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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 811-08657
Pioneer Equity Income 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: October 31
Date of reporting period: November 1, 2007 through October 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.
Pioneer Equity
Income Fund
- --------------------------------------------------------------------------------
Annual Report | October 31, 2008
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A PEQIX
Class B PBEQX
Class C PCEQX
Class R PQIRX
Class Y PYEQX
Class Z PEZQX
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 25
Notes to Financial Statements 35
Report of Independent Registered Public Accounting Firm 42
Approval of Investment Advisory Agreement 46
Trustees, Officers and Service Providers 50
Pioneer Equity Income Fund | Annual Report | 10/31/08 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe this year have experienced one of their
most tumultuous periods in history. Investors have witnessed volatility of a
magnitude that many have never before seen. Distance often provides the best
vantage point for perspective. Still, we believe that the benefits of basic
investment principles that have stood the test of time -- even in the midst of
market turmoil -- cannot be underestimated.
First, invest for the long term. The founder of Pioneer Investments, Philip L.
Carret, began his investment career during the 1920s. One lesson he learned is
that while great prosperity affords an advantageous time for selling stocks,
extreme economic slumps can create opportunities for purchase. Indeed, many of
our portfolio managers, who follow the value-conscious investing approach of our
founder, are looking at recent market conditions as an opportunity to buy
companies whose shares we believe have been unjustifiably beaten down by
indiscriminate selling, but that we have identified as having strong prospects
over time. While investors may be facing a sustained market downturn, we
continue to believe that patience, along with staying invested in the market,
are important considerations for long-term investors.
A second principle is to stay diversified across different types of investments.
The global scope of the current market weakness poses challenges for this basic
investment axiom. But the turbulence makes now a good time to reassess your
portfolio and make sure that your investments continue to meet your needs. We
believe you should 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.
As the investment markets sort through the continuing crisis in the financial
industry, we are staying focused on the fundamentals and risk management. With
more than 80 years of experience behind us, we have learned how to navigate
turbulent markets. At Pioneer Investments, risk management has always been a
critical part of our culture -- not just during periods of extraordinary
volatility. Our investment process is based on fundamental research,
quantitative analysis and active portfolio management. This three-pillared
process, which we apply to each of our portfolios, is supported by an integrated
team approach and is designed to carefully balance risk and reward. While we see
potential chances for making money in many corners of the market, it takes
2 Pioneer Equity Income Fund | Annual Report | 10/31/08
research and experience to separate solid investment opportunities from
speculation.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
www.pioneerinvestments.com. Thank you for investing with Pioneer.
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.
Pioneer Equity Income Fund | Annual Report | 10/31/08 3
Portfolio Management Discussion | 10/31/08
The U.S. and global markets turned sharply down late in the annual reporting
period, amid a wave of business failures which began on September 8, 2008, when
Fannie Mae and Freddie Mac were taken into conservatorship by U.S. government
regulators. Over the next three weeks, giants like Lehman Brothers, AIG,
Washington Mutual, Wachovia, and Merrill Lynch were effectively seized by the
U.S. government, were forced into mergers, or failed, and the difficulties
persisted right on through to the end of October. In the following interview,
John Carey, manager of the Pioneer Equity Income Fund, provides an update on the
Fund and the factors that influenced its performance during the very difficult
12-month period ended October 31, 2008.
Q Over the past year, and particularly the last few months, the global
economy has seen upheaval, especially in the financial sector. Credit
markets have all but frozen, with negative consequences for an already
shaky U. S. economy. Governments and central banks all over the world have
taken aggressive action to shore up financial institutions and enable them
to lend again. How did Pioneer Equity Income Fund fare through the
difficult period?
A In reading through our last several shareholder letters, we see that we
were expressing concern about the economy and the stock market fairly
consistently throughout 2006 and 2007. Nevertheless, what has transpired in
late 2008 has startled us by its severity and unremitting intensity. The
six months ended October 31, 2008, was one of the worst periods for
investors in recent memory, as the American banking system all but
collapsed and industrial activity slowed markedly. Companies both large and
small ran into trouble, and not a few of them ceased to exist. Storied
names from the world of finance like Bear Stearns and Lehman Brothers,
Freddie Mac and Fannie Mae, as well as formerly successful consumer
companies like Linens 'n Things, Mervyn's, and, as we write, Circuit City
have all, essentially, failed. Confidence has plunged -- confidence in the
economy, in the markets, in financial products, in Washington, and in
business. Truthfully, we are filled with concern over the negative turn of
events, while expecting, though, some improvement as we move through the
coming year.
Pioneer Equity Income Fund's performance results suffered during the
downturn, though, were somewhat better than performance of the overall
market and competing funds. For the twelve months ended October 31, 2008,
Class A shares of the Fund returned -29.99% at net asset value, compared
with a return of -36.80% for the Fund's benchmark, the Russell 1000 Value
Index (the Russell Index), and a return of -36.08% for the broad-market
Standard & Poor's 500 Index (the S&P 500) over the same period.
4 Pioneer Equity Income Fund | Annual Report | 10/31/08
For the 12 months ended October 31, 2008, the average return of the 286
funds in Lipper Analytical Service's equity income category was -33.80%.
Over the final six months of the annual reporting period concluded October
31, Class A shares of the Fund showed a total return of -24.74% at net
asset value, while the benchmark Russell Index returned -29.91% and the S&P
500 returned -29.27%; during the same six-month period, the 313 funds in
Lipper's equity income category averaged a return of -27.36%.
During both the six- and twelve-month periods, our stock selection proved
the decisive factor in the Fund's performance advantage over its
competitors and the benchmark. Of course we realize that relatively strong
performance compared with the benchmark is small consolation to our
shareholders when the absolute performance numbers are so bad, but we take
some satisfaction in having preserved just a bit more value than we might
have.
Q Please discuss performance over the second half of the annual reporting
period in more detail, including sector exposures and individual stock
positions that helped or hurt results.
A Stock selection was a positive contributor for the Fund in almost every
sector over the last six months of the period ended October 31, 2008, with
our choices in the troubled financials sector and in consumer staples,
industrials, and health care proving to be the best. In financials, we not
only avoided the worst stocks in the Fund's benchmark -- most notably, AIG,
along with all the financial stocks we mentioned above -- but we also had
important positions in two of the few financial stocks to be approximately
unchanged in price between April 30 and October 31, 2008, Chubb and Safeco.
In consumer staples, the Fund enjoyed good performance from food companies,
including Campbell Soup, General Mills, and H. J. Heinz; in industrials,
Gorman-Rupp held up relatively well; and in health care, Abbot Laboratories
was a stand out.
The most significant detractor from the Fund's performance was are
overweight in the underperforming materials sector, where stocks were hit
heavily by concerns over a slowing economy and, in particular, falling
metals prices.
Q Oftentimes a weak stock market presents investment opportunities. Did you
find some over the second half of the reporting period, and, overall, can
you discuss changes you made to the portfolio?
A As we look at the stock market, we see many stocks selling at lower prices
than we have seen in a long time. The sell-off has been, we think, quite
indiscriminate, as investors have seemed just to want to "get out of the
market," no matter what the price. So, yes, we have seen what we regarded
as bargains. At the same time, we have also sold stocks of companies we did
Pioneer Equity Income Fund | Annual Report | 10/31/08 5
not think were as well positioned for the difficult times in which we find
ourselves. Overall, we added ten names to the Fund's portfolio during the
last six months of the annual reporting period, and we eliminated seven.
The new entries were all in the category of economically sensitive stocks
with, in our minds, good longer-term prospects in a recovering economy --
which we do think we shall eventually see! Marathon Oil is a worldwide
energy company that should see benefits in its refining operations from
lower oil prices, but that also has attractive exploration-and-production
activities. Carpenter Technology is a leader in stainless steel.
Caterpillar and Deere are machinery makers: Caterpillar is one of the
premier producers of construction equipment, and Deere makes both
agricultural and construction equipment. Illinois Tool Works makes a whole
host of components for machinery builders and other industrial users;
Snap-on manufactures and distributes tools and diagnostic products for
automotive repair shops; and General Electric is a well-known provider of
everything from aircraft engines to medical-imaging equipment. Cedar
Shopping Centers is a real estate investment trust with supermarket and
drugstore-anchored properties; and FirstEnergy and PPL are public
utilities.
With respect to sales from the Fund's portfolio, we realized good gains on
two stocks that were acquired at premium prices by other companies: Wm.
Wrigley Jr. was bought by the private confectionary giant Mars; and Safeco
was purchased by Liberty Mutual, another private firm. Our other sales --
Regal Entertainment Group, Conagra Foods, Regions Financial, Developers
Diversified Realty, and Liberty Property Trust -- all fell in the category
of companies about which we had basic concerns.
Q With world financial markets still in turmoil and with a new U. S.
president set to take office in January 2009, what is your outlook for the
coming months?
A Investors today are uncertain of the potential depth and duration of the
ongoing economic recession. A problem for the U. S. now is the spreading
recession overseas, in that many American companies have come to depend on
exports for a meaningful part of their growth. Also an issue for investors
is the public-policy response to the crisis. Massive "bail-out" programs
have been announced by the current administration, and partially
implemented; but every day it seems that more companies get in line to
receive help, and no one knows where it will end or if any of it is a good
idea. As for the incoming administration, many business people have doubts
over its tax, trade, and regulatory pronouncements during the campaign.
Time will tell how many of the pronouncements become policy. In the end, we
always count on the pragmatic instincts of most members of Congress -- who
must represent and promote the concrete interests of their constituencies
in order to get re-elected -- to keep the more extreme tendencies of both
of
6 Pioneer Equity Income Fund | Annual Report | 10/31/08
the major parties in check. But there is never any guarantee! Of course the
final element in the picture is the still quite unsettled, and unsettling,
world situation, on which we keep steady watch out of the corner of our
eye.
Despite everything, however, we are of the opinion that this is a business
cycle, not the spiral to oblivion, and that in due course, no matter how
effective or inept the government responses prove to be, the economy will
get better. We continue to have great faith in the underlying resilience of
our country and its people, and we have great difficulty in believing that
suddenly, after more than two hundred years as a nation, Americans are just
all going to roll over and play dead. We have also observed that
investments made during past periods of economic distress, at the
bargain-basement, even fire-sale prices often prevailing, have often worked
out well when held for the long term by patient shareholders. Certainly we
are excited by the low prices of much of the merchandise we see in the
market today. Will this time be different, and will investors instead be
disappointed? We are proceeding under the assumption that will not be the
case, but we must emphasize the risks and the unknown time horizon.
Thank you as ever for your support.
Please refer to the Schedule of Investments on pages 18-24 for a full listing of
Fund securities.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
Past performance is no guarantee of future results, and there is no guarantee
that the market forecast discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes.
Pioneer Equity Income Fund | Annual Report | 10/31/08 7
Portfolio Summary | 10/31/08
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[The following data was represented as a pie chart in the printed material]
U.S. Common Stocks 86.8%
Temporary Cash Investment 12.0%
Depositary Receipts for International Stocks 1.2%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[The following data was represented as a pie chart in the printed material]
Consumer Staples 16.7%
Financials 16.7%
Utilities 15.2%
Materials 11.6%
Industrials 11.3%
Consumer Discretionary 8.3%
Energy 7.7%
Health Care 6.1%
Telecommunication Services 4.3%
Information Technology 2.1%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Gorman-Rupp Co. 3.53%
2. Questar Corp. 2.71
3. H.J. Heinz Co., Inc. 2.60
4. U.S. Bancorp 2.43
5. Dow Chemical Co. 2.42
6. Chubb Corp. 2.41
7. Chevron Corp. 2.26
8. Campbell Soup Co. 2.24
9. PG&E Corp. 2.20
10. Kraft Foods, Inc. 2.18
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
8 Pioneer Equity Income Fund | Annual Report | 10/31/08
Prices and Distributions | 10/31/08
Net Asset Value per Share
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class 10/31/08 10/31/07
- --------------------------------------------------------------------------------
A $ 21.28 $ 33.10
- --------------------------------------------------------------------------------
B $ 21.14 $ 32.88
- --------------------------------------------------------------------------------
C $ 21.04 $ 32.75
- --------------------------------------------------------------------------------
R $ 21.45 $ 33.34
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Y $ 21.41 $ 33.28
- --------------------------------------------------------------------------------
Z $ 21.30 $ 33.12
- --------------------------------------------------------------------------------
Distributions per Share: 11/1/07-10/31/08
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term Non-taxable
Class Income Capital Gains Capital Gains Distributions
- --------------------------------------------------------------------------------
A $ 0.6740 $ -- $ 1.8091 $ 0.0592
- --------------------------------------------------------------------------------
B $ 0.4399 $ -- $ 1.8091 $ 0.0376
- --------------------------------------------------------------------------------
C $ 0.4733 $ -- $ 1.8091 $ 0.0409
- --------------------------------------------------------------------------------
R $ 0.6188 $ -- $ 1.8091 $ 0.0534
- --------------------------------------------------------------------------------
Y $ 0.7717 $ -- $ 1.8091 $ 0.0682
- --------------------------------------------------------------------------------
Z $ 0.7555 $ -- $ 1.8091 $ 0.0659
- --------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/08 9
Performance Update | 10/31/08 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund at public offering price, compared
to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2008)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
10 Years 2.85% 2.25%
5 Years 3.91 2.69
1 Year -29.99 -33.96
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.03% 1.03%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Equity Russell 1000
Income Value
Fund Index
10/98 9,425 10,000
10/00 11,212 12,295
10/02 8,895 9,751
10/04 11,991 13,833
10/06 16,168 18,795
10/08 12,487 13,166
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 fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
10 Pioneer Equity Income Fund | Annual Report | 10/31/08
Performance Update | 10/31/08 Class B Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2008)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 2.00% 2.00%
5 Years 3.01 3.01
1 Year -30.58 -33.12
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.90% 1.90%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Equity Russell 1000
Income Value
Fund Index
10/98 10,000 10,000
10/00 11,710 12,295
10/02 9,144 9,751
10/04 12,118 13,833
10/06 16,054 18,795
10/08 12,187 13,166
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 Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
Pioneer Equity Income Fund | Annual Report | 10/31/08 11
Performance Update | 10/31/08 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2008)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 2.00% 2.00%
5 Years 3.09 3.09
1 Year -30.52 -30.52
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.82% 1.82%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Equity Russell 1000
Income Value
Fund Index
10/98 10,000 10,000
10/00 11,691 12,295
10/02 9,114 9,751
10/04 12,089 13,833
10/06 16,041 18,795
10/08 12,195 13,166
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 Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
12 Pioneer Equity Income Fund | Annual Report | 10/31/08
Performance Update | 10/31/08 Class R Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2008)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 2.53% 2.53%
5 Years 3.74 3.74
1 Year -30.14 -30.14
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.38% 1.38%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Equity Russell 1000
Income Value
Fund Index
10/98 10,000 10,000
10/00 11,776 12,295
10/02 9,249 9,751
10/04 12,424 13,833
10/06 16,688 18,795
10/08 12,843 13,166
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 R shares are not subject to sales charges and are available for limited
groups of eligible investors, including retirement plan investors.
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
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. 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 Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
Pioneer Equity Income Fund | Annual Report | 10/31/08 13
Performance Update | 10/31/08 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of October 31, 2008)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 3.27% 3.27%
5 Years 4.33 4.33
1 Year -29.72 -29.72
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
0.66% 0.66%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Equity Russell 1000
Income Value
Fund Index
10/98 10,000 10,000
10/00 11,987 12,295
10/02 9,585 9,751
10/04 13,046 13,833
10/06 17,729 18,795
10/08 13,795 13,166
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 Y shares for the period prior to the commencement of
operation of Class Y shares on July 2, 1998 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 July 2, 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 Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
14 Pioneer Equity Income Fund | Annual Report | 10/31/08
Performance Update | 10/31/08 Class Z Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of October 31, 2008)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 2.90% 2.90%
5 Years 4.01 4.01
1 Year -29.75 -29.75
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
0.78% 0.78%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Equity Russell 1000
Income Value
Fund Index
10/98 10,000 10,000
10/00 11,894 12,295
10/02 9,436 9,751
10/04 12,721 13,833
10/06 17,152 18,795
10/08 13,312 13,166
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 Z shares on July 6, 2007
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 Z shares, the performance shown for Class Z shares prior to their
inception July 6, 2007 would have been higher. Class Z shares are not subject to
sales charges and are available for limited groups of eligible 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 Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
Pioneer Equity Income Fund | Annual Report | 10/31/08 15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on actual returns from May 1, 2008 through October 31, 2008.
- ---------------------------------------------------------------------------------------------------------------------------
Share Class A B C R Y Z
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 5/1/08
- ---------------------------------------------------------------------------------------------------------------------------
Ending Account Value $ 752.63 $ 749.11 $ 749.27 $ 751.61 $ 753.94 $ 753.83
(after expenses)
on 10/31/08
- ---------------------------------------------------------------------------------------------------------------------------
Expenses Paid $ 4.85 $ 8.62 $ 8.22 $ 5.86 $ 3.17 $ 3.35
During Period*
- ---------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.10%, 1.96%,
1.87%, 1.33%, 0.72%, and 0.76%, for Class A, Class B, Class C, Class R,
Class Y and Class Z shares, respectively, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the partial year
period).
16 Pioneer Equity Income Fund | Annual Report | 10/31/08
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 Equity Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2008 through October 31, 2008.
- ---------------------------------------------------------------------------------------------------------------------------
Share Class A B C R Y Z
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 5/1/08
- ---------------------------------------------------------------------------------------------------------------------------
Ending Account Value $ 1,019.61 $ 1,015.28 $ 1,015.74 $ 1,018.45 $ 1,021.52 $ 1,021.32
(after expenses)
on 10/31/08
- ---------------------------------------------------------------------------------------------------------------------------
Expenses Paid $ 5.58 $ 9.93 $ 9.48 $ 6.75 $ 3.66 $ 3.86
During Period*
- ---------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.10%, 1.96%,
1.87%, 1.33%, 0.72%, and 0.76%, for Class A, Class B, Class C, Class R,
Class Y and Class Z shares, respectively, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the partial year
period).
Pioneer Equity Income Fund | Annual Report | 10/31/08 17
Schedule of Investments | 10/31/08
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS -- 99.2%
ENERGY -- 7.6%
Integrated Oil & Gas -- 6.5%
267,200 Chevron Corp. $ 19,933,120
307,560 ConocoPhillips 15,999,271
210,000 Royal Dutch Shell Plc (A.D.R.) 11,720,100
341,600 USX-Marathon Group, Inc. 9,940,560
-------------
$ 57,593,051
- --------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.1%
520,000 Spectra Energy Corp. $ 10,051,600
-------------
Total Energy $ 67,644,651
- --------------------------------------------------------------------------------
MATERIALS -- 11.5%
Aluminum -- 1.3%
1,000,000 Alcoa, Inc. $ 11,510,000
- --------------------------------------------------------------------------------
Diversified Chemical -- 3.5%
800,000 Dow Chemical Co. $ 21,336,000
300,000 E.I. du Pont de Nemours and Co. 9,600,000
-------------
$ 30,936,000
- --------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.5%
220,000 Compass Minerals International, Inc. (b) $ 12,084,600
150,000 Teck Cominco, Ltd. (Class B) (b) 1,471,500
-------------
$ 13,556,100
- --------------------------------------------------------------------------------
Forest Products -- 0.8%
180,000 Weyerhaeuser Co. $ 6,879,600
- --------------------------------------------------------------------------------
Industrial Gases -- 1.0%
150,000 Air Products & Chemicals, Inc. $ 8,719,500
- --------------------------------------------------------------------------------
Specialty Chemicals -- 2.0%
900,000 Valspar Corp. (b) $ 18,405,000
- --------------------------------------------------------------------------------
Steel -- 1.4%
27,248 Carpenter Technology Corp. $ 493,189
293,000 Nucor Corp. 11,869,430
-------------
$ 12,362,619
-------------
Total Materials $ 102,368,819
- --------------------------------------------------------------------------------
CAPITAL GOODS -- 10.5%
Aerospace & Defense -- 1.0%
170,000 United Technologies Corp. $ 9,343,200
- --------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 3.0%
100,000 Caterpillar, Inc. $ 3,817,000
100,000 Deere & Co. 3,856,000
641,905 PACCAR, Inc. 18,769,302
-------------
$ 26,442,302
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Equity Income Fund | Annual Report | 10/31/08
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
Electrical Component & Equipment -- 1.3%
350,000 Emerson Electric Co. $ 11,455,500
- --------------------------------------------------------------------------------
Industrial Conglomerates -- 0.1%
50,000 General Electric Co. $ 975,500
- --------------------------------------------------------------------------------
Industrial Machinery -- 5.1%
988,195 Gorman-Rupp Co.*(b) $ 31,078,733
250,000 Illinois Tool Works, Inc. (b) 8,347,500
350,000 The Timken Co. 5,558,000
-------------
$ 44,984,233
-------------
Total Capital Goods $ 93,200,735
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.7%
Office Services & Supplies -- 0.7%
240,000 Mine Safety Appliances Co. (b) $ 6,480,000
-------------
Total Commercial Services & Supplies $ 6,480,000
- --------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 1.5%
Auto Parts & Equipment -- 1.5%
766,800 Johnson Controls, Inc. $ 13,595,364
-------------
Total Automobiles & Components $ 13,595,364
- --------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.7%
Apparel, Accessories & Luxury Goods -- 1.3%
200,000 VF Corp. (b) $ 11,020,000
- --------------------------------------------------------------------------------
Household Appliances -- 0.4%
100,000 Snap-On, Inc. $ 3,695,000
-------------
Total Consumer Durables & Apparel $ 14,715,000
- --------------------------------------------------------------------------------
CONSUMER SERVICES -- 2.3%
Leisure Facilities -- 1.6%
780,697 Cedar Fair, LP $ 14,435,088
- --------------------------------------------------------------------------------
Restaurants -- 0.7%
100,000 McDonald's Corp. (b) $ 5,793,000
-------------
Total Consumer Services $ 20,228,088
- --------------------------------------------------------------------------------
MEDIA -- 1.5%
Broadcasting -- 0.4%
400,000 CBS Corp. (Class B) $ 3,884,000
- --------------------------------------------------------------------------------
Publishing -- 1.1%
150,000 McGraw-Hill Co., Inc. $ 4,026,000
550,000 New York Times Co. (b) 5,500,000
-------------
$ 9,526,000
-------------
Total Media $ 13,410,000
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/08 19
Schedule of Investments | 10/31/08 (continued)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
RETAILING -- 1.2%
Distributors -- 1.2%
280,000 Genuine Parts Co. (b) $ 11,018,000
-------------
Total Retailing $ 11,018,000
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 13.1%
Packaged Foods & Meats -- 11.9%
520,000 Campbell Soup Co. $ 19,734,000
265,000 General Mills, Inc. 17,951,100
522,550 H.J. Heinz Co., Inc. 22,898,141
330,000 Hershey Foods Corp. 12,289,200
180,000 Kellogg Co. 9,075,600
660,000 Kraft Foods, Inc. 19,232,400
100,000 The J.M. Smucker Co. (b) 4,456,000
-------------
$ 105,636,441
- --------------------------------------------------------------------------------
Soft Drinks -- 1.2%
100,000 Coca-Cola Co. $ 4,406,000
116,300 PepsiCo, Inc. 6,630,263
-------------
$ 11,036,263
-------------
Total Food, Beverage & Tobacco $ 116,672,704
- --------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 3.5%
Household Products -- 3.5%
188,800 Clorox Co. $ 11,480,928
306,000 Colgate-Palmolive Co. 19,204,560
$ 30,685,488
-------------
Total Household & Personal Products $ 30,685,488
- --------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 6.0%
Pharmaceuticals -- 6.0%
306,600 Abbott Laboratories $ 16,908,990
180,000 Eli Lilly & Co. 6,087,600
419,700 Merck & Co., Inc. 12,989,715
1,000,000 Pfizer, Inc. 17,710,000
-------------
$ 53,696,305
-------------
Total Pharmaceuticals & Biotechnology $ 53,696,305
- --------------------------------------------------------------------------------
BANKS -- 6.4%
Diversified Banks -- 4.1%
718,700 U.S. Bancorp (b) $ 21,424,447
431,324 Wells Fargo & Co. (b) 14,686,582
-------------
$ 36,111,029
- --------------------------------------------------------------------------------
Regional Banks -- 2.3%
175,000 SunTrust Banks, Inc. (b) $ 7,024,500
700,000 Whitney Holding Corp. (b) 13,300,000
-------------
$ 20,324,500
-------------
Total Banks $ 56,435,529
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Equity Income Fund | Annual Report | 10/31/08
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.5%
Asset Management & Custody Banks -- 1.7%
100,000 Northern Trust Corp. $ 5,631,000
250,000 T. Rowe Price Associates, Inc. (b) 9,885,000
-------------
$ 15,516,000
- --------------------------------------------------------------------------------
Other Diversified Financial Services -- 1.8%
650,000 Bank of America Corp. (b) $ 15,710,500
-------------
Total Diversified Financials $ 31,226,500
- --------------------------------------------------------------------------------
INSURANCE -- 3.6%
Life & Health Insurance -- 0.7%
351,484 Lincoln National Corp. $ 6,059,584
- --------------------------------------------------------------------------------
Property & Casualty Insurance -- 2.9%
410,200 Chubb Corp. $ 21,256,564
100,000 The Travelers Co., Inc. 4,255,000
-------------
$ 25,511,564
-------------
Total Insurance $ 31,571,148
- --------------------------------------------------------------------------------
REAL ESTATE -- 3.1%
Residential Real Estate Investment Trusts -- 0.9%
230,000 Equity Residential Property Trust (b) $ 8,033,900
- --------------------------------------------------------------------------------
Retail Real Estate Investment Trusts -- 1.0%
200,000 Cedar Shopping Centers, Inc. $ 1,912,000
300,000 Kimco Realty Corp. (b) 6,774,000
-------------
$ 8,686,000
- --------------------------------------------------------------------------------
Specialized Real Estate Investment Trusts -- 1.2%
300,000 Plum Creek Timber Co., Inc. (b) $ 11,184,000
-------------
Total Real Estate $ 27,903,900
- --------------------------------------------------------------------------------
SEMICONDUCTORS -- 2.1%
Semiconductor Equipment -- 0.7%
470,000 Applied Materials, Inc. $ 6,067,700
- --------------------------------------------------------------------------------
Semiconductors -- 1.4%
500,000 Microchip Technology, Inc. (b) $ 12,315,000
-------------
Total Semiconductors $ 18,382,700
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.3%
Integrated Telecommunication Services -- 4.3%
393,600 AT&T Corp. $ 10,536,672
100,000 Embarq Corp. 3,000,000
1,000,000 Frontier Communications Corp. (b) 7,610,000
339,584 Verizon Communications, Inc. 10,075,457
890,847 Windstream Corp. 6,690,261
-------------
$ 37,912,390
-------------
Total Telecommunication Services $ 37,912,390
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/08 21
Schedule of Investments | 10/31/08 (continued)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
UTILITIES -- 15.1%
Electric Utilities -- 4.3%
740,000 Duke Energy Corp. (b) $ 12,121,200
200,000 Edison International 7,118,000
66,600 Firstenergy Corp. 3,473,856
120,900 PPL Corp. 3,967,938
340,000 Southern Co. 11,675,600
------------
$ 38,356,594
- --------------------------------------------------------------------------------
Gas Utilities -- 5.6%
326,500 AGL Resources, Inc. (b) $ 9,925,600
460,000 Equitable Resources, Inc. 15,966,600
693,200 Questar Corp. 23,887,672
------------
$ 49,779,872
- --------------------------------------------------------------------------------
Multi-Utilities -- 5.2%
530,000 NSTAR $ 17,516,500
529,000 PG&E Corp. (b) 19,398,430
314,600 Public Service Enterprise Group, Inc. 8,855,990
------------
$ 45,770,920
------------
Total Utilities $133,907,386
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $896,557,742) $881,054,707
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount
- --------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 13.5%
Security Lending Collateral -- 13.5% (c)
Certificates of Deposit:
$ 2,653,274 Abbey National Plc, 3.15%, 8/13/09 $ 2,653,274
2,653,274 Banco Santander NY, 3.09%, 12/22/08 2,653,274
960,461 Bank of Scotland NY, 2.89%, 11/4/08 960,461
1,596,767 Bank of Scotland NY, 2.96%, 11/3/08 1,596,767
4,250,041 Bank of Scotland NY, 3.01%, 6/5/09 4,250,041
2,653,274 Bank of Scotland NY, 3.06%, 3/5/09 2,653,274
4,790,300 Barclays Bank, 2.85%, 5/27/09 4,790,300
528,254 Calyon NY, 4.62%, 1/16/09 528,254
312,150 Calyon NY, 4.62%, 1/16/09 312,150
5,318,553 CBA, 4.87%, 7/16/09 5,318,553
4,790,300 DNB NOR Bank ASA NY, 3.04%, 6/5/09 4,790,300
4,874,341 Intesa SanPaolo S.p.A., 2.88%, 5/22/09 4,874,341
4,790,300 New York Life Global, 2.99%, 9/4/09 4,790,300
252,121 NORDEA NY, 3.68%, 12/1/08 252,121
312,150 NORDEA NY, 4.13%, 4/9/09 312,150
3,985,914 Royal Bank of Canada NY, 3.0%, 8/7/09 3,985,914
528,254 Skandinavian Enskilda Bank NY, 2.79%, 2/13/09 528,254
5,318,554 Societe Generale, 3.29%, 9/4/09 5,318,554
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Annual Report | 10/31/08
- -----------------------------------------------------------------------------------
Principal
Amount
- -----------------------------------------------------------------------------------
Certificates of Deposit -- (continued):
$4,790,300 Svenska Bank NY, 4.61%, 7/8/09 $ 4,790,300
5,318,554 U.S. Bank NA, 2.91%, 8/24/09 5,318,554
--------------
$ 60,677,136
- -----------------------------------------------------------------------------------
Commercial Paper:
5,222,508 American Honda Finance Corp., 4.95%, 7/14/09 $ 5,222,508
2,653,274 Bank of Nova Scotia, 3.14%, 5/5/09 2,653,274
504,242 BBVA U.S., 2.83%, 3/12/09 504,242
528,254 MetLife, Inc., 2.7%, 11/3/08 528,254
1,596,767 John Deere Capital Corp., 2.82%, 12/12/08 1,596,767
5,318,553 Monumental Global Funding, Ltd., 3.2%, 8/17/09 5,318,553
5,306,548 HSBC Bank, Inc., 3.2%, 8/14/09 5,306,548
2,389,147 General Electric Capital Corp., 4.25%, 1/5/09 2,389,147
2,653,274 General Electric Capital Corp., 2.86%, 3/16/09 2,653,274
2,653,274 CME Group, Inc., 3.0%, 8/6/09 2,653,274
984,473 IBM, 2.85%, 2/13/09 984,473
2,653,274 IBM, 3.03%, 9/25/09 2,653,274
4,790,300 MetLife Global Funding, 3.19%, 6/12/09 4,790,300
4,514,168 Westpac Banking Corp., 2.34%, 6/1/09 4,514,168
--------------
$ 41,768,056
- -----------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
10,637,108 ABN Amro, 0.2%, 11/3/08 $ 10,637,108
1,296,623 Barclays Capital Markets, 0.2%, 11/3/08 1,296,623
--------------
$ 11,933,731
- -----------------------------------------------------------------------------------
Money Market Mutual Fund:
5,318,554 JP Morgan, U.S. Government Money Market Fund $ 5,318,554
- -----------------------------------------------------------------------------------
Other:
360,173 ABS CFAT 2008-A A1, 3.005%, 4/27/09 $ 360,173
--------------
$ 120,057,650
- -----------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $120,057,650) $ 120,057,650
- -----------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 112.7%
(Cost $1,016,615,392) (a) $1,001,112,357
- -----------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (12.7)% $(113,111,990)
- -----------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 888,000,367
===================================================================================
(A.D.R.) American Depositary Receipt
* Investment held by the fund representing 5% or more of the
outstanding voting stock of such company.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/08 23
Schedule of Investments | 10/31/08 (continued)
(a) At October 31, 2008, the net unrealized loss on investments based on cost
for federal income tax purposes of $1,006,252,117 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 175,092,987
-------------
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (180,232,747)
-------------
Net unrealized loss $ (5,139,760)
=============
(b) At October 31, 2008, the following securities were out on loan:
- ----------------------------------------------------------------------------
Shares Description Value
- ----------------------------------------------------------------------------
131,900 AGL Resources, Inc. $ 4,009,760
52,700 Bank of America Corp. 1,273,759
85,700 Compass Minerals International, Inc. 4,707,501
395,700 Duke Energy Corp. 6,481,566
53,700 Equity Residential Property Trust 1,875,741
224,900 Frontier Communications Corp. 1,711,489
83,500 Genuine Parts Co. 3,285,725
160,100 Gorman-Rupp Co.* 5,035,145
236,000 Illinois Tool Works, Inc. 7,880,040
99,000 The J.M. Smucker Co. 4,411,440
290,000 Kimco Realty Corp. 6,548,200
15,900 Liberty Property Trust** 348,210
3,100 McDonald's Corp. 179,583
494,500 Microchip Technology 12,179,535
227,500 Mine Safety Appliances Co. 6,142,500
544,400 New York Times Co. 5,444,000
79,500 PG&E Corp. 2,915,265
128,800 Plum Creek Timber Co., Inc. 4,801,664
49,400 SunTrust Banks, Inc. 1,982,916
98,900 T. Rowe Price Associates, Inc. 3,910,506
145,900 Teck Cominco, Ltd. (Class B) 1,431,279
129,000 U.S. Bancorp 3,845,490
50,700 VF Corp. 2,793,570
1,500 Valspar Corp. 30,675
374,000 Wells Fargo & Co. 12,734,700
680,900 Whitney Holding Corp. 12,937,100
- ----------------------------------------------------------------------------
Total $118,897,359
============================================================================
** Indicates a pending sale.
(c) Security lending collateral is managed by Credit Suisse.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2008 aggregated $221,423,558 and $337,294,209,
respectively.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Annual Report | 10/31/08
Statement of Assets and Liabilities | 10/31/08
ASSETS:
Investment in securities of unaffiliated issuers, at value
(including securities loaned of $118,897,359)
(cost $1,008,708,912) $ 970,033,624
Investment in securities of affiliated issuers, at value
(cost $7,906,480) 31,078,733
- ------------------------------------------------------------------------------------
Total Investment in securities, at value (cost $1,016,615,392) $1,001,112,357
Receivables --
Investment securities sold 7,843,290
Fund shares sold 1,545,259
Dividends 1,709,206
Other 60,466
- ------------------------------------------------------------------------------------
Total assets $1,012,270,578
- ------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 2,274,919
Upon return of securities loaned 120,057,650
Due to bank 1,612,732
Due to affiliates 210,727
Accrued expenses 114,183
- ------------------------------------------------------------------------------------
Total liabilities $ 124,270,211
- ------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 938,279,876
Undistributed net investment income 10,363,275
Accumulated net realized loss on investments (45,139,749)
Net unrealized loss on investments (15,503,035)
- ------------------------------------------------------------------------------------
Total net assets $ 888,000,367
- ------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $639,387,850/30,041,488 shares) $ 21.28
Class B (based on $66,529,730/3,146,882 shares) $ 21.14
Class C (based on $88,291,106/4,195,585 shares) $ 21.04
Class R (based on $64,559,135/3,010,092 shares) $ 21.45
Class Y (based on $29,157,049/1,361,527 shares) $ 21.41
Class Z (based on $75,497/3,544 shares) $ 21.30
MAXIMUM OFFERING PRICE:
Class A ($21.28 [divided by] 94.25%) $ 22.58
====================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/08 25
Statement of Operations
For the Year Ended 10/31/08
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $66,900)
(including income from affiliated issuers of $395,278) $43,661,672
Interest 15,982
Income from securities loaned, net 1,399,723
- ----------------------------------------------------------------------------------------------
Total investment income $ 45,077,377
- ----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 7,155,055
Transfer agent fees and expenses
Class A 1,611,826
Class B 291,648
Class C 244,344
Class R 111,651
Class Y 6,714
Class Z 78
Distribution fees
Class A 2,170,549
Class B 1,016,393
Class C 1,271,890
Class R 363,663
Administrative fees 268,315
Custodian fees 42,780
Registration fees 154,479
Professional fees 97,606
Printing expense 77,129
Fees and expenses of nonaffiliated trustees 38,763
Miscellaneous 218,409
- ----------------------------------------------------------------------------------------------
Total expenses $ 15,141,292
Less fees paid indirectly (41,732)
- ----------------------------------------------------------------------------------------------
Net expenses $ 15,099,560
- ----------------------------------------------------------------------------------------------
Net investment income $ 29,977,817
- ----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments $ (46,325,098)
- ----------------------------------------------------------------------------------------------
Change in net unrealized loss on investments $(386,285,177)
- ----------------------------------------------------------------------------------------------
Net loss on investments $(432,610,275)
- ----------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(402,632,458)
==============================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Annual Report | 10/31/08
Statements of Changes in Net Assets
For the Years Ended 10/31/08 and 10/31/07, respectively
- ----------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/08 10/31/07
- ----------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 29,977,817 $ 28,531,087
Net realized gain (loss) on investments (46,325,098) 78,019,956
Change in net unrealized gain (loss) on investments (386,285,177) 11,920,879
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $(402,632,458) $ 118,471,922
- -----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.67 and $0.73 per share, respectively) $ (21,469,714) $ (22,068,606)
Class B ($0.44 and $0.44 per share, respectively) (1,641,787) (2,017,143)
Class C ($0.47 and $0.46 per share, respectively) (2,217,613) (2,214,658)
Class R ($0.62 and $0.67 per share, respectively) (1,604,652) (931,893)
Class Y ($0.77 and $0.84 per share, respectively) (479,297) (343,399)
Class Z ($0.76 and $0.22 per share, respectively) (2,541) (644)
Net realized gain:
Class A ($1.81 and $2.89 per share, respectively) (58,022,033) (73,275,075)
Class B ($1.81 and $2.89 per share, respectively) (7,250,041) (13,350,148)
Class C ($1.81 and $2.89 per share, respectively) (8,556,663) (12,274,923)
Class R ($1.81 and $2.89 per share, respectively) (3,902,964) (2,416,852)
Class Y ($1.81 and $2.89 per share, respectively) (569,956) (1,124,943)
Class Z ($1.81 and $0.00 per share, respectively) (5,293) --
Tax return of capital:
Class A ($0.06 and $0.00 per share, respectively) (1,837,869) --
Class B ($0.04 and $0.00 per share, respectively) (132,551) --
Class C ($0.04 and $0.00 per share, respectively) (186,558) --
Class R ($0.05 and $0.00 per share, respectively) (145,254) --
Class Y ($0.07 and $0.00 per share, respectively) (50,846) --
Class Z ($0.07 and $0.00 per share, respectively) (236) --
- -----------------------------------------------------------------------------------------------
Total distributions to shareowners $(108,075,868) $ (130,018,284)
- -----------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 283,606,912 $ 534,233,460
Reinvestment of distributions 93,824,570 112,352,076
Cost of shares repurchased (413,610,641) (375,536,460)
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ (36,179,159) $ 271,049,076
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(546,887,485) $ 259,502,714
NET ASSETS:
Beginning of year 1,434,887,852 1,175,385,138
- -----------------------------------------------------------------------------------------------
End of year $ 888,000,367 $1,434,887,852
- -----------------------------------------------------------------------------------------------
Undistributed net investment income $ 10,363,275 $ 8,987,085
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/08 27
Statements of Changes in Net Assets (continued)
'08 Shares '08 Amount '07 Shares '07 Amount
Class A
Shares sold 6,473,245 $177,530,067 12,174,216 $403,915,364
Reinvestment of distributions 2,505,107 73,189,535 2,735,415 86,631,034
Less shares repurchased (11,076,135) (302,251,218) (7,845,064) (258,834,178)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) (2,097,783) $(51,531,616) 7,064,567 $231,712,220
=======================================================================================================
Class B
Shares sold 401,954 $ 10,993,041 794,316 $ 25,972,012
Reinvestment of distributions 247,024 7,200,546 396,433 12,397,850
Less shares repurchased (1,595,953) (43,496,226) (1,770,146) (57,964,408)
- -------------------------------------------------------------------------------------------------------
Net decrease (946,975) $(25,302,639) (579,397) $(19,594,546)
=======================================================================================================
Class C
Shares sold 717,069 $ 19,582,553 1,459,263 $ 47,538,714
Reinvestment of distributions 255,636 7,411,306 311,971 9,732,776
Less shares repurchased (1,587,472) (42,360,145) (1,175,007) (38,341,256)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) (614,767) $(15,366,286) 596,227 $ 18,930,234
=======================================================================================================
Class R
Shares sold 1,450,558 $ 40,479,999 1,465,477 $ 49,096,702
Reinvestment of distributions 187,969 5,520,424 101,462 3,246,489
Less shares repurchased (645,440) (17,734,298) (324,793) (10,787,236)
- -------------------------------------------------------------------------------------------------------
Net increase 993,087 $ 28,266,125 1,242,146 $ 41,555,955
=======================================================================================================
Class Y
Shares sold 1,280,588 $ 35,000,916 229,144 $ 7,610,668
Reinvestment of distributions 17,499 502,385 10,765 343,927
Less shares repurchased (281,251) (7,765,475) (279,975) (9,609,382)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) 1,016,836 $ 27,737,826 (40,066) $ (1,654,787)
=======================================================================================================
Class Z
Shares sold 719 $ 20,336 2,926 $ 100,000
Reinvestment of distributions 14 374 -- --
Less shares repurchased (115) (3,279) -- --
- -------------------------------------------------------------------------------------------------------
Net increase 618 $ 17,431 2,926 $ 100,000
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Equity Income Fund | Annual Report | 10/31/08
Financial Highlights
- --------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/08 10/31/07 10/31/06 10/31/05 10/31/04
- --------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 33.10 $ 33.53 $ 29.23 $ 26.91 $ 23.57
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.75 $ 0.69 $ 0.68 $ 0.61 $ 0.52
Net realized and unrealized gain (loss) on investments (10.03) 2.50 5.36 2.31 3.30
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (9.28) $ 3.19 $ 6.04 $ 2.92 $ 3.82
Distributions to shareowners:
Net investment income (0.67) (0.73) (0.66) (0.60) (0.48)
Net realized gain (1.81) (2.89) (1.08) -- --
Tax return of capital (0.06) -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (11.82) $ (0.43) $ 4.30 $ 2.32 $ 3.34
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.28 $ 33.10 $ 33.53 $ 29.23 $ 26.91
================================================================================================================================
Total return* (29.99)% 10.22% 21.61% 10.87% 16.33%
Ratio of net expenses to average net assets+ 1.11% 1.03% 1.04% 1.06% 1.08%
Ratio of net investment income to average net assets+ 2.67% 2.27% 2.27% 2.11% 2.07%
Portfolio turnover rate 19% 14% 32% 14% 22%
Net assets, end of period (in thousands) $639,388 $1,063,910 $840,640 $668,556 $600,835
Ratios with reduction for fees paid indirectly:
Net expenses 1.10% 1.02% 1.03% 1.06% 1.08%
Net investment income 2.68% 2.28% 2.28% 2.11% 2.07%
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period. Total return would
be reduced if sales charges were taken into account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/08 29
Financial Highlights (continued)
- --------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/08 10/31/07 10/31/06 10/31/05 10/31/04
- --------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 32.88 $ 33.32 $ 29.05 $ 26.75 $ 23.42
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.57 $ 0.51 $ 0.47 $ 0.38 $ 0.35
Net realized and unrealized gain (loss) on investments (10.02) 2.38 5.26 2.26 3.23
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (9.45) $ 2.89 $ 5.73 $ 2.64 $ 3.58
Distributions to shareowners:
Net investment income (0.44) (0.44) (0.38) (0.34) (0.25)
Net realized gain (1.81) (2.89) (1.08) -- --
Tax return of capital (0.04) -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (11.74) $ (0.44) $ 4.27 $ 2.30 $ 3.33
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.14 $ 32.88 $ 33.32 $ 29.05 $ 26.75
================================================================================================================================
Total return* (30.58)% 9.30% 20.55% 9.89% 15.34%
Ratio of net expenses to average net assets+ 1.96% 1.90% 1.91% 1.93% 1.95%
Ratio of net investment income to average net assets+ 1.83% 1.42% 1.44% 1.24% 1.21%
Portfolio turnover rate 19% 14% 32% 14% 22%
Net assets, end of period (in thousands) $ 66,530 $134,618 $155,733 $157,889 $161,275
Ratios with reduction for fees paid indirectly:
Net expenses 1.96% 1.89% 1.90% 1.93% 1.95%
Net investment income 1.83% 1.43% 1.45% 1.24% 1.21%
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period. Total return would
be reduced if sales charges were taken into account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Equity Income Fund | Annual Report | 10/31/08
- --------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/08 10/31/07 10/31/06 10/31/05 10/31/04
- --------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 32.75 $ 33.20 $ 28.96 $ 26.68 $ 23.37
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.55 $ 0.46 $ 0.45 $ 0.38 $ 0.29
Net realized and unrealized gain (loss) on investments (9.94) 2.44 5.29 2.28 3.29
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (9.39) $ 2.90 $ 5.74 $ 2.66 $ 3.58
Distributions to shareowners:
Net investment income (0.47) (0.46) (0.42) (0.38) (0.27)
Net realized gain (1.81) (2.89) (1.08) -- --
Tax return of capital (0.04) -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (11.71) $ (0.45) $ 4.24 $ 2.28 $ 3.31
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.04 $ 32.75 $ 33.20 $ 28.96 $ 26.68
================================================================================================================================
Total return* (30.52)% 9.37% 20.66% 9.98% 15.40%
Ratio of net expenses to average net assets+ 1.87% 1.82% 1.83% 1.86% 1.89%
Ratio of net investment income to average net assets+ 1.92% 1.48% 1.49% 1.31% 1.26%
Portfolio turnover rate 19% 14% 32% 14% 22%
Net assets, end of period (in thousands) $ 88,291 $157,553 $139,915 $121,479 $109,787
Ratios with reduction for fees paid indirectly:
Net expenses 1.87% 1.81% 1.82% 1.86% 1.89%
Net investment income 1.92% 1.49% 1.50% 1.31% 1.26%
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period. Total return would
be reduced if sales charges were taken into account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/08 31
Financial Highlights (continued)
- --------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/08 10/31/07 10/31/06 10/31/05 10/31/04
- --------------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 33.34 $ 33.73 $ 29.39 $ 27.08 $ 23.71
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.68 $ 0.54 $ 0.51 $ 0.39 $ 0.44
Net realized and unrealized gain (loss) on investments (10.09) 2.63 5.51 2.48 3.38
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (9.41) $ 3.17 $ 6.02 $ 2.87 $ 3.82
Distributions to shareowners:
Net investment income (0.62) (0.67) (0.60) (0.56) (0.45)
Net realized gain (1.81) (2.89) (1.08) -- --
Tax return of capital (0.05) -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (11.89) $ (0.39) $ 4.34 $ 2.31 $ 3.37
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.45 $ 33.34 $ 33.73 $ 29.39 $ 27.08
================================================================================================================================
Total return* (30.14)% 10.10% 21.41% 10.64% 16.23%
Ratio of net expenses to average net assets+ 1.33% 1.20% 1.23% 1.26% 1.17%
Ratio of net investment income to average net assets+ 2.44% 2.07% 2.00% 1.86% 1.98%
Portfolio turnover rate 19% 14% 32% 14% 22%
Net assets, end of period (in thousands) $ 64,559 $ 67,239 $26,140 $10,213 $ 2,072
Ratios with reduction for fees paid indirectly:
Net expenses 1.33% 1.19% 1.22% 1.26% 1.17%
Net investment income 2.44% 2.08% 2.01% 1.86% 1.98%
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Equity Income Fund | Annual Report | 10/31/08
- --------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/08 10/31/07 10/31/06 10/31/05 10/31/04
- --------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 33.28 $ 33.68 $ 29.35 $ 27.02 $ 23.65
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.67 $ 0.91 $ 0.73 $ 0.63 $ 0.67
Net realized and unrealized gain (loss) on investments (9.89) 2.42 5.45 2.41 3.29
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (9.22) $ 3.33 $ 6.18 $ 3.04 $ 3.96
Distributions to shareowners:
Net investment income (0.77) (0.84) (0.77) (0.71) (0.59)
Net realized gain (1.81) (2.89) (1.08) -- --
Tax return of capital (0.07) -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (11.87) $ (0.40) $ 4.33 $ 2.33 $ 3.37
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.41 $ 33.28 $ 33.68 $ 29.35 $ 27.02
================================================================================================================================
Total return* (29.72)% 10.66% 22.10% 11.31% 16.88%
Ratio of net expenses to average net assets+ 0.72% 0.66% 0.65% 0.66% 0.64%
Ratio of net investment income to average net assets+ 3.09% 2.66% 2.61% 2.51% 2.43%
Portfolio turnover rate 19% 14% 32% 14% 22%
Net assets, end of period (in thousands) $ 29,157 $ 11,471 $12,956 $ 6,611 $ 4,119
Ratios with reduction for fees paid indirectly:
Net expenses 0.72% 0.66% 0.65% 0.66% 0.64%
Net investment income 3.09% 2.66% 2.61% 2.51% 2.43%
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/08 33
Financial Highlights
- -----------------------------------------------------------------------------------------
Year Ended 7/6/07 (a)
10/31/08 to 10/31/07
- -----------------------------------------------------------------------------------------
Class Z
Net asset value, beginning of period $ 33.12 $ 34.18
- -----------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.80 $ 0.24
Net realized and unrealized loss on investments (9.98) (1.08)
- -----------------------------------------------------------------------------------------
Net decrease from investment operations $ (9.18) $ (0.84)
Distributions to shareowners:
Net investment income (0.76) (0.22)
Net realized gain (1.81) --
Tax return of capital (0.07) --
- -----------------------------------------------------------------------------------------
Net decrease in net asset value $ (11.82) $ (1.06)
- -----------------------------------------------------------------------------------------
Net asset value, end of period $ 21.30 $ 33.12
=========================================================================================
Total return* (29.75)% (2.46)%(b)
Ratio of net expenses to average net assets+ 0.76% 0.67%**
Ratio of net investment income to average net assets+ 3.03% 2.26%**
Portfolio turnover rate 19% 14%(b)
Net assets, end of period (in thousands) $ 75 $ 97
Ratios with reduction for fees paid indirectly:
Net expenses 0.76% 0.67%**
Net investment income 3.03% 2.26%**
=========================================================================================
(a) Class Z shares were first publicly offered on July 6, 2007.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Equity Income Fund | Annual Report | 10/31/08
Notes to Financial Statements | 10/31/08
1. Organization and Significant Accounting Policies
Pioneer Equity Income Fund (the Fund) is a Delaware statutory trust registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is current income and
long-term growth of capital from a portfolio consisting primarily of income
producing equity securities of U.S. corporations.
The Fund offers six classes of shares -- Class A, Class B, Class C, Class R,
Class Y and Class Z shares. Class Z shares were first publicly offered on July
6, 2007. Each class of shares represents an interest in the same portfolio of
investments of the Fund and have equal rights to voting, redemptions, dividends
and liquidation, except that each class of shares can bear different transfer
agent and distribution fees and have exclusive voting rights with respect to the
distribution plans that have been adopted by Class A, Class B, Class C, and
Class R shareowners, respectively. There is no distribution plan for Class Y and
Class Z shareowners.
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 during the reporting period. Actual
results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political or regulatory developments or other risks affecting these
industries or sectors. The Fund's prospectuses (unaudited) contain information
regarding the Fund's principal risks. Please refer to those documents when
considering the Fund's principal investment 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:
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 close of regular trading on the NYSE. In computing
the net asset value, securities are valued at the last sale price on the
principal
Pioneer Equity Income Fund | Annual Report | 10/31/08 35
exchange where they are traded. Securities that have not traded on the date
of valuation, or securities for which sale prices are not generally
reported, are valued at the mean between the last bid and asked prices.
Securities for which market quotations are not readily available are valued
at their fair values as determined by, or under the direction of, the Board
of Trustees. Trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. The Fund may also use the fair value of a
security, including a non-U.S. security, when the closing market price on
the principal exchange where the security is traded no longer reflects the
value of the security. At October 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
is recorded on the accrual basis, net of unrecoverable foreign taxes
withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
share-owners. Therefore, no federal income tax provision is required. Tax
years prior to 2004 are closed (not subject to examination by tax
authorities) due to the expiration of statute of limitations; all other tax
years are open.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as 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.
At October 31, 2008, the Fund had a net capital loss carryforward of
$45,139,749, which will expire in 2016 if not utilized.
At October 31, 2008, the Fund has reclassified $2,353,314 to decrease paid
in capital, $1,167,291 to increase undistributed net investment income and
$1,186,023 to decrease accumulated net realized loss on investments and
foreign currency transactions to reflect permanent book/tax differences.
The
36 Pioneer Equity Income Fund | Annual Report | 10/31/08
reclassification has no impact on the net assets of the Fund and is
designed to present the Fund's capital accounts on a tax basis.
The tax character of distributions paid during the years ended October 31,
2008 and October 31, 2007 was as follows:
- --------------------------------------------------------------
2008 2007
- --------------------------------------------------------------
Distributions paid from:
Ordinary income $ 27,415,604 $ 30,337,537
Long-term capital gain 78,306,950 99,680,747
- --------------------------------------------------------------
$105,722,554 $130,018,284
Return of capital 2,353,314 --
- --------------------------------------------------------------
Total $108,075,868 $130,018,284
==============================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2008:
- --------------------------------------------------------------
2008
- --------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ --
Capital loss carryforward (45,139,749)
Unrealized depreciation (5,139,760)
- ----------------------------------------------------------
Total $ (50,279,509)
==========================================================
The difference between book-basis and tax-basis unrealized depreciation is
attributable to the tax basis adjustments on partnerships and REIT
holdings.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(Uni-Credit) earned approximately $86,917 in underwriting commissions on
the sale of Class A shares during the year ended October 31, 2008.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at their 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. Class Y and Class Z shares are not subject to a distribution
plan (see Note 4). 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
Pioneer Equity Income Fund | Annual Report | 10/31/08 37
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, Class Y and Class Z shares
can bear different transfer agent and distribution expense rates.
E. 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 agreement at the time of purchase.
The collateral for all 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.
F. Securities Lending
The Fund lends securities in its portfolio to certain broker-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 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
from the borrower on demand. The Fund invests cash collateral in cash
equivalent investments. Securities lending collateral is managed by Credit
Suisse.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. PIM receives a basic fee that is calculated at the annual rate of
0.60% of the Fund's average daily net assets up to $10 billion and 0.575% of the
excess over $10 billion. For the year ended October 31, 2008, the net management
fee was equivalent to 0.60% of the average daily net assets.
Pioneer has contractually agreed to limit ordinary operating expenses to the
extent required to reduce Class Z expenses to 0.85% of the average daily net
38 Pioneer Equity Income Fund | Annual Report | 10/31/08
assets attributable to Class Z shares. This expense limitation is in effect
through March 1, 2012 for Class Z shares.
In addition, under the management and administrative 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 $15,032 in management fees,
administrative costs and certain other services payable to PIM at October 31,
2008.
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 $185,187 in transfer agent fees payable to PIMSS at October 31,
2008.
4. Distribution and Service Plans
The Fund adopted a Plan of Distribution with respect to Class A, Class B, Class
C and Class R shares (Class A Plan, Class B Plan, Class C Plan, Class R Plan) in
accordance with Rule 12b-1 of the Investment Company Act of 1940. Effective
February 1, 2008, under the Class A Plan, the Fund pays PFD 0.25% of the Fund's
average daily 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. Prior to February 1, 2008, PFD was reimbursed
under the Plan of Distribution for distribution expenses in an amount of up to
0.25% of the average daily net assets attributes to Class A shares. Pursuant to
the Class B and 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 $10,508 in distribution
fees payable to PFD at October 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 as compensation to securities
dealers, plan administrators or other service organizations that agree to
provide certain services to retirement plans or plan participants holding 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 held by such plans in reimbursement for actual
expenditures.
In addition, redemptions of Class A, Class B and Class C shares may be subject
to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
Pioneer Equity Income Fund | Annual Report | 10/31/08 39
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchases. Class B shares redeemed within five years of
purchase are subject to a CDSC at declining rates beginning at 4.00%, based on
the lower cost or market value of shares being redeemed. Redemptions of Class C
shares within one year of purchase are subject to a CDSC of 1.00%, based on the
lower of cost or market value of shares being redeemed. Proceeds from the CDSCs
are paid to PFD. For the year ended October 31, 2008, CDSCs in the amount of
$224,639 were paid to PFD.
5. Commission Recapture and Expense Offset Arrangements
Effective July 15, 2005, the Fund has entered into commission recapture
arrangements with brokers with whom PIM places trades on behalf of the Fund
where they provide services to the Fund in addition to trade execution. These
services included payments of certain expenses on behalf of the Fund. For the
year ended October 31, 2008, expenses were not reduced under this agreement. 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 year ended October 31, 2008, the Fund's
expenses were reduced by $41,732 under such arrangements.
6. Line Of Credit Facility
The Fund, along with certain others in the Pioneer Family of Funds (the Funds),
collectively participate in a $200 million committed, unsecured revolving line
of credit facility. Borrowings are used solely for temporary or emergency
purposes. The Fund may borrow up to the lesser of $200 million or the limits set
by its prospectus for borrowings. Interest on collective borrowings is payable
at the Federal Funds Rate plus 1/2% on an annualized basis. The Funds pay an
annual commitment fee for this facility. The commitment fee is allocated among
such Funds based on their respective borrowing limits. For the year ended
October 31, 2008, the Fund had no borrowings under this agreement.
7. Affiliated Companies
The Fund's investments in certain companies exceed 5% of the outstanding voting
stock of those companies. Such companies are deemed affiliates of the Fund for
financial reporting purposes. The following summarizes transactions with
affiliates of the Fund for the year ended October 31, 2008:
- ---------------------------------------------------------------------------------------------------------
Beginning Corporate Ending
Balance Purchases Actions Dividend Balance
Affiliates (shares) (shares) (shares) Income (shares) Value
- ---------------------------------------------------------------------------------------------------------
Gorman-Rupp Co. 790,557 -- 197,638 $395,278 988,195 $31,078,733
40 Pioneer Equity Income Fund | Annual Report | 10/31/08
8. New Pronouncements
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact the adoption of SFAS
157 will have on the Fund's financial statement disclosures.
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. SFAS 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.
Pioneer Equity Income Fund | Annual Report | 10/31/08 41
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of
Pioneer Equity Income Fund:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Equity Income Fund (the "Fund"), including the schedule of investments, as of
October 31, 2008, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of October 31, 2008, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Equity Income Fund at October 31, 2008, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the periods
indicated therein, in conformity with U.S. generally accepted accounting
principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 19, 2008
42 Pioneer Equity Income Fund | Annual Report | 10/31/08
ADDITIONAL INFORMATION (unaudited)
For the fiscal year ended October 31, 2008, certain dividends paid by the Fund
may be subject to a maximum tax rate of 15%, as provided for by the Jobs and
Growth Tax Relief Reconciliation Act (the Act) of 2003. The Fund intends to
designate up to the maximum amount of such dividends allowable under the Act, as
taxed at a maximum rate of 15%. Complete information will be computed and
reported in conjunction with your 2008 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 100%.
Effective January 1, 2008, the fund may invest up to 20% of its total assets in
equity and debt securities of non-U.S. corporate issuers and debt securities of
non-U.S. government issuers. The fund will not invest more than 5% of its total
assets in the securities of emerging markets issuers. Investing in non-U.S.
issuers may involve unique risks compared to investing in securities of U.S.
issuers. These risks are more pronounced for issuers in emerging markets or to
the extent the fund invests significantly in one region or country. These risks
may include:
o Less information about non-U.S. issuers or markets may be available due to
less rigorous disclosure or accounting standards or regulatory practices
o Many non-U.S. markets are smaller, less liquid and more volatile. Pioneer
may not be able to sell the fund's portfolio securities at times, in
amounts and at prices it considers reasonable
o Adverse effect of currency exchange rates or controls on the value of the
fund's investments or its ability to convert non-U.S. currencies to U.S.
dollars
o The economies of non-U.S. countries may grow at slower rates than expected
or may experience a downturn or recession
o Economic, political and social developments may adversely affect the
securities markets
o Withholding and other non-U.S. taxes may decrease the fund's return
Pioneer Equity Income Fund | Annual Report | 10/31/08 43
Results of Shareholder Meeting (unaudited)
At a special meeting held on May 13, 2008, and adjourned to June 19, 2008 with
respect to certain proposals, 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. 24,696,106.806 425,139.040 15,507.928 0.000
Daniel K. Kingsbury 24,739,574.419 381,671.428 15,507.928 0.000
David R. Bock 24,738,135.243 383,110.604 15,507.928 0.000
Mary K. Bush 24,632,604.722 488,641.124 15,507.928 0.000
Benjamin M. Friedman 24,635,294.942 485,950.904 15,507.928 0.000
Margaret B.W. Graham 24,635,476.641 485,769.206 15,507.928 0.000
Thomas J. Perna 24,727,092.438 394,153.408 15,507.928 0.000
Marguerite A. Piret 24,618,705.073 502,540.773 15,507.928 0.000
Stephen K. West 24,694,850.665 426,395.181 15,507.928 0.000
John Winthrop 24,715,730.200 405,515.646 15,507.928 0.000
- ------------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ------------------------------------------------------------------------------------------------
Proposal 2 -- To approve an
amendment to the
Declaration of Trust 17,308,381.033 781,978.802 663,211.911 5,976,232.000
- ------------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ------------------------------------------------------------------------------------------------
Proposal 3A -- To approve
changes to the Fund's
fundamental investment
policy relating to borrowing
money 17,124,691.165 1,014,559.190 614,321.391 5,976,232.000
Proposal 3B -- To approve
changes to the Fund's
fundamental investment
policy relating to
underwriting 17,253,709.067 845,882.815 653,979.864 5,976,232.000
Proposal 3C -- To approve
changes to the Fund's
fundamental investment
policy relating to lending 17,206,884.077 898,704.564 647,983.105 5,976,232.000
Proposal 3D -- To approve
changes to the Fund's
fundamental investment
policy relating to issuing
senior securities 17,230,714.478 766,377.474 756,479.794 5,976,232.000
Proposal 3E -- To approve
changes to the Fund's
fundamental investment
policy relating to real estate 17,088,435.400 870,655.107 794,481.239 5,976,232.000
44 Pioneer Equity Income Fund | Annual Report | 10/31/08
- ------------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ------------------------------------------------------------------------------------------------
Proposal 3F -- To approve
changes to the Fund's
fundamental investment
policy relating to
commodities 17,166,246.924 930,047.895 657,276.926 5,976,232.000
Proposal 3G -- To approve
changes to the Fund's
fundamental investment
policy relating to
concentration 17,214,060.652 870,549.605 668,961.489 5,976,232.000
Proposal 3H -- To approve
changes to the Fund's
fundamental investment
policy relating to
diversification. 16,870,849.979 730,505.425 556,793.370 6,978,605.000
Proposal 3I -- To approve
the conversion of the Fund's
investment objective from
fundamental to non-
fundamental 16,812,171.763 1,258,226.190 683,173.792 5,976,232.000
Proposal 3O -- To approve
changes to the Fund's
fundamental investment
policies relating to pledging
or guaranteeing assets 17,092,620.296 1,017,035.684 643,915.766 5,976,232.000
- ------------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ------------------------------------------------------------------------------------------------
Proposal 4 -- To approve an
Amended and Restated
Management Agreement
with PIM 16,991,106.405 612,585.619 554,456.750 6,978,605.000
- --------------------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- --------------------------------------------------------------------------------------------------------
Proposal 5 -- To approve a
policy allowing appointment
of unaffiliated sub-advisors
and amendments to sub-
advisory agreements without
shareholder approval 16,846,445.280 1,288,442.317 618,684.148 5,976,232.000
Pioneer Equity Income Fund | Annual Report | 10/31/08 45
Approval of Investment Advisory Agreement (unaudited)
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 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
46 Pioneer Equity Income Fund | Annual Report | 10/31/08
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 second quintile of its
Morningstar category for the one and five year periods ended June 30, 2007 and
in the first quintile of its Morningstar category for the three year period
ended June 30, 2007. (In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Fund's shareowners. Thus,
highest relative performance would be first quintile and lowest relative
expenses would also be first quintile.) The Trustees 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
Pioneer Equity Income Fund | Annual Report | 10/31/08 47
the independent Trustees for this purpose using data provided by Strategic
Insight Mutual Fund Research and Consulting, LLC (Strategic Insight), an
independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2007 was in the second quintile relative to the management fees
paid by other funds in its peer group Morningstar category for the comparable
period. The Trustees also considered that the Fund's expense ratio for the
twelve months ended June 30, 2007 was in the second quintile relative to its
Strategic Insight peer group.
The Trustees also reviewed management fees charged by PIM to its separate
account clients with a similar investment strategy as the Fund. The Trustees
noted that in some instances the fee rates for those separate accounts were
lower than the management fees for the Fund and considered that, under the
investment advisory agreement with the Fund, PIM performs additional services
for the Fund that it does not provide to those other clients, including
oversight of the Fund's other service providers, regulatory compliance and other
services.
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 and the investment performance of the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
recognized that PIM should be entitled to earn a reasonable level of profit for
the services provided to the Fund. The Trustees concluded that PIM's
profitability with respect to the management of the Fund was not unreasonable.
48 Pioneer Equity Income Fund | Annual Report | 10/31/08
Economies of Scale
The Trustees considered the economies of scale with respect to the management
of the Fund, whether the Fund had appropriately benefited from any economies of
scale, and whether there was potential for realization of any further economies
of scale.
The Trustees concluded that, because of the breakpoints in the management fee
schedule and the reduced fee rates above certain asset levels, any perceived or
potential economies of scale would be shared between PIM and the Fund.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with
the Fund. The Trustees considered that affiliates of PIM serve as the Fund's
transfer agent and distributor. The Trustees considered the receipt by PIM and
its affiliates of sales loads and payments under Rule 12b-1 plans in respect of
the Fund and the other Pioneer funds 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.
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.
Pioneer Equity Income Fund | Annual Report | 10/31/08 49
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
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.
Trustees and Officers
The Board of Trustees provides broad supervision over the Fund's affairs. The
officers of the Fund are responsible for the Fund's operations. The Trustees and
officers are listed below, together with their principal occupations during the
past five years. Trustees who are interested persons of the Fund within the
meaning of the 1940 Act are referred to as Interested Trustees. Trustees who are
not interested persons of the Fund are referred to as Independent Trustees. Each
of the Trustees (except Mr. West) serves as a Trustee of each of the 76 U.S.
registered investment portfolios for which Pioneer serves as investment adviser
(the "Pioneer Funds"). Mr. West serves as Trustee of 33 of the 76 Pioneer Funds.
The address for all Trustees and all officers of the Fund is 60 State Street,
Boston, Massachusetts 02109.
50 Pioneer Equity Income Fund | Annual Report | 10/31/08
Interested Trustees
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (82)* Chairman of the Board, Trustee since 1990. Deputy Chairman and a Director of None
Trustee and President Serves until a successor Pioneer Global Asset Management
trustee is elected or S.p.A. ("PGAM"); Non-Executive
earlier retirement or Chairman and a Director of Pioneer
removal. Investment Management USA Inc.
("PIM-USA"); Chairman and a
Director of Pioneer; Chairman and
Director of Pioneer Institutional
Asset Management, Inc. (since
2006); Director of Pioneer
Alternative Investment Management
Limited (Dublin); President and a
Director of Pioneer Alternative
Investment Management (Bermuda)
Limited and affiliated funds;
Director of PIOGLOBAL Real Estate
Investment Fund (Russia) (until
June 2006); Director of Nano-C,
Inc. (since 2003); Director of
Cole Management Inc. (since 2004);
Director of Fiduciary Counseling,
Inc.; President and Director of
Pioneer Funds Distributor, Inc.
("PFD") (until May 2006);
President of all of the Pioneer
Funds; and Of Counsel, Wilmer
Cutler Pickering Hale and Dorr LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (50)* Trustee and Executive Trustee since March Director, CEO and President of None
Vice President 2007. Serves until a Pioneer Investment Management USA
successor trustee is Inc. (since February 2007);
elected or earlier Director and President of Pioneer
retirement or removal. Investment Management, Inc. and
Pioneer Institutional Asset
Management, Inc. (since February
2007); Executive Vice President of
all of the Pioneer Funds (since
March 2007); Director of Pioneer
Global Asset Management S.p.A.
(since April 2007); Head of New
Markets Division, Pioneer Global
Asset Management S.p.A. (2000 --
2007)
- ------------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers or directors of the Fund's investment adviser and
certain of its affiliates.
Pioneer Equity Income Fund | Annual Report | 10/31/08 51
Independent Trustees
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (64) Trustee Trustee since 2005. Executive Vice President and Director of Enterprise
Serves until a successor Chief Financial Officer, I-trax, Community Investment, Inc.
trustee is elected or Inc. (publicly traded health care (privately-held affordable
earlier retirement or services company) (2004 -- 2007); housing finance company);
removal. Partner, Federal City Capital and Director of New York
Advisors (boutique merchant bank) Mortgage Trust (publicly
(1997 to 2004 and 2008 -- traded mortgage REIT)
present); and Executive Vice
President and Chief Financial
Officer, Pedestal Inc.
(internet-based mortgage trading
company) (2000 -- 2002)
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (60) Trustee Trustee since 1997. President, Bush International, Director of Marriott
Serves until a successor LLC (international financial International, Inc.;
trustee is elected or advisory firm) Director of Discover
earlier retirement or Financial Services (credit
removal. card issuer and electronic
payment services); Director
of Briggs & Stratton Co.
(engine manufacturer);
Director of UAL Corporation
(airline holding company);
Director of Mantech
International Corporation
(national security, defense,
and intelligence technology
firm); and Member, Board of
Governors, Investment
Company Institute
- ------------------------------------------------------------------------------------------------------------------------------------
52 Pioneer Equity Income Fund | Annual Report | 10/31/08
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (64) Trustee Trustee since May, Professor, Harvard University Trustee, Mellon
2008. Serves until a Institutional Funds
successor trustee is Investment Trust and
elected or earlier Mellon Institutional Funds
retirement or removal. Master Portfolio (oversees
17 portfolios in fund
complex)
- ------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (61) Trustee Trustee since 1990. Founding Director, Vice President None
Serves until a successor and Corporate Secretary, The
trustee is elected or Winthrop Group, Inc. (consulting
earlier retirement or firm); and Desautels Faculty of
removal. Management, McGill University
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (58) Trustee Trustee since 2006. Chief Executive Officer, None
Serves until a successor Quadriserv, Inc. (2008 --
trustee is elected or present) (technology products for
earlier retirement or securities lending industry);
removal. Private investor (2004 -- 2008);
and Senior Executive Vice
President, The Bank of New York
(financial and securities
services) (1986 -- 2004)
- ------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (60) Trustee Trustee since 1990. President and Chief Executive Director of New America
Serves until a successor Officer, Newbury, Piret & High Income Fund, Inc.
trustee is elected or Company, Inc. (investment banking (closed-end investment
earlier retirement or firm) company)
removal.
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (80) Trustee Trustee since 1993. Senior Counsel, Sullivan & Director, The Swiss
Serves until a successor Cromwell LLP (law firm) Helvetia Fund, Inc.
trustee is elected or (closed-end investment
earlier retirement or company)
- ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/08 53
Fund Officers
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Officer
- ------------------------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (60) Secretary Since 2003. Serves at Secretary of PIM-USA; Senior Vice None
the discretion of the President -- Legal of Pioneer;
Board. Secretary/Clerk of most of
PIM-USA's subsidiaries; and
Secretary of all of the Pioneer
Funds since September 2003
(Assistant Secretary from
November 2000 to September 2003)
- ------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (43) Assistant Since 2003. Serves at Associate General Counsel of None
Secretary the discretion of the Pioneer since January 2008 and
Board. Assistant Secretary of all of the
Pioneer Funds since September
2003; Vice President and Senior
Counsel of Pioneer from July 2002
to December 2007
- ------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (48) Treasurer Since March 2008. Vice President -- Fund None
Serves at the discretion Accounting, Administration and
of the Board. Controllership Services of
Pioneer; and Treasurer of all of
the Pioneer Funds since March
2008; Deputy Treasurer of Pioneer
from March 2004 to February 2008;
Assistant Treasurer of all of the
Pioneer Funds from March 2004 to
February 2008; and Treasurer and
Senior Vice President, CDC IXIS
Asset Management Services from
2002 to 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (43) Assistant Since 2000. Serves at Assistant Vice President -- Fund None
Treasurer the discretion of the Accounting, Administration and
Board. Controllership Services of
Pioneer; and Assistant Treasurer
of all of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (50) Assistant Since 2002. Serves at Fund Accounting Manager -- Fund None
Treasurer the discretion of the Accounting, Administration and
Board. Controllership Services of
Pioneer; and Assistant Treasurer
of all of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
54 Pioneer Equity Income Fund | Annual Report | 10/31/08
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Officer
- ------------------------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (34) Assistant Since 2003. Serves at Fund Administration Manager -- None
Treasurer the discretion of the Fund Accounting, Administration
Board. and Controllership Services since
June 2003 and Assistant Treasurer
of all of the Pioneer Funds since
September 2003; Assistant Vice
President -- Mutual Fund
Operations of State Street
Corporation from June 2002 to June
2003 (formerly Deutsche Bank Asset
Management)
- ------------------------------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (49) Chief Since January 2007. Chief Compliance Officer of None
Compliance Serves at the discretion Pioneer since December 2006 and of
Officer of the Board. all the Pioneer Funds since
January 2007; Vice President and
Compliance Officer, MFS Investment
Management (August 2005 to
December 2006); Consultant,
Fidelity Investments (February
2005 to July 2005); Independent
Consultant (July 1997 to February
2005)
- ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/08 55
This page for your notes.
56 Pioneer Equity Income Fund | Annual Report | 10/31/08
This page for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/08 57
This page for your notes.
58 Pioneer Equity Income Fund | Annual Report | 10/31/08
This page for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/08 59
This page for your notes.
60 Pioneer Equity Income Fund | Annual Report | 10/31/08
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.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2008 Pioneer Investments 19439-02-1208
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.
Audit Fees
Fees for audit services provided to the Fund,
including fees associated with the filings to update
its Form N-2 and issuance of comfort letters, totaled
approximately $34,400 in 2008 and $33,085 in
2007.
(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.
Audit-Related Fees
There were no fees for audit-related or other services
provided to the Fund during the fiscal years ended
October 31, 2008 and 2007.
(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.
Tax Fees
Fees for tax compliance services, primarily for tax
returns, totaled approximately $8,290 and $7,820 for
2008 and 2007, respectively.
(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.
Other Fees
There were no fees for other services provided to the
Fund during the fiscal years ended October 31, 2008
and 2007.
(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.
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Fund's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on
the operations or financial reporting of the Fund. For
the years ended October 31, 2008 and 2007, there
were no services provided to an affiliate that
required the Fund's audit committee pre-approval.
(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.
The aggregate non-audit fees for the Fund and
affiliates, as previously defined, totaled
approximately $8,290 in 2008 and $7,820 in 2007.
(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 Equity Income Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date December 29, 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 December 29, 2008
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date December 29, 2008
* Print the name and title of each signing officer under his or her signature.