principal investment
risks is contained in the Fund's prospectus. Please refer to that document when
considering the Fund's investment risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting periods.
Actual results could differ from those estimates. The following is a summary of
significant accounting policies followed by the Fund in the preparation of its
financial statements which are consistent with those policies generally accepted
in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities are valued at the last sale price on the
principal exchange where they are traded. Securities that have not traded on
the date of
21
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
valuation, or securities for which sale prices are not generally reported,
are valued at the mean between the last bid and asked prices. 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.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times. The Fund also may use the fair value of a security including a
non-U.S. security when the closing market price on the principal exchange
where the security is traded no longer reflects the value of the security. As
of February 28, 2007, there were no securities fair valued. Temporary cash
investments are valued at amortized cost.
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 Fund becomes aware of the ex-dividend data in
exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis, net of
unrecoverable foreign taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal 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 sources of the Fund's distributions may be shown in
the accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
22
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The tax character of current year distributions paid will be determined at
the end of the current fiscal year. There were no distributions paid during
the period ended August 31, 2006.
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2006:
- --------------------------------------------------------------------------------
2006
- --------------------------------------------------------------------------------
Undistributed ordinary income $1,296
Undistributed long-term gain -
Unrealized appreciation 7,819
------
Total $9,115
======
================================================================================
C. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors, with the Fund's custodian acting as the lending
agent. When entering into a loan, the Fund receives collateral, which is
maintained by the custodian and earns income in the form of negotiated
lenders' fees. The Fund also continues to receive interest or payments in
lieu of dividends on the securities loaned. Gain or loss on the fair value of
the loaned securities that may occur during the term of the loan will be for
the account of the Fund. The loans are secured by collateral of at least
102%, at all times, of the fair value of the securities loaned. The amount of
the collateral will be adjusted daily to reflect any price fluctuation in the
value of the loaned securities. The Fund has the right under the lending
agreements to recover the securities from the borrower on demand. The Fund
invests cash collateral in the Securities Lending Investment Fund, which is
sponsored by Brown Brothers Harriman & Co., the Fund's custodian.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary of
UniCredito Italiano, manages the Fund's portfolio. Management fees are
calculated daily at the annual rate of 0.75% of the Fund's average daily net
assets up to $1 billion and 0.70% on assets over $1 billion. For the six months
ended February 28, 2007, the net management fee was equivalent to 0.75% of the
average daily net assets.
23
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Through January 1, 2009, PIM has agreed not to impose its management fee and to
assume other operating expenses of the Fund to the extent necessary to limit
Class A expenses to 1.25% of the average daily net assets attributable to Class
A shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At February 28, 2007, there were no fees payable
to PIM related to management fees, administrative costs and certain other
services.
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly owned
indirect subsidiary of UniCredito Italiano, provides substantially all transfer
agent and shareowner services to the Fund at negotiated rates. Included in due
to affiliates is $5,081 in transfer agent fees payable to PIMSS at February 28,
2007.
4. Distribution Plan
The Fund adopted a Plan of Distribution in accordance with Rule 12b-1 of the
Investment Company Act of 1940. The Fund pays PFD a service fee of up to 0.25%
of the average daily net assets attributable to Class A shares in reimbursement
of its actual expenditures to finance activities primarily intended to result in
the sale of Class A shares. There were no distribution fees payable to PFD at
February 28, 2007.
5. 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 Fund'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 as of no
later than June 29, 2007. At
24
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
this time, management is evaluating the implications of FIN 48 and any impact
in the financial statements has not yet 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. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund's financial statement disclosures.
25
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT
- --------------------------------------------------------------------------------
The Investment Company Act of 1940 requires that both the Board of Trustees and
a majority of the Independent Trustees (collectively "the Trustees"), voting
separately, annually approve the Fund's management contract (the "Management
Contract"). The Trustees have determined that the terms of the Management
Contract are fair and reasonable and that renewal of the contract: (i) will
enable the Fund to receive quality investment advisory services at a fee deemed
reasonable; and (ii) is in the best interests of the Fund and its shareowners.
In making such determinations, the Independent Trustees relied upon the
assistance of counsel to the Independent Trustees and counsel to the Fund.
Throughout the year, the Independent Trustees regularly met in executive
session, separately from the Interested Trustees of the Fund and any officer of
Pioneer Investment Management, Inc., the Fund's adviser (the "Investment
Adviser"), or its affiliates. While the Trustees, including the Interested
Trustees, act on all major matters relating to the Fund, a significant portion
of the activities of the Board of Trustees (including certain of those described
herein) is conducted through committees, the members of which are comprised
exclusively of Independent Trustees. Such committee meetings are attended by
officers of the Fund and/or officers of the Investment Adviser to the extent
requested by the members of the committee.
In evaluating the Management Contract, the Trustees conducted a review that was
specifically focused upon the renewal of the Management Contract, and also
relied upon their knowledge, resulting from their meetings throughout the year,
of the Investment Adviser, its services and the Fund. Both in meetings
specifically dedicated to renewal of the Management Contract and at other
meetings during the course of the year, the Trustees, including the Independent
Trustees, received materials relating to the Investment Adviser's investment and
management services under the Management Contract. These materials included
information on (i) the investment performance of the Fund, a peer group of funds
as classified by Morningstar, Inc., an independent evaluation service
("Morningstar") and an index considered appropriate by the Independent Trustees
for this purpose, (ii) sales and redemption activity in respect of the Fund,
(iii) the general investment outlook in the markets in which the Fund invests,
(iv) arrangements in respect of the distribution of the Fund's shares, (v) the
procedures employed to determine the value of each of the Fund's assets, (vi)
the Investment Adviser's management of the
26
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
relationships with the Fund's unaffiliated service providers, (vii) the record
of compliance with the Fund's investment policies and restrictions and with the
Fund's Code of Ethics and the structure and responsibilities of the Investment
Adviser's compliance department and (viii) the nature, cost and character of
non-investment management services provided by the Investment Adviser and its
affiliates.
Specifically in connection with the Independent Trustees' review of the
Management Contract, the Independent Trustees requested, and the Investment
Adviser provided, additional information in order to evaluate the quality of the
Investment Adviser's services and the reasonableness of the fee under the
Management Contract. Among other items, this information included data or
analyses of (1) investment performance for one year period for the Fund and a
peer group of funds selected on the basis of criteria considered appropriate by
the Independent Trustees for this purpose, (2) management and other fees
incurred by a peer group of funds selected on the basis of criteria considered
appropriate by the Independent Trustees for this purpose, (3) the advisory fees
of comparable portfolios of other clients of the Investment Adviser, (4) expense
ratios for the Fund and a peer group of funds selected on the basis of criteria
considered appropriate by the Independent Trustees for this purpose, (5) the
overall organization of the Investment Adviser, (6) the Investment Adviser's
financial results and condition, including its and certain of its affiliates'
profitability in providing services to the Fund, (7) transfer agency fees and
administrative reimbursements paid to the Investment Adviser or affiliates, (8)
investment management staffing, and (9) operating expenses paid by the Funds to
third parties. The Trustees also reviewed information regarding the potential
for each of the Fund and the Investment Adviser to benefit from further
economies of scale in the management of the Fund in light of reasonable growth
expectations for the Fund and certain of the Fund's expenses that are incurred
on a basis other than as a percentage of net assets.
The following summarizes factors considered by the Trustees in connection with
reviewing the information described above and their renewal of the Fund's
Management Contract. The Trustees did not identify any single factor as
all-important or controlling, and the summary does not detail all the matters
that were considered.
A. Ancillary Benefits to Shareowners. The Trustees considered the benefits to
shareowners of investing in a Fund that is part of a
27
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
large number of investment companies offering a variety of investment
disciplines and providing for a large variety of Fund and shareowner
services.
B. Compliance and Investment Performance. The Trustees determined that the
Investment Adviser had policies and systems reasonably designed to achieve
compliance with the Fund's investment objective and regulatory requirements.
The Trustees also reviewed the Fund's absolute investment performance based
upon total return, as well as the Fund's performance relative to the
performance of both a peer group and an index considered appropriate by the
Independent Trustees for this purpose. The Fund's performance, based upon
total return, was in the second quintile of its Morningstar category peer
group for the period ended June 30, 2006. (In all quintile rankings referred
to throughout this discussion first quintile is most favorable to the Fund's
shareowners. Thus, highest relative performance would be first quintile and
lowest relative expenses also would be first quintile.) The Trustees
concluded that the performance of the Fund was good during the short period
since its inception.
C. The Investment Adviser's Personnel and Methods. The Trustees reviewed the
background of members of the team responsible for the daily management of the
Fund and the Fund's investment objective and discipline. The Independent
Trustees also have had discussions with senior management of the Investment
Adviser responsible for investment operations and the senior management of
the Investment Adviser's equities group. Among other things, the Trustees
considered the size, education and experience of the Investment Adviser's
investment staff and their use of technology and emphasis on analytics in
view of the risk profile of securities in which the Fund invests. The
Trustees concluded that the Investment Adviser had the quality and depth of
personnel and the well-developed methods essential to perform its duties
under the Management Contract.
D. Nature and Quality of Other Services. The Trustees considered the nature,
quality and extent of other services provided to shareowners of the Fund,
including administrative and shareowner services performed by the Investment
Adviser under the Management Contract. The Trustees also considered the
reasonableness of the arrangements for reimbursement of the Investment
Adviser's
28
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
out-of-pocket costs and expenses, including overhead, for certain
administrative services that the Investment Adviser is not required to
provide under the Management Contract. The Trustees also considered the
nature and extent of the other services provided by the Investment Adviser or
its affiliates under other contracts, as well as the Investment Adviser's
supervision of third party service providers. Based on these considerations,
the Trustees concluded that the nature, quality and extent of such services
are satisfactory and reliable and serve the shareowners of the Fund well.
E. Management Fee and Expenses. The Trustees considered the Investment Adviser's
fee under the Management Contract relative to the management fees charged by
its Morningstar category peer group. The Fund's management fee for the period
ended June 30, 2006 was in the second quintile relative to the management
fees paid by the other funds in that peer group for the comparable period.
The Trustees also considered the Fund's expense ratio for the period ended
June 30, 2006 and expense ratios for the comparable period of the peer group
of funds selected on the basis of criteria considered appropriate by the
Independent Trustees for this purpose using data provided by Strategic
Insight Mutual Fund Research and Consulting, LLC, an independent third party.
The Trustees found the Fund's expense ratio for the period ended June 30,
2006 to be in the first quintile, according to data for the applicable peer
group for the most recent fiscal year.
F. Profitability. The Trustees considered the level of the Investment Adviser's
profits with respect to the management of the Pioneer Funds, including a
review of the Investment Adviser's methodology in allocating certain of its
costs to the management of each Fund, as well as the financial results
realized by the Investment Adviser in connection with the operation of the
Fund. They further considered the profits realized by the Investment Adviser
and its affiliates from non-fund businesses that may benefit from or be
related to the Fund's business. The Trustees considered the Investment
Adviser's profit margins in comparison with the limited industry data
available. The Trustees concluded that the Investment Adviser's profits from
management of the Pioneer Funds, including the financial results derived from
the Fund, bear a reasonable relationship to the services rendered and are
fair for the management of the Fund.
29
Pioneer Select Research Growth Fund
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FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
G. Economies of Scale. The Trustees considered the economies of scale with
respect to the management of the Fund, whether the Fund had appropriately
benefited from any economies of scale, and whether there was potential for
realization of any further economies of scale. The Trustees concluded that in
light of anticipated growth of the Fund, break points in the management fee
were not necessary at this time. However, the Trustees would evaluate the
need for break points from time to time.
H. Other Benefits to the Investment Adviser. The Trustees also considered the
character and amount of fees paid by the Fund, other than under the
Management Contract, for services provided by the Investment Adviser and
affiliates, including fees for services such as shareowner services. The
Trustees also considered the receipt of sales loads and payments under Rule
12b-1 plans in respect of the Pioneer Funds (including the Fund), and
benefits to the Investment Adviser from the use of "soft" commission dollars
to pay for research services. The Trustees further considered the revenues
and profitability of the Investment Adviser's businesses other than the fund
business, including the Investment Adviser's institutional investment
advisory business. The Trustees considered the intangible benefits that
accrue to the Investment Adviser and its affiliates by virtue of its
relationship with the Fund and the Pioneer Funds as a group. The Trustees
concluded that all these types of benefits accruing to the Investment Adviser
were reasonable in the context of the overall relationship between the
Investment Adviser and the Fund.
Conclusion. In light of the Investment Adviser's overall performance, the
Trustees considered it appropriate to continue to retain the management services
of the Investment Adviser. Based on their review of the overall nature and
quality of services provided by the Investment Adviser and the fees charged by
other funds in the Fund's relevant peer group, and taking into account all
material factors deemed relevant by the Trustees as well as the advice of
independent counsel, the Trustees concluded that the Management Contract with
the Fund, including the fee payable thereunder, was fair and reasonable and that
its renewal was in the best interests of the Fund and its shareholders.
Accordingly, the Trustees voted to approve the continuation of the Management
Contract for another year.
30
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Vincent Nave, Treasurer
Mary K. Bush Dorothy E. Bourassa, Secretary
Margaret B.W. Graham
Thomas J. Perna
Marguerite A. Piret
John Winthrop
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at www.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at http://www.sec.gov.
31
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This page for your notes.
32
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This page for your notes.
33
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This page for your notes.
34
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This page for your notes.
35
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This page for your notes.
36
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HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at 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.
- --------------------------------------------------------------------------------
PIONEER
-----------------------
SELECT RESEARCH
VALUE
FUND
Semiannual
Report
2/28/07
[LOGO]PIONEER
INVESTMENTS(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Prices and Distributions 8
Performance Update 9
Comparing Ongoing Fund Expenses 10
Schedule of Investments 12
Financial Statements 17
Notes to Financial Statements 21
Factors Considered by the Independent Trustees in Approving
the Management Contract 26
Trustees, Officers and Service Providers 31
Chairman's
Dear Shareowner,
- --------------------------------------------------------------------------------
As the global economy reacted to good and bad news of 2006, overall it managed
to keep chugging along with fairly stable growth. Looking back, the economic
stories included slowing economic growth bringing monetary tightening to an end
in the United States, price action in oil and other commodity markets
threatening to unsettle global growth and inflation, geopolitical uncertainties
and corporate earnings growth surpassing market expectations.
Global growth surpassed most analyst expectations in 2006. The International
Monetary Fund estimates world output increased by 5.1% in 2006, up from 4.9% in
2005 and above the 3.7% average annual pace of growth of the previous 20 years.
Growth is estimated to slow modestly in 2007 but to remain well above the
long-term average.
U.S. economic growth slowed gradually over 2006, with full-year growth of GDP
of 3.1%, modestly below 2005 growth but still strong enough to lower the
unemployment rate to 4.5%. While many observers were concerned that a weakening
housing sector could be a drag on consumer spending, the consumer has shown
resilience supported by a strong labor market and associated income growth and
by oil and gasoline prices falling from record highs in the second half of
2006. Corporate America has also proved resilient in the face of the slowing
housing sector, with business investment growing at its fastest rate since
2000.
The Federal Reserve stopped increasing interest rates in mid-2006, but has
retained its bias to tighten rates, reflecting upside risks to inflation,
particularly from the tight labor market, and confidence that the economy
remained on solid ground. Consumers welcomed the relief from oil prices that
peaked at mid-year and fell sharply towards year-end. Likewise, in the second
half of 2006, they benefited from the modest easing of core inflation (which
excludes energy and food items), though such core inflation remains above what
is generally considered the central bank's "comfort zone."
The European economy surpassed many economists' expectations in 2006. Eurozone
GDP grew at a 3% pace, much stronger than its 1.8% average annual growth pace
since 2000. Underlying this strength has been buoyant and broad-based strength
in business sentiment and investment and in exports. While household
consumption showed mixed results, the unemployment rate fell to 7.7% by the end
of 2006. The European Central Bank raised interest rates gradually to 3.5% over
the course of 2006, reflecting firm economic growth, steadily tightening labor
market conditions, and fast growing money supply. Core inflation in the
Eurozone remains reasonably benign, at roughly 1.5% per annum. European stock
markets posted strong returns; appreciation of the Euro relative to both the
dollar and Yen made the Eurozone stock market the top performer of 2006.
The Japanese economy continued to grow firmly in 2006. Business investment was
the major driver of expansion as increasing capacity utilization and better
sentiment encouraged a new wave of investment. As deflation ended, the Bank of
Japan ended its zero interest rate policy, although it has raised rates to only
0.25% in 2006. After a strong showing in 2005, the Japanese stock market posted
only muted gains in 2006.
Emerging economies enjoyed strong, relatively uninterrupted economic growth in
2006. Good financing conditions, buoyant commodity prices, which boosted income
and investment in commodity exporting countries, and strong export demand from
developed economies drove this growth. The emerging market stock
2
Letter
index was very strong in early 2006, sold off to near start-of-year levels,
then rallied to finish the year only marginally behind the Eurozone. We believe
similar growth can be expected in the emerging markets if current domestic
economic and political conditions prevail.
While global economic momentum has started to slow, we expect the global
economy to continue growing firmly in 2007, supported by business investment,
rising employment, and lower energy prices. A slowdown in the U.S. growth rate
would be welcome, since rapid growth could increase the risk of inflationary
pressures, which would force the Federal Reserve to raise interest rates. We
expect Europe and Japan to grow similarly, while emerging market economies are
expected to continue their strong growth. In this scenario, fixed-income assets
are expected to produce total returns generally in line with their current
yields, while equities are expected to produce returns generally in line with
earnings growth, which we forecast to be moderately above bond yields.
Our cautiously optimistic outlook on most regions of the world and asset
classes reinforces the importance of Pioneer Investments' message that
investors should remain diversified, take a long-term view rather than
over-reacting to breaking news, and base investment decisions on economic and
market fundamentals rather than on emotion. Our investment philosophy and
approach continue to be based on the use of fundamental research to identify a
range of opportunities that offer an attractive balance of risk and reward to
help Fund shareowners work toward achieving their long-term goals.
Respectfully,
/s/John F. Cogan, Jr
John F. Cogan, Jr., Chairman
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 2/28/07
- --------------------------------------------------------------------------------
Stock prices climbed steadily higher during the six months ended February 28,
2007, aided by persistently growing corporate profits, a healthy economy,
moderate inflation and a relatively benign interest-rate environment. In the
following interview, members of the team responsible for managing Pioneer
Select Research Value Fund review the period. Discussing the factors that
affected Fund performance during the six months are: Diego Franzin, Head of
Pioneer's U.S. Quantitative Research & Management Group; Ashesh Savla, a
Quantitative Analyst at Pioneer; and John Peckham, CFA, Head of U.S. Equity
Research at Pioneer.
Q: How did the Pioneer Select Research Value Fund perform during the six
months ended February 28, 2007?
A: The Fund slightly underperformed its benchmark, but outperformed its
competitive peer group. Class A shares had a total return of 9.65%, at
net asset value, for the six months. During the same period, the
benchmark Russell 1000 Value Index gained 9.82%, while the average
performance of the 515 funds in Lipper's Large Cap Value category was
8.82%.
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.
Q: What were the principal factors that affected the Fund's performance during
the six months?
A: We believe the Fund's performance improved significantly during the period
as the market turned from momentum-driven stocks to shares of
fundamentally strong corporations. This favorable backdrop helped
equities produce solid results for the six months. Investors were
relieved that the Federal Reserve Board decided to pause in its
interest-rate-hike cycle, while energy prices began receding after rising
dramatically before the period. Corporations continued to report
reasonable profit growth in the face of an economic environment of
persistent growth, relatively benign
4
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
interest rates and modest inflationary pressures by historical standards.
Helped by strong employment trends, consumer spending proved to be
resilient, despite softness in the housing market.
Consistent with the management style of the Fund, stock selection drove
performance. The best results, relative to our benchmark, were in the
health care and consumer discretionary sectors. Less successful, however,
were our choices in the telecommunications services and utilities sectors.
We select the Fund's approximately 50 holdings from the 100 stocks in the
Pioneer Research Fund portfolio. Our sector weightings are equal to those
of the benchmark Russell 1000 Value Index. In our selection process, we
rank stocks by using quantitative screens based on Pioneer's proprietary
analysis of the superior characteristics of stocks in 17 different sectors
and industries.
Q: What individual investments had the greatest impact on performance, either
positive or negative?
A: We had good stock selection in the health care sector, especially in the
pharmaceutical industry where we held a significant position in
Bristol-Myers while avoiding Pfizer, a very visible laggard in the
industry. Investors were attracted to Bristol-Myers' reasonable stock
valuation and the company's strong pipeline of new products under
development. In contrast, Pfizer was hit hard by problems with a
once-promising drug under development that had to be withdrawn from
clinical trials because of serious side-effects. In the consumer
discretionary sector, leading performers included retailer JC Penney,
diversified publisher McGraw-Hill, and apparel company Liz Claiborne. JC
Penney exceeded earlier expectations of revenues from its strong
franchise of department stores. McGraw-Hill benefited from heavy new bond
issuance which increased business for its Standard & Poor's bond-rating
business. Meanwhile, Liz Claiborne enjoyed strong demand for its fashion
products.
Stock selection was less successful in the telecommunications services and
utilities areas. In telecommunications services, we owned Sprint and
Verizon, which did not perform particularly well, while we did not own any
AT&T, which performed well because of enthusiasm over its merger with Bell
South. Sprint suffered from a weak marketing campaign and difficulties
executing its merger with Nextel. In the utilities sector, a significant
underperformer was
5
Pioneer Select Research Value Fund
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PORTFOLIO MANAGEMENT DISCUSSION 2/28/07 (continued)
- --------------------------------------------------------------------------------
Questar, a gas utility that also had major operations in natural gas
exploration and production. That business was hurt by declining prices for
natural gas during the six months.
Q: What is your investment outlook?
A: We see good potential for a continued supportive environment for equities.
Stock valuations are not high, by historical standards, while the economy
continues to grow, although at a moderating pace. Inflation and interest
rates remain moderate by historical standards, and continued heavy
mergers-and-acquisition activity provides a base of support for equity
prices. We see the most significant near-term concerns coming from the
slumping housing industry and the potential fall-out on sub-prime
mortgage providers. However, we believe strong employment trends, if they
persist, should give the market the ability to withstand any pressures
from the weak housing industry.
Overall, we remain positive about stocks.
Investing in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies. The Fund invests in a limited number of
securities and, as a result, the Fund's performance may be more volatile than
the performance of other funds holding more securities. At times, the Fund's
investments may represent industries or industry sectors that are interrelated
or have common risks, making it more susceptible to any economic, political, or
regulatory developments or other risks affecting those industries and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
6
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 2/28/07
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 98.0%
Depositary Receipts for International Stocks 2.0%
Sector Distribution
- -------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
Financials 36.7%
Energy 13.5%
Consumer Discretionary 9.0%
Consumer Staples 7.3%
Health Care 7.1%
Industrials 6.7%
Utilities 6.3%
Telecommunication Services 6.2%
Materials 3.8%
Information Technology 3.4%
10 Largest Holdings
- -------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Chevron Corp. 4.57%
2. Citigroup, Inc. 4.47
3. Verizon Communications, Inc. 3.59
4. ConocoPhillips 3.40
5. Altria Group, Inc. 3.33
6. USX-Marathon Group, Inc. 3.01
7. Merrill Lynch & Co., Inc. 2.97
8. Wachovia Corp. 2.90
9. Sprint Nextel Corp. 2.66
10. Weatherford International, Inc. 2.48
* 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.
7
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 2/28/07 8/31/06
- ------- --------- --------
A $11.31 $10.69
Distributions Per Share
- --------------------------------------------------------------------------------
9/1/06 - 2/28/07
--------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.1207 $0.2846 $ -
8
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 2/28/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Select Research Value Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of February 28, 2007)
Public
Net Asset Offering
Period Value (NAV) Price (POP)
Life-of-Class
(12/15/05) 14.09% 8.62%
1 Year 14.14 7.54
- -----------------------------------------------------
Expense Ratio
(As of January 1, 2007)
Gross Net
19.33% 1.25%
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE
PRINTED MATERIAL]
Pioneer Select
Research Value Fund Russell 1000 Value Index
12/05 9,425 10,000
2/06 9,781 10,452
2/07 11,164 12,188
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.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/09 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Value Index measures the performance of large-cap U.S.
value stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in the Index.
9
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Select Research Value Fund
Based on actual returns from September 1, 2006 through
February 28, 2007
Share Class A
- --------------------------------------------------------------------------------
Beginning Account Value On 9/1/06 $1,000.00
Ending Account Value On 2/28/07 $1,096.50
Expenses Paid During Period* $ 6.50
* Expenses are equal to the Fund's annualized expense ratio of 1.25% for Class
A shares, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
10
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Select Research Value Fund
Based on a hypothetical 5% return per year before expenses, reflect
ing the period from September 1, 2006 through February 28, 2007
Share Class A
- --------------------------------------------------------------------------------
Beginning Account Value On 9/1/06 $ 1,000.00
Ending Account Value On 2/28/07 $ 1,018.60
Expenses Paid During Period* $ 6.26
* Expenses are equal to the Fund's annualized expense ratio of 1.25% for Class
A shares, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
11
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
COMMON STOCKS - 98.6%
Energy - 13.3%
Integrated Oil & Gas - 10.8%
371 Chevron Corp. $ 25,454
290 ConocoPhillips 18,972
185 USX-Marathon Group, Inc. 16,787
--------
$ 61,213
--------
Oil & Gas Equipment & Services - 2.5%
345 Weatherford International, Inc.* $ 13,852
--------
Total Energy $ 75,065
--------
Materials - 3.8%
Aluminum - 1.6%
263 Alcoa, Inc. $ 8,787
--------
Diversified Chemical - 2.2%
284 Dow Chemical Co. $ 12,439
--------
Total Materials $ 21,226
--------
Capital Goods - 5.2%
Electrical Component & Equipment - 1.0%
113 Thomas & Betts Corp.* $ 5,743
--------
Industrial Conglomerates - 4.2%
157 3M Co. $ 11,631
388 Tyco International, Ltd. 11,962
--------
$ 23,593
--------
Total Capital Goods $ 29,336
--------
Transportation - 1.5%
Air Freight & Couriers - 0.7%
54 United Parcel Service $ 3,790
--------
Railroads - 0.8%
45 Union Pacific Corp. $ 4,438
--------
Total Transportation $ 8,228
--------
Consumer Durables & Apparel - 2.0%
Homebuilding - 1.0%
113 Lennar Corp. $ 5,564
--------
12 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Household Appliances - 1.0%
67 Whirlpool Corp. $ 5,910
--------
Total Consumer Durables & Apparel $ 11,474
--------
Consumer Services - 2.0%
Restaurants - 2.0%
260 McDonald's Corp. $ 11,367
--------
Total Consumer Services $ 11,367
--------
Media - 3.3%
Movies & Entertainment - 1.0%
169 The Walt Disney Co. $ 5,790
--------
Publishing - 2.3%
197 McGraw-Hill Co., Inc. $ 12,728
--------
Total Media $ 18,518
--------
Retailing - 1.6%
Department Stores - 1.6%
111 J.C. Penney Co., Inc. $ 9,003
--------
Total Retailing $ 9,003
--------
Food & Drug Retailing - 1.9%
Drug Retail - 1.9%
245 Walgreen Co. $ 10,954
--------
Total Food & Drug Retailing $ 10,954
--------
Food, Beverage & Tobacco - 5.3%
Packaged Foods & Meats - 2.0%
202 General Mills, Inc. $ 11,385
--------
Tobacco - 3.3%
220 Altria Group, Inc. $ 18,542
--------
Total Food, Beverage & Tobacco $ 29,927
--------
Health Care Equipment & Services - 1.4%
Managed Health Care - 1.4%
143 Coventry Health Care, Inc.* $ 7,782
--------
Total Health Care Equipment & Services $ 7,782
--------
The accompanying notes are an integral part of these financial statements. 13
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Pharmaceuticals & Biotechnology - 5.6%
Pharmaceuticals - 5.6%
433 Bristol-Myers Squibb Co. $ 11,427
301 Merck & Co., Inc. 13,292
298 Schering-Plough Corp. 6,997
--------
$ 31,716
--------
Total Pharmaceuticals & Biotechnology $ 31,716
--------
Banks - 12.9%
Diversified Banks - 2.9%
292 Wachovia Corp. $ 16,168
--------
Regional Banks - 8.1%
312 National City Corp. $ 11,809
159 PNC Bank Corp. 11,656
135 SunTrust Banks, Inc. 11,382
132 Zions Bancorporation 11,270
--------
$ 46,117
--------
Thrifts & Mortgage Finance - 1.9%
809 Hudson City Bancorp, Inc. $ 10,841
--------
Total Banks $ 73,126
--------
Diversified Financials - 13.4%
Asset Management & Custody Banks - 4.2%
331 Federated Investors, Inc. $ 11,840
101 Franklin Resources, Inc. 11,856
--------
$ 23,696
--------
Consumer Finance - 1.9%
186 American Express Co. $ 10,578
--------
Investment Banking & Brokerage - 2.9%
198 Merrill Lynch & Co., Inc. $ 16,569
--------
Diversified Financial Services - 4.4%
494 Citigroup, Inc. $ 24,898
--------
Total Diversified Financials $ 75,741
--------
Insurance - 9.8%
Life & Health Insurance - 2.2%
200 MetLife, Inc. $ 12,630
--------
14 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Multi-Line Insurance - 2.3%
136 Hartford Financial Services Group, Inc. $ 12,860
--------
Property & Casualty Insurance - 5.3%
133 Allstate Corp. $ 7,988
159 Exel, Ltd. 11,289
213 The Traveler Companies, Inc.* 10,812
--------
$ 30,089
--------
Total Insurance $ 55,579
--------
Software & Services - 1.5%
Systems Software - 1.5%
510 Oracle Corp.* $ 8,379
--------
Total Software & Services $ 8,379
--------
Technology Hardware & Equipment - 1.8%
Communications Equipment - 1.8%
391 Cisco Systems, Inc.* $ 10,143
--------
Total Technology Hardware & Equipment $ 10,143
--------
Telecommunication Services - 6.1%
Integrated Telecommunication Services - 3.5%
534 Verizon Communications, Inc. $ 19,988
--------
Wireless Telecommunication Services - 2.6%
768 Sprint Nextel Corp. $ 14,807
--------
Total Telecommunication Services $ 34,795
--------
Utilities - 6.2%
Electric Utilities - 2.1%
186 Firstenergy Corp. $ 11,638
--------
Gas Utilities - 1.9%
131 Questar Corp. $ 11,022
--------
Multi-Utilities - 2.2%
166 Public Service Enterprise Group, Inc. $ 12,433
--------
Total Utilities $ 35,093
--------
TOTAL COMMON STOCKS
(Cost $511,883) $557,452
--------
The accompanying notes are an integral part of these financial statements. 15
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Value
TOTAL INVESTMENT IN SECURITIES - 98.6%
(Cost $511,883)(a) $557,452
--------
OTHER ASSETS AND LIABILITIES - 1.4% $ 8,125
--------
TOTAL NET ASSETS - 100.0% $565,577
========
* Non-income producing security.
(a) At February 28, 2007, the net unrealized gain on investments based on
cost for federal income tax purposes of $511,883 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $48,796
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (3,227)
-------
Net unrealized gain $45,569
=======
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended February 28, 2007 aggregated $242,372 and $264,716,
respectively.
16 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Value Fund
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 2/28/07 (unaudited)
- -----------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (cost $511,883) $557,452
Cash 12,099
Receivables -
Dividends 1,176
Due from Pioneer Investment Management, Inc. 7,450
Other 3,978
--------
Total assets $582,155
--------
LIABILITIES:
Payables -
Due to affiliates $ 5,094
Accrued expenses 11,484
--------
Total liabilities $ 16,578
--------
NET ASSETS:
Paid-in capital $500,000
Undistributed net investment income 1,201
Accumulated net realized gain on investments 18,807
Net unrealized gain on investments 45,569
--------
Total net assets $565,577
========
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $565,577/50,000 shares) $ 11.31
========
MAXIMUM OFFERING PRICE:
Class A ($11.31 [divided by] 94.25%) $ 12.00
========
The accompanying notes are an integral part of these financial statements. 17
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 2/28/07
INVESTMENT INCOME:
Dividends $5,975
Interest 298
Income from securities loaned, net 4
------
Total investment income $ 6,277
-------
EXPENSES:
Management fees $2,092
Transfer agent fees and expenses 19
Custodian fees 4,076
Registration fees 520
Professional fees 6,292
Printing expense 2,355
Fees and expenses of nonaffiliated trustees 1,873
Miscellaneous 613
------
Total expenses $17,840
Less management fees waived
and expenses reimbursed by Pioneer
Investment Management, Inc. (14,353)
-------
Net expenses $ 3,487
-------
Net investment income $ 2,790
-------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $18,809
-------
Change in net unrealized gain on investments $29,738
-------
Net gain on investments $48,547
-------
Net increase in net assets resulting from operations $51,337
=======
18 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 2/28/07 and the period from 12/15/05
(Commencement of Operations) to 8/31/06
Six Months
Ended 12/15/05
2/28/07 to
(unaudited) 8/31/06
FROM OPERATIONS:
Net investment income $ 2,790 $ 4,446
Net realized gain on investments 18,809 14,228
Change in net unrealized gain on investments 29,738 15,831
-------- --------
Net increase in net assets resulting
from operations $ 51,337 $ 34,505
-------- --------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.12 and $0.00 per share, respectively) $ (6,035) $ -
-------- --------
Net realized gain:
Class A ($0.28 and $0.00 per share, respectively) $(14,230) $ -
-------- --------
Total distributions to shareowners $(20,265) $ -
-------- --------
Net increase in net assets $ 31,072 $ 34,505
-------- --------
NET ASSETS:
Beginning of period (initial capitalization -
50,000 shares) $534,505 $500,000
-------- --------
End of period $565,577 $534,505
======== ========
Undistributed net investment income $ 1,201 $ 4,446
======== ========
The accompanying notes are an integral part of these financial statements. 19
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months 12/15/05 (a)
Ended to
2/28/07 8/31/06
(unaudited)
CLASS A
Net asset value, beginning of period $ 10.69 $ 10.00
-------- ---------
Increase from investment operations:
Net investment income $ 0.06 $ 0.09
Net realized and unrealized gain on investments 0.96 0.60
-------- ---------
Net increase from investment operations $ 1.02 $ 0.69
Distributions to shareowners:
Net investment income (0.12) -
Net realized gain (0.28) -
-------- ---------
Net increase in net asset value $ 0.62 $ 0.69
-------- ---------
Net asset value, end of period $ 11.31 $ 10.69
======== =========
Total return* 9.65% 6.90%(b)
Ratio of net expenses to average net assets+ 1.25%** 1.25%**
Ratio of net investment income to average
net assets+ 1.00%** 1.21%**
Portfolio turnover rate 88%** 66%(b)
Net assets, end of period (in thousands) $ 566 $ 535
Ratios with no waiver of management fees
and assumption of expenses by PIM and no
reduction for fees paid indirectly
Net expenses 6.40%** 19.33%**
Net investment loss (4.15)%** (16.87)%**
(a) The Fund commenced operations on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
20 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Select Research Value Fund (the Fund) is one of three portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust registered under
the Investment Company Act of 1940 as a diversified, open-end management
investment company. The Fund was organized on October 12, 2005, and commenced
operations on December 15, 2005. Prior to December 15, 2005, the Fund had no
operations other than those relating to organizational matters and the initial
capitalization of the Fund by Pioneer Funds Distributor, Inc. (PFD). To date,
no shares have been offered to the public. The Fund shares outstanding at
February 28, 2007, are owned by PFD. The Fund's investment objective is to seek
long-term capital growth.
Investing in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies. Information regarding the Fund's principal
investment risks is contained in the Fund's prospectus. Please refer to that
document when considering the Fund's investment risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting periods. Actual results could differ from those estimates. The
following is a summary of significant accounting policies followed by the Fund
in the preparation of its financial statements which are consistent with those
policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value
of the Fund is computed once daily, on each day the New York Stock
Exchange (NYSE) is open, as of the close of regular trading on the NYSE.
In computing the net asset value, securities are valued at the last sale
price on the principal exchange where they are traded. Securities that
have not traded on the date of valuation, or securities for which sale
prices are not generally reported, are
21
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
valued at the mean between the last bid and asked prices. 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.
Trading in foreign securities is substantially completed each day at
various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. The Fund also may use the fair value of a
security including a non-U.S. security when the closing market price on
the principal exchange where the security is traded no longer reflects the
value of the security. As of February 28, 2007, there were no securities
fair valued. Temporary cash investments are valued at amortized cost.
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 Fund becomes aware of the ex-dividend data
in exercise of reasonable diligence. Interest income, including interest
on income bearing cash accounts, is recorded on the accrual basis, net of
unrecoverable foreign taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareowners. Therefore, no federal 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 sources of the Fund's distributions may
be shown in the accompanying financial statements as either from or in
excess of net investment income or net 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 will be determined at
the end of the current fiscal year. There were no distributions paid
during the period ended August 31, 2006.
22
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2006:
- --------------------------------------------------------------------------------
2006
- --------------------------------------------------------------------------------
Undistributed ordinary income $ 18,674
Undistributed long-term gain -
Unrealized appreciation 15,831
--------
Total $ 34,505
--------
- --------------------------------------------------------------------------------
C. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
payments in lieu of dividends on the securities loaned. Gain or loss on
the fair value of the loaned securities that may occur during the term of
the loan will be for the account of the Fund. The loans are secured by
collateral of at least 102%, at all times, of the fair value of the
securities loaned. The amount of the collateral will be adjusted daily to
reflect any price fluctuation in the value of the loaned securities. The
Fund has the right under the lending agreements to recover the securities
from the borrower on demand. The Fund invests cash collateral in the
Securities Lending Investment Fund, which is sponsored by Brown Brothers
Harriman & Co., the Fund's custodian.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary
of UniCredito Italiano, manages the Fund's portfolio. Management fees are
calculated daily at the annual rate of 0.75% of the Fund's average daily net
assets up to $1 billion and 0.70% of the excess over $1 billion. For the six
months ended February 28, 2007, the management fee was equal to 0.75% of the
Fund's average daily net assets.
Through January 1, 2009, PIM has agreed not to impose all or a portion of its
management fee and to assume other operating expenses
23
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
of the Fund to the extent necessary to limit Class A expenses to 1.25% of the
average daily net assets attributable to Class A shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At February 28, 2007, $12 was payable to PIM
related to management fees, administrative costs and certain other services and
is included in due to affiliates.
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly
owned indirect subsidiary of UniCredito Italiano, provides substantially all
transfer agent and shareowner services to the Fund at negotiated rates.
Included in due to affiliates is $5,082 in transfer agent fees payable to PIMSS
at February 28, 2007.
4. Distribution Plan
The Fund adopted a Plan of Distribution in accordance with Rule 12b-1 of the
Investment Company Act of 1940. The Fund will pay PFD a service fee of up to
0.25% of the average daily net assets attributable to Class A shares in
reimbursement of its actual expenditures to finance activities primarily
intended to result in the sale of Class A shares. There were no distribution
fees payable to PFD at February 28, 2007.
5. 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 Fund'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 as of no
later than June 29, 2007.
24
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
At this time, management is evaluating the implications of FIN 48 and any
impact in the financial statements has not yet 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. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund's financial statement disclosures.
25
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT
- --------------------------------------------------------------------------------
The Investment Company Act of 1940 requires that both the Board of Trustees and
a majority of the Independent Trustees (collectively "the Trustees"), voting
separately, annually approve the Fund's management contract (the "Management
Contract"). The Trustees have determined that the terms of the Management
Contract are fair and reasonable and that renewal of the contract: (i) will
enable the Fund to receive quality investment advisory services at a fee deemed
reasonable; and (ii) is in the best interests of the Fund and its shareowners.
In making such determinations, the Independent Trustees relied upon the
assistance of counsel to the Independent Trustees and counsel to the Fund.
Throughout the year, the Independent Trustees regularly met in executive
session, separately from the Interested Trustees of the Fund and any officer of
Pioneer Investment Management, Inc., the Fund's adviser (the "Investment
Adviser"), or its affiliates. While the Trustees, including the Interested
Trustees, act on all major matters relating to the Fund, a significant portion
of the activities of the Board of Trustees (including certain of those
described herein) is conducted through committees, the members of which are
comprised exclusively of Independent Trustees. Such committee meetings are
attended by officers of the Fund and/or officers of the Investment Adviser to
the extent requested by the members of the committee.
In evaluating the Management Contract, the Trustees conducted a review that was
specifically focused upon the renewal of the Management Contract, and also
relied upon their knowledge, resulting from their meetings throughout the year,
of the Investment Adviser, its services and the Fund. Both in meetings
specifically dedicated to renewal of the Management Contract and at other
meetings during the course of the year, the Trustees, including the Independent
Trustees, received materials relating to the Investment Adviser's investment
and management services under the Management Contract. These materials included
information on (i) the investment performance of the Fund, a peer group of
funds as classified by Morningstar, Inc., an independent evaluation service
("Morningstar") and an index considered appropriate by the Independent Trustees
for this purpose, (ii) sales and redemption activity in respect of the Fund,
(iii) the general investment outlook in the markets in which the Fund invests,
(iv) arrangements in respect of the distribution of the Fund's shares, (v) the
procedures employed to determine the value of each of the Fund's assets, (vi)
the Investment Adviser's management of the relationships
26
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
with the Fund's unaffiliated service providers, (vii) the record of compliance
with the Fund's investment policies and restrictions and with the Fund's Code
of Ethics and the structure and responsibilities of the Investment Adviser's
compliance department and (viii) the nature, cost and character of
non-investment management services provided by the Investment Adviser and its
affiliates.
Specifically in connection with the Independent Trustees' review of the
Management Contract, the Independent Trustees requested, and the Investment
Adviser provided, additional information in order to evaluate the quality of
the Investment Adviser's services and the reasonableness of the fee under the
Management Contract. Among other items, this information included data or
analyses of (1) investment performance for one year period for the Fund and a
peer group of funds selected on the basis of criteria considered appropriate by
the Independent Trustees for this purpose, (2) management and other fees
incurred by a peer group of funds selected on the basis of criteria considered
appropriate by the Independent Trustees for this purpose, (3) the advisory fees
of comparable portfolios of other clients of the Investment Adviser, (4)
expense ratios for the Fund and a peer group of funds selected on the basis of
criteria considered appropriate by the Independent Trustees for this purpose,
(5) the overall organization of the Investment Adviser, (6) the Investment
Adviser's financial results and condition, including its and certain of its
affiliates' profitability in providing services to the Fund, (7) transfer
agency fees and administrative reimbursements paid to the Investment Adviser or
affiliates, (8) investment management staffing, and (9) operating expenses paid
by the Funds to third parties. The Trustees also reviewed information regarding
the potential for each of the Fund and the Investment Adviser to benefit from
further economies of scale in the management of the Fund in light of reasonable
growth expectations for the Fund and certain of the Fund's expenses that are
incurred on a basis other than as a percentage of net assets.
The following summarizes factors considered by the Trustees in connection with
reviewing the information described above and their renewal of the Fund's
Management Contract. The Trustees did not identify any single factor as
all-important or controlling, and the summary does not detail all the matters
that were considered.
A. Ancillary Benefits to Shareowners. The Trustees considered the benefits to
shareowners of investing in a Fund that is part of a
27
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
large number of investment companies offering a variety of investment
disciplines and providing for a large variety of Fund and shareowner
services.
B. Compliance and Investment Performance. The Trustees determined that the
Investment Adviser had policies and systems reasonably designed to achieve
compliance with the Fund's investment objective and regulatory
requirements. The Trustees also reviewed the Fund's absolute investment
performance based upon total return, as well as the Fund's performance
relative to the performance of both a peer group and an index considered
appropriate by the Independent Trustees for this purpose. The Fund's
performance, based upon total return, was in the first quintile of its
Morningstar category peer group for the period ended June 30, 2006. (In
all quintile rankings referred to throughout this discussion first
quintile is most favorable to the Fund's shareowners. Thus, highest
relative performance would be first quintile and lowest relative expenses
also would be first quintile.) The Trustees concluded that the performance
of the Fund was strong during the short period since its inception.
C. The Investment Adviser's Personnel and Methods. The Trustees reviewed the
background of members of the team responsible for the daily management of
the Fund and the Fund's investment objective and discipline. The
Independent Trustees also have had discussions with senior management of
the Investment Adviser responsible for investment operations and the
senior management of the Investment Adviser's equities group. Among other
things, the Trustees considered the size, education and experience of the
Investment Adviser's investment staff and their use of technology and
emphasis on analytics in view of the risk profile of securities in which
the Fund invests. The Trustees concluded that the Investment Adviser had
the quality and depth of personnel and the well-developed methods
essential to perform its duties under the Management Contract.
D. Nature and Quality of Other Services. The Trustees considered the nature,
quality and extent of other services provided to shareowners of the Fund,
including administrative and shareowner services performed by the
Investment Adviser under the Management Contract. The Trustees also
considered the reasonableness of the arrangements for reimbursement of the
Investment Adviser's
28
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
out-of-pocket costs and expenses, including overhead, for certain
administrative services that the Investment Adviser is not required to
provide under the Management Contract. The Trustees also considered the
nature and extent of the other services provided by the Investment Adviser
or its affiliates under other contracts, as well as the Investment
Adviser's supervision of third party service providers. Based on these
considerations, the Trustees concluded that the nature, quality and extent
of such services are satisfactory and reliable and serve the shareowners
of the Fund well.
E. Management Fee and Expenses. The Trustees considered the Investment
Adviser's fee under the Management Contract relative to the management
fees charged by its Morningstar category peer group. The Fund's management
fee for the period ended June 30, 2006 was in the second quintile relative
to the management fees paid by the other funds in that peer group for the
comparable period. The Trustees also considered the Fund's expense ratio
for the period ended June 30, 2006 and expense ratios for the comparable
period of the peer group of funds selected on the basis of criteria
considered appropriate by the Independent Trustees for this purpose using
data provided by Strategic Insight Mutual Fund Research and Consulting,
LLC, an independent third party. The Trustees found the Fund's expense
ratio for the period ended June 30, 2006 to be in the first quintile,
according to data for the applicable peer group for the most recent fiscal
year.
F. Profitability. The Trustees considered the level of the Investment
Adviser's profits with respect to the management of the Pioneer Funds,
including a review of the Investment Adviser's methodology in allocating
certain of its costs to the management of each Fund, as well as the
financial results realized by the Investment Adviser in connection with
the operation of the Fund. They further considered the profits realized by
the Investment Adviser and its affiliates from non-fund businesses that
may benefit from or be related to the Fund's business. The Trustees
considered the Investment Adviser's profit margins in comparison with the
limited industry data available. The Trustees concluded that the
Investment Adviser's profits from management of the Pioneer Funds,
including the financial results derived from the Fund, bear a reasonable
relationship to the services rendered and are fair for the management of
the Fund.
29
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
G. Economies of Scale. The Trustees considered the economies of scale with
respect to the management of the Fund, whether the Fund had appropriately
benefited from any economies of scale, and whether there was potential for
realization of any further economies of scale. The Trustees concluded that
in light of anticipated growth of the Fund, break points in the management
fee were not necessary at this time. However, the Trustees would evaluate
the need for break points from time to time.
H. Other Benefits to the Investment Adviser. The Trustees also considered the
character and amount of fees paid by the Fund, other than under the
Management Contract, for services provided by the Investment Adviser and
affiliates, including fees for services such as shareowner services. The
Trustees also considered the receipt of sales loads and payments under
Rule 12b-1 plans in respect of the Pioneer Funds (including the Fund), and
benefits to the Investment Adviser from the use of "soft" commission
dollars to pay for research services. The Trustees further considered the
revenues and profitability of the Investment Adviser's businesses other
than the fund business, including the Investment Adviser's institutional
investment advisory business. The Trustees considered the intangible
benefits that accrue to the Investment Adviser and its affiliates by
virtue of its relationship with the Fund and the Pioneer Funds as a group.
The Trustees concluded that all these types of benefits accruing to the
Investment Adviser were reasonable in the context of the overall
relationship between the Investment Adviser and the Fund.
Conclusion. In light of the Investment Adviser's overall performance, the
Trustees considered it appropriate to continue to retain the management
services of the Investment Adviser. Based on their review of the overall nature
and quality of services provided by the Investment Adviser and the fees charged
by other funds in the Fund's relevant peer group, and taking into account all
material factors deemed relevant by the Trustees as well as the advice of
independent counsel, the Trustees concluded that the Management Contract with
the Fund, including the fee payable thereunder, was fair and reasonable and
that its renewal was in the best interests of the Fund and its shareholders.
Accordingly, the Trustees voted to approve the continuation of the Management
Contract for another year.
30
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Vincent Nave, Treasurer
Mary K. Bush Dorothy E. Bourassa, Secretary
Margaret B.W. Graham
Thomas J. Perna
Marguerite A. Piret
John Winthrop
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.pioneerinvestments.com. This information is also available
on the Securities and Exchange Commission's web site at
http://www.sec.gov.
31
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This page for your notes.
32
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This page for your notes.
33
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This page for your notes.
34
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This page for your notes.
35
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This page for your notes.
36
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HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM)for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the
Commission's web site at 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.
- --------------------------------------------------------------------------------
PIONEER
-------
HIGH INCOME
MUNICIPAL
FUND
Semiannual
Report
2/28/07
[LOGO] PIONEER
Investments(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 19
Notes to Financial Statements 26
Trustees, Officers and Service Providers 31
Chairman's
Dear Shareowner,
- --------------------------------------------------------------------------------
Welcome to Pioneer. We thank you for your investment in Pioneer High Income
Municipal Fund and are pleased to provide you with the Fund's first shareholder
report since its inception on October 16, 2006.
In managing the Pioneer High Income Municipal Fund, we seek what we believe are
the best values in the high-income marketplace. In an interview starting on
page 4 of this report, Fixed-Income Portfolio Manager Timothy Pynchon discusses
the investment strategies used over the abbreviated fiscal period since October
16, 2006.
As the global economy reacted to good and bad news of 2006, overall it managed
to keep chugging along with fairly stable growth. Looking back, the economic
stories included slowing economic growth bringing monetary tightening to an end
in the United States, price action in oil and other commodity markets
threatening to unsettle global growth and inflation, geopolitical uncertainties
and corporate earnings growth surpassing market expectations.
U.S. economic growth slowed gradually over 2006, with full-year growth of GDP
of 3.1%, modestly below 2005 growth, but still strong enough to lower the
unemployment rate to 4.5%. While many observers were concerned that a weakening
housing sector could be a drag on consumer spending, the consumer has shown
resilience, supported by a strong labor market and associated income growth and
by oil and gasoline prices falling from record highs in the second half of
2006. Corporate America has also proved resilient in the face of the slowing
housing sector, with business investment growing at its fastest rate since
2000.
The Federal Reserve stopped increasing interest rates in mid-2006, but has
retained its bias to tighten rates, reflecting upside risks to inflation,
particularly from the tight labor market, and confidence that the economy
remained on solid ground. Consumers welcomed the relief from oil prices that
peaked at mid-year and fell sharply towards year-end. Likewise, in the second
half of 2006, they benefited from the modest easing of core inflation (which
excludes energy and food items), though such core inflation remains above what
is generally considered the central bank's "comfort zone."
While global economic momentum has started to slow, we expect the global
economy to continue growing firmly in 2007, supported by business investment,
rising employment, and lower energy prices. A slowdown in the U.S. growth rate
would be welcome, since rapid growth could increase
2
Letter
the risk of inflationary pressures, which would force the Federal Reserve to
raise interest rates. We expect Europe and Japan to grow similarly, while
emerging market economies are expected to continue their strong growth. In this
scenario, fixed-income assets are expected to produce total returns generally
in line with their current yields, while equities are expected to produce
returns generally in line with earnings growth, which we forecast to be
moderately above bond yields.
Our cautiously optimistic outlook on most regions of the world and asset
classes reinforces the importance of Pioneer Investments' message that
investors should remain diversified, take a long-term view rather than
over-reacting to breaking news, and base investment decisions on economic and
market fundamentals rather than on emotion. Our investment philosophy and
approach continue to be based on the use of fundamental research to identify a
range of opportunities that offer an attractive balance of risk and reward to
help Fund shareowners work toward their long-term goals.
Since the founding of Pioneer Fund, our flagship fund, in 1928, our only
purpose has been to help investors achieve their objectives. Over the months
and years ahead, we will continue to offer you the high caliber of investment
management that our shareowners have enjoyed for more than seven decades.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr., Chairman
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 2/28/07
- --------------------------------------------------------------------------------
During the abbreviated fiscal period from the Fund's inception on October 17,
2006, through February 28, 2007, high-yield municipal bonds were one of the
best performing areas of the fixed-income market. Investors in Pioneer High
Income Municipal Fund not only earned a relatively high level of tax-exempt
income, they also benefited from the capital appreciation that some bonds
provided. In the following interview, portfolio manager Timothy Pynchon
discusses the investment strategies used in building a portfolio of high-yield
municipal securities.
Q: How did the Fund perform?
A: Since inception on October 17, 2006 through February 28, 2007, Pioneer High
Income Municipal Fund's Class A shares produced a 4.05% total return at net
asset value. The Fund's benchmark, the Lehman Brothers High Yield Municipal
Bond Index, returned 2.70%, and the average return of the 88 funds in the
Lipper High Yield Municipal Debt Funds category was 2.01% for the comparable
(though not identical) period from October 31, 2006 through February 28,
2007. Lipper is an independent monitor of mutual fund performance. The
Fund's Class A shares generated a 30-day SEC tax free yield of 4.36% on
February 28, 2007. That translates into a taxable equivalent yield of 6.71%
based on the maximum federal income tax rate of 35%. At the end of the
period, the Fund had 28 issues in 19 states, and the average credit quality
of the portfolio was BB.
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.
4
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q: What were the principal strategies used in managing the Fund during the
period?
A: The Fund's objective is to maximize total return through a combination of
income that is exempt from regular federal income tax and capital
appreciation by investing in a portfolio of high yield, or below
investment-grade, municipal securities. In managing the Fund, we have the
flexibility to invest in bonds that we believe will perform well over the
long term. We are not tied to index weights or duration, and we rely
primarily upon Pioneer's expertise in credit research and security selection
for performance. We believe that proper security selection and the avoidance
of defaults should consistently lead to solid performance.
In building the portfolio, we sought undervalued securities with
relatively high yields that have the potential to appreciate in price. We
favored sectors that are vital components of the U.S. economy. The sectors
included public power, transportation, health care, housing, water and
sewer, among others. We also found opportunity in new areas, such as
correctional institutions that have been privatized by the federal
government and charter schools. In addition, we were attracted to the
securitized sector and invested in a collateralized debt obligation, which
is backed by a pool of fixed-income securities with different yields and
varying degrees of credit risk.
All of the securities in the portfolio are revenue bonds, whose interest
and principal are paid from the revenues derived from the particular asset
the bond was issued to finance. At almost 18% of net assets, health care
bonds accounted for the biggest sector position in the Fund. Health care
is a large and growing part of the economy and encompasses several areas,
such as hospitals, nursing homes and continuing care retirement
communities, among others. It is an area in which bond yields have been
attractive and supply has been plentiful. Tobacco bonds accounted for
nearly 10% of net assets, the second largest position in the portfolio.
These bonds are backed by tobacco companies' payments to states as part of
the Master Settlement Agreement in which states agreed to drop their
lawsuits against tobacco companies in return for a series of payments. The
remainder of the portfolio was in various other revenue bonds. Because
longer-term yields were higher than shorter-term yields in the municipal
market
5
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 2/28/07 (continued)
- --------------------------------------------------------------------------------
during the period, we focused on bonds with relatively long maturities. At
the end of the period, about 43% of the portfolio's bonds had maturities
of six to eight years, and about 25% had maturities of ten years or more.
Q: What affected performance over the period?
A: Over the period, our investments performed well. Some securities are still
so new to the Fund that it is not yet possible to measure attribution in a
meaningful way. Two strong performers, however, were Gulf Coast IDA Texas
Environmental Facilities, a non-rated issue that is using cutting-edge
technology to produce green energy from methane gas, and St Louis, Missouri
Convention Center, a Caa-rated security that has had economic difficulties
but that we believe is a turn-around situation. Both of the credits
outperformed the market by a wide margin. At period-end, we had no
detractors from performance.
Q: What is your outlook?
A: Against a backdrop of moderating economic growth, relatively low interest
rates, and contained inflation, we believe the high-yield municipal market
will continue to generate robust returns. While new bond issuance has
declined, demand for high-yield bonds has remained strong, as new types of
investors, such as hedge funds and property-and-casualty insurers, seek the
higher tax-advantaged yields that below investment-grade municipal bonds can
provide. We view this supply/demand dynamic as positive for the Fund as it
has the potential to increase the prices of some of the bonds in the
portfolio. As we look ahead, we plan to maintain a well diversified
portfolio from both a sector and geographic perspective. Because the Fund is
new, the percentages of our holdings are larger than we anticipate as the
Fund's overall asset levels increase. The percentages will decline as the
Fund's assets grow and dilute the current holdings. As the Fund grows, we
expect to add securities and have about 60 to 80 positions in the portfolio.
6
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. The Fund may invest in securities of issuers that
are in default or that are in bankruptcy.
A portion of the income may be subject to state, federal, and/or alternative
minimum tax. Capital gains, if any, are subject to a capital gains tax. The
fund is not diversified, which means that it can invest a higher percentage of
its assets in any one issuer than a diversified fund. Being non-diversified may
magnify the fund's losses from adverse events affecting a particular issuer. By
investing primarily 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 Fund are subject to possible loss
due to financial failure of underlying securities and their inability to meet
their debt obligations.
When interest rates rise, the prices of fixed-income securities in the fund
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise. Investments in the
Fund are subject to possible loss due to the financial failure of issuers of
underlying securities and their inability to meet their debt obligations. At
times, the Fund's investments may represent industries or industry sectors that
are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of fund management as of the date of this report.
These opinions should not be relied upon for any other purposes. Past
performance is not guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
7
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 2/28/07
- --------------------------------------------------------------------------------
Portfolio Quality
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
AAA 2.1%
AA 2.0%
BBB 9.5%
BB & Lower 81.9%
Temporary Cash Investment 4.5%
Maturity Distribution
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
0-1 year 15.7%
1-3 years 7.8%
3-6 years 5.0%
6-8 years 42.8%
8-10 years 3.6%
10 + years 25.1%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of debt holdings)*
1. Non-Profit Preferred Funding Various States, 8.0%, 9/15/37 16.00%
2. Tobacco Settlement Financing Corp., 5.0%, 6/1/41 10.00
3. Madre Metropolitan District No. 2 Colorado, 5.5%, 12/1/36 6.83
4. Madison County Florida Revenue, 6.0%, 7/1/25 6.79
5. St. Louis Missouri Industrial Development Revenue, 7.25%, 12/15/35 6.22
6. Director State Nevada Department Business, 7.375%, 1/1/40 6.16
7. Pontiac Michigan Hospital Finance Authority, 6.0%, 8/1/07 4.83
8. Delaware County Pennsylvania Industrial Development, 9.0%, 8/1/31 4.00
9. Illinois Health Facilities Authority Revenue, 6.7%, 3/1/14 3.47
10. Washington State Housing Authority, 5.25%, 1/1/17 2.76
* This list excludes temporary cash and derivative instruments. Fund holdings
will vary for other periods. The holdings listed should not be considered
recommendations to buy or sell any security listed.
8
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 2/28/07 10/16/06
- ------- --------- ---------
A $10.23 $10.00
C $10.22 $10.00
Y $10.23 $10.00
Distributions Per Share
- -----------------------------------------------------------------------------
10/17/06 - 2/28/07
------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.1723 $ - $ -
C $0.1387 $ - $ -
Y $0.1730 $ - $ -
- --------------------------------------------------------------------------------
INDEX DEFINITIONS
- --------------------------------------------------------------------------------
The Lehman Brothers High Yield Municipal Bond Index measures the performance
of the high-yield municipal bond market. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees, expenses or sales charges. You cannot invest directly in an
Index.
The index defined here pertains to the "Value of $10,000 Investment" charts
shown on pages 10-12.
9
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 2/28/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment in Pioneer High Income Municipal Fund at public offering price,
compared to that of the Lehman Brothers High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 28, 2007)
Public
Net Offering
Period Asset Value Price (POP)
Life-of-Class
(10/16/06) 4.05% -0.63
- ---------- ---- -----
Expense Ratio*
(As of October 13, 2006)
Gross Net
1.25% 0.90%
- -------------------------------
* Some expenses are based on estimated
amounts for the current fiscal year.
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Lehman Lynch
High Yield Pioneer High
Municipal Bond Index Income Municipal Fund
-------------------- ---------------------
10/06 10,000.00 9,550.00
02/07 10,270.00 9,919.00
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher
than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
NAV results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. POP returns
reflect deduction of maximum 4.5% sales charge. All results are historical
and assume the reinvestment of dividends and capital gains. Other share
classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during
the periods shown. Without such waivers Fund performance would be lower.
Waivers may not be in effect for all funds. Certain fee waivers are
contractual through a specified period. Otherwise, fee waivers can be
rescinded at any time. See the prospectus and financial statements for more
information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/09 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and
taxes that a shareowner would pay on Fund distributions or the redemption
of Fund shares.
10
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 2/28/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer High Income Municipal Fund, compared to that of the
Lehman Brothers High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 28, 2007)
If If
Period Held Redeemed
Life-of-Class
(10/16/06) 3.60% 2.60%
- ---------- ---- ----
Expense Ratio*
(As of October 13, 2006)
Gross Net
2.15% 1.80%
- -------------------------------
* Some expenses are based on estimated
amounts for the current fiscal year.
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Lehman Lynch
High Yield Pioneer High
Municipal Bond Index Income Municipal Fund
-------------------- ---------------------
10/06 10,000 10,000
02/07 10,270 10,250
Call 1-800-225-6292 or visit 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.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitation currently in
effect through 1/1/08 for Class C Shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
11
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 2/28/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer High Income Municipal Fund, compared to that of the
Lehman Brothers High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 28, 2007)
If If
Period Held Redeemed
Life-of-Class
(10/16/06) 4.05% 4.05%
- ---------- ---- ----
Expense Ratio*
(As of October 13, 2006)
Gross Net
0.65% 0.65%
- -------------------------------
* Some expenses are based on estimated
amounts for the current fiscal year.
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Lehman Lynch
High Yield Pioneer High
Municipal Bond Index Income Municipal Fund
-------------------- ---------------------
10/06 10,000 10,000
02/07 10,270 10,384
Call 1-800-225-6292 or visit 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.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
12
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on actual returns from October 17, 2006 through February 28, 2007.
Share Class A C Y
- -----------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00
On 10/17/06
Ending Account Value $1,040.50 $1,036.00 $1,040.50
On 2/28/07
Expenses Paid $ 3.40 $ 6.78 $ 3.55
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.80%
and 0.94% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
135/365 (to reflect the partial year period).
13
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from October 17, 2006 through February 28, 2007.
Share Class A C Y
- -----------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00
On 10/17/06
Ending Account Value $1,015.16 $1,016.89 $1,015.02
On 2/28/07
Expenses Paid $ 3.35 $ 6.70 $ 3.50
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.80%
and 0.94% for Class A, Class C and Class Y shares, respectively, multiplied
by the average account value over the period, multiplied by 135/365 (to
reflect the partial year period).
14
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (unaudited)
- --------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount Rate (c) Ratings Value
MUNICIPAL BONDS - 73.7%
Arizona - 1.9%
$ 140,000 9.46 NR/Aaa Downtown Phoenix Hotel Corp.,
Floating Rate Note, 7/1/40 $ 164,742
----------
$ 164,742
----------
California - 1.6%
135,000 B+/NR Valley Health Systems CA, Certificates of
Participation, 6.875%, 5/15/23 $ 135,228
----------
$ 135,228
----------
Colorado - 7.7%
500,000 NR/NR Madre Metropolitan District No. 2
Colorado, 5.5%, 12/1/36 $ 502,240
130,000 CCC/B3 Northwest Parkway Public Highway
Authority Co., 7.125%, 6/15/41 140,292
----------
$ 642,532
----------
Florida - 7.7%
135,000 NR/NR Greater Orlando Aviation Authority,
6.375%, 11/15/26 $ 144,060
480,000 NR/NR Madison County Florida Revenue,
6.0%, 7/1/25 499,325
----------
$ 643,385
----------
Illinois - 3.0%
255,000 NR/B2 Illinois Health Facilities Authority
Revenue, 6.7%, 3/1/14 $ 255,082
----------
$ 255,082
----------
Massachusetts - 1.8%
140,000 10.39 NR/Aaa Massachusetts State Housing,
Floating Rate Note, 12/1/45 (144A) $ 151,869
----------
$ 151,869
----------
Michigan - 6.0%
160,000 NR/NR Doctor Charles Drew Academy, 5.7%,
11/1/36 $ 164,998
335,000 B/Ba3 Pontiac Michigan Hospital Finance
Authority, 6.0%, 8/1/07 335,369
----------
$ 500,367
----------
The accompanying notes are an integral part of these financial statements. 15
Pioneer High Income Municipal Fund
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (unaudited) (continued)
- -------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount Rate (c) Ratings Value
Missouri - 7.3%
$ 150,000 NR/NR Kansas City Industrial Development
Authority, 5.875%, 1/1/37 (144A) $ 151,581
460,000 NR/CAA2 St. Louis Missouri Industrial Development
Revenue, 7.25%, 12/15/35 458,220
----------
$ 609,801
----------
Montana - 1.7%
215,000 NR/NR Hardin Montana Tax Increment,
0.0%, 9/1/31 $ 144,284
----------
$ 144,284
----------
New Jersey - 8.8%
750,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
5.0%, 6/1/41 $ 733,103
----------
$ 733,103
----------
Nevada - 5.4%
430,000 NR/NR Director State Nevada Department
Business, 7.375%, 1/1/40 $ 453,267
----------
$ 453,267
----------
New York - 3.4%
150,000 NR/NR Dutchess County NY Industrial
Development, 5.25%, 1/1/37 $ 151,136
135,000 CCC+/CAA2 New York City, NY, Industrial,
6.9%, 8/1/24 136,404
----------
$ 287,540
----------
Ohio - 1.2%
100,000 B/NR Belmont County Ohio Health
Systems, 5.7%, 1/1/13 $ 98,821
----------
$ 98,821
----------
Oklahoma - 1.6%
135,000 BB/NR Jackson County Oklahoma Memorial
Hospital, 7.3%, 8/1/15 $ 135,774
----------
$ 135,774
----------
Pennsylvania - 5.0%
135,000 B/NR Columbia County PA Hospital,
5.85%, 6/1/24 $ 127,080
360,000 NR/NR Delaware County Pennsylvania Industrial
Development, 9.0%, 8/1/31 293,288
----------
$ 420,368
----------
16 The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount Rate (c) Ratings Value
Texas - 5.3%
$ 150,000 NR/NR Gulf Coast Waste Disposal Authority, Texas
Revenue, 7.0%, 12/1/36 $ 162,033
150,000 NR/NR Iah Public Facilities Corp., Project Revenue,
6.125%, 5/1/26 146,972
135,000 NR/NR Willacy County Texas Local Government,
6.0%, 3/1/09 136,828
----------
$ 445,833
----------
Utah - 1.9%
150,000 NR/NR Spanish Fork City Utah Charter, 5.7%,
11/15/36 $ 155,001
----------
$ 155,001
----------
Washington - 2.4%
200,000 NR/NR Washington State Housing Authority, 5.25%,
1/1/17 $ 203,058
----------
$ 203,058
----------
TOTAL MUNICIPAL BONDS
(Cost $6,114,167) $6,180,055
----------
COLLATERALIZED DEBT OBLIGATIONS - 14.1%
1,175,000 NR/NR Non-Profit Preferred Funding Trust, Various
States, Tranche E, September 2016 $1,177,738
----------
TOTAL COLLATERALIZED DEBT OBLIGATIONS
(Cost $1,172,000) $1,177,738
----------
Shares
TAX EXEMPT MONEY MARKET MUTUAL FUND - 4.2%
350,000 Blackrock Liquidity Funds MuniFund Portfolio $ 350,000
----------
TOTAL TAX EXEMPT MONEY
MARKET MUTUAL FUND
(Cost $350,000) $ 350,000
----------
TOTAL INVESTMENT IN SECURITIES - 92.0%
(Cost $7,636,367) (a)(b) $7,707,793
----------
OTHER ASSETS AND LIABILITIES - 8.0% $ 667,731
----------
TOTAL NET ASSETS - 100.0% $8,375,524
==========
The accompanying notes are an integral part of these financial statements. 17
Pioneer High Income Municipal Fund
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/07 (continued)
- -------------------------------------------------------------------------------
(a) The concentration of investments by type of obligation/market sector is
as follows:
Insured 2.1%
Revenue Bonds:
Health Revenue 17.9
Special Revenue 9.5
Various Revenues 33
Transportation Revenue 3.6
Water & Sewer 6.5
Housing 4.6
Education Revenue 4.2
Reserves 4.5
Collateralized Debt Obligations 14.1
-----
100.0%
=====
(b) At February 28, 2007, the net unrealized gain on investments based on
cost for federal income tax purposes of $7,636,367 was as follows:
Aggregate gross unrealized gain for all investments in which there
is an excess of value over tax cost $ 77,787
Aggregate gross unrealized loss for all investments in which there
is an excess of tax cost over value (6,361)
----------
Net unrealized gain $ 71,426
==========
(c) Debt obligation with a variable interest rate. The rate shown is the rate
at period end.
NR Not rated by either S&P or Moody's.
Purchases and sales of securities (excluding temporary cash investments) for
the period ended February 28, 2007 aggregated $8,953,196 and $1,691,126,
respectively.
18 The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 2/28/07 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (cost $7,636,367) $7,707,793
Cash 1,793,546
Receivables -
Fund shares sold 204,982
Interest 72,728
Due from Pioneer Investment Management, Inc. 4,666
Other 1,139
----------
Total assets $9,784,854
----------
LIABILITIES:
Payables -
Investment securities purchased $1,374,730
Dividends 20,680
Due to affiliates 611
Accrued expenses 13,309
----------
Total liabilities $1,409,330
----------
NET ASSETS:
Paid-in capital $8,284,435
Distributions in excess of net investment income (2,789)
Accumulated net realized gain on investments 22,452
Net unrealized gain on investments 71,426
----------
Total net assets $8,375,524
==========
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $5,564,162/543,910 shares) $ 10.23
==========
Class C (based on $1,788,032/174,911 shares) $ 10.22
==========
Class Y (based on $1,023,330/100,000 shares) $ 10.23
==========
MAXIMUM OFFERING PRICE:
Class A ($10.23 [divided by] 95.5%) $ 10.71
==========
The accompanying notes are an integral part of these financial statements. 19
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the period from 10/17/06 (Commencement of Operations) to 2/28/07
INVESTMENT INCOME:
Interest $ 72,283
--------
EXPENSES:
Management fees $6,682
Transfer agent fees and expenses
Class A 294
Class C 184
Class Y 92
Distribution fees
Class A 1,387
Class C 4,098
Administrative reimbursements 301
Custodian fees 4,439
Registration fees 1,795
Professional fees 15,014
Printing expense 6,005
Fees and expenses of nonaffiliated trustees 2,373
Miscellaneous 750
------
Total expenses $ 43,414
Less management fees waived and
expenses reimbursed by Pioneer
Investment Management, Inc. (27,596)
--------
Net expenses $ 15,818
--------
Net investment income $ 56,465
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $ 22,452
--------
Net unrealized gain on investments $ 71,426
--------
Net gain on investments $ 93,878
--------
Net increase in net assets resulting from operations $150,343
========
20 The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the period from 10/17/06 (Commencement of Operations) to 2/28/07
10/17/06 to
2/28/07
(unaudited)
FROM OPERATIONS:
Net investment income $ 56,465
Net realized gain on investments 22,452
Net unrealized gain on investments 71,426
----------
Net increase in net assets resulting from operations $ 150,343
----------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.17 per share) $ (26,461)
Class C ($0.14 per share) (15,497)
Class Y ($0.17 per share) (17,296)
----------
Total distributions to shareowners $ (59,254)
----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $5,281,900
Reinvestment of distributions 2,535
----------
Net increase in net assets resulting from
Fund share transactions $5,284,435
----------
Net increase in net assets $5,375,524
NET ASSETS:
Beginning of period (initial capitalization - 300,000 shares) 3,000,000
----------
End of period $8,375,524
==========
Distributions in excess of net investment income $ (2,789)
==========
The accompanying notes are an integral part of these financial statements. 21
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
'07 Shares '07 Amount
(unaudited) (unaudited)
CLASS A*
Shares sold 443,698 $4,520,798
Reinvestment of distributions 212 2,164
------- ----------
Net increase 443,910 $4,522,962
------- ----------
CLASS C*
Shares sold 74,874 $ 761,102
Reinvestment of distributions 37 371
------- ----------
Net increase 74,911 $ 761,473
======= ==========
CLASS Y*
Shares sold - $ -
------- ----------
- $ -
======= ==========
* Class A, C and Y shares were first publicly offered on October 17, 2006.
22 The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
10/17/06 (a)
Commencement
of Operations
to 2/28/07
(unaudited)
CLASS A
Net asset value, beginning of period $10.00
------
Increase from investment operations:
Net investment income $ 0.17
Net realized and unrealized gain on investments 0.23
------
Net increase in net assets from investment operations $ 0.40
------
Distributions to shareowners:
Net investment income $(0.17)
------
Net asset value, end of period $10.23
======
Total return* 4.05%
Ratio of net expenses to average net assets 0.90%**
Ratio of net investment income to average net assets 4.55%**
Portfolio turnover rate 46%***
Net assets, end of period (in thousands) $5,564
Ratios with no waiver of management fees and assumption
of expenses by PIM
Net expenses 2.95%**
Net investment income 2.50%**
(a) Class A shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 23
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
10/17/06 (a)
Commencement
of Operations
to 2/28/07
(unaudited)
CLASS C
Net asset value, beginning of period $10.00
------
Increase from investment operations:
Net investment income $ 0.13
Net realized and unrealized gain on investments 0.23
------
Net increase in net assets from investment operations $ 0.36
------
Distributions to shareowners:
Net investment income $(0.14)
------
Net asset value, end of period $10.22
======
Total return* 3.60%
Ratio of net expenses to average net assets 1.80%**
Ratio of net investment income to average net assets 3.60%**
Portfolio turnover rate 46%***
Net assets, end of period (in thousands) $1,788
Ratios with no waiver of management fees and assumption
of expenses by PIM
Net expenses 3.92%**
Net investment income 1.48%**
(a) Class C shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
24 The accompanying notes are an integral part of these financial
statements.
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
10/17/06 (a)
Commencement
of Operations
to 2/28/07
(unaudited)
CLASS Y
Net asset value, beginning of period $10.00
------
Increase from investment operations:
Net investment income $ 0.16
Net realized and unrealized gain on investments 0.24
------
Net increase in net assets from investment operations $ 0.40
------
Distributions to shareowners:
Net investment income $(0.17)
------
Net asset value, end of period $10.23
======
Total return* 4.05%
Ratio of net expenses to average net assets 0.94%**
Ratio of net investment income to average net assets 4.42%**
Portfolio turnover rate 46%***
Net assets, end of period (in thousands) $1,023
Ratios with no waiver of management fees and assumption
of expenses by PIM
Net expenses 2.96%**
Net investment income 2.40%**
(a) Class Y shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 25
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer High Income Municipal Fund (the Fund) is a non-diversified series of
Pioneer Series Trust V, a Delaware statutory trust registered under the
Investment Company Act of 1940 as an open-end management investment company.
The Fund commenced operations on October 17, 2006. The investment objective of
the Fund is to maximize total return through a combination of income that is
exempt from regular federal income tax and capital appreciation.
The Fund offers three classes of shares designated as Class A, Class C, and
Class Y shares. Each class of shares represents an interest in the same
portfolio of investments of the Fund and have equal rights to voting,
redemptions, dividends and liquidations, except that each class of shares can
bear different transfer agent and distribution fees and has exclusive voting
rights with respect to the distribution plans that have been adopted by Class A
and Class C shareowners, respectively. There is no distribution plan for Class
Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses, and gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. More detailed descriptions of the Fund's principal
risks are contained in the Fund's prospectuses. Please refer to those documents
when considering the Fund's risks.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements which, are consistent with
those policies generally accepted in the investment company industry:
26
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value
of the Fund is computed once daily, on each day the New York Stock
Exchange (NYSE) is open, as of the close of regular trading on the
exchange. Securities are valued at prices supplied by independent pricing
services, which consider such factors as Treasury spreads, yields,
maturities and ratings. Valuations may be supplemented by dealers and
other sources, as required. Securities for which there are no other
readily available market quotations are valued at their fair values as
determined by, or under the direction of the Board of Trustees. At
February 28, 2007 there were no securities fair valued. Temporary cash
investments are valued at amortized cost.
Discount and premium on debt securities are accreted or amortized,
respectively daily into interest income on a yield-to-maturity basis with
a corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, exempt interest income, and net
realized capital gains, if any, to its shareowners. Therefore, no federal
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 sources of the Fund's distributions may
be shown in the accompanying financial statements as either from or in
excess of net investment income or net 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 will be determined at
the end of the current fiscal year.
27
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.,
(UniCredito Italiano), earned $239 in underwriting commissions on the sale
of Class A shares during the period ended February 28, 2007.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset
value attributable to Class A and Class C shares of the Fund, respectively
(see Note 4). Class Y shares are not subject to a distribution plan.
Shareowners of each class share all expenses and fees paid to the transfer
agent, Pioneer Investment Management Shareholder Services, Inc. (PIMSS),
for its services, which are allocated based on the number of accounts in
each class and the ratable allocation of related out-of-pocket expenses
(see Note 3). Income, common expenses and realized and unrealized gains
and losses are calculated at the Fund level and allocated daily to each
class of shares based on the respective percentage of adjusted net assets
at the beginning of the day.
The Fund declares, as daily dividends, substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner, at the same time, and in the same
amount, except that Class A, Class C, and Class Y shares can bear
different transfer agent and distribution fees.
2. Management Agreement
Pioneer Investment Management, Inc., (PIM), a wholly owned indirect subsidiary
of UniCredito Italiano, manages the Fund's portfolio. Management fees are
calculated daily at the annual rate of 0.50% of the Fund's average daily net
assets up to $500 million; 0.475% of the next $500 million; and 0.45% of the
excess over $1 billion. For the period ended February 28, 2007, the net
management fee was equivalent to 0.50% of average daily net assets.
28
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PIM has agreed not to impose all or a portion of its management fee and to
assume other operating expenses (excluding taxes, commissions, interest and
extraordinary expenses) of the Fund to the extent necessary to limit expenses
to 0.90% and 1.80% of the average daily net assets attributable to Class A
shares and Class C shares, respectively. The Class A limitation is in effect
through January 1, 2009 and the Class C limitation is in effect through January
1, 2008.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At February 28, 2007, $5 was payable to PIM
related to management fees, administrative costs and certain other services and
is included in due to affiliates.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareholder services to the Fund at
negotiated rates. Included in due to affiliates is $522 in transfer agent fees
payable to PIMSS at February 28, 2007.
4. Distribution Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan
and Class C Plan) in accordance with Rule 12b-1 of the Investment Company Act
of 1940. Pursuant to the Class A Plan, the Fund pays PFD a service fee of up to
0.25% of the average daily net assets attributable to Class A shares in
reimbursement of its actual expenditures to finance activities primarily
intended to result in the sale of Class A shares. Pursuant to the Class C Plan,
the Fund pays PFD 1.00% of the average daily net assets attributable to Class C
shares. The fee consists of a 0.25% service fee and a 0.75% distribution fee
paid as compensation for personal services and/or account maintenance services
or distribution services with regard to Class C shares. Included in due to
affiliates is $84 in distribution fees payable to PFD at February 28, 2007.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. Proceeds from the CDSCs are paid
29
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
to PFD. There is no CDSC for Class Y shares. For the period ended February 28,
2007, no CDSCs were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned
on cash held by PIMSS. For the period ended February 28, 2007, the Fund's
expenses were not reduced under such arrangements.
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 Fund'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 as of no
later than August 31, 2007. At this time, management is evaluating the
implications of FIN 48 and any impact in the financial statements has not yet
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. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund's financial statement disclosures.
30
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Vincent Nave, Treasurer
Mary K. Bush Dorothy E. Bourassa, Secretary
Margaret B.W. Graham
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.
Proxy Voting Policies and Procedures of the Fund 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.
31
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
32
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at 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.
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.
Not applicable to open-end management investment companies.
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.
Not applicable to open-end management investment companies.
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.
Not applicable to open-end management investment companies.
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 Series Trust V
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date April 27, 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 April 27, 2007
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date April 27, 2007
* Print the name and title of each signing officer under his or her signature.