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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 811-06151
Pioneer Europe Select Equity 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: August 31
Date of reporting period: September 1, 2008 through February 28, 2009
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 Europe Select Equity Fund
- --------------------------------------------------------------------------------
Semiannual Report | February 28, 2009
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A PERAX
Class B PERBX
Class C PERCX
Class Y PEYSX
[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 14
Schedule of Investments 16
Financial Statements 20
Notes to Financial Statements 32
Trustees, Officers and Service Providers 39
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe have been experiencing 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
2 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
see potential chances for making money in many corners of the market, it takes
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.
Sincerely,
/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 Europe Select Equity Fund | Semiannual Report | 2/28/09 3
Portfolio Management Discussion | 2/28/09
Investors in the European equity markets suffered substantial losses during the
six months ended February 28, 2009. Prices of virtually all stocks declined
steeply in the face of mounting evidence of a slowing global economy and
falling corporate profitability. In the following discussion, Andrew Arbuthnott
reviews the factors that affected the performance of Pioneer Europe Select
Equity Fund during the six months. Mr. Arbuthnott, head of the Core European
Equities Group of Pioneer Investments in Dublin, Ireland, is a member of the
team responsible for the Fund's day-to-day management.
Q How did Pioneer Europe Select Equity Fund perform during the six months ended
February 28, 2009?
A Europe Select Equity Fund's Class A shares returned -42.20%, at net asset
value, for the six months ended February 28, 2009, compared with a return
of -47.53% during the same period for the Fund's benchmark, the Morgan
Stanley Capital International (MSCI) Europe Index. Over the same six
months, the average return of the 114 mutual funds in Lipper's European
Region Funds category was -46.69%.
Q What were market conditions like in Europe during the six months ended
February 28, 2009?
A It was a very difficult time for the European equity markets, with stocks in
all sectors recording major price losses. Investors lost confidence as a
confluence of negative economic news raised fears that the global economy
was dipping into recession. Economic growth slackened, liquidity in the
financial markets deteriorated, financial institutions struggled to find
sufficient capital, and corporate profits declined while commodity prices
went through wide swings before falling sharply. International currency
exchange rates also fluctuated significantly. The problems were felt most
severely in the financials sector, especially after the U.S. investment
bank Lehman Brothers declared bankruptcy in September of 2008. At the start
of the period, in August of 2008, the situation in Europe was not helped
when the European Central Bank (ECB) opted to maintain its tight monetary
policies, as it focused more on preventing inflation than on re-stimulating
economic growth. Later, the ECB began to lower short-term rates, but it
acted more slowly than other major central banks in trying to increase
liquidity and stimulate economic growth.
Credit was in short supply, and financials stocks -- especially bank stocks
-- were particularly hard hit, with the average European banking stock
4 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
declining by 68% over the six-month period (in U.S. dollar terms).
Diversified financial companies, including investment banks, performed
almost as poorly during the six months ended February 28, 2009, declining
by 65% on average. Other poor-performing industry groups included:
semiconductors and materials (-60% each); insurance, technology hardware
and transportation (-55% each); and capital goods stocks, which declined by
an average of 52%.
The better-performing groups were in the traditionally defensive areas of
the market, but even they suffered severe price losses during the six
months ended February 28, 2009. Retailers, telecommunication services and
retailers for food and staples all were down by about 29%. Food, beverage
and tobacco stocks lost 30% on average, as did household and personal care
products stocks. Pharmaceutical stocks declined by an average of 32%, while
health care equipment and services stocks fell by an average 34%, and media
stocks declined by 36%.
Q How was the Fund's portfolio positioned in this environment, and how did that
affect its investment results over the six months ended February 28, 2009?
A The Europe Select Equity Fund's return was disappointing, consistent with the
overall trend in the markets, but the Fund nevertheless managed to
outperform its benchmark, the MSCI Europe Index, and its Lipper peer group
average over the six months. The Fund's sector and industry weightings
tended to contribute to its relative performance advantage, especially a
notable underweighting of financials stocks. The Fund had only one
insurance company investment, for example. That was the German reinsurance
company Munich Re, which outperformed the overall financials sector even
though its share price fell. Similarly, the Fund owned only one diversified
financials stock, the investment banking and asset management firm Credit
Suisse, which performed in line with the overall MSCI Europe Index. The
Fund had no exposure to such poor-performers as UBS, Deutsche Bank and
Fortis. Similarly, we underweighted the Fund in bank stocks, which also
helped. While the Fund's bank holdings did not do well, our decisions not
to own any banks based in the United Kingdom, Spain, Italy or Ireland
limited the Fund's exposure to the worst-performing areas in the markets.
However, the Fund's investments in the French banking firms BNP Paribas and
Societe Generale performed poorly, consistent with the overall industry.
Overall stock selection was good for the Fund on a relative basis, although
absolute results also were disappointing. The Fund was overweight in
capital goods companies, but we generally avoided the worst performing
industrial stocks, placing a greater focus on defense-oriented companies
that were more resilient to overall economic trends. The Fund's investment
in Thales, a French aerospace corporation, fell in value, but it still
outperformed the
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 5
general capital goods group. On the positive side, we initiated a position
for the Fund in Finmeccanica, an Italian aerospace and security firm, in
October 2008. The holding subsequently gained in value, rising by 11%
through the end of the period on February 28, 2009. One capital goods
company that did not help the Fund, however, was Siemens, the global
engineering and electronics firm based in Munich, Germany. We still favor
the company, however, as it is going through a restructuring under new
management that we think may eventually lead to improved performance.
The Fund also had good relative performance from stock selections in the
materials and the health care equipment and services industries. In
materials, the Fund owned a position in the Ireland-based global building
supplies company CRH. Its global reach, strong balance sheet and
diversified operations helped it do well in a very poor market. Its share
price declined by about 20%, but its industry average fell 60%. Among the
Fund's health care equipment and services holdings, Fresenius Medical Care
was an outperformer. This German company, as the world's leading operator
of dialysis care centers for the treatment of patients with serious kidney
problems, is less susceptible to economic conditions than most stocks. In
the food, beverage and tobacco industry, the Fund saw relatively good
results from British American Tobacco, a tobacco products company based in
the United Kingdom, and from ABInBev, the Belgian brewing company. Its
share price rose by 45% after it completed the acquisition of Anheuser
Busch in the United States during the period. In the utilities industry, we
generally stayed away from any companies exposed to commodity prices. The
Fund's investment in National Grid, an electricity and natural gas
transmission company based in the United Kingdom, helped support relative
results even though its share price declined by 20%. The Fund had no
exposure at all to the technology hardware industry, which proved to be an
advantage during a difficult six- month period.
Q What types of disappointments detracted from results?
A Stock selections in the transportation industry tended to be disappointing.
Two particularly poor-performing holdings were TNT of the Netherlands and
Deutsche Post of Germany. The companies operate the postal services in
their respective countries and both also operate international express
package delivery services. We underestimated the vulnerability of the
package delivery services to the economic downturn, as both companies
performed very poorly. The Fund's positions in the energy sector also did
not provide good results. Oil field services companies such as Technip of
France and Repsol of Spain performed very poorly as the price of oil fell
sharply during the six months ended February 28, 2009, after peaking early
in the summer of 2008. In addition, the Fund's underweighting of
telecommunication services companies, which as a group outperformed the
MSCI
6 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
Europe Index, did not help. Moreover, one telecom holding in the Fund,
Tele2 of Sweden, underperformed because of its exposure to the troubled
economy of Russia. The Fund had no positions in companies such as France
Telecom and Deutsche Telecom, which tended to hold up relatively well.
Q What is your investment outlook?
A We think we are beginning to see some positive developments that should
eventually contribute to improved market conditions. European monetary
policy has eased and interest rates have declined, which should improve
liquidity in the markets, while the value of the euro has fallen in
international currency markets, making European goods more competitive in
price. At the same time, commodity prices have fallen and inflation risks
appear to be slight.
Although European stocks performed poorly over the past six months ended
February 28, 2009, we believe many solid European corporations are selling
at attractive prices and should have reasonable chances to perform well
when market conditions improve. Nevertheless, we anticipate the European
equity markets may continue to be sluggish until there is stronger evidence
of stabilization of the global economy and capital markets.
Please refer to the Schedule of Investments on pages 16-19 for a full listing
of fund securities.
Investing in foreign and/or emerging markets securities involves certain risks,
including risks relating to interest rates, currency exchange rates, economic,
and political conditions. The Fund may invest a substantial amount of its
assets in issuers located in a limited number of countries and, therefore, is
susceptible to adverse economic, political or regulatory developments affecting
those countries. The Fund invests in a limited number of securities and, as a
result, the Fund's performance may be more volatile than the performance of
funds holding more securities. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making it more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts 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 statements should not be relied upon for any other purposes.
Note to Shareholders: The Board of Trustees has approved the reorganization of
the Fund into Pioneer Global Equity Fund (formerly, Pioneer Global Select
Equity Fund). The reorganization, which does not require shareholder approval,
is expected to qualify as a tax-free reorganization and to be completed on or
about June 12, 2009.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 7
Portfolio Summary | 2/28/09
Sector Distribution
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(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Industrials 15.8%
Health Care 14.7%
Financials 13.1%
Energy 12.8%
Consumer Discretionary 12.5%
Consumer Staples 10.8%
Materials 9.0%
Utilities 7.2%
Telecommunication Services 4.1%
Geographical Distribution
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(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
United Kingdom 33.7%
Germany 17.9%
France 13.8%
Switzerland 11.3%
Netherlands 10.6%
Ireland 2.9%
Italy 2.4%
Belgium 2.3%
Spain 1.9%
Panama 1.8%
Greece 1.4%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. BG Group Plc 4.95%
- --------------------------------------------------------------------------------
2. Royal Dutch Shell Plc 4.53
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3. National Grid Plc 4.33
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4. Vodafone Group Plc 4.07
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5. Roche Holdings AG 4.06
- --------------------------------------------------------------------------------
6. Fresenius Medical Care AG 4.04
- --------------------------------------------------------------------------------
7. CS Group, Inc. 3.71
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8. Novartis 3.51
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9. Siemens Plc 3.40
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10. Rio Tinto Plc 3.20
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* This list excludes temporary cash investments 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 Europe Select Equity Fund | Semiannual Report | 2/28/09
Prices and Distributions | 2/28/09
Net Asset Value per Share
- --------------------------------------------------------------------------------
Class 2/28/09 8/31/08
- --------------------------------------------------------------------------------
A $ 14.64 $ 26.25
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B $ 13.12 $ 23.36
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C $ 12.96 $ 23.11
- --------------------------------------------------------------------------------
Y $ 15.14 $ 27.29
- --------------------------------------------------------------------------------
Distributions per Share: 9/1/08-2/28/09
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- --------------------------------------------------------------------------------
A $ 0.6331 $ -- $ --
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B $ 0.3822 $ -- $ --
- --------------------------------------------------------------------------------
C $ 0.4025 $ -- $ --
- --------------------------------------------------------------------------------
Y $ 0.7753 $ -- $ --
- --------------------------------------------------------------------------------
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 9
Performance Update | 2/28/09 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Select Equity Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) Europe
Index.
Average Annual Total Returns
(As of February 28, 2009)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
Life-of-Class
(12/29/00) -2.16% -2.87%
5 Years -5.55 -6.66
1 Year -50.50 -53.35
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.58% 1.50%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer
Europe Select MSCI
Equity Fund Europe Index
----------- ------------
12/00 9,425 10,000
2/01 8,464 9,127
7,737 7,616
2/03 6,821 6,067
10,491 9,539
2/05 13,000 11,460
14,660 13,033
2/07 17,771 16,461
15,929 17,101
2/09 7,885 8,100
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.
Pioneer Europe Fund acquired the assets and liabilities of Pioneer Europe
Select Fund (the predecessor fund) on June 24, 2005 and changed its name to
Pioneer Europe Select Equity Fund. Returns prior to June 24, 2005 reflect the
performance of the predecessor fund, which has not been restated to reflect any
differences in expenses.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 for Class A shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) Europe Index measures the
performance of stocks in European developed markets. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
10 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
Performance Update | 2/28/09 Class B Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Select Equity Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns
(As of February 28, 2009)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(12/29/00) -3.05% -3.05%
5 Years -6.45 -6.45
1 Year -50.93 -52.84
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
2.68% 2.40%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer
Europe Select MSCI
Equity Fund Europe Index
----------- ------------
12/00 10,000 10,000
2/01 8,980 9,127
8,160 7,616
2/03 7,130 6,067
10,843 9,539
2/05 13,307 11,460
14,864 13,033
2/07 17,823 16,461
15,829 17,101
2/09 7,768 8,100
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
(CSDC). 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.
Pioneer Europe Fund acquired the assets and liabilities of Pioneer Europe
Select Fund (the predecessor fund) on June 24, 2005 and changed its name to
Pioneer Europe Select Equity Fund. Returns prior to June 24, 2005 reflect the
performance of the predecessor fund, which has not been restated to reflect any
differences in expenses.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/10 for Class B shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) Europe Index measures the
performance of stocks in European developed markets. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 11
Performance Update | 2/28/09 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Select Equity Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns
(As of February 28, 2009)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(12/29/00) -2.83% -2.83%
5 Years -6.31 -6.31
1 Year -50.91 -50.91
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
2.33% 2.33%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer
Europe Select MSCI
Equity Fund Europe Index
----------- ------------
12/00 10,000 10,000
2/01 8,990 9,127
8,170 7,616
2/03 7,180 6,067
10,963 9,539
2/05 13,500 11,460
15,093 13,033
2/07 18,131 16,461
16,118 17,101
2/09 7,912 8,100
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.
Pioneer Europe Fund acquired the assets and liabilities of Pioneer Europe
Select Fund (the predecessor fund) on June 24, 2005 and changed its name to
Pioneer Europe Select Equity Fund. Returns prior to June 24, 2005 reflect the
performance of the predecessor fund, which has not been restated to reflect any
differences in expenses.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/10 for Class C shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) Europe Index measures the
performance of stocks in European developed markets. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
12 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
Performance Update | 2/28/09 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Select Equity Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns
(As of February 28, 2009)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(12/29/00) -1.95% -1.95%
5 Years -5.22 -5.22
1 Year -50.33 -50.33
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.01% 1.01%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer
Europe Select MSCI
Equity Fund Europe Index
----------- ------------
12/00 10,000 10,000
2/01 8,980 9,127
8,209 7,616
2/03 7,237 6,067
11,131 9,539
2/05 13,793 11,460
15,611 13,033
2/07 19,034 16,461
17,143 17,101
2/09 8,516 8,100
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 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.
Pioneer Europe Fund acquired the assets and liabilities of Pioneer Europe
Select Fund (the predecessor fund) on June 24, 2005 and changed its name to
Pioneer Europe Select Equity Fund. The predecessor fund did not offer Class Y
shares. Returns prior to June 24, 2005 are based on the net asset value
performance of the predecessor fund's Class A shares, which has not been
restated to reflect any differences in expenses, including Rule 12b-1 fees
applicable to Class A shares.
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 Morgan Stanley Capital International (MSCI) Europe Index measures the
performance of stocks in European developed markets. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 13
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 Europe Select Equity Fund
Based on actual returns from September 1, 2008 through February 28, 2009.
- ----------------------------------------------------------------------------------------
Share Class A B C Y
- ----------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/08
- ----------------------------------------------------------------------------------------
Ending Account $ 578.00 $ 575.40 $ 575.40 $ 578.70
Value on 2/28/09
- ----------------------------------------------------------------------------------------
Expenses Paid $ 5.87 $ 9.34 $ 9.34 $ 4.62
During Period*
- ----------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.50%, 2.39%,
2.39% and 1.18%, for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
14 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
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 Europe Select Equity Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2008 through February 28, 2009.
- ----------------------------------------------------------------------------------------
Share Class A B C Y
- ----------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/08
- ----------------------------------------------------------------------------------------
Ending Account $ 1,017.36 $ 1,012.94 $ 1,012.94 $ 1,018.94
Value on 2/28/09
- ----------------------------------------------------------------------------------------
Expenses Paid $ 7.50 $ 11.93 $ 11.93 $ 5.91
During Period*
- ----------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.50%, 2.39%,
2.39% and 1.18%, for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 15
Schedule of Investments | 2/28/09 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS -- 99.6%
ENERGY -- 12.7%
Integrated Oil & Gas -- 11.3%
270,373 BG Group Plc $ 3,859,331
96,338 Repsol SA 1,485,023
160,178 Royal Dutch Shell Plc 3,536,607
-----------
$ 8,880,961
- --------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 1.4%
32,968 Technip $ 1,080,209
-----------
Total Energy $ 9,961,170
- --------------------------------------------------------------------------------
MATERIALS -- 8.9%
Construction Materials -- 2.9%
108,796 CRH Plc $ 2,263,321
- --------------------------------------------------------------------------------
Diversified Chemical -- 2.8%
63,377 Akzo Nobel NV $ 2,233,659
- --------------------------------------------------------------------------------
Diversified Metals & Mining -- 3.2%
97,496 Rio Tinto Plc $ 2,499,182
-----------
Total Materials $ 6,996,162
- --------------------------------------------------------------------------------
CAPITAL GOODS -- 12.4%
Aerospace & Defense -- 7.4%
419,798 Bae Systems Plc $ 2,223,727
146,016 Finmeccanica S.p.A. 1,866,729
41,325 Thales SA 1,679,947
-----------
$ 5,770,403
- --------------------------------------------------------------------------------
Construction, Farm Machinery & Heavy Trucks -- 1.6%
31,446 Man AG* $ 1,276,755
- --------------------------------------------------------------------------------
Industrial Conglomerates -- 3.4%
51,942 Siemens Plc $ 2,651,149
-----------
Total Capital Goods $ 9,698,307
- --------------------------------------------------------------------------------
TRANSPORTATION -- 3.3%
Air Freight & Couriers -- 3.3%
121,601 Deutsche Post AG $ 1,179,131
98,074 TNT NV 1,426,160
-----------
$ 2,605,291
-----------
Total Transportation $ 2,605,291
- --------------------------------------------------------------------------------
CONSUMER SERVICES -- 2.6%
Hotels, Resorts & Cruise Lines -- 1.8%
71,404 Carnival Corp. $ 1,396,662
- --------------------------------------------------------------------------------
Restaurants -- 0.8%
148,013 Compass Group Plc $ 654,589
-----------
Total Consumer Services $ 2,051,251
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
MEDIA -- 9.8%
Advertising -- 2.0%
293,958 WPP Group Plc* $ 1,532,993
- --------------------------------------------------------------------------------
Cable & Satellite -- 2.9%
109,361 Eutelsat Communications SA $ 2,264,346
- --------------------------------------------------------------------------------
Movies & Entertainment -- 2.0%
67,040 Vivendi SA* $ 1,608,256
- --------------------------------------------------------------------------------
Publishing -- 2.9%
203,810 Elsevier NV $ 2,285,977
-----------
Total Media $ 7,691,572
- --------------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 2.6%
Food Retail -- 2.6%
433,381 Tesco Plc $ 2,062,974
-----------
Total Food & Drug Retailing $ 2,062,974
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 8.2%
Brewers -- 2.3%
65,375 Anheuser-Busch Inbev NV* $ 1,807,725
- --------------------------------------------------------------------------------
Packaged Foods & Meats -- 3.0%
121,496 Unilever NV $ 2,350,656
- --------------------------------------------------------------------------------
Tobacco -- 2.9%
86,759 British American Tobacco Plc $ 2,229,407
-----------
Total Food, Beverage & Tobacco $ 6,387,788
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.0%
Health Care Services -- 4.0%
76,386 Fresenius Medical Care AG $ 3,150,668
-----------
Total Health Care Equipment & Services $ 3,150,668
- --------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 10.7%
Pharmaceuticals -- 10.7%
50,564 Bayer AG* $ 2,438,927
75,205 Novartis 2,739,917
27,894 Roche Holdings AG 3,166,618
-----------
$ 8,345,462
-----------
Total Pharmaceuticals & Biotechnology $ 8,345,462
- --------------------------------------------------------------------------------
BANKS -- 6.6%
Diversified Banks -- 6.6%
69,436 BNP Paribas SA* $ 2,281,988
85,948 National Bank of Greece SA* 1,064,109
58,597 Societe Generale 1,847,272
-----------
$ 5,193,369
-----------
Total Banks $ 5,193,369
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 17
Schedule of Investments | 2/28/09 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.7%
Diversified Capital Markets -- 3.7%
117,775 CS Group $ 2,895,254
-----------
Total Diversified Financials $ 2,895,254
- --------------------------------------------------------------------------------
INSURANCE -- 2.8%
Reinsurance -- 2.8%
17,689 Muenchener Rueckversicherungs Gesellschaft AG* $ 2,173,380
-----------
Total Insurance $ 2,173,380
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.1%
Wireless Telecommunication Services -- 4.1%
1,785,768 Vodafone Group Plc $ 3,175,403
-----------
Total Telecommunication Services $ 3,175,403
- --------------------------------------------------------------------------------
UTILITIES -- 7.2%
Independent Power Producer & Energy Traders -- 1.5%
345,776 International Power Plc $ 1,173,597
- --------------------------------------------------------------------------------
Multi-Utilities -- 5.7%
378,461 National Grid Plc $ 3,380,771
17,159 RWE AG* 1,097,363
-----------
$ 4,478,134
-----------
Total Utilities $ 5,651,731
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $121,060,583) $78,039,782
- --------------------------------------------------------------------------------
RIGHTS -- 0.0%
ENERGY -- 0.0%
Integrated Oil & Gas -- 0.0%
160,178 Royal Dutch Shell Rights, Expires 3/11/09* $ --
-----------
Total Energy $ --
- --------------------------------------------------------------------------------
TOTAL RIGHTS
(Cost $0) $ --
- --------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.6%
(Cost $121,060,583)(a) $78,039,782
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 0.4% $ 309,032
- --------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $78,348,814
================================================================================
* Non-income producing security.
(a) At February 28, 2009, the net unrealized loss on investments based on
cost for federal income tax purposes of $121,332,649 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 896,566
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (44,189,433)
------------
Net unrealized loss $(43,292,867)
============
The accompanying notes are an integral part of these financial statements.
18 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
(b) Distributions of investment by country of issue, as a percentage of total
investment in securities (excluding temporary cash investments), is as
follows:
United Kingdom 33.7%
Germany 17.9
France 13.8
Switzerland 11.3
Netherlands 10.6
Ireland 2.9
Italy 2.4
Belgium 2.3
Spain 1.9
Panama 1.8
Greece 1.4
-----
100.0%
-----
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended February 28, 2009 aggregated $36,208,527 and $42,992,570,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of February 28, 2009, in
valuing the Fund's assets:
- --------------------------------------------------------------------------------
Investments
Valuation Inputs in Securities
- --------------------------------------------------------------------------------
Level 1 -- Quoted Prices $ 1,396,662
Level 2 -- Other Significant Observable Inputs 76,643,120
Level 3 -- Significant Unobservable Inputs --
- --------------------------------------------------------------------------------
Total $ 78,039,782
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 19
Statement of Assets and Liabilities | 2/28/09 (unaudited)
ASSETS:
Investment in securities, at value (cost $121,060,583) $78,039,782
Receivables --
Fund shares sold 28,836
Dividends, interest and foreign taxes withheld 606,075
Due from Pioneer Investment Management, Inc. 50,769
Other 40,619
- -------------------------------------------------------------------------------------
Total assets $78,766,081
- -------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 262,499
Due to bank 43,865
Due to affiliates 57,400
Accrued expenses 53,503
- -------------------------------------------------------------------------------------
Total liabilities $ 417,267
- -------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $183,905,688
Distributions in excess of net investment income (59,623)
Accumulated net realized loss on investments and foreign currency
transactions (62,465,772)
Net unrealized loss on investments (43,020,801)
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (10,678)
- -------------------------------------------------------------------------------------
Total net assets $78,348,814
=====================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $50,170,798/3,426,981 shares) $ 14.64
Class B (based on $5,593,579/426,276 shares) $ 13.12
Class C (based on $4,666,649/360,056 shares) $ 12.96
Class Y (based on $17,917,788/1,183,162 shares) $ 15.14
MAXIMUM OFFERING PRICE:
Class A ($14.64 [divided by] 94.25%) $ 15.53
=====================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
Statement of Operations (unaudited)
Six Months Ended 2/28/09
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $39,864) $ 904,776
Interest 10,042
- ------------------------------------------------------------------------------------------------------------
Total investment income $ 914,818
- ------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 432,916
Transfer agent fees
Class A 174,990
Class B 42,279
Class C 17,116
Class Y 349
Distribution fees
Class A 82,159
Class B 37,682
Class C 31,417
Shareholders communication expense 49,898
Administrative reimbursements 21,360
Custodian fees 14,693
Registration fees 26,109
Professional fees 57,173
Printing expense 18,996
Fees and expenses of nonaffiliated trustees 4,021
Miscellaneous 20,656
- ------------------------------------------------------------------------------------------------------------
Total expenses $ 1,031,814
Less management fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (242,251)
Less fees paid indirectly (2,187)
- ------------------------------------------------------------------------------------------------------------
Net expenses $ 787,376
- ------------------------------------------------------------------------------------------------------------
Net investment income $ 127,442
- ------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on:
Investments $ (27,450,993)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (250,317) $(27,701,310)
- ------------------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $ (34,524,895)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies 6,540 $(34,518,355)
- ------------------------------------------------------------------------------------------------------------
Net loss on investments and foreign currency transactions $(62,219,665)
- ------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(62,092,223)
============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 21
Statement of Changes in Net Assets
For the Six Months Ended 2/28/09 and the Year Ended 8/31/08, respectively
- ------------------------------------------------------------------------------------------------------------
Six Months
Ended
2/28/09 Year Ended
(unaudited) 8/31/08
- ------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 127,442 $ 3,750,941
Net realized loss on investments and foreign currency
transactions (27,701,310) (24,629,643)
Change in net unrealized loss on investments and foreign
currency transactions (34,518,355) (41,588,985)
- ------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(62,092,223) $ (62,467,687)
- ------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.63 and $0.50 per share, respectively) $ (2,180,998) $ (2,352,303)
Class B ($0.38 and $0.09 per share, respectively) (167,449) (65,718)
Class C ($0.40 and $0.22 per share, respectively) (147,893) (111,855)
Class Y ($0.78 and $0.69 per share, respectively) (895,678) (949,445)
Net realized gain:
Class A ($0.00 and $7.04 per share, respectively) -- (28,830,631)
Class B ($0.00 and $7.04 per share, respectively) -- (4,332,748)
Class C ($0.00 and $7.04 per share, respectively) -- (3,101,810)
Class Y ($0.00 and $7.04 per share, respectively) -- (8,220,577)
- ------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (3,392,018) $ (47,965,087)
- ------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 4,148,511 $ 22,729,186
Reinvestment of distributions 3,167,143 42,197,851
Cost of shares repurchased (16,821,863) (79,556,011)
- ------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ (9,506,209) $ (14,628,974)
- ------------------------------------------------------------------------------------------------------------
Net decrease in net assets $(74,990,450) $(125,061,748)
NET ASSETS:
Beginning of period 153,339,264 278,401,012
- ------------------------------------------------------------------------------------------------------------
End of year period $ 78,348,814 $ 153,339,264
- ------------------------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net investment income $ (59,623) $ 3,204,953
- ------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
- ------------------------------------------------------------------------------------------------------------
'09 Shares '09 Amount '08 Shares '08 Amount
(unaudited) (unaudited)
- ------------------------------------------------------------------------------------------------------------
Class A
Shares sold 120,626 $ 2,171,668 367,746 $ 12,873,605
Reinvestment of distributions 116,791 2,034,496 749,740 26,877,809
Less shares repurchased (607,159) (11,385,346) (1,561,874) (51,156,839)
- ------------------------------------------------------------------------------------------------------------
Net decrease (369,742) $(7,179,182) (444,388) $(11,405,425)
============================================================================================================
Class B
Shares sold 26,630 $ 442,897 67,841 $ 2,156,183
Reinvestment of distributions 10,286 160,872 129,194 4,113,825
Less shares repurchased (116,327) (1,945,345) (372,051) (11,280,574)
- ------------------------------------------------------------------------------------------------------------
Net decrease (79,411) $(1,341,576) (175,016) $ (5,010,566)
============================================================================================================
Class C
Shares sold 22,553 $ 367,391 59,780 $ 1,877,498
Reinvestment of distributions 8,371 129,246 87,221 2,755,687
Less shares repurchased (93,657) (1,564,663) (189,443) (5,611,457)
- ------------------------------------------------------------------------------------------------------------
Net decrease (62,733) $(1,068,026) (42,442) $ (978,272)
============================================================================================================
Class Y
Shares sold 57,907 $ 1,166,555 153,787 $ 5,821,900
Reinvestment of distributions 46,781 842,529 226,900 8,450,530
Less shares repurchased (98,490) (1,926,509) (329,829) (11,507,141)
- ------------------------------------------------------------------------------------------------------------
Net increase 6,198 $ 82,575 50,858 $ 2,765,289
============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 23
Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/09 Ended Ended Ended Ended Ended
(unaudited) 8/31/08 8/31/07 8/31/06 8/31/05 (a) 8/31/04 (a)
- ------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 26.25 $ 43.23 $ 37.83 $ 31.54 $ 27.25 $ 21.41
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.08 $ 0.60 $ 0.58 $ 0.50 $ 0.11 $ 0.20
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (11.06) (10.04) 5.31 6.03 5.09 5.89
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $(10.98) $ (9.44) $ 5.89 $ 6.53 $ 5.20 $ 6.09
Distributions to shareowners:
Net investment income $ (0.63) $ (0.50) $ (0.49) $ (0.24) $ (0.19) $ (0.25)
Net realized gain -- (7.04) -- -- (0.72) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.63) $ (7.54) $ (0.49) $ (0.24) $ (0.91) $ (0.25)
- ------------------------------------------------------------------------------------------------------------------------------------
Redemption fee $ -- $ -- $ -- $ 0.00(b) $ 0.00(b) $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(11.61) $(16.98) $ 5.40 $ 6.29 $ 4.29 $ 5.84
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.64 $ 26.25 $ 43.23 $ 37.83 $ 31.54 $ 27.25
====================================================================================================================================
Total return* (42.20)% (26.34)% 15.61% 20.83% 24.53% 28.56%
Ratio of net expenses to average net assets+ 1.50%** 1.51% 1.48% 1.66% 1.71% 1.25%
Ratio of net investment income to average net assets+ 0.30%** 1.77% 1.35% 1.47% 0.72% 1.58%
Portfolio turnover rate 71%** 60% 62% 43% 149% 48%
Net assets, end of period (in thousands) $50,171 $99,645 $183,333 $155,550 $129,215 $ 3,108
The accompanying notes are an integral part of these financial statements.
24 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/09 Ended Ended Ended Ended Ended
(unaudited) 8/31/08 8/31/07 8/31/06 8/31/05 (a) 8/31/04 (a)
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios with no waiver of fees and assumption of
expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 2.07%** 1.58% 1.48% 1.66% 2.21% 8.30%
Net investment income (loss) (0.27)%** 1.70% 1.35% 1.47% 0.22% (5.47)%
Ratios with waiver of fees and assumption of
expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.50%** 1.50% 1.47% 1.66% 1.69% 1.25%
Net investment income 0.30%** 1.78% 1.36% 1.47% 0.74% 1.58%
===================================================================================================================================
(a) Historical per-share amounts prior to June 24, 2005 have been adjusted to
reflect the conversion ratios utilized for the merger of the Europe Fund and
Europe Select Fund.
(b) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 25
Financial Highlights (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/09 Ended Ended Ended Ended Ended
(unaudited) 8/31/08 8/31/07 8/31/06 8/31/05(a) 8/31/04 (a)
- -----------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 23.36 $ 39.18 $ 34.26 $ 28.63 $ 24.85 $19.65
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.02 $ 0.39 $ 0.22 $ 0.24 $ (0.03) $(0.02)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (9.88) (9.08) 4.73 5.39 4.62 5.33
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (9.86) $ (8.69) $ 4.95 $ 5.63 $ 4.59 $ 5.31
Distributions to shareowners:
Net investment income $ (0.38) $ (0.09) $ (0.03) $ -- $ (0.09) $(0.11)
Net realized gain -- (7.04) -- -- (0.72) --
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.38) $ (7.13) $ (0.03) $ -- $ (0.81) $(0.11)
- -----------------------------------------------------------------------------------------------------------------------------------
Redemption fee $ -- $ -- $ -- $ 0.00(b) $ 0.00(b) $ --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(10.24) $(15.82) $ 4.92 $ 5.63 $ 3.78 $ 5.20
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 13.12 $ 23.36 $ 39.18 $ 34.26 $ 28.63 $24.85
===================================================================================================================================
Total return* (42.46)% (26.98)% 14.44% 19.66% 23.19% 27.07%
Ratio of net expenses to average net assets+ 2.40%** 2.46% 2.50% 2.65% 2.69% 2.17%
Ratio of net investment income (loss) to
average net assets+ (0.62)%** 0.75% 0.23% 0.36% (0.27)% 0.65%
Portfolio turnover rate 71%** 60% 62% 43% 149% 48%
Net assets, end of period (in thousands) $ 5,594 $11,812 $26,673 $30,960 $42,249 $1,505
The accompanying notes are an integral part of these financial statements.
26 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/09 Ended Ended Ended Ended Ended
(unaudited) 8/31/08 8/31/07 8/31/06 8/31/05(a) 8/31/04 (a)
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios with no waiver of fees and assumption of
expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 3.42%** 2.68% 2.50% 2.74% 3.32% 9.20%
Net investment income (loss) (1.64)%** 0.53% 0.23% 0.27% (0.90)% (6.38)%
Ratios with waiver of fees and assumption of
expenses by PIM and
reduction for fees paid indirectly:
Net expenses 2.39%** 2.44% 2.47% 2.65% 2.65% 2.17%
Net investment income (loss) (0.61)%** 0.77% 0.26% 0.36% (0.23)% 0.65%
===================================================================================================================================
(a) Historical per-share amounts prior to June 24, 2005 have been adjusted to
reflect the conversion ratios utilized for the merger of the Europe Fund and
Europe Select Fund.
(b) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 27
Financial Highlights (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/09 Ended Ended Ended Ended Ended
(unaudited) 8/31/08 8/31/07 8/31/06 8/31/05 (a) 8/31/04 (a)
- -----------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 23.11 $ 38.95 $ 34.16 $ 28.60 $ 24.81 $ 19.63
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.02 $ 0.32 $ 0.22 $ 0.19 $ 0.01 $ 0.09
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (9.77) (8.90) 4.78 5.44 4.61 5.34
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (9.75) $ (8.58) $ 5.00 $ 5.63 $ 4.62 $ 5.43
Distributions to shareowners:
Net investment income $ (0.40) $ (0.22) $ (0.21) $ (0.07) $ (0.13) $ (0.25)
Net realized gain -- (7.04) -- -- (0.72) --
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.40) $ (7.26) $ (0.21) $ (0.07) $ (0.85) $ (0.25)
- -----------------------------------------------------------------------------------------------------------------------------------
Redemption fee $ -- $ -- $ -- $ 0.00(b) $ 0.02 $ --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (10.15) $ (15.84) $ 4.79 $ 5.56 $ 3.79 $ 5.18
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.96 $ 23.11 $ 38.95 $ 34.16 $ 28.60 $ 24.81
===================================================================================================================================
Total return* (42.46)% (26.95)% 14.67% 19.73% 23.53% 27.67%
Ratio of net expenses to average net assets+ 2.40%** 2.33% 2.29% 2.59% 2.41% 1.72%
Ratio of net investment income (loss)
to average net assets+ (0.61)%** 0.97% 0.60% 0.52% 0.35% 1.14%
Portfolio turnover rate 71%** 60% 62% 43% 149% 48%
Net assets, end of period (in thousands) $ 4,667 $ 9,769 $ 18,120 $ 15,270 $ 14,661 $ 1,557
The accompanying notes are an integral part of these financial statements.
28 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
2/28/09 Ended Ended Ended Ended Ended
(unaudited) 8/31/08 8/31/07 8/31/06 8/31/05 (a) 8/31/04 (a)
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios with no waiver of fees and assumption of
expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 2.93%** 2.33% 2.29% 2.59% 3.72% 8.75%
Net investment income (loss) (1.14)%** 0.97% 0.60% 0.52% (0.96)% (5.89)%
Ratios with waiver of fees and assumption of
expenses by PIM and
reduction for fees paid indirectly:
Net expenses 2.39%** 2.32% 2.28% 2.59% 2.39% 1.72%
Net investment income (loss) (0.60)%** 0.98% 0.61% 0.52% 0.37% 1.14%
===================================================================================================================================
(a) Historical per-share amounts prior to June 24, 2005 have been adjusted to
reflect the conversion ratios utilized for the merger of the Europe Fund and
Europe Select Fund.
(b) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 29
Financial Highlights (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year 6/24/05 (a)
2/28/09 Ended Ended Ended to
(unaudited) 8/31/08 8/31/07 8/31/06 8/31/05
- -----------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 27.29 $ 44.64 $ 39.06 $ 32.54 $ 30.59
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.07 $ 0.66 $ 0.89 $ 0.89 $ 0.07
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (11.44) (10.28) 5.39 6.04 1.88
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (11.37) $ (9.62) $ 6.28 $ 6.93 $ 1.95
Distributions to shareowners:
Net investment income $ (0.78) $ (0.69) $ (0.70) $ (0.41) $ --
Net realized gain -- (7.04) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (12.15) $ (17.35) $ 5.58 $ 6.52 $ 1.95
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.14 $ 27.29 $ 44.64 $ 39.06 $ 32.54
===================================================================================================================================
Total return* (42.13)% (25.96)% 16.14% 21.50% 6.36%(b)
Ratio of net expenses to average net assets+ 1.18%** 1.01% 0.98% 1.10% 1.18%**
Ratio of net investment income to average net assets+ 0.63%** 2.27% 2.73% 2.00% 1.05%**
Portfolio turnover rate 71%** 60% 62% 43% 149%
Net assets, end of period (in thousands) $ 17,918 $ 32,114 $ 50,275 $ 3,927 $ 3,495
The accompanying notes are an integral part of these financial statements.
30 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year 6/24/05 (a)
2/28/09 Ended Ended Ended to
(unaudited) 8/31/08 8/31/07 8/31/06 8/31/05
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios with no waiver of fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 1.18%** 1.01% 0.98% 1.10% 1.18%**
Net investment income 0.63%** 2.27% 2.73% 2.00% 1.05%**
Ratios with waiver of fees and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.18%** 1.01% 0.98% 1.10% 1.18%**
Net investment income 0.63%** 2.27% 2.73% 2.00% 1.05%**
===================================================================================================================================
(a) Class Y shares were first publicly offered on June 24, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 31
Notes to Financial Statements | 2/28/09 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Europe Select Equity Fund (the Fund) is the sole portfolio comprising
Pioneer Series Trust IX, a Delaware statutory trust registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The investment objective of the Fund is long-term growth of capital.
The Fund offers four classes of shares -- Class A, Class B, Class C, and Class
Y shares. Class A, Class B and Class C Shares were first publicly offered on
December 29, 2000. Class Y shares were first publicly offered on June 24, 2005.
Each class of shares represents an interest in the same portfolio of
investments of the Fund and has identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
class-specific fees and expenses such as transfer agent and distribution fees.
Differences in class-specific fees and expenses will result in differences in
net investment income and, therefore, the payment of different dividends by
each class. The Amended and Restated Declaration of Trust of the Fund gives the
Board the flexibility to specify either per share voting or dollar-weighted
voting when submitting matters for shareholder approval. Under per share
voting, each share of a class of the Fund is entitled to one vote. Under
dollar-weighted voting, a shareholder's voting power is determined not by the
number of shares owned, but by the dollar value of the shares on the record
date. Share classes have exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
Investing in the securities of European issuers involves unique risks compared
to investing in securities of U.S. issuers. These risks are more pronounced to
the extent the Fund invests a significant portion of its investments in any one
European region. The Fund's prospectuses contain unaudited information
regarding the Fund's principal risks. Please refer to those documents when
considering the Fund's principal risks.
32 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities are valued at the last sale price on the
principal exchange where they are traded. Securities that have not traded on
the date of valuation, or securities for which sale prices are not generally
reported, are valued at the mean between the last bid and asked prices.
Securities for which market prices and/or quotations are not readily
available are valued using fair value methods pursuant to procedures adopted
by the Board of Trustees ("management appraised"). At February 28, 2009,
there were no securities that were management appraised.
The Fund invests primarily in securities of non-U.S. issuers. The principal
exchanges and markets for such securities have closing times prior to the
close of the NYSE. However, the value of these securities may be influenced
by changes in global markets occurring after the closing times of the local
exchanges and markets up to the time the Fund determines its net asset value.
Consequently, the Board of Trustees of the Fund has determined that the use
of daily fair valuations as provided by a pricing service is appropriate for
the Fund. The Fund may also take into consideration other significant events
in determining the fair value of these securities. Thus, the Fund's
securities valuations may differ from prices reported by the various local
exchanges and markets. Temporary cash investments are valued at cost which
approximates market value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends 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. Interest income, including interest on income bearing cash
accounts, is recorded on the accrual basis, net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 33
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in market price of those securities but are included with
the net realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates and
any resulting unrealized gains or losses are recorded in the Fund's financial
statements. The Fund records realized gains and losses at the time a
portfolio hedge is offset by entering into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering into
these contracts from the potential inability of counterparties to meet the
terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar. At February 28, 2009, the
Fund had no outstanding portfolio hedges or settlement hedges.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investments companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years remain subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
The Fund has elected to defer approximately $34,492,396 of capital losses
recognized between November 1, 2007 and August 31, 2008 to its fiscal year
ending August 31, 2009.
The tax character of current year distributions paid will be determined at
the end of the current taxable year. The tax character of distributions paid
during the year ended August 31, 2008 was as follows:
34 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
- --------------------------------------------------------------------------------
2008
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 4,246,446
Long-term capital gain 43,718,641
- --------------------------------------------------------------------------------
Total $47,965,087
================================================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2008:
- --------------------------------------------------------------------------------
2008
- --------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 3,204,953
Post-October loss deferred (34,492,396)
Unrealized depreciation (8,785,190)
- --------------------------------------------------------------------------------
Total $(40,072,633)
================================================================================
For the fiscal year ended August 31, 2008, the Fund has elected to pass
through foreign tax credits of $628,997.
The difference between book-basis and tax-basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $9,811 in underwriting commissions on the sale of Class A shares
during the six months ended February 28, 2009.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on their respective percentage of adjusted net assets at the beginning
of the day. Distribution fees are calculated based on the average daily net
asset value attributable to Class A, Class B and Class C shares of the Fund,
respectively (See Note 4). Class Y shares are not subject to a distribution
plan. Shareowners of each class participate in all expenses and fees paid to
the transfer agent, Pioneer Investment Management Shareholder Services, Inc.
(PIMSS), for its services, which are allocated based on the number of
accounts in each class and the ratable allocation of related out-of-pocket
expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that Class A,
Class B,
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 35
Class C and Class Y shares can bear different transfer agent and distribution
expense rates.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary
of UniCredit, manages the Fund's portfolio. Management fees are calculated
daily at the annual rate of 0.85% of the Fund's average daily nets assets up to
$500 million; and 0.75% of the excess over $500 million. For the six months
ended February 28, 2009, the net management fee (net of waivers and/or
assumption of expense) was equivalent to 0.84% of the Fund's average daily net
assets.
Effective October 1, 2007, PIM has contractually agreed to limit ordinary
operating expenses to the extent required to reduce Fund expenses to 1.50%,
2.40% and 2.40% of the average daily net assets attributable to Class A, Class
B and Class C shares, respectively. Class Y shares do not have an expense
limitation. These expense limitations are in effect through January 1, 2012 for
Class A shares and through January 1, 2010 for Class B and Class C shares.
Prior to October 1, 2007, PIM agreed to limit ordinary operating expenses to
the extent required to reduce Fund expenses to 1.75%, 2.65% and 2.65% of the
average daily net assets attributable to Class A, Class B and Class C shares,
respectively.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. Included in "Due to affiliates" reflected on
the Statement of Assets and Liabilities is $3,834 in management fees,
administrative costs and certain other fees payable to PIM at February 28,
2009.
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.
In addition, the Fund reimbursed PIMSS for out-of-pocket expenses related to
shareholder communications activities such as proxy and statement mailings,
outgoing phone calls and omnibus relationship contracts. For the six months
ended February 28, 2009, such out of pocket expenses by class of shares were as
follows:
- --------------------------------------------------------------------------------
Shareholder
Communications:
- --------------------------------------------------------------------------------
Class A $ 37,906
Class B 5,037
Class C 6,921
Class Y 34
- --------------------------------------------------------------------------------
Total $ 49,898
================================================================================
36 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $52,309 in transfer agent fees and shareholder communications
expense payable to PIMSS at February 28, 2009.
4. Distribution Plan
The Fund adopted a Distribution Plan pursuant to Rule 12b-1 of the Investment
Company Act of 1940 with respect to Class A, Class B and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the 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. Pursuant to the Plan, the Fund pays PFD 1.00% of the average daily net
assets attributable to Class B and Class C shares. The fee for Class B and
Class C shares consists of a 0.25% service fee and a 0.75% distribution fee
paid as compensation for personal services and/or account maintenance services
with regard to Class B and Class C shares. Included in "Due to affiliates"
reflected on the Statement of Assets and Liabilities is $1,257 in distribution
fees payable to PFD at February 28, 2009.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase. Class B shares that are redeemed within five
years of purchase are subject to a CDSC at declining rates beginning at 4.00%,
based on the lower of cost or market value of shares being redeemed.
Redemptions of Class C shares within one year of purchase are subject to a CDSC
of 1.00%, based on the lower of cost or market value of shares being redeemed.
There is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to PFD.
For the six months ended February 28, 2009, CDSCs in the amount of $6,494 were
paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended February 28, 2009 the Fund's
expenses were reduced by $2,187 under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $165 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 $165 million or the
limits set by its prospectus for borrowings. Interest on collective borrowings
is
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 37
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 six months
ended February 28, 2009, the Fund had no borrowings under this agreement.
7. New Pronouncement
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.
8. Subsequent Event
The reorganization of the Fund into Pioneer Global Equity Fund (formerly,
Pioneer Global Select Equity Fund) has been approved by the Board of Trustees.
Each fund is managed by PIM. The reorganization, which does not require
shareholder approval, is expected to qualify as a tax-free reorganization and
be completed on or about June 12, 2009.
38 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
Trustees, Officers and Service Providers
Trustees
John F. Cogan, Jr., Chairman
David R. Bock
Mary K. Bush
Benjamin M. Friedman
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Officers
John F. Cogan, Jr., President
Daniel K. Kingsbury, Executive Vice President
Mark E. Bradley, Treasurer
Dorothy E. Bourassa, Secretary
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at http://www.sec.gov.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 39
This page for your notes.
40 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
This page for your notes.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 41
This page for your notes.
42 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
This page for your notes.
Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09 43
This page for your notes.
44 Pioneer Europe Select Equity Fund | Semiannual Report | 2/28/09
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
- --------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
- --------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: pioneerinvestments.com
This report must be accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at 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) 2009 Pioneer Investments 19128-03-0409
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Europe Select Equity Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date April 29, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date April 29, 2009
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date April 29, 2009
* Print the name and title of each signing officer under his or her signature.