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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 811-08448
Pioneer Emerging Markets Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: November 30
Date of reporting period: December 1, 2007 through May 31, 2008
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
------------
EMERGING
MARKETS
FUND
PEMFX
Ticker Symbol
Semiannual
Report
5/31/08
[Logo]PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 30
Notes to Financial Statements 39
Approval of Investment Advisory Agreement 50
Trustees, Officers and Service Providers 55
President's
Dear Shareowner,
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Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. They
are particularly useful guides to keep in mind today, at a time when markets
around the globe are being buffeted by problems in the financial and real
estate industries and by concerns about a slowing economy.
After an extended period of steady economic growth with sustained low
unemployment and low inflation, the U.S. economy ran into difficulty as 2007
drew to a close. Investors in subprime mortgages were forced to mark down the
value of their assets, imperiling leveraged balance sheets. The ensuing credit
crunch forced central banks in the United States and Europe to assume the role
of "lender of last resort" to keep credit markets functioning. Conditions
worsened in the first quarter of 2008, as falling prices, margin calls and
deleveraging continued, and while the auction rate preferred market seized up.
The U.S. Federal Reserve expanded its lender-of-last-resort role to include
lending to primary dealers and continued to cut interest rates. By then,
recession talk was widespread as concern grew that falling home prices, rising
unemployment, sharply rising food and energy prices, and disruptions in
financial markets posed a significant threat to economic growth.
Markets reacted poorly to the developments leading up to the near failure of
Bear Stearns, with fixed-income credit spreads (the difference in rates between
corporate and U.S. government bonds) widening dramatically and stock markets
declining, wiping out the positive returns markets had delivered in the
preceding calendar year. Treasury bond prices rose as the market underwent a
flight to quality. In the eleven weeks between the Bear Stearns event and the
end of May 2008, though, there were no further market crises, recession fears
faded in light of positive economic news, and stock markets rallied, recouping
some of their first-quarter losses, while Treasury bond prices fell back.
The Dow Jones Industrial Average and Standard & Poor's 500 Index each fell 4%,
and the NASDAQ Composite Index fell 5% over the six-month period ending May 31,
2008. The MSCI EAFE Developed Market Index of international stock markets fell
5%, and the MSCI Emerging Markets Index fell 2% over the same period. The U.S.
investment-grade bond market, as measured by the Lehman Brothers
2
Letter
Aggregate Bond Index, rose 1% over the six-month period while the U.S.
high-yield bond market, as measured by the Merrill Lynch High Yield Bond Master
II Index, rose 2% over the six-month period.
A weak U.S. dollar and substantial fiscal and monetary stimulus are potent
support for the economy. Markets remain volatile, and falling risk tolerances
and deleveraging may depress asset prices in the short term, but equity and
corporate bond valuations look attractive over a longer time horizon unless the
U.S. economy falls into a severe and protracted recession.
Sudden swings in the markets are always to be expected, but they are difficult
to time. Maintaining a long-term time horizon, being diversified, and paying
attention to asset allocation are important investment principles. As always,
we encourage you to work closely with your financial advisor to find the mix of
stocks, bonds and money market assets that is best aligned to your particular
risk tolerance and investment objective and to adhere to a strategic plan
rather than letting emotions drive investment decisions.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Emerging Markets Fund
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/08
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Pioneer Emerging Markets Fund outperformed both its benchmark and its peer
group during the six-month period ended May 31, 2008. The Fund's Class A shares
produced a total return of -1.05% at net asset value for the period, outpacing
the -1.52% return of the MSCI Emerging Markets Index and the -2.20% average
return of the 302 funds in the Lipper peer group, Emerging Markets Funds.
The Fund also has generated strong relative performance over the three-year
period. During this time, the 36.27% return of the Class A shares is ahead of
both the 33.56% return of the Fund's benchmark and the 31.47% average return of
the peer group.
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.
In the following interview, Christopher Smart, Pioneer Emerging Market Fund's
Portfolio Manager, discusses the factors that influenced performance during the
six months ended May 31, 2008.
Q: How did the emerging markets perform during the past half-year?
A: In the environment of heightened investor risk aversion that characterized
the past six months, emerging markets equities produced a negative return.
The combination of the mortgage and credit crises in the United States
fueled speculation that the U.S. economy would slip into a recession,
thereby dampening global growth. The uncertainty regarding the growth
outlook, in combination with a sharp increase in energy prices, weighed on
the performance of markets worldwide.
Despite this potentially challenging environment, the -1.52% return of the
MSCI Emerging Markets Index outpaced the -3.73% return of the developed
markets, as measured by the MSCI World Index. This outperformance stands in
marked contrast to crisis periods of the past, when the emerging markets
would typically lag the developed markets by a substantial margin. We
believe this shift helps underscore the positive changes that have taken
place in the asset class during the past decade. First, governments have
4
Pioneer Emerging Markets Fund
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adopted a more sensible approach to financial management, with a focus on
balanced budgets, inflation control, and the maintenance of flexible
exchange rates. Second, stronger economic growth has enabled emerging
markets nations to pay down debt. In the process, they have improved their
balance sheets and become less dependent on the global capital markets.
Third, most countries in the asset class have developed independent,
domestic sources of economic growth, meaning that their economies are less
reliant on end-market demand in the United States and Europe. Taken
together, these developments mean that emerging economies have been
relatively unaffected by external factors such as the U.S. housing crisis
and the near failure of Bear Stearns.
These positive fundamental changes have enabled the emerging markets to
handily outperform the developed global markets not just during the past
six months, but also over all long-term time periods, as depicted in the
table below:
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1-year 3-year 5-year 10-year
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MSCI Emerging Markets Index 22.00% 33.56% 34.39% 14.44%
MSCI World Index -3.15% 12.84% 14.82% 5.77%
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Past performance is no guarantee of future results.
Q: What factors contributed to the Fund's outperformance during the semiannual
period?
A: The largest source of outperformance during the six-month period ended May
31, 2008 was the effectiveness of our stock selection in China. The Chinese
stocks held by the Fund produced a total return of -10% in the aggregate,
substantially above the -20% return turned in by the broader Chinese stock
market. The leading contributor was Yanzhou Coal Mining, which generated
soaring profits from the combination of higher coal prices and rising sales
volumes. China's rapid economic growth is driving demand for electricity,
and in turn, coal - the primary fuel used by the country's electric power
plants. Although the Fund's holdings in China delivered a negative return
for the period, we are pleased to have mitigated the downside in one of the
worst-performing markets in the asset class.
5
Pioneer Emerging Markets Fund
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/08 (continued)
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Indonesia, where our holdings rose 7.8% compared with a loss of 7.3% for
the Indonesian stocks in the benchmark, was the second-best market for the
Fund. Again, the primary driver of performance was coal stocks: Bumi
Resources, which rose 43%, and Indo Tambangraya Megah, which gained 25%.
Since China is unable to meet its demand for coal from domestic sources,
the proximity of these companies to the Chinese market has made them prime
beneficiaries of the country's growing thirst for electricity.
Egypt was also a source of notable outperformance for the Fund. The most
significant contributor was Orascom Construction, whose shares rose 46%
during the period. Rising oil prices have fueled a boom of construction and
infrastructure investment throughout the Middle East, leading to surging
profits for companies such as Orascom.
Q: What elements of the Fund's positioning detracted from performance during
the six-month period ending May 31, 2008?
A: The Fund's relative performance was hurt by a zero weighting in Brazilian
steel companies, which delivered returns in the range of 60-80%. As a
result, the total return generated by the Fund's holdings in Brazil (17.8%)
was well behind the return of the Brazilian stocks in the index (25.7%).
The steel sector was one of the best-performing sectors worldwide during
the past six months, due largely to the surge in construction activity
mentioned above.
Also detracting from returns during the past six months were the Fund's
holdings in Korean shipbuilders, a group that has made a positive
contribution to the Fund's performance for several years. Concerns about
slower global growth weighed on shares of Hyundai Heavy Industries, Samsung
Heavy Industries, and Daewoo Shipbuilding during the past six months, but
we continue to like these stocks on a longer-term basis. Even though orders
for new ships have begun to decline worldwide, the Korean shipbuilders
continue to book new orders at record high prices. This indicates that the
companies are gaining market share during a challenging time, which we
believe is a positive sign for their longer-term outlook.
6
Pioneer Emerging Markets Fund
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Q: What are some important investment themes in the portfolio?
A: We continue to find the most attractive investment opportunities in
consumer and infrastructure stocks. In the consumer sector, stronger
economic growth is fueling increased personal wealth and the expansion of a
global middle class. These trends work in favor of companies that benefit
from rising incomes and increased spending, such as retailers, and those
that are helped by increased savings, such as banks. The rising power of
consumers is a global phenomenon that forms the basis for the Fund's
investments in stocks such as Wimm-Bill-Dann, Russia's largest dairy
company; New World Resources, a Chinese department store chain; and
Unibanco, one of the leading banking franchises in Brazil.
Infrastructure spending is another area in which we are finding significant
opportunities. Rising commodity prices and economic expansion are leading
to stronger fiscal positions for emerging markets nations, which in turn is
providing them with the capital to fund infrastructure programs. In Latin
America alone, infrastructure spending has risen to about U.S. $40 billion
annually. South Africa, China, India, and Indonesia are also among the
countries that have earmarked large amounts of money for the construction
of roads, power plants, and other large-scale infrastructure projects.
Accordingly, stocks of construction-related companies have performed very
well in recent years. Among the Fund's leading positions in this area are
Murray & Roberts, a South African construction and engineering company that
is benefiting from the infrastructure build-out associated with the 2010
soccer World Cup; China Railway Construction, which is capitalizing on the
need for China to move goods more efficiently; and Empresas ICA, a Mexican
company that specializes in the construction of dams, highways and
industrial plants.
Q: What is your broad view regarding the emerging markets?
A: Emerging markets equities are by no means immune to the broader issues
affecting the global markets. With global financial flows remaining
restricted - a reflection of banks' efforts to tighten credit standards and
rebuild their balance sheets - it is reasonable to expect that our asset
class will be affected by periodic bouts of volatility. During these times,
it is important to keep in mind that the emerging markets are now more
insulated from global issues than at any point in the past. We therefore
7
Pioneer Emerging Markets Fund
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/08 (continued)
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encourage investors to remain focused on the fundamental investment case
for the emerging markets, even if stocks remain choppy in the months ahead.
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.
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 the 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.
8
Pioneer Emerging Markets Fund
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PORTFOLIO SUMMARY 5/31/08
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Sector Distribution
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(As a percentage of equity holdings)
[The following is represented by a pie chart in the printed material.]
Energy 20.4%
Industrials 19.5%
Materials 18.4%
Financials 16.0%
Consumer Discretionary 11.7%
Telecommunication Services 7.7%
Consumer Staples 3.9%
Information Technology 2.4%
Geographical Distribution
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(As a percentage of equity holdings)
Brazil 18.6%
Russia 13.8%
China 13.6%
South Africa 9.0%
South Korea 8.6%
India 6.5%
Taiwan 5.5%
Indonesia 4.5%
Mexico 3.0%
United States 2.1%
United Kingdom 1.8%
Hong Kong 1.8%
Philippines 1.6%
Peru 1.6%
Singapore 1.6%
Israel 1.4%
Egypt 1.1%
Argentina 1.1%
Sweden 0.9%
Malaysia 0.8%
Canada 0.7%
Turkey 0.4%
10 Largest Holdings
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(As a percentage of equity holdings)*
1. Petrobras Brasileiro SA (A.D.R.) 5.04%
2. Gazprom (A.D.R.) 4.40
3. Companhia Vale do Rio Doce (A.D.R.) 3.78
4. America Movil SA de CV (A.D.R.) 2.05
5. New World Resources BV 1.85
6. Chinatrust Financial Holding Co., Ltd. 1.62
7. China Shipping Development Co., Ltd. 1.60
8. Yanzhou Coal Mining Co., Ltd. 1.59
9. PT Bumi Resources Tbk 1.59
10. Compania de Minas Buenaventura SAA 1.58
* 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.
9
Pioneer Emerging Markets Fund
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PRICES AND DISTRIBUTIONS
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Net Asset Value Per Share
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Class 5/31/08 11/30/07
- ------- ------- --------
A $37.89 $38.29
B $33.34 $33.84
C $33.30 $33.78
R $36.87 $37.32
Y $40.76 $41.10
Distributions Per Share
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12/1/07 - 5/31/08
-------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $ - $ - $ -
B $ - $ - $ -
C $ - $ - $ -
R $ - $ - $ -
Y $ - $ - $ -
10
Pioneer Emerging Markets Fund
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PERFORMANCE UPDATE 5/31/08 CLASS A SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) Emerging
Markets Index.
Average Annual Total Returns
(As of May 31, 2008)
Net Public
Asset Offering
Period Value (NAV) Price (POP)
10 Years 14.44% 13.76%
5 Years 34.07 32.49
1 Year 19.00 12.16
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Expense Ratio
(Per prospectus dated April 1, 2008)
Gross Net
1.79% 1.79%
[The following is represented by a mountain chart in the printed material.]
Value of $10,000 Investment
Pioneer Emerging MSCI Emerging
Markets Fund Markets Index
---------------- -------------
5/98 $ 9,425 $10,000
$ 8,164 $10,346
5/00 $11,362 $12,183
$ 8,021 $ 9,551
5/02 $ 8,666 $10,246
$ 8,381 $ 9,590
5/04 $11,216 $13,561
$14,346 $17,647
5/06 $21,270 $24,863
$30,505 $34,458
5/08 $36,299 $42,039
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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 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 MSCI Emerging Markets Index measures the performance of emerging market
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any sales charges, fees or expenses.
You cannot invest directly in an Index.
11
Pioneer Emerging Markets Fund
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PERFORMANCE UPDATE 5/31/08 CLASS B SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Emerging Markets Index.
Average Annual Total Returns
(As of May 31, 2008)
If If
Period Held Redeemed
10 Years 13.52% 13.52%
5 Years 33.00 33.00
1 Year 17.99 13.99
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Expense Ratio
(Per prospectus dated April 1, 2008)
Gross Net
2.65% 2.65%
[The following is represented by a mountain chart in the printed material.]
Value of $10,000 Investment
Pioneer Emerging MSCI Emerging
Markets Fund Markets Index
---------------- -------------
5/98 $10,000 $10,000
$ 8,589 $10,346
5/00 $11,857 $12,183
$ 8,295 $ 9,551
5/02 $ 8,901 $10,246
$ 8,540 $ 9,590
5/04 $11,357 $13,561
$14,411 $17,647
5/06 $21,177 $24,863
$30,119 $34,458
5/08 $35,538 $42,039
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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). Effective December 1, 2004, the period during which a CDSC is applied
to withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus
for details. Note: Shares purchased prior to December 1, 2004 remain subject to
the CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI Emerging Markets Index measures the performance of emerging market
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any sales charges, fees or expenses.
You cannot invest directly in an Index.
12
Pioneer Emerging Markets Fund
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PERFORMANCE UPDATE 5/31/08 CLASS C SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Emerging Markets Index.
Average Annual Total Returns
(As of May 31, 2008)
If If
Period Held Redeemed
10 Years 13.53% 13.53%
5 Years 33.10 33.10
1 Year 18.10 18.10
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Expense Ratio
(Per prospectus dated April 1, 2008)
Gross Net
2.57% 2.57%
[The following is represented by a mountain chart in the printed material.]
Value of $10,000 Investment
Pioneer Emerging MSCI Emerging
Markets Fund Markets Index
---------------- -------------
5/98 $10,000 $10,000
$ 8,539 $10,346
5/00 $11,760 $12,183
$ 8,252 $ 9,551
5/02 $ 8,859 $10,246
$ 8,515 $ 9,590
5/04 $11,309 $13,561
$14,374 $17,647
5/06 $21,163 $24,863
$30,121 $34,458
5/08 $35,571 $42,039
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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). The performance of Class C shares does not
reflect the 1% front-end sales charge in effect prior to February 1, 2004. If
you paid a 1% sales charge, your returns would be lower than those shown above.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI Emerging Markets Index measures the performance of emerging market
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any sales charges, fees or expenses.
You cannot invest directly in an Index.
13
Pioneer Emerging Markets Fund
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PERFORMANCE UPDATE 5/31/08 CLASS R SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Emerging Markets Index.
Average Annual Total Returns
(As of May 31, 2008)
If If
Period Held Redeemed
10 Years 14.04% 14.04%
5 Years 33.79 33.79
1 Year 18.65 18.65
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2008)
Gross Net
2.06% 2.06%
[The following is represented by a mountain chart in the printed material.]
Value of $10,000 Investment
Pioneer Emerging MSCI Emerging
Markets Fund Markets Index
---------------- -------------
5/98 $10,000 $10,000
$ 8,619 $10,346
5/00 $11,936 $12,183
$ 8,384 $ 9,551
5/02 $ 9,012 $10,246
$ 8,679 $ 9,590
5/04 $11,658 $13,561
$14,826 $17,647
5/06 $21,912 $24,863
$31,358 $34,458
5/08 $37,205 $42,039
- -------------------------------
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.
The performance of Class R shares for the period prior to the commencement of
operations of Class R shares on April 1, 2003 is based on the performance of
the Fund's Class A shares, reduced to reflect the higher distribution and
service fees of Class R shares. For the period after April 1, 2003, the actual
performance of Class R shares is reflected. The performance of Class R shares
does not reflect the 1% CDSC that was in effect prior to July 1, 2004. Class R
shares are not subject to sales charges and are available for limited groups of
eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI Emerging Markets Index measures the performance of emerging market
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any sales charges, fees or expenses.
You cannot invest directly in an Index.
14
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 5/31/08 CLASS Y SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Emerging Markets Index.
Average Annual Total Returns
(As of May 31, 2008)
If If
Period Held Redeemed
10 Years 15.30% 15.30%
5 Years 34.96 34.96
1 Year 19.53 19.53
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Expense Ratio
(Per prospectus dated April 1, 2008)
Gross Net
1.32% 1.32%
[The following is represented by a mountain chart in the printed material.]
Value of $10,000 Investment
Pioneer Emerging MSCI Emerging
Markets Fund Markets Index
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5/98 $10,000 $10,000
$ 8,736 $10,346
5/00 $12,235 $12,183
$ 8,689 $ 9,551
5/02 $ 9,490 $10,246
$ 9,276 $ 9,590
5/04 $12,533 $13,561
$16,150 $17,647
5/06 $24,096 $24,863
$34,742 $34,458
5/08 $41,528 $42,039
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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.
Performance for periods prior to the inception of Class Y shares reflects the
NAV performance of the Fund's Class A shares. The performance does not reflect
differences in expenses, including the Rule 12b-1 fees applicable to Class A
shares. Since fees for Class A shares are generally higher than those of Class
Y shares, the performance shown for Class Y shares prior to their inception on
April 9, 1998 would have been higher. Class Y shares are not subject to sales
charges and are available for limited groups of eligible investors, including
institutional investors. All results are historical and assume the reinvestment
of dividends, and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI Emerging Markets Index measures the performance of emerging market
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any sales charges, fees or expenses.
You cannot invest directly in an Index.
15
Pioneer Emerging Markets Fund
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COMPARING ONGOING FUND EXPENSES
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As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Emerging Markets Fund
Based on actual returns from December 1, 2007 through May 31, 2008.
Share Class A B C R Y
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Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 12/1/07
Ending Account Value $ 989.50 $ 985.20 $ 985.80 $ 987.90 $ 991.70
On 5/31/08
Expenses Paid $ 8.90 $ 13.20 $ 12.71 $ 10.39 $ 6.67
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.79%, 2.65%,
2.56%, 2.09%, and 1.34% for Class A, Class B, Class C, Class R and Class Y
shares, respectively, multiplied by the average account value over the
period, multiplied by 183/366 (to reflect the one-half year period).
16
Pioneer Emerging Markets Fund
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Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads), that are charged at the time of the transaction. Therefore,
the table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Emerging Markets Fund
Based on a hypothetical 5% return per year before expenses, reflect
ing the period from December 1, 2007 through May 31, 2008.
Share Class A B C R Y
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Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 12/1/07
Ending Account Value $1,016.05 $1,011.70 $1,012.70 $1,014.55 $1,018.30
On 5/31/08
Expenses Paid $ 9.02 $ 13.38 $ 12.88 $ 10.53 $ 6.76
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.79%, 2.65%,
2.56%, 2.09%, and 1.34% for Class A, Class B, Class C, Class R and Class Y
shares, respectively, multiplied by the average account value over the
period, multiplied by 183/366 (to reflect the one-half year period).
17
Pioneer Emerging Markets Fund
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SCHEDULE OF INVESTMENTS 5/31/08 (unaudited)
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Shares Value
PREFERRED STOCKS - 2.6%
Media - 1.5%
Broadcasting & Cable TV - 1.5%
865,526 Net Servicos de Comunicacao SA* $ 12,357,064
------------
Total Media $ 12,357,064
------------
Banks - 1.1%
Diversified Banks - 1.1%
303,160 Banco Itau Holding Financeira SA $ 9,307,952
------------
Total Banks $ 9,307,952
------------
TOTAL PREFERRED STOCKS
(Cost $8,812,215) $ 21,665,016
------------
COMMON STOCKS - 94.2%
Energy - 19.6%
Coal & Consumable Fuels - 4.2%
14,912,600 Bumi Resources Tbk Pt $ 12,884,597
2,420,000 Indo Tambangraya Megah Pt 9,091,333
5,898,900 Yanzhou Coal Mining Co., Ltd.* 12,896,156
------------
$ 34,872,086
------------
Integrated Oil & Gas - 11.2%
7,546,500 China Petroleum & Chemical Corp. $ 7,598,567
589,300 Gazprom (A.D.R.)* 35,593,720
675,600 Petrobras Brasileiro SA (A.D.R.)* 40,833,264
148,700 Sasol, Ltd. (A.D.R.) 9,353,230
------------
$ 93,378,781
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Oil & Gas Equipment And Services - 2.0%
140,100 Tenaris SA (A.D.R.) (c) $ 8,588,130
212,100 TMK (G.D.R.) (144A)*(c) 8,593,297
------------
$ 17,181,427
------------
Oil & Gas Exploration & Production - 0.9%
4,257,100 CNOOC, Ltd. $ 7,529,561
------------
Oil & Gas Refining & Marketing - 1.3%
99,200 Reliance Industries, Ltd. (G.D.R.) (144A)* $ 11,251,859
------------
Total Energy $164,213,714
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18 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
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Shares Value
Materials - 17.8%
Construction Materials - 2.3%
382,200 Associated Cement Companies, Ltd. $ 5,984,679
1,333,044 Pretoria Portland Cement Co. 6,210,275
10,119,000 PT Indocement Tunggal Prakarsa Tbk 6,679,993
------------
$ 18,874,947
------------
Diversified Metals & Mining - 7.4%
930,492 Companhia Vale do Rio Doce (A.D.R.) $ 30,641,102
78,100 Freeport-McMoRan Copper & Gold, Inc. (Class B) 9,036,951
431,300 New World Resources BV* 14,947,579
260,000 Norilsk Nickel (c) 7,646,600
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$ 62,272,232
------------
Fertilizers & Agricultural Chemicals - 1.9%
129,100 Israel Chemicals, Ltd.* $ 3,026,105
1,054,700 Uralkali* 12,764,065
------------
$ 15,790,170
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Gold - 1.6%
1,004,600 IAMGOLD Corp. $ 5,937,186
7,881,375 Zijin Mining Group Co., Ltd.* 7,477,785
------------
$ 13,414,971
------------
Precious Metals & Minerals - 3.6%
54,700 Anglo American Platinum Corp., Ltd. $ 9,513,042
195,000 Compania de Minas Buenaventura SA* 12,831,000
180,200 Impala Platinum Holdings, Ltd.* 7,684,520
------------
$ 30,028,562
------------
Steel - 1.0%
197,500 Kumba Iron Ore, Ltd. $ 8,823,666
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Total Materials $149,204,548
------------
Capital Goods - 15.4%
Aerospace & Defense - 1.0%
138,500 Elbit Systems, Ltd. $ 8,640,058
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Construction & Engineering - 8.1%
941,986 Aveng, Ltd. $ 8,076,665
5,288,800 China Communications Construction Co., Ltd. 11,658,874
5,114,000 China Railways Construction Corp.*(c) 9,178,551
The accompanying notes are an integral part of these financial statements. 19
Pioneer Emerging Markets Fund
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SCHEDULE OF INVESTMENTS 5/31/08 (unaudited) (continued)
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Shares Value
Construction & Engineering - (continued)
1,157,384 Empressa ICA Sociedad Controladora SA de CV* $ 7,770,763
59,800 GS Engineering & Construction Corp.* 7,531,340
155,000 Kyeryong Construction Industrial Co., Ltd.* 5,510,578
122,500 Larsen & Toubro, Ltd.* 8,653,855
122,100 Orascom Construction Industries 9,003,545
------------
$ 67,384,171
------------
Construction & Farm Machinery & Heavy Trucks - 3.2%
199,020 Daewoo Heavy Industries & Machinery, Ltd.* $ 9,058,241
23,970 Hyundai Heavy Industries Co., Ltd.* 8,741,794
212,500 Samsung Heavy Industries Co., Ltd.* 8,855,458
------------
$ 26,655,493
------------
Heavy Electrical Equipment - 0.7%
142,400 Bharat Heavy Electricals, Ltd.* $ 5,647,053
------------
Industrial Conglomerates - 2.4%
1,407,900 Kepple Corp., Ltd. $ 12,608,425
649,600 Murray & Roberts Holdings, Ltd. 7,513,161
------------
$ 20,121,586
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Total Capital Goods $128,448,361
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Transportation - 3.5%
Marine - 1.5%
3,799,600 China Shipping Development Co., Ltd.* $ 12,934,844
------------
Railroads - 2.0%
588,100 All America Latina Logistica SA* $ 8,634,615
8,582,000 China Railway Group, Ltd.*(c) 7,820,651
------------
$ 16,455,266
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Total Transportation $ 29,390,110
------------
Automobiles & Components - 1.0%
Automobile Manufacturers - 1.0%
3,582,200 PT Astra International Tbk* $ 8,074,343
------------
Total Automobiles & Components $ 8,074,343
------------
Consumer Durables & Apparel - 2.7%
Apparel, Accessories & Luxury Goods - 0.9%
7,300,400 Anta Sports Products, Ltd.* $ 7,729,534
------------
20 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
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Shares Value
Homebuilding - 0.9%
474,960 Cyrela Brazil Realty SA* $ 7,915,514
------------
Housewares & Specialties - 0.9%
248,490 Woongjin Coway Co., Ltd.* $ 7,316,092
------------
Total Consumer Durables & Apparel $ 22,961,140
------------
Consumer Services - 0.9%
Hotels, Resorts & Cruise Lines - 0.9%
2,805,600 Indian Hotels Co., Ltd. $ 7,329,354
------------
Total Consumer Services $ 7,329,354
------------
Media - 2.0%
Advertising - 1.1%
236,900 Focus Media Holding, Ltd.*(c) $ 9,544,701
------------
Movies & Entertainment - 0.9%
273,300 CTC Media, Inc.* $ 7,564,944
------------
Total Media $ 17,109,645
------------
Retailing - 3.3%
Department Stores - 3.3%
505,200 Lojas Renner SA* $ 12,474,112
7,512,900 New World Department Store China, Ltd.* 7,651,728
835,500 Parkson Retail Group, Ltd. (c) 7,183,537
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$ 27,309,377
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Total Retailing $ 27,309,377
------------
Food & Drug Retailing - 1.0%
Food Distributors - 1.0%
219,000 X-5 Retail Group NV (G.D.R.)* $ 8,102,773
------------
Total Food & Drug Retailing $ 8,102,773
------------
Food Beverage & Tobacco - 1.0%
Packaged Foods & Meats - 1.0%
66,100 Wimm-Bill-Dann* $ 8,267,788
------------
Total Food Beverage & Tobacco $ 8,267,788
------------
Household & Personal Products - 1.8%
Household Products - 1.0%
39,100 LG Household & Health Care, Ltd.* $ 8,213,567
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The accompanying notes are an integral part of these financial statements. 21
Pioneer Emerging Markets Fund
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SCHEDULE OF INVESTMENTS 5/31/08 (unaudited) (continued)
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Shares Value
Personal Products - 0.8%
101,100 Oriflame Cosmetics SA (S.D.R.) $ 7,191,498
------------
Total Household & Personal Products $ 15,405,065
------------
Banks - 9.8%
Diversified Banks - 9.8%
366,912 Banco Bradesco SA (c) $ 8,809,557
526,600 Banco do Brasil SA 10,528,766
2,233,200 Bumiputra-Commerce Holdings Berhad 6,559,173
8,876,100 China Construction Bank Corp. 7,910,887
12,885,500 Chinatrust Financial Holding Co., Ltd.* 13,102,856
171,267 Hana Financial Holdings Co.* 7,162,150
10,490,000 Industrial and Commercial Bank of China, Ltd. 7,854,387
2,147,500 Sberbank RF* 7,770,351
1,868,400 Turkiye Vakiflar Bankasi 3,222,247
58,339 Uniao de Bancos Brasileiros SA (Unibanco)
(G.D.R.) (144A) 9,151,639
------------
$ 82,072,013
------------
Total Banks $ 82,072,013
------------
Diversified Financials - 0.9%
Other Diversified Finance Services - 0.8%
2,258,400 African Bank Investments, Ltd. $ 7,270,154
------------
Total Diversified Financials $ 7,270,154
------------
Insurance - 2.2%
Life & Health Insurance - 1.4%
448,856 Cathay Financial Holding Co., Ltd., (144A) (G.D.R.) $ 11,490,714
------------
Property & Casualty Insurance - 0.8%
176,830 Dongbu Insurance Co., Ltd.* $ 7,248,611
------------
Total Insurance $ 18,739,325
------------
Real Estate - 1.4%
Real Estate Management & Development - 1.4%
20,972,420 Ayala Land, Inc. $ 5,183,311
953,800 Sistema Hals (G.D.R.) (144A)* 6,867,360
------------
$ 12,050,671
------------
Total Real Estate $ 12,050,671
------------
22 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
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Shares Value
Technology Hardware & Equipment - 0.9%
Electronic Manufacturing Services - 0.9%
1,270,289 Hon Hai Precision Industry Co., Ltd. $ 7,186,212
------------
Total Technology Hardware & Equipment $ 7,186,212
------------
Semiconductors - 1.5%
Semiconductors - 1.5%
1,079,597 Taiwan Semiconductor Manufacturing Co.
(A.D.R.) (c) $ 12,361,386
------------
Total Semiconductors $ 12,361,386
------------
Telecommunication Services - 7.5%
Integrated Telecommunication Services - 0.9%
218,400 Vimpel-Communications (A.D.R.) (c) $ 7,702,968
------------
Wireless Telecommunication Services - 6.6%
277,800 America Movil SA de CV (A.D.R.) Series L $ 16,604,106
341,200 Bharti Tele-ventures, Ltd.* 7,087,963
92,300 Mobile Telesystems, Inc. (A.D.R.)* 8,085,480
408,400 MTN Group, Ltd. 8,163,549
131,900 Philippine Long Distance Telephone Co. 7,930,556
510,700 Reliance Communications, Ltd. 7,051,284
------------
$ 54,922,938
------------
Total Telecommunication Services $ 62,625,906
------------
TOTAL COMMON STOCKS
(Cost $273,521,082) $788,121,885
------------
Principal
Amount
TEMPORARY CASH INVESTMENTS - 7.5%
Repurchase Agreement - 2.7%
$4,535,000 Bank of America, 2.25%, dated 5/30/08,
repurchase price of $4,535,000 plus accrued
interest on 6/3/08 collateralized by the following:
$200,221 Federal National Mortgage Associa-
tion, 5.0%, 7/1/35
$6,292,133 Government National Mortgage
Association II, 6.0%, 5/20/38 $ $4,535,000
The accompanying notes are an integral part of these financial statements. 23
Pioneer Emerging Markets Fund
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SCHEDULE OF INVESTMENTS 5/31/08 (unaudited) (continued)
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Principal
Amount Value
Repurchase Agreement - (continued)
$4,535,000 Barclays Plc, 2.25%, dated 5/30/08, repurchase
price of $4,535,000 plus accrued interest on
6/3/08 collateralized by the following:
$1,858,607 Freddie Mac Giant, 5.5 - 6.0%,
1/1/35 - 2/1/38
$928,139 Federal National Mortgage Associa-
tion (ARM), 5.519%, 3/1/36
$2,703,902 Federal National Mortgage Associa-
tion, 4.5 - 5.5%, 12/1/37 - 4/1/38 $ 4,535,000
4,535,000 Deutsche Bank, 2.35%, dated 5/30/08,
repurchase price of $4,535,000 plus accrued
interest on 6/2/08 collateralized by the following:
$415,797 Federal National Mortgage Associa-
tion (ARM), 4.778 - 5.565%,
6/1/16 - 5/1/37
$3,897,587 Freddie Mac Giant, 5.0 - 6.5%,
4/1/19 - 6/1/38
$1,995,414 U.S Treasury Strip, 0.0%, 8/15/25 4,535,000
4,535,000 JP Morgan, 2.32%, dated 5/30/08, repurchase
price of $4,535,000 plus accrued interest on
6/2/08 collateralized by $7,051,361 Federal
National Mortgage Association, 4.5 - 6.0%,
4/1/23 - 5/1/36 4,535,000
4,535,000 Merrill Lynch, 2.32%, dated 5/30/08, repurchase
price of $4,535,000 plus accrued interest on
6/2/08 collateralized by $4,597,746 Freddie Mac
Giant, 5.5 - 6.0%, 5/1/38 4,535,000
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$ 22,675,000
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Total Repurchase Agreement $ 22,675,000
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Commercial Paper - 4.7%
Securities Lending Collateral - 4.8% (d)
Certificates of Deposits:
847,448 American Express, 2.72%, 8/8/08 $ 847,448
228,434 Banco Santander NY, 2.80%, 10/7/08 228,434
635,069 Banco Santander NY, 3.09%, 12/22/08 635,069
951,494 Bank Bovespa NY, 2.705%, 8/8/08 951,494
24 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
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Principal
Amount Value
Securities Lending Collateral - (continued)
$ 634,317 Bank of America, 2.80%, 8/22/08 $ 634,317
634,082 Bank of Nova Scotia, 3.18%, 5/05/09 634,082
380,590 Bank of Scotland NY, 2.7%, 8/1/08 380,590
317,159 Bank of Scotland NY, 2.72%, 8/15/08 317,159
317,159 Bank of Scotland NY, 2.73%, 7/11/08 317,159
228,036 Bank of Scotland NY, 2.89%, 11/4/08 228,036
380,924 Bank of Scotland NY, 2.96%, 11/3/08 380,924
316,874 Bank of Scotland NY, 3.03%, 9/26/08 316,874
1,141,771 Barclay's Bank, 3.18%, 5/27/09 1,141,771
634,317 BNP Paribas NY, 2.88%, 7/23/08 634,317
380,599 Calyon NY, 2.85%, 8/25/08 380,599
532,826 Calyon NY, 2.64%, 9/29/08 532,826
201,103 Calyon NY, 2.69%, 01/16/09 201,103
634,317 Citibank, 2.85%, 7/29/08 634,317
526,483 Commonwealth Bank of Australia NY,
2.63%, 7/11/08 526,483
532,826 Deutsche Bank Financial, 2.72%, 7/30/08 532,826
253,771 Deutsche Bank Financial, 2.72%, 8/4/08 253,771
126,851 Dexia Bank NY, 2.65%, 08/12/08 126,851
520,145 Dexia Bank NY, 2.69%, 8/7/08 520,145
469,793 Dexia Bank NY, 3.37%, 09/29/08 469,793
54,466 Fortis, 3.11%, 09/30/08 54,466
126,828 Fortis, 3.14%, 06/30/08 126,828
1,162,069 Intesa SanPaolo S.p.A., 2.72%, 5/22/09 1,162,069
211,866 Lloyds Bank, 2.58%, 6/9/08 211,866
553,125 Lloyds Bank, 2.61%, 7/11/08 553,125
317,159 Lloyds Bank, 2.61%, 8/18/08 317,159
431,336 Natixis, 2.83%, 8/4/08 431,336
73,262 NORDEA NY, 2.72%, 4/9/09 73,262
60,769 NORDEA NY, 2.73%, 12/01/08 60,769
634,317 NORDEA NY, 2.81%, 8/29/08 634,317
101,457 Rabobank Nederland NY, 2.37%, 8/29/08 101,457
634,330 Rabobank Nederland NY, 2.58%, 6/9/08 634,330
317,159 Royal Bank of Canada NY, 2.57%, 7/15/08 317,159
244,850 Skandinavian Enskilda Bank NY, 2.70%, 7/17/08 244,850
The accompanying notes are an integral part of these financial statements. 25
Pioneer Emerging Markets Fund
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SCHEDULE OF INVESTMENTS 5/31/08 (unaudited) (continued)
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Principal
Amount Value
Securities Lending Collateral - (continued)
$ 126,511 Skandinavian Enskilda Bank NY, 3.06%,
02/13/09 $ 126,511
73,504 Skandinavian Enskilda Bank NY, 3.18%, 09/22/08 73,504
526,483 Svenska Bank NY, 2.55%, 7/11/08 526,483
253,730 Svenska Bank NY, 2.70%, 7/17/08 253,730
799,240 Toronto Dominion Bank NY, 2.77%, 9/5/08 799,240
583,572 Wachovia Bank, 2.82%, 6/9/08 583,572
126,515 Wachovia, 3.62%, 10/28/08 126,515
-----------
$19,238,936
-----------
Commercial Paper:
252,418 Bank of America, 2.88%, 8/11/08 $ 252,418
194,523 Bank of America, 2.70%, 8/26/08 194,523
189,712 CBA, 2.70%, 7/11/08 189,712
504,547 CBA, 2.88%, 8/18/08 504,547
126,516 Deutsche Bank Financial, 2.72%, 7/9/08 126,516
101,376 Deutsche Bank Financial, 2.88%, 6/16/08 101,376
152,056 HSBC, 2.67%, 6/16/08 152,056
126,779 HSBC, 2.72%, 6/9/08 126,779
628,795 HSBC, 2.88%, 9/29/08 628,795
126,348 HSBC, 2.89% 7/21/08 126,348
234,557 IBM, 3.18%, 2/13/09 234,557
634,317 IBM, 3.18%, 6/26/09 634,317
504,747 ING, 2.70%, 8/13/08 504,747
126,809 Lloyds Bank, 2.88%, 6/6/08 126,809
781,745 Macquarie Bank, 2.87%, 6/26/08 781,745
126,773 Macquarie Bank, 2.87%, 6/9/08 126,773
189,693 Natixis, 2.87%, 7/10/08 189,693
189,481 Natixis, 2.87%, 7/21/08 189,481
126,778 PARFIN, 2.70%, 6/9/08 126,778
155,978 PARFIN, 3.18%, 8/1/08 155,978
126,772 RAB USA, 2.61%, 6/10/08 126,772
250,744 Royal Bank of Scotland, 2.66%, 10/21/08 250,744
121,681 Royal Bank of Scotland, 3.00%, 6/12/08 121,681
315,620 Societe Generale, 2.93%, 7/30/08 315,620
126,530 Societe Generale, 2.98%, 7/2/08 126,530
252,373 Societe Generale, 3.18%, 8/5/08 252,373
26 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
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Principal
Amount Value
Securities Lending Collateral - (continued)
$ 504,389 Societe Generale, 3.18%, 8/22/08 $ 504,389
252,415 SVSS NY, 3.18%, 8/11/08 252,415
568,632 Unicredit Group, 2.89%, 7/17/08 568,632
1,078,339 WestPac, 3.18%, 6/1/09 1,078,339
------------
$ 9,071,443
------------
Mutual Funds:
761,181 BlackRock Liquidity Money Market Fund, 3.18% $ 761,181
761,181 Dreyfus Preferred Money Market Fund, 3.18% 761,181
------------
$ 1,522,362
------------
Tri-party Repurchase Agreements:
2,537,269 ABN Amro, 2.2%, 6/2/08 $ 2,537,269
376,188 Barclay's Bank, 2.2% 6/2/08 376,188
1,268,635 Deutsche Bank, 2.3% 6/2/08 1,268,635
3,171,586 Lehman Brothers, 2.2% 6/2/08 3,171,586
2,537,269 Merrill Lynch, 2.2% 5/1/08 2,537,269
------------
$ 9,890,947
------------
Other:
378,716 ABS CFAT 2008-A A1, 2.88%, 12/22/08 $ 378,716
------------
Total Securities Lending Collateral $ 40,102,404
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $62,777,404) $ 62,777,404
------------
TOTAL INVESTMENT IN SECURITIES - 104.3%
(Cost $641,784,201) (b) $872,564,305
------------
OTHER ASSETS AND LIABILITIES - (4.3)% $(35,897,543)
------------
TOTAL NET ASSETS - 100.0% $836,666,762
------------
The accompanying notes are an integral part of these financial statements. 27
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/08 (unaudited) (continued)
- --------------------------------------------------------------------------------
* Non-income producing security.
(A.D.R.) American Depositary Receipt.
(G.D.R.) Global Depositary Receipt.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
May 31, 2008, the value of these securities amounted to $47,354,869 or
5.7% of total net assets.
FAS 157 Footnote Disclosures
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 - quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions
in determining fair value of investments)
The following is a summary of the inputs used as of May 31, 2008, in valuing
the Fund's assets:
Investments Other Financial
Valuation Inputs in Securities Instruments*
- ------------------------------------------------------------------------------------
Level 1 - Quoted Prices $281,948,819
Level 2 - Other Significant Observable Inputs 590,586,022 4,656,478
Level 3 - Significant Unobservable Inputs -
------------
Total $872,534,841 4,656,478
------------- ---------
28 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(a) Distributions of investment by country of issue, as a percentage of total
investment in securities (excluding temporary cash investments), is as
follows:
Brazil 18.6%
Russia 13.8
People's Republic of China 13.6
South Africa 9.0
South Korea 8.6
India 6.5
Taiwan 5.5
Indonesia 4.5
Mexico 3.0
United States 2.1
United Kingdom 1.8
Hong Kong 1.8
Philippines 1.6
Singapore 1.6
Peru 1.6
Israel 1.4
Argentina 1.1
Egypt 1.1
Sweden 0.9
Malaysia 0.8
Canada 0.7
----
Turkey 0.4%
====
(b) At May 31, 2008, the net unrealized gain on investments based on cost for
federal income tax purposes of $641,784,201 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $253,336,163
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (22,556,059)
------------
Net unrealized gain $230,780,104
============
(c) At May 31, 2008, the following securities were out on loan:
Shares Description Value
3,627,600 China Railway Group, Ltd.* $ 3,818,572
234,430 Focus Media Holding, Ltd.* 8,952,882
257,000 Norilsk Nickel 7,453,000
415,000 Parkson Retail Group, Ltd. 3,563,075
1,000,000 Taiwan Semiconductor Manufacturing Co. (A.D.R.) 11,550,000
100 Tenaris SA (A.D.R.) 6,037
100,000 TMK (G.D.R.) (144A)* 3,220,000
-----------
Total $38,563,566
===========
Purchases and sales of securities (excluding temporary cash investments) for
the year ended May 31, 2008 aggregated $276,365,768 and $198,176,387,
respectively.
(d) Securities Lending Collateral managed by Credit Suisse.
The accompanying notes are an integral part of these financial statements. 29
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 5/31/08 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (including securities loaned of
$38,563,566) (cost $641,784,201) $872,564,305
Cash 1,036,228
Foreign currencies, at value (cost $2,829,636) 2,848,960
Receivables -
Investment securities sold 8,680,141
Fund shares sold 2,166,397
Dividends, interest and foreign taxes withheld 1,132,444
Forward foreign currency portfolio hedge contracts,open - net 8,091
Other 106,575
------------
Total assets $888,543,141
------------
LIABILITIES:
Payables -
Investment securities purchased $ 10,123,650
Fund shares repurchased 1,211,681
Upon return of securities loaned 40,102,404
Due to affiliates 230,564
Accrued expenses 208,090
------------
Total liabilities $ 51,876,389
------------
NET ASSETS:
Paid-in capital $567,915,337
Undistributed net investment income 4,615,557
Accumulated net realized gain on investments, foreign currency
transactions 33,418,638
Net unrealized gain on investments 230,780,104
Net unrealized loss on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (62,874)
------------
Total net assets $836,666,762
------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $555,513,073/14,661,493 shares) $ 37.89
============
Class B (based on $55,749,648/1,672,357 shares) $ 33.34
============
Class C (based on $102,627,842/3,081,976 shares) $ 33.30
============
Class R (based on $50,091,308/1,358,753 shares) $ 36.87
============
Class Y (based on $72,684,891/1,783,383 shares) $ 40.76
============
MAXIMUM OFFERING PRICE:
Class A ($37.89 [divided by] 94.25%) $ 40.20
============
30 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 5/31/08
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $665,898) $ 11,655,203
Interest 200,101
Income from securities loaned, net 84,587
-------------
Total investment income $ 11,939,891
-------------
EXPENSES:
Management fees $ 4,368,290
Transfer agent fees and expenses
Class A 536,488
Class B 94,006
Class C 109,792
Class R 45,452
Class Y 2,047
Distribution fees
Class A 612,016
Class B 282,671
Class C 481,938
Class R 92,451
Administrative fees 85,467
Custodian fees 388,784
Registration fees 64,744
Professional fees 66,082
Printing expense 27,280
Fees and expenses of nonaffiliated trustees 7,249
Miscellaneous 61,900
-------------
Total expenses $ 7,326,657
Less fees paid indirectly (15,590)
-------------
Net expenses $ 7,311,067
-------------
Net investment income $ 4,628,824
-------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 27,958,803
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (1,299,849) $ 26,658,954
------------- -------------
Change in net unrealized loss on:
Investments $ (38,932,291)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (71,293) $ (39,003,584)
------------- -------------
Net loss on investments and foreign currency
transactions $ (12,344,630)
-------------
Net decrease in net assets resulting from operations $ (7,715,806)
=============
The accompanying notes are an integral part of these financial statements. 31
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 5/31/08 and the Year Ended 11/30/07
Six Months
Ended
5/31/08 Year Ended
(unaudited) 11/30/07
FROM OPERATIONS:
Net investment income $ 4,628,824 $ 199,382
Net realized gain on investments and foreign currency
transactions 26,658,954 73,354,281
Change in net unrealized gain (loss) on investments
and foreign currency transactions (39,003,584) 129,963,824
-------------- --------------
Net increase (decrease) in net assets resulting
from operations $ (7,715,806) $ 203,517,487
-------------- --------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.00 and $0.07 per share, respectively) $ - $ (589,401)
Class R ($0.00 and $0.14 per share, respectively) - (6,686)
Class Y ($0.00 and $0.21 per share, respectively) - (326,752)
Net realized gain:
Class A ($0.00 and $4.15 per share, respectively) - (48,502,189)
Class B ($0.00 and $4.15 per share, respectively) - (7,062,359)
Class C ($0.00 and $4.15 per share, respectively) - (10,936,321)
Class R ($0.00 and $4.15 per share, respectively) - (2,595,328)
Class Y ($0.00 and $4.15 per share, respectively) - (6,489,003)
-------------- --------------
Total distributions to shareowners $ - $ (76,508,039)
-------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 216,611,174 $ 320,716,872
Reinvestment of distributions - 65,299,165
Cost of shares repurchased (130,950,339) (151,467,361)
-------------- --------------
Net increase in net assets resulting from
fund share transactions $ 85,660,835 $ 234,548,676
-------------- --------------
Net increase in net assets $ 77,945,029 $ 361,558,124
NET ASSETS:
Beginning of period 758,721,733 397,163,609
-------------- --------------
End of period $ 836,666,762 $ 758,721,733
============== ==============
Undistributed (distributions in excess of) net
investment income $ 4,615,557 $ (13,267)
============== ==============
32 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
'08 Shares '08 Amount '07 Shares '07 Amount
(unaudited) (unaudited)
CLASS A
Shares sold 4,163,107 $ 151,229,752 6,148,223 $ 226,935,583
Reinvestment of distributions - - 1,156,767 42,258,432
Less shares repurchased (2,481,284) (87,838,440) (2,587,913) (91,520,848)
---------- ------------- ---------- -------------
Net increase 1,681,823 $ 63,391,312 4,717,077 $ 177,673,167
========== ============= ========== =============
CLASS B
Shares sold 244,839 $ 7,908,366 645,008 $ 21,438,992
Reinvestment of distributions - - 193,529 6,263,342
Less shares repurchased (480,171) (15,088,233) (775,735) (24,046,265)
---------- ------------- ---------- -------------
Net increase (decrease) (235,332) $ (7,179,867) 62,802 $ 3,656,069
========== ============= ========== =============
CLASS C
Shares sold 557,651 $ 17,809,000 1,053,493 $ 34,208,147
Reinvestment of distributions - - 277,734 8,973,733
Less shares repurchased (434,806) (13,638,441) (670,408) (20,868,493)
---------- ------------- ---------- -------------
Net increase 122,845 $ 4,170,559 660,819 $ 22,313,387
========== ============= ========== =============
CLASS R
Shares sold 859,624 $ 30,273,694 677,073 $ 25,369,925
Reinvestment of distributions - - 65,804 2,346,661
Less shares repurchased (206,042) (7,133,125) (77,756) (2,957,149)
---------- ------------- ---------- -------------
Net increase 653,582 $ 23,140,569 665,121 $ 24,759,437
========== ============= ========== =============
CLASS Y
Shares sold 243,587 $ 9,390,362 360,067 $ 12,764,225
Reinvestment of distributions - - 140,307 5,456,997
Less shares repurchased (184,709) (7,252,100) (312,820) (12,074,606)
---------- ------------- ---------- -------------
Net increase 58,878 $ 2,138,262 187,554 $ 6,146,616
========== ============= ========== =============
The accompanying notes are an integral part of these financial statements. 33
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year
5/31/08 Ended
(unaudited) 11/30/07
CLASS A
Net asset value, beginning of period $ 38.29 $ 29.06
-------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.23 $ 0.05
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (0.63) 13.40
-------- --------
Net increase (decrease) from investment operations $ (0.40) $ 13.45
-------- --------
Distributions to shareowners:
Net investment income $ - $ (0.07)
Net realized gain - (4.15)
-------- --------
Total distributions $ - $ (4.22)
-------- --------
Redemption fee $ - $ -
-------- --------
Net increase (decrease) in net asset value $ (0.40) $ 9.23
-------- --------
Net asset value, end of period $ 37.89 $ 38.29
======== ========
Total return* (1.05)% 47.03%
Ratio of net expenses to average net assets+ 1.79%** 1.79%
Ratio of net investment income to average net assets+ 1.35%** 0.17%
Portfolio turnover rate 53%** 45%
Net assets, end of period (in thousands) $555,512 $497,008
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 1.79%** 1.79%
Net investment income 1.35%** 0.17%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 1.79%** 1.78%
Net investment income 1.35%** 0.18%
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
11/30/06 11/30/05 11/30/04 11/30/03
CLASS A
Net asset value, beginning of period $ 23.64 $ 17.88 $ 14.47 $ 10.11
--------- --------- -------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.15 $ 0.19 $ 0.10 $ 0.07
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 8.45 6.22 3.35 4.29
--------- --------- -------- --------
Net increase (decrease) from investment operations $ 8.60 $ 6.41 $ 3.45 $ 4.36
--------- --------- -------- --------
Distributions to shareowners:
Net investment income $ (0.11) $ - $ (0.04) $ -
Net realized gain (3.07) (0.65) - -
--------- --------- -------- --------
Total distributions $ (3.18) $ (0.65) $ (0.04) $ -
--------- --------- -------- --------
Redemption fee $ -(a) $ -(a) $ - $ -
--------- --------- -------- --------
Net increase (decrease) in net asset value $ 5.42 $ 5.76 $ 3.41 $ 4.36
--------- --------- -------- --------
Net asset value, end of period $ 29.06 $ 23.64 $ 17.88 $ 14.47
========= ========= ======== ========
Total return* 36.84% 35.82% 23.86% 43.13%
Ratio of net expenses to average net assets+ 1.90% 2.15% 2.17% 2.65%
Ratio of net investment income to average net assets+ 0.49% 0.87% 0.61% 0.51%
Portfolio turnover rate 42% 69% 69% 88%
Net assets, end of period (in thousands) $240,097 $154,442 $146,503 $121,974
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 1.90% 2.23% 2.24% 2.65%
Net investment income 0.49% 0.79% 0.54% 0.51%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 1.89% 2.15% 2.17% 2.64%
Net investment income 0.50% 0.87% 0.61% 0.52%
(a) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
34 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year Year
5/31/08 Ended Ended
(unaudited) 11/30/07 11/30/06
CLASS B
Net asset value, beginning of period $ 33.84 $ 26.19 $ 21.62
------- ------- -------
Increase (decrease) from investment operations:
Net investment loss $ 0.06 $ (0.19) $ (0.09)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (0.56) 11.99 7.73
------- ------- -------
Net increase from investment operations $ (0.50) $ 11.80 $ 7.64
------- ------- -------
Distributions to shareowners:
Net investment income $ - $ - $ -(a)
Net realized gain - (4.15) (3.07)
------- ------- -------
Total distributions $ - $ (4.15) $ (3.07)
------- ------- -------
Redemption fee $ - $ - $ -(a)
------- ------- -------
Net increase (decrease) in net asset value $ (0.50) $ 7.65 $ 4.57
------- ------- -------
Net asset value, end of period $ 33.34 $ 33.84 $ 26.19
======= ======= =======
Total return* (1.48)% 45.78% 35.72%
Ratio of net expenses to average net assets+ 2.65%** 2.65% 2.74%
Ratio of net investment income (loss) to average net assets+ 0.36%** (0.67)% (0.34)%
Portfolio turnover rate 53%** 45% 42%
Net assets, end of period (in thousands) $55,750 $64,562 $48,312
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.65%** 2.65% 2.74%
Net investment income (loss) 0.36%** (0.67)% (0.34)%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.65%** 2.63% 2.71%
Net investment income (loss) 0.36%** (0.65)% (0.31)%
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year
Ended Ended Ended
11/30/05 11/30/04 11/30/03
CLASS B
Net asset value, beginning of period $ 16.52 $ 13.46 $ 9.47
-------- ------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.00)(a) $ (0.01) $ (0.08)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 5.75 3.07 4.07
-------- ------- -------
Net increase from investment operations $ 5.75 $ 3.06 $ 3.99
-------- ------- -------
Distributions to shareowners:
Net investment income $ - $ - $ -
Net realized gain (0.65) - -
-------- ------- -------
Total distributions $ (0.65) $ - $ -
-------- ------- -------
Redemption fee $ -(a) $ - $ -
-------- ------- -------
Net increase (decrease) in net asset value $ 5.10 $ 3.06 $ 3.99
-------- ------- -------
Net asset value, end of period $ 21.62 $ 16.52 $ 13.46
======== ======= =======
Total return* 34.78% 22.73% 42.13%
Ratio of net expenses to average net assets+ 2.94% 2.89% 3.37%
Ratio of net investment income (loss) to average net assets+ 0.04% (0.10)% (0.26)%
Portfolio turnover rate 69% 69% 88%
Net assets, end of period (in thousands) $ 43,085 $36,352 $38,615
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.96% 2.95% 3.37%
Net investment income (loss) 0.02% (0.16)% (0.26)%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.94% 2.89% 3.37%
Net investment income (loss) 0.04% (0.10)% (0.26)%
(a) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 35
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year
5/31/08 Ended
(unaudited) 11/30/07
CLASS C
Net asset value, beginning of period $ 33.78 $ 26.12
-------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.09 $ (0.16)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (0.57) 11.97
-------- -------
Net increase (decrease) from investment operations $ (0.48) $ 11.81
-------- -------
Distributions to shareowners:
Net investment income $ - $ -
Net realized gain - (4.15)
-------- -------
Total distributions $ - $ (4.15)
-------- -------
Redemption fee $ - $ -
-------- -------
Net increase (decrease) in net asset value $ (0.48) $ 7.66
-------- -------
Net asset value, end of period $ 33.30 $ 33.78
======== =======
Total return* (1.42)% 45.94%
Ratio of net expenses to average net assets+ 2.56%** 2.57%
Ratio of net investment income (loss) to average net assets+ 0.57%** (0.59)%
Portfolio turnover rate 53%** 45%
Net assets, end of period (in thousands) $102,628 $99,966
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.56%** 2.57%
Net investment income (loss) 0.57%** (0.59)%
Ratios with waiver of management fees by PIM and reduction for
fees paid indirectly:
Net expenses 2.56%** 2.56%
Net investment income (loss) 0.57%** (0.58)%
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
11/30/06 11/30/05 11/30/04 11/30/03
CLASS C
Net asset value, beginning of period $ 21.58 $ 16.47 $ 13.39 $ 9.42
------- ------- -------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.06) $ 0.02 $ 0.00(a) $ (0.14)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 7.69 5.74 3.08 4.11
------- ------- -------- -------
Net increase (decrease) from investment operations $ 7.63 $ 5.76 $ 3.08 $ 3.97
------- ------- -------- -------
Distributions to shareowners:
Net investment income $ (0.02) $ - $ - $ -
Net realized gain (3.07) (0.65) - -
------- ------- -------- -------
Total distributions $ (3.09) $ (0.65) $ - $ -
------- ------- -------- -------
Redemption fee $ - $ -(a) $ - $ -
------- ------- -------- -------
Net increase (decrease) in net asset value $ 4.54 $ 5.11 $ 3.08 $ 3.97
------- ------- -------- -------
Net asset value, end of period $ 26.12 $ 21.58 $ 16.47 $ 13.39
------- ------- -------- -------
Total return* 35.75% 34.94% 23.00% 42.14%
Ratio of net expenses to average net assets+ 2.65% 2.80% 2.78% 3.32%
Ratio of net investment income (loss) to average net assets+ (0.27)% 0.15% (0.01)% (0.18)%
Portfolio turnover rate 42% 69% 69% 88%
Net assets, end of period (in thousands) $60,039 $44,468 $ 36,579 $25,632
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.65% 2.82% 2.86% 3.32%
Net investment income (loss) (0.27)% 0.13% (0.08)% (0.18)%
Ratios with waiver of management fees by PIM and reduction for
fees paid indirectly:
Net expenses 2.64% 2.80% 2.78% 3.32%
Net investment income (loss) (0.26)% 0.15% (0.01)% (0.18)%
(a) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
36 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year
5/31/08 Ended
(unaudited) 11/30/07
CLASS R
Net asset value, beginning of period $ 37.32 $ 28.52
------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.18 $ 0.10
Net realized and unrealized gain on investments and foreign
currency transactions (0.63) 12.99
------- -------
Net increase (loss) from investment operations $ (0.45) $ 13.09
------- -------
Distributions to shareowners:
Net investment income $ - $ (0.14)
Net realized gain - (4.15)
------- -------
Total distributions $ - $ (4.29)
------- -------
Redemption fee $ - $ -
------- -------
Net increase (decrease) in net asset value $ (0.45) $ 8.80
------- -------
Net asset value, end of period $ 36.87 $ 37.32
======= =======
Total return* (1.21)% 46.75%
Ratio of net expenses to average net assets+ 2.09%** 2.06%
Ratio of net investment income (loss) to average net assets+ 1.30%** (0.26)%
Portfolio turnover rate 53%** 45%
Net assets, end of period (in thousands) $50,091 $26,316
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.09%** 2.06%
Net investment income (loss) 1.30% (0.26)%
Ratios with waiver of management fees by PIM and reduction for
fees paid indirectly:
Net expenses 2.09%** 2.06%
Net investment income (loss) 1.30%** (0.26)%
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year 4/1/03 (a)
Ended Ended Ended to
11/30/06 11/30/05 11/30/04 11/30/03
CLASS R
Net asset value, beginning of period $ 23.37 $ 17.72 $ 14.51 $ 9.57
------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.10 $ 0.12 $ 0.11 $ 0.02
Net realized and unrealized gain on investments and foreign
currency transactions 8.26 6.18 3.25 4.93
------- ------- ------- -------
Net increase (loss) from investment operations $ 8.36 $ 6.30 $ 3.36 $ 4.95
------- ------- ------- -------
Distributions to shareowners:
Net investment income $ (0.14) $ - $ (0.15) $ (0.01)
Net realized gain (3.07) (0.65) - -
------- ------- ------- -------
Total distributions $ (3.21) $ (0.65) $ (0.15) $ (0.01)
------- ------- ------- -------
Redemption fee $ -(b) $ - $ - $ -
------- ------- ------- -------
Net increase (decrease) in net asset value $ 5.15 $ 6.30 $ 3.21 $ 4.94
------- ------- ------- -------
Net asset value, end of period $ 28.52 $ 23.37 $ 17.72 $ 14.51
======= ======= ======= =======
Total return* 36.30% 35.53% 23.35% 51.74%
Ratio of net expenses to average net assets+ 2.52% 2.37% 2.61% 2.13%**
Ratio of net investment income (loss) to average net assets+ (0.21)% 5.30% 0.13% 0.56%**
Portfolio turnover rate 42% 69% 69% 88%
Net assets, end of period (in thousands) $ 1,142 $ 135 $ 59 $ 2
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.26% 2.58% 2.70% 2.13%**
Net investment income (loss) (0.06)% 0.32% 0.04% 0.56%**
Ratios with waiver of management fees by PIM and reduction for
fees paid indirectly:
Net expenses 2.51% 2.37% 2.61% 2.13%**
Net investment income (loss) (0.45)% 0.53% 0.13% 0.56%**
(a) Class R shares were first publicly offered on April 1, 2003.
(b) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 37
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year
5/31/08 Ended
(unaudited) 11/30/07
CLASS Y
Net asset value, beginning of period $ 41.10 $ 30.95
------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.34 $ 0.25
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (0.68) 14.25
------- -------
Net increase (decrease) from investment operations $ (0.34) $ 14.50
------- -------
Distributions to shareowners:
Net investment income $ - $ (0.20)
Net realized gain - (4.15)
------- -------
Total distributions $ - $ (4.35)
------- -------
Redemption fee $ - $ -
------- -------
Net increase (decrease) in net asset value $ (0.34) $ 10.15
------- -------
Net asset value, end of period $ 40.76 $ 41.10
======= =======
Total return* (0.83)% 47.75%
Ratio of net expenses to average net assets+ 1.34%** 1.32%
Ratio of net investment income to average net assets+ 1.80%** 0.68%
Portfolio turnover rate 53%** 45%
Net assets, end of period (in thousands) $72,685 $70,870
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 1.34%** 1.32%
Net investment income 1.80%** 0.68%
Ratios with waiver of management fees by PIM and reduction for
fees paid indirectly:
Net expenses 1.34%** 1.32%
Net investment income 1.80%** 0.68%
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
11/30/06 11/30/05 11/30/04 11/30/03
CLASS Y
Net asset value, beginning of period $ 25.04 $ 18.78 $ 15.19 $ 10.51
------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.34 $ 0.16 $ 0.28 $ 0.19
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 8.92 6.75 3.47 4.50
------- ------- ------- -------
Net increase (decrease) from investment operations $ 9.26 $ 6.91 $ 3.75 $ 4.69
------- ------- ------- -------
Distributions to shareowners:
Net investment income $ (0.28) $ - $ (0.16) $ (0.01)
Net realized gain (3.07) (0.65) - -
------- ------- ------- -------
Total distributions $ (3.35) $ (0.65) $ (0.16) $ (0.01)
------- ------- ------- -------
Redemption fee $ -(a) -(a) $ - $ -
------- ------- ------- -------
Net increase (decrease) in net asset value $ 5.91 $ 6.26 $ 3.59 $ 4.68
------- ------- ------- -------
Net asset value, end of period $ 30.95 $ 25.04 $ 18.78 $ 15.19
======= ======= ======= =======
Total return* 37.60% 36.77% 24.86% 44.63%
Ratio of net expenses to average net assets+ 1.33% 1.40% 1.30% 1.60%
Ratio of net investment income to average net assets+ 1.02% 1.66% 1.46% 1.52%
Portfolio turnover rate 42% 69% 69% 88%
Net assets, end of period (in thousands) $47,573 $23,273 $54,440 $59,444
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 1.33% 1.40% 1.37% 1.60%
Net investment income 1.02% 1.66% 1.39% 1.52%
Ratios with waiver of management fees by PIM and reduction for
fees paid indirectly:
Net expenses 1.33% 1.40% 1.30% 1.60%
Net investment income 1.02% 1.66% 1.46% 1.52%
(a) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
38 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/08 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Emerging Markets Fund (the Fund) is a Delaware statutory trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is
long-term growth of capital.
The Fund offers five classes of shares - Class A, Class B, Class C, Class R,
and Class Y 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 the rates of transfer agent
and distribution expenses may differ among classes. Class A, Class B, Class C
and Class R 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 year. Actual results could differ from those estimates.
The Fund's investments in emerging markets or countries with limited or
developing markets may subject the Fund to a greater degree of risk than in a
developed market. Risks associated with these developing markets include
political, social or economic factors and may affect the price of the Fund's
investments and income generated by these investments, as well as the Fund's
ability to repatriate such amounts. At times, the Fund's investments may
represent industries or industry sectors that are interrelated or have common
risks, making it more susceptible to any economic, political or regulatory
developments or other risks affecting those industries and sectors. The Fund's
prospectuses contain information regarding the Fund's principal risks. Please
refer to those documents when considering the Fund's risks.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
39
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/08 (unaudited) (continued)
- --------------------------------------------------------------------------------
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. At May 31, 2008, there were no securities fair
valued. Temporary cash investments are valued at cost which approximates
market value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Dividend and interest income
are 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.
40
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
B. 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.
C. 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 (see Note 6).
D. 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.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on the recognition of capital gains
and/or the repatriation of foreign currencies in certain
41
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/08 (unaudited) (continued)
- --------------------------------------------------------------------------------
countries. During the six months ended May 31, 2008, the Fund paid no such
taxes.
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 from or in excess of net
investment income or as from net realized gain on investment transactions,
or as from paid-in capital, depending on the type of book/tax differences
that may exist.
The Fund has elected to defer approximately $15,420 of currency losses
recognized between November 1, 2007 and November 30, 2007 to its fiscal
year ending November 30, 2008.
The tax character of current year distributions will be determined at the
end of the fiscal year. The tax character of distributions paid during the
year ended November 30, 2007 was as follows:
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 3,041,924
Long-term capital gain 73,466,115
-----------
Total $76,508,039
===========
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at November 30, 2007:
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Undistributed ordinary income $ -
Undistributed long-term gain 7,978,064
Capital loss carryforward limited
from merger (921,161)
Current year Post October currency loss (15,420)
Unrealized appreciation 269,425,748
------------
Total $276,467,231
============
- --------------------------------------------------------------------------------
42
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 on forward currency contracts.
E. 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 UniCredit (UniCredit),
earned $176,575 in underwriting commissions on the sale of Class A shares
during the six months ended May 31, 2008.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, Class C and Class R shares of the Fund,
respectively (see Note 4). Class Y shares are not subject to a distribution
plan. Shareowners of each class participate in 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).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B, Class C, Class R and Class Y shares can bear
different transfer agent and distribution expense rates.
G. Securities Lending
The Fund lends securities in its portfolio to certain brokers-dealers or
other institutional investors. When entering into a loan, the Fund receives
collateral 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
43
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/08 (unaudited) (continued)
- --------------------------------------------------------------------------------
term of the loan will be for the account of the Fund. The loans are secured
by collateral which is required to be at least 102%, at all times, of the
fair value of the securities loaned. The amount of the collateral is
required to 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 on loan from the borrower on demand.
The Fund invests cash collateral in cash equivalent investments.
H. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreements is held in safekeeping in
the customer-only account of the Fund's custodian, or subcustodians. The
Fund's investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
Portfolio. Management fees are calculated daily at an annual rate of 1.15% of
the Fund's average daily net assets.
PIM has agreed to limit ordinary operating expenses to the extent required to
reduce Fund expenses to 1.95%, 2.85%, 2.85% and 2.20% of the average daily net
assets attributable to Class A, Class B, Class C and Class R shares,
respectively. Class Y shares do not have an expense limitation. These expense
limitations are in effect through April 1, 2011 for Class A shares and through
April 30, 2009 for Class B, Class C and Class R 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. Included in "Due to affiliates" reflected on
the Statement of Assets and Liabilities is $53,406 in management fees,
administrative costs and certain others services payable to PIM at May 31,
2008.
44
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $159,616 in transfer agent fees payable to PIMSS at May 31,
2008.
4. Distribution and Service Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan,
Class B Plan and Class C Plan) in accordance with Rule 12b-1 under the
Investment Company Act of 1940. Pursuant to the Plan, the Fund pays PFD 0.25%
of the funds average net assets attributable to Class A shares as compensation
for personal services and/or account maintenance services or distribution
services with regard to Class A shares. Pursuant to the Class B Plan and the
Class C Plan, the Fund pays PFD 1.00% of the average daily net assets
attributable to each class of shares. The fee consists of a 0.25% service fee
and a 0.75% distribution fee paid as compensation for personal services and/or
account maintenance services or distribution services with regard to Class B
and Class C shares. Pursuant to the Class R Plan, the Fund pays PFD 0.50% of
the average daily net assets attributable to Class R shares as compensation for
distribution services. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $17,542 in distribution fees payable to
PFD at May 31, 2008.
The Fund also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holdings shares of the Fund a
service fee of up to 0.25% of the Fund's average daily net assets attributable
to Class R shares help by such plans.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase. Class B shares that are redeemed within five
years of purchase are subject to a CDSC at declining rates beginning at 4.00%,
based on the lower of cost or market value of shares being
45
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/08 (unaudited) (continued)
- --------------------------------------------------------------------------------
redeemed. Redemptions of Class C shares within one year of purchase are subject
to a CDSC of 1.00%. There are no CDSCs for class R shares. Proceeds from the
CDSCs are paid to PFD. For the six months ended May 31, 2008, CDSCs in the
amount of $44,810 were paid to PFD.
5. Directed Brokerage and Expense Offset Arrangements
The Fund has entered into directed brokerage arrangements with brokers with
whom PIM places trades on behalf of the Fund under which the brokers provide
services to the Fund in addition to trade execution. These services may include
payments of certain expenses on behalf of the Fund. However, for the six months
ended May 31, 2008, the Fund's expenses were not reduced under these
arrangements. In addition, the Fund has entered into certain expense offset
arrangements with PIMSS resulting in a reduction in the Fund's total expenses,
due to interest earned on cash held by PIMSS. For the six months ended May 31,
2008, the Fund's expenses were reduced by $15,590 under such arrangements.
6. Forward Foreign Currency Contracts
At May 31, 2008, the Fund had entered into various contracts that obligate the
Fund to deliver currencies at specified future dates. At the maturity of a
contract, the Fund must make delivery of the foreign currency. Alternatively,
prior to the settlement date of a portfolio hedge, the Fund may close out such
contracts by entering into an offsetting hedge contract. At May 31, 2008, the
Fund had no outstanding portfolio hedges. The Fund's gross forward currency
settlement contracts receivable and payable were $1,799,427 and $1,807,518
respectively, resulting in a net receivable of $8,091.
7. Line of Credit
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participates in a $200 million committed, unsecured
revolving line of credit facility. Borrowings are used solely for temporary or
emergency purposes. The Fund may borrow up to the lesser of $200 million or the
limits set by its prospectus for borrowings. Interest on collective borrowings
is payable at the Federal Funds Rate plus 1/2% on an annualized basis. The
Funds pay an annual commitment fee for this facility. The commitment fee is
allocated among such Funds based on their respective borrowing
46
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
limits. For the six months ended May 31, 2008, there were no borrowings under
this agreement.
8. New Pronouncements
In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures
about Derivative Instruments and Hedging Activities ("SFAS 161"), was issued
and is effective for fiscal years beginning after November 15, 2008. SAFAS 161
requires enhanced disclosures about an entity's derivative and hedging
activities. Management is currently evaluating the impact the adoption of SFAS
161 will have on the Fund's financial statement disclosures.
ADDITIONAL INFORMATION
Results of Shareholder Meeting
At a special meeting held on May 13, 2008, shareholders of the Fund were asked
to consider the proposals described below. A report of the total votes cast by
the Fund's shareholders follows:
- ----------------------------------------------------------------------------------------
Broker
For Withhold Abstain Non-Votes
- ----------------------------------------------------------------------------------------
Proposal 1 - To elect Trustees
John F. Cogan, Jr. 12,655,833.330 294,535.515 17,393.679 0
Daniel K. Kingsbury 12,658,757.546 291,611.299 17,393.679 0
David R. Bock 12,638,111.850 312,256.995 17,393.679 0
Mary K. Bush 12,612,048.307 338,320.537 17,393.679 0
Benjamin M. Friedman 12,637,446.116 312,599.293 17,717.115 0
Margaret B.W. Graham 12,692,347.331 258,021.514 17,393.679 0
Thomas J. Perna 12,655,530.522 294,838.323 17,393.679 0
Marguerite A. Piret 12,730,158.021 220,210.824 17,393.679 0
Stephen K. West 12,635,468.945 314,899.900 17,393.679 0
John Winthrop 12,655,833.330 294,535.515 17,393.679 0
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ----------------------------------------------------------------------------------------
Proposal 2 - To approve an
amendment to the Declara-
tion of Trust 8,911,010.451 638,032.330 238,096.744 3,180,623.000
- ----------------------------------------------------------------------------------------
47
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/08 (unaudited) (continued)
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ---------------------------------------------------------------------------------------------
Proposal 3A - To approve
changes to the Fund's
fundamental investment
policy relating to borrowing 9,217,877.064 325,658.735 243,603.725 3,180,623.000
Proposal 3B - To approve
changes to the Fund's
fundamental investment policy
relating to underwriting 9,220,807.372 319,202.002 247,130.150 3,180,623.000
Proposal 3C - To approve
changes to the Fund's
fundamental investment
policy relating to lending 9,221,218.110 335,881.239 230,040.176 3,180,623.000
Proposal 3D - To approve
changes to the Fund's
fundamental investment policy
relating to senior securities 9,259,127.780 315,808.462 212,203.282 3,180,623.000
Proposal 3E - To approve
changes to the Fund's
fundamental investment
policy relating to real estate 9,139,237.130 344,953.316 302,949.078 3,180,623.000
Proposal 3F - To approve
changes to the Fund's
fundamental investment policy
relating to commodities 9,124,252.985 357,235.721 305,650.818 3,180,623.000
Proposal 3G - To approve
changes to the Fund's
fundamental investment policy
relating to concentration 9,236,791.922 316,833.407 233,514.196 3,180,623.000
Proposal 3H - To approve
changes to the Fund's
fundamental investment policy
relating to diversification 9,228,872.846 318,928.195 239,338.483 3,180,623.000
Proposal 3I - To approve
the conversion of the
Fund's investment objective
from fundamental to
non-fundamental 8,817,914.042 737,193.678 232,031.803 3,180,623.000
Proposal 3O - To approve
changes to the Fund's
fundamental investment
policy relating to pledging
or guaranteeing assets 9,220,332.614 341,478.269 219,566.641 3,186,385.000
- ---------------------------------------------------------------------------------------------
48
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ---------------------------------------------------------------------------------------------
Proposal 4 - To approve an
Amended and Restated
Management Agreement
with PIM 9,239,756.430 332,174.244 215,208.850 3,180,623.000
- ---------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ---------------------------------------------------------------------------------------------
Proposal 5 - To approve a
policy allowing the appoint-
ment of unaffiliated sub-
advisers and amendments
to sub-advisory agreements
without shareholder approval 8,910,761.962 657,680.997 218,696.565 3,180,623.000
- ---------------------------------------------------------------------------------------------
49
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
- --------------------------------------------------------------------------------
Pioneer Investment Management, Inc. (PIM) serves as the Fund's investment
adviser pursuant to an investment advisory agreement between PIM and the Fund.
The Trustees of the Fund, as required by law, determine annually whether to
continue the investment advisory agreement for the Fund. In connection with
their most recent consideration of the investment advisory agreement for the
Fund, the Trustees received and reviewed a substantial amount of information
provided by PIM in response to requests of the independent Trustees and their
independent legal counsel. The independent Trustees met on a number of
occasions with PIM and also separately with their independent legal counsel to
evaluate and discuss the information provided to them by PIM. At a meeting held
on November 13, 2007, based on their evaluation of the information provided by
PIM, the Trustees, including the independent Trustees voting separately,
unanimously approved the continuation of the investment advisory agreement for
another year.
At a meeting held on January 8, 2008, the Trustees considered whether an
amended and restated investment advisory agreement for the Fund should be
approved for an initial period ending December 31, 2009. The management fee to
be paid by the Fund to PIM under the amended and restated investment advisory
agreement is the same as the management fee provided in the previously approved
investment advisory agreement. Based on their evaluation of the information
provided by PIM, including the information provided by PIM in connection with
the Trustees' most recent approval of the continuation of the previous
investment advisory agreement, the Trustees, including the independent Trustees
voting separately, unanimously approved the amended and restated investment
advisory agreement. Shareholders of the Fund approved the amended and restated
investment advisory agreement at a meeting held on May 13, 2008.
In considering the amended and restated investment advisory agreement, the
Trustees considered various factors that they determined were relevant,
including the factors described below. The Trustees did not identify any single
factor as the controlling factor in determining to approve the amended and
restated investment advisory agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that
were provided by PIM to the Fund under the previous investment advisory
agreement, and that would continue to be provided by PIM
50
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
to the Fund under the amended and restated investment advisory agreement,
taking into account the investment objective and strategy of the Fund and the
information related to the Fund provided to the Trustees at each quarterly
meeting. The Trustees reviewed the terms of the amended and restated investment
advisory agreement. The Trustees also reviewed PIM's investment approach for
the Fund and its research process. The Trustees considered the resources of PIM
and the personnel of PIM who provide investment management services to the
Fund. They also considered PIM's compliance and legal resources and personnel.
In addition, the Trustees considered the other services that PIM provided under
the previous investment advisory agreement and that PIM would continue to
provide to the Fund under the amended and restated investment advisory
agreement and that, as administrator, PIM is responsible for the administration
of the Fund's business and other affairs. It was noted that PIM supervises and
monitors the performance of the Fund's service providers and provides the Fund
with personnel (including officers) as are necessary for the Fund's operations.
The Trustees considered the fees paid to PIM for the provision of such
services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that PIM would continue to provide to the Fund under
the amended and restated investment advisory agreement, were satisfactory and
consistent with the terms of the amended and restated investment advisory
agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
average performance of its peer group of funds as classified by Morningstar,
Inc. (Morningstar), an independent provider of investment company data, and
with the performance of the Fund's benchmark index. The Trustees considered
that the Fund's annualized total return was in the first quintile of its
Morningstar category for the one and three year periods ended June 30, 2007 and
in the second quintile of its Morningstar category for the five and ten year
periods ended June 30, 2007. (In all quintile rankings referred to throughout
this disclosure, first quintile is most favorable to the Fund's shareowners.
51
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (continued)
- --------------------------------------------------------------------------------
Thus, highest relative performance would be first quintile and lowest relative
expenses would also be first quintile.) The Trustees concluded that the
investment performance of the Fund was satisfactory.
Management Fee and Expenses
The Trustees considered that the management fee to be paid by the Fund to PIM
under the amended and restated investment advisory agreement would be the same
as the management fee to be paid by the Fund under the previously approved
investment advisory agreement. The Trustees considered information on the fees
and expenses of the Fund in comparison to the management fees of its peer group
of funds as classified by Morningstar and the expense ratios of a peer group of
funds selected on the basis of criteria determined by the independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2007 was in the third quintile relative to the management fees
paid by other funds in its peer group Morningstar category for the comparable
period. The Trustees also considered that the Fund's expense ratio for the
twelve months ended June 30, 2007 was in the third quintile relative to its
Strategic Insight peer group. It was noted that PIM was not managing any
accounts with an investment objective and strategies that were similar to the
Fund.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of services provided, taking
into account the fees charged by other advisers for managing comparable mutual
funds with similar strategies. The Trustees also concluded that the Fund's
expense ratio was reasonable, taking into account the size of the Fund, the
quality of services provided by PIM, the investment performance of the Fund and
the contractual expense limitation agreed to by PIM with respect to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation
52
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
of the Fund. They further reviewed the financial results realized by PIM and
its affiliates from non-fund businesses. The Trustees considered PIM's profit
margins with respect to the Fund in comparison to the limited industry data
available and noted that the profitability of any adviser was affected by
numerous factors, including its organizational structure and method for
allocating expenses. The Trustees recognized that PIM should be entitled to
earn a reasonable level of profit for the services provided to the Fund. The
Trustees concluded that PIM's profitability with respect to the management of
the Fund was not unreasonable.
Economies of Scale
The Trustees considered the economies of scale with respect to the management
of the Fund, whether the Fund had appropriately benefited from any economies of
scale, and whether there was potential for realization of any further economies
of scale.
The Trustees considered that, although the Fund pays a management fee at a
fixed rate as a percentage of the Fund's net assets, without any breakpoints,
the management fee rate paid by the Fund for the twelve months ended June 30,
2007 was in the third quintile relative to the management fees paid by other
funds in its peer group Morningstar category for the comparable period. The
Trustees concluded that, at current and reasonably foreseeable asset levels,
breakpoints in the management fee were not currently necessary.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with
the Fund. The Trustees considered that affiliates of PIM serve as the Fund's
transfer agent and distributor. The Trustees considered the receipt by PIM and
its affiliates of sales loads and payments under Rule 12b-1 plans in respect of
the Fund and the other Pioneer funds and the benefits to PIM and its affiliates
from the use of "soft" commission dollars generated by the Fund to pay for
research and brokerage services. The Trustees further considered the intangible
benefits to PIM by virtue of its relationship with the Fund and the other
Pioneer funds. The Trustees concluded that the receipt of these benefits was
reasonable in the context of the overall relationship between PIM and the Fund.
53
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (continued)
- --------------------------------------------------------------------------------
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including all of the independent Trustees, concluded that the
terms of the amended and restated investment advisory agreement between PIM and
the Fund, including the fees payable thereunder, were fair and reasonable and
voted to approve the amended and restated investment advisory agreement for the
Fund.
54
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive Vice President
Mary K. Bush Mark E. Bradley, Treasurer
Benjamin M. Friedman Dorothy E. Bourassa, Secretary
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen 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
- --------------------------------------------------------------------------------
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
This report must be preceded or accompanied by a prospectus.
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.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) 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.
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 Emerging Markets Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date July 30, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date July 30, 2008
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date July 30, 2008
* Print the name and title of each signing officer under his or her signature.