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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21823
Pioneer Series Trust V
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: August 31
Date of reporting period: September 1, 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.
[IMAGE]
Pioneer Disciplined
Growth Fund*
- --------------------------------------------------------------------------------
Semiannual Report | February 28, 2009
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A SRSGX
Class C PRGCX
Class Y PRGYX
*Effective April 1, 2009, Pioneer Research Growth Fund was renamed Pioneer
Disciplined Growth Fund.
[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 13
Schedule of Investments 15
Financial Statements 20
Notes to Financial Statements 27
Trustees, Officers and Service Providers 33
Pioneer Disciplined Growth 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 Disciplined Growth 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.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09 3
Portfolio Management Discussion | 2/28/09
Stock prices plummeted, with many market indices losing 40% or more of their
value, during the six-month period ended February 28, 2009, amid growing
evidence that the U.S. economy was sinking into a serious recession. In the
following discussion, Pioneer's Diego Franzin, Ashesh Savla and John Peckham,
review the factors that affected the performance of Pioneer Disciplined Growth
Fund during this six-month period. Mr. Franzin is Head of Global Quantitative
Research & Management at Pioneer; Mr. Savla is a Quantitative Analyst at
Pioneer; and Mr. Peckham, CFA, is Head of Pioneer's Global Fundamental Research
Group. All are members of the Fund's management team.
Q How did Pioneer Research Growth Fund perform during the six months ended
February 28, 2009?
A The Fund's Class A shares returned -37.47% at net asset value for the six
months ended February 28, 2009, while the Fund's benchmark, the Russell
1000 Growth Index, returned -39.90%. During the same period, the average
return of the 846 funds in Lipper's Large Cap Growth category was -40.13%.
Q What were the principal factors affecting the Fund's performance during the
six months ended February 28, 2009?
A Stocks were battered during the six-month period, as the financials sector
imploded and credit markets came close to seizing up. Most stocks suffered
substantial price losses as investors attempted to avoid risk. The Standard
& Poor's 500 Index and the Russell 1000 Index, two common benchmarks for
large-cap stocks, declined by 41.79% and 42.25%, respectively, while many
small-cap and mid-cap indices fell by even more. Growth-stock benchmarks
tended to do better than value-stock indices, but this was principally
because the value indices maintained greater weightings in financials
stocks, which were the most exposed to the credit crisis and tended to
underperform the overall market. The dismal investment results came amid a
drumbeat of evidence that the nation's economy had entered into recession.
The Commerce Department's announcement that gross domestic product (GDP)
had begun to contract followed months of reports of declining corporate
profits, rising unemployment, falling commodity prices and widespread
uncertainties about the nation's economic policy responses.
In this difficult environment, the Fund did not escape the market
downdraft, and we are disappointed with its performance results. However,
the Fund did manage to outperform its benchmark, the Russell 1000 Growth
Index (the Russell Index), during the six-month period ended February 28,
4 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09
2009. The Fund's performance edge over the benchmark was due primarily to
stock selection, especially in the industrials, information technology and
financials sectors. In general, we successfully avoided some of the biggest
blowups in the market, as the Fund had no investments in many of the
worst-performing stocks in the Russell Index, including Citigroup, American
International Group and General Electric. On the negative side, our modest
underweighting of the Fund in the consumer staples sector was somewhat of a
performance detractor, and stock selections in health care and energy also
held back Fund results relative to the Russell Index.
We maintained a relatively conservative positioning for the Fund's
portfolio, emphasizing investments in corporations with strong balance
sheets and with relatively low exposure to the deteriorating credit
markets. The Fund maintained a portfolio of stocks in about 50 different
companies. The stocks are selected with the help of qualitative research
analysis and quantitative analytical tools.
Q What were some of the individual investments that most affected the Fund's
results relative to the Russell 1000 Growth Index during the six months
ended February 28, 2009?
A In the poor-performing financials sector, the Fund generally avoided the most
prominent stock price collapses. It had no investments at all in such
companies as Citigroup, American International Group, Merrill Lynch, Lehman
Brothers (which filed for bankruptcy), Fannie Mae or Freddie Mac. The
Fund's positions in financials stocks, The Travelers Companies and
Intercontinental Exchange held up better than the overall sector. Travelers
is primarily a property-and-casualty insurer that avoided many of the
problems incurred by life insurers, while Intercontinental Exchange
operates global commodity and financial products marketplaces.
In the industrials sector, the Fund's lack of exposure to General Electric
(GE) was a significant help. We avoided GE because of our concerns about
the vulnerability of its financial services businesses, which has accounted
for approximately 50% of its profits. Two of the Fund's industrials
holdings that outperformed were UPS and SPX. Delivery corporation UPS is a
high-quality company that performed reasonably well compared to the overall
sector. SPX is a diversified corporation that appears well positioned to
benefit from increased investments in energy infrastructure because of its
operations producing equipment for energy transmission systems.
Among the Fund's information technology holdings, the best performer was
Apple, which was the Fund's top individual contributor to performance
during the six-month period ended February 28, 2009. Apple was helped by a
very strong product line across all of its markets. Even in a slowing
economy, Apple gained market share in the personal computer market,
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09 5
while its new 3G iPhone product was a big winner in the highly competitive
wireless communications hand-set business.
Stock selections in health care and energy were not as successful. In
health care, the Fund's positions in Cigna, an HMO, and Thermo Fisher,
which produces a variety of products used by health care services
providers, both yielded particularly disappointing results during the
period. The share price of Cigna was pulled down both by
higher-than-expected operating costs and by investor concerns that the
potential health care policies of the new Obama administration might affect
profits of managed health care companies. Thermo Fisher had a relatively
high valuation that suffered as the company's profit growth began to slow.
In energy, two notable poor-performing investments were Weatherford
International and El Paso. Weatherford, an oil field services company, was
removed as a component of the Standard & Poor's 500 Index, which led to
share price losses as index funds sold their positions. In addition,
investors became concerned about the outlook for oil field services
companies due to falling oil prices. El Paso is the largest natural gas
pipeline operator in the United States and is also a major exploration and
production company. Its price fell on investor concerns about its large
debt load and its need to issue additional bonds at a time when the credit
markets were under stress. Conversely, the Fund had an underweighted
position in ExxonMobil, which hurt relative performance as the giant,
integrated oil company was able to withstand the effects of falling oil
prices better than most energy corporations.
Q What is your investment outlook?
A We intend to continue to maintain a relatively defensive portfolio for the
Fund, even as we look for an eventual improvement in overall market
conditions. In particular, we expect to be cautious in investments in those
sectors that make up major parts of the Russell 1000 Growth Index,
including the information technology, health care and industrials groups.
In information technology, we expect to favor investments in companies such
as Oracle and Cisco Systems, whose principal customers are corporations
rather than consumers. In health care, we expect to focus on stocks of
companies with steady revenues. In addition, we anticipate de-emphasizing
the managed health care industry. In industrials, we anticipate favoring
highly diversified corporations, including those in the defense-related
industries, while generally avoiding corporations that have significant
exposure to the financial services businesses.
We expect that individual stock-picking should continue to drive Fund
performance.
6 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09
Please refer to the Schedule of Investments on pages 15-19 for a full listing
of Fund securities.
Investing in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies. The Fund invests in a limited number of
securities and, as a result, the Fund's performance may be more volatile than
the performance of other funds holding more securities. At times, the Fund's
investments may represent industries or industry sectors that are interrelated
or have common risks, making it more susceptible to any economic, political, or
regulatory developments or other risks affecting those industries and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09 7
Portfolio Summary | 2/28/09
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 100%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Information Technology 28.5%
Health Care 15.5%
Consumer Staples 13.4%
Industrials 11.9%
Consumer Discretionary 11.1%
Energy 8.6%
Materials 4.3%
Financials 3.3%
Utilities 2.4%
Telecommunication Services 1.0%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Cisco Systems, Inc. 4.31%
2. Apple, Inc. 4.21
3. Microsoft Corp. 3.74
4. Oracle Corp. 3.69
5. Hewlett-Packard Co. 3.59
6. PepsiCo, Inc. 3.20
7. McDonald's Corp. 3.14
8. Wal-Mart Stores, Inc. 3.07
9. Bristol-Myers Squibb Co. 2.86
10. Google, Inc. 2.84
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any
securities listed.
8 Pioneer Disciplined Growth 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 $ 6.22 $ 9.98
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C $ 6.21 $ 9.97
- --------------------------------------------------------------------------------
Y $ 6.23 $ 9.98
- --------------------------------------------------------------------------------
Distributions per Share: 9/1/08-2/28/09
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- --------------------------------------------------------------------------------
A $ 0.0223 $ -- $ --
- --------------------------------------------------------------------------------
C $ -- $ -- $ --
- --------------------------------------------------------------------------------
Y $ 0.0227 $ -- $ --
- --------------------------------------------------------------------------------
Pioneer Disciplined Growth 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 Disciplined Growth Fund at public offering price,
compared to that of the Russell 1000 Growth Index.
Average Annual Total Returns
(As of February 28, 2009)
- ------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- ------------------------------------------------------------------------
Life-of-Class
(12/15/05) -10.88% -12.51%
1 Year -39.53 -43.01
- ------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- ------------------------------------------------------------------------
Gross Net
- ------------------------------------------------------------------------
16.35% 1.25%
- ------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer
Disciplined Russell 1000
Growth Fund Growth Index
12/05 9,425 10,000
2/06 9,587 10,159
2/07 10,762 10,977
2/08 10,981 11,022
2/09 6,640 6,609
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 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 Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
10 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09
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 Disciplined Growth Fund at public offering price,
compared to that of the Russell 1000 Growth Index.
Average Annual Total Returns
(As of February 28, 2009)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
Life-of-Class
(7/16/08) -36.24% -36.88%
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
30.50% 2.15%
- -------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer
Disciplined Russell 1000
Growth Fund Growth Index
7/08 10,000 10,000
2/09 6,293 6,074
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 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 Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09 11
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 Disciplined Growth Fund at public offering price,
compared to that of the Russell 1000 Growth Index.
Average Annual Total Returns
(As of February 28, 2009)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
Life-of-Class
(7/16/08) -10.84% -10.84%
1 Year -39.43 -39.43
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
20.69% 0.90%
- -------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer
Disciplined Russell 1000
Growth Fund Growth Index
12/05 10,000 10,000
2/06 10,173 10,159
2/07 11,420 10,977
2/08 11,652 11,022
2/09 7,058 6,609
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.
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 Y Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
12 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09
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 Research Value Fund
Based on actual returns from September 1, 2008 through February 28, 2009.
- --------------------------------------------------------------------------------
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 9/1/08
- --------------------------------------------------------------------------------
Ending Account Value $625.30 $622.90 $626.30
(after expenses) on 2/28/09
- --------------------------------------------------------------------------------
Expenses Paid $5.04 $8.65 $3.63
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%,
and 0.90% for Class A, 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 Disciplined Growth Fund | Semiannual Report | 2/28/09 13
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 Research Growth 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 C Y
- --------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 9/1/08
- --------------------------------------------------------------------------------
Ending Account Value $1,018.60 $1,014.13 $1,020.33
(after expenses) on 2/28/09
- --------------------------------------------------------------------------------
Expenses Paid $6.26 $10.74 $4.51
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%,
and 0.90% for Class A, 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 Disciplined Growth Fund | Semiannual Report | 2/28/09
Schedule of Investments | 2/28/09 (unaudited)
- ---------------------------------------------------------
Shares Value
- ---------------------------------------------------------
COMMON STOCKS -- 96.0%
ENERGY -- 8.2%
Integrated Oil & Gas -- 1.9%
206 Exxon Mobil Corp. $13,987
- ---------------------------------------------------------
Oil & Gas Drilling -- 1.9%
246 Transocean, Ltd. * $14,703
- ---------------------------------------------------------
Oil & Gas Equipment & Services -- 1.0%
738 Weatherford International, Inc. * $ 7,874
- ---------------------------------------------------------
Oil & Gas Exploration & Production -- 3.4%
179 Apache Corp. $10,577
486 XTO Energy, Inc. 15,387
-------
$25,964
-------
Total Energy $62,528
- ---------------------------------------------------------
MATERIALS -- 4.1%
Fertilizers & Agricultural Chemicals -- 4.1%
258 Monsanto Co. $19,678
137 Potash Corp. Saskatchewan, Inc. 11,504
-------
$31,182
-------
Total Materials $31,182
- ---------------------------------------------------------
CAPITAL GOODS -- 8.6%
Aerospace & Defense -- 4.1%
351 Northrop Grumman Corp. * $13,113
436 United Technologies Corp. 17,802
-------
$30,915
- ---------------------------------------------------------
Construction & Engineering -- 1.2%
729 KBR, Inc. $ 9,185
- ---------------------------------------------------------
Industrial Conglomerates -- 2.2%
359 3M Co. $16,320
- ---------------------------------------------------------
Industrial Machinery -- 1.1%
186 SPX Corp. $ 8,236
-------
Total Capital Goods $64,656
- ---------------------------------------------------------
TRANSPORTATION -- 2.9%
Air Freight & Couriers -- 1.9%
356 C. H. Robinson Worldwide, Inc. $14,731
- ---------------------------------------------------------
Railroads -- 1.0%
123 Burlington Northern, Inc. $ 7,229
-------
Total Transportation $21,960
- ---------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09 15
Schedule of Investments | 2/28/09 (unaudited) (continued)
- --------------------------------------------------------------
Shares Value
- --------------------------------------------------------------
CONSUMER SERVICES -- 4.9%
Hotels, Resorts & Cruise Lines -- 1.9%
1,027 Marriott International, Inc. $14,542
- --------------------------------------------------------------
Restaurants -- 3.0%
437 McDonald's Corp. $22,835
-------
Total Consumer Services $37,377
- --------------------------------------------------------------
MEDIA -- 2.2%
Movies & Entertainment -- 2.2%
1,086 Viacom, Inc. (Class B) * $16,714
-------
Total Media $16,714
- --------------------------------------------------------------
RETAILING -- 3.5%
Apparel Retail -- 2.1%
700 TJX Co., Inc. $15,589
- --------------------------------------------------------------
Home Improvement Retail -- 1.4%
524 Home Depot, Inc. $10,946
-------
Total Retailing $26,535
- --------------------------------------------------------------
FOOD & DRUG RETAILING -- 4.9%
Drug Retail -- 2.0%
573 CVS/Caremark Corp. $14,749
- --------------------------------------------------------------
Hypermarkets & Supercenters -- 2.9%
453 Wal-Mart Stores, Inc. $22,306
-------
Total Food & Drug Retailing $37,055
- --------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 6.5%
Packaged Foods & Meats -- 1.7%
378 Hershey Foods Corp. $12,735
- --------------------------------------------------------------
Soft Drinks -- 3.1%
483 PepsiCo, Inc. $23,252
- --------------------------------------------------------------
Tobacco -- 1.7%
216 Lorillard, Inc. $12,623
-------
Total Food, Beverage & Tobacco $48,610
- --------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 1.5%
Household Products -- 1.5%
234 Church & Dwight Co., Inc. $11,447
-------
Total Household & Personal Products $11,447
- --------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 6.3%
Health Care Distributors -- 2.0%
370 McKesson Corp. $15,177
- --------------------------------------------------------------
Health Care Equipment -- 2.6%
662 Medtronic, Inc. $19,589
- --------------------------------------------------------------
Managed Health Care -- 1.7%
668 United Healthcare Group, Inc. * $13,126
-------
Total Health Care Equipment & Services $47,892
- --------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09
- -------------------------------------------------------------
Shares Value
- -------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 8.5%
Biotechnology -- 3.4%
301 Alexion Pharmaceuticals, Inc. * $10,294
316 Amgen, Inc. * 15,462
-------
$25,756
- -------------------------------------------------------------
Pharmaceuticals -- 5.1%
1,130 Bristol-Myers Squibb Co. $20,803
355 Johnson & Johnson 17,750
-------
$38,553
-------
Total Pharmaceuticals & Biotechnology $64,309
- -------------------------------------------------------------
BANKS -- 0.4%
Regional Banks -- 0.4%
322 Zions Bancorporation $ 3,017
-------
Total Banks $ 3,017
- -------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.0%
Specialized Finance -- 2.0%
260 IntercontinentalExchange, Inc. * $14,760
-------
Total Diversified Financials $14,760
- -------------------------------------------------------------
INSURANCE -- 0.8%
Property & Casualty Insurance -- 0.8%
174 The Travelers Co., Inc. $ 6,290
-------
Total Insurance $ 6,290
- -------------------------------------------------------------
SOFTWARE & SERVICES -- 11.8%
Application Software -- 1.9%
707 Citrix Systems, Inc. * $14,550
- -------------------------------------------------------------
Internet Software & Services -- 2.7%
61 Google, Inc. * $20,617
- -------------------------------------------------------------
Systems Software -- 7.2%
1,682 Microsoft Corp. $27,164
1,723 Oracle Corp. * 26,775
-------
$53,939
-------
Total Software & Services $89,106
- -------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 11.6%
Communications Equipment -- 4.1%
2,149 Cisco Systems, Inc. * $31,311
- -------------------------------------------------------------
Computer Hardware -- 7.5%
342 Apple, Inc. * $30,546
897 Hewlett-Packard Co. 26,040
-------
$56,586
-------
Total Technology Hardware & Equipment $87,897
- -------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09 17
Schedule of Investments | 2/28/09 (unaudited) (continued)
- ---------------------------------------------------------------
Shares Value
- ---------------------------------------------------------------
SEMICONDUCTORS -- 4.0%
Semiconductors -- 4.0%
860 Analog Devices, Inc. $ 16,030
869 Broadcom Corp. * 14,295
--------
$ 30,325
--------
Total Semiconductors $ 30,325
- ---------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 1.0%
Integrated Telecommunication Services -- 1.0%
972 Windstream Corp. $ 7,251
--------
Total Telecommunication Services $ 7,251
- ---------------------------------------------------------------
UTILITIES -- 2.3%
Multi-Utilities -- 2.3%
452 PG&E Corp. $ 17,275
--------
Total Utilities $ 17,275
- ---------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $970,765) $726,186
- ---------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 96.0%
(Cost $970,765)(a) $726,186
- ---------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 4.0% $ 30,610
- ---------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $756,796
===============================================================
* Non-income producing security.
(a) At February 28, 2009, the net unrealized loss on investments based on
cost for federal income tax purposes of $971,926 was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $ 3,792
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (249,532)
---------
Net unrealized loss $(245,740)
=========
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended February 28, 2009 aggregated $500,904 and $393,335,
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 accompanying notes are an integral part of these financial statements.
18 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09
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 $726,186
Level 2 -- Other Significant Observable Inputs --
Level 3 -- Significant Unobservable Inputs --
- --------------------------------------------------------------------------------
Total $726,186
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09 19
Statement of Assets and Liabilities | 2/28/09 (unaudited)
ASSETS:
Investment in securities (cost $970,765) $ 726,186
Cash 9,069
Receivables --
Fund shares sold 35
Dividends 1,623
Due from Pioneer Investment Management, Inc. 22,374
Other 21,252
- -------------------------------------------------------------------
Total assets $ 780,539
- -------------------------------------------------------------------
LIABILITIES:
Due to affiliates $ 120
Accrued expenses 23,623
- -------------------------------------------------------------------
Total liabilities $ 23,743
- -------------------------------------------------------------------
NET ASSETS:
Paid-in capital $1,170,092
Undistributed net investment income 133
Accumulated net realized loss on investments (168,850)
Net unrealized loss on investments (244,579)
- -------------------------------------------------------------------
Total net assets $ 756,796
===================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $429,482/69,042 shares) $ 6.22
Class C (based on $169,468/27,308 shares) $ 6.21
Class Y (based on $157,846/25,329 shares) $ 6.23
MAXIMUM OFFERING PRICE:
Class A ($6.22 [divided by] 94.25%) $ 6.60
===================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09
Statement of Operations (unaudited)
For the Six Months Ended 2/28/09
INVESTMENT INCOME:
Dividends $6,264
Income from securities loaned, net 13
- -----------------------------------------------------------------------------------
Total investment income $ 6,277
- -----------------------------------------------------------------------------------
EXPENSES:
Management fees $2,707
Transfer agent fees
Class A 77
Distribution fees
Class A 572
Class C 944
Shareholder communications expense 96
Administrative fees 146
Custodian fees 4,897
Registration fees 20,786
Professional fees 27,144
Printing expense 8,389
Fees and expenses of nonaffiliated trustees 3,638
Miscellaneous 1,445
- -----------------------------------------------------------------------------------
Total expenses $ 70,841
Less fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (65,111)
- -----------------------------------------------------------------------------------
Net expenses $ 5,730
- -----------------------------------------------------------------------------------
Net investment income $ 547
- -----------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments $(150,812)
- -----------------------------------------------------------------------------------
Change in net unrealized loss on investments $(262,520)
- -----------------------------------------------------------------------------------
Net loss on investments $(413,332)
- -----------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(412,785)
===================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth 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 $ 547 $ 1,618
Net realized loss on investments (150,812) (5,997)
Change in net unrealized loss on investments (262,520) (48,085)
- ---------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(412,785) $ (52,464)
- ---------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.02 and $0.00 per share, respectively) $ (1,454) $ --
Class Y ($0.02 and $0.00 per share, respectively) (575) --
Net realized gain:
Class A ($0.00 and $1.17 per share, respectively) -- (58,645)
- ---------------------------------------------------------------------------------------
Total distributions to shareowners $ (2,029) $ (58,645)
- ---------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 109,993 $1,038,085
Reinvestment of distributions 1,454 58,645
Cost of shares repurchased -- (538,085)
- ---------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund share
transactions $ 111,447 $ 558,645
- ---------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(303,367) $ 447,536
NET ASSETS:
Beginning of period 1,060,163 612,627
- ---------------------------------------------------------------------------------------
End of period $ 756,796 $1,060,163
- ---------------------------------------------------------------------------------------
Undistributed net investment income $ 133 $ 1,615
- ---------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09
- -----------------------------------------------------------------------------------------------
'09 Shares '09 Amount '08 Shares '08 Amount
(unaudited) (unaudited)
- -----------------------------------------------------------------------------------------------
Class A
Shares sold 13,603 $ 98,741 55,218 $ 538,085
Reinvestment of distributions 221 1,454 5,218 58,645
Less shares repurchased -- -- (55,218) (538,085)
- -----------------------------------------------------------------------------------------------
Net increase 13,824 $100,195 5,218 $ 58,645
===============================================================================================
Class C
Shares sold 1,641 $ 11,252 25,667 $ 250,000
- -----------------------------------------------------------------------------------------------
Net increase 1,641 $ 11,252 25,667 $ 250,000
===============================================================================================
Class Y
Shares sold -- $ -- 25,329 $ 250,000
- -----------------------------------------------------------------------------------------------
Net increase -- $ -- 25,329 $ 250,000
===============================================================================================
* Class C shares were first publicly offered on July 17, 2008.
* Class Y shares were first publicly offered on July 31, 2008.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09 23
Financial Highlights
- ----------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year
2/28/09 Ended Ended 12/15/05 (a)
(unaudited) 8/31/08 8/31/07 to 8/31/06
- ----------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.98 $ 12.25 $ 10.18 $ 10.00
- ----------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income 0.01 $ 0.02 $ 0.01 $ 0.02
Net realized and unrealized gain (loss)
on investments (3.75) (1.12) 2.09 0.16
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) from
investment operations $ (3.74) $ (1.10) $ 2.10 $ 0.18
Distributions to shareowners:
Net investment income (0.02) -- (0.03) --
Net realized gain -- (1.17) -- --
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (3.76) $ (2.27) $ 2.07 $ 0.18
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.22 $ 9.98 $ 12.25 $ 10.18
==========================================================================================================
Total return* (37.47)% (10.03)% 20.69% 1.80%(b)
Ratio of net expenses to average net assets 1.25%** 1.25% 1.25% 1.25%**
Ratio of net investment income to
average net assets 0.27%** 0.22% 0.09% 0.30%**
Portfolio turnover rate 98% 92% 95% 73%(b)
Net assets, end of period (in thousands) $ 429 $ 551 $ 613 $ 509
Ratios with no waiver of fees and assumption
of expenses by PIM and no reduction for fees
paid indirectly:
Net expenses 17.11%** 16.35% 13.49% 21.63%**
Net investment loss (15.59)%** (14.88)% (12.15)% (20.08)%**
==========================================================================================================
(a) The Fund commenced operations on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09
- ----------------------------------------------------------------------------------------------------
Six Months
Ended
2/28/09 7/17/08 (a) to
(unaudited) 8/31/08
- ----------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.97 $ 9.74
- ----------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income loss $ (0.02) $ 0.00(c)
Net realized and unrealized gain (loss) on investments (3.74) 0.23
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (3.76) $ 0.23
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (3.76) $ 0.23
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.21 $ 9.97
====================================================================================================
Total return* (37.71)% 2.36%
Ratio of net expenses to average net assets 2.15%** 1.83%**
Ratio of net investment income to average net assets (0.65)%** (0.05)%**
Portfolio turnover rate 98% 92%(b)
Net assets, end of period (in thousands) $ 169 $ 256
Ratios with no waiver of fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 17.50%** 30.50%**
Net investment loss (16.00)%** (28.72)%**
====================================================================================================
(a) Class C shares were first publicly offered on July 17, 2008.
(b) Not annualized.
(c) The amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09 25
Financial Highlights (continued)
- ----------------------------------------------------------------------------------------------------
Six Months
Ended
2/28/09 7/31/08 (a) to
(unaudited) 8/31/08
- ----------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.98 $ 9.87
- ----------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.02 $ 0.01
Net realized and unrealized gain (loss) on investments (3.75) 0.10
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (3.73) $ 0.11
Distributions to shareowners:
Net investment income (0.02) --
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (3.75) $ 0.11
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.23 $ 9.98
====================================================================================================
Total return* (37.37)% 1.11%(b)
Ratio of net expenses to average net assets 0.90%** 0.90%**
Ratio of net investment income to average net assets 0.58%** 1.60%**
Portfolio turnover rate 98% 92%(b)
Net assets, end of period (in thousands) $ 158 $ 253
Ratios with no waiver of fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 16.28%** 20.69%**
Net investment loss (14.79)%** (18.19)%**
====================================================================================================
(a) Class Y shares were first publicly offered on July 31, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09
Notes to Financial Statements | 2/28/09 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Disciplined Growth Fund, formerly Pioneer Research Growth Fund, (the
Fund) is one of five portfolios comprising Pioneer Series Trust V, a Delaware
statutory trust registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company. The Fund was organized on
October 12, 2005, and commenced operations on December 15, 2005. The Fund's
investment objective is long-term capital growth.
The Fund offers three classes of shares designated as Class A, Class C and
Class Y shares. Class C and Class Y shares were first publicly offered on July
17, 2008 and July 31, 2008, respectively. Each class of shares represents and
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 gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. 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.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09 27
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. Trading in foreign securities is substantially
completed each day at various times prior to the close of the NYSE. The
values of such securities used in computing the net asset value of the
Fund's shares are determined as of such times. The Fund may also use fair
value methods to value a security, including a non-U.S. security, when the
closing market price on the principal exchange where the security is traded
no longer reflects the value of the security. At February 28, 2009, there
were no securities that were valued using fair value methods (other than
securities valued using prices supplied by independent pricing services).
Temporary cash investments are valued at cost which approximates market
value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis, net of
unrecoverable foreign taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years are 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
28 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09
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 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:
- --------------------------------------------------------------------------------
2008
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $42,593
Long term capital gain 16,052
- --------------------------------------------------------------------------------
Total $58,645
================================================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2008:
- --------------------------------------------------------------------------------
2008
- --------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,615
Post-October loss deferred (16,877)
Unrealized appreciation 16,780
- --------------------------------------------------------------------------------
Total $ 1,518
================================================================================
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $20 in underwriting commissions on the sale of Class A shares during
the six months ended February 28, 2009.
D. 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 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
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09 29
in the same manner and at the same time, except that Class A, Class C, and
Class Y shares bear different transfer agent and distribution expense rates.
E. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors. When entering into a securities loan
transaction, the Fund typically receives cash collateral from the borrower
equal to at least the value of the securities loaned, which is invested in
temporary cash investments. Credit Suisse, New York Branch, as the Fund's
securities lending agent, manages the Fund's securities lending collateral.
The income earned on the investment of collateral is shared with the
borrower and the lending agent in payment of any rebate due to the borrower
with respect to the securities loan, and in compensation for the lending
agent's services to the Fund. The Fund also continues to receive interest or
payments in lieu of dividends on the securities loaned. Gain or loss on the
value of the loaned securities that may occur during the term of the loan
will be for the account of the Fund. The amount of the collateral is
required to be adjusted daily to reflect any price fluctuation in the value
of the loaned securities. The Fund has the right, under the lending
agreement, to terminate the loan and recover the securities from the
borrower with prior notice. The Fund will be required to return the cash
collateral to the borrower and could suffer a loss if the value of the
collateral, as invested, has declined.
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 0.65% of the Fund's average daily net assets up to
$1 billion, 0.60% of the next $4 billion and 0.55% on assets over $5 billion.
Prior to September 1, 2008, the Fund's management fee was 0.75% of the Fund's
average daily net assets up to $1 billion and 0.70% on assets over $1 billion.
For the six months ended February 28, 2009, the effective management fee (net
of waivers and/or assumption of expenses) was equivalent to 0.65% of the Fund's
average net assets.
Pioneer has contractually agreed to limit ordinary operating expenses to the
extent required to reduce Fund expenses to 1.25%, 2.15% and 0.90% of the
average daily net assets attributable to Class A, Class C and Class Y shares,
respectively. These expense limitations are in effect through January 1, 2012
for Class A shares and through January 1, 2010 for Class C and Class Y shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. There were no management fees, administrative
costs or other services payable to PIM at February 28, 2009.
30 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc. (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, out-of-pocket expenses by class of shares were as
follows:
- --------------------------------------------------------------------------------
Shareholder Communications:
- --------------------------------------------------------------------------------
Class A $62
Class C 33
Class Y 1
- --------------------------------------------------------------------------------
Total $96
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $105 in transfer agent fees 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 its Class A 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 C shares. The fee for 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 or distribution services with
regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $15 in distribution fees payable to PFD
at February 28, 2009.
In addition, redemptions of Class A and Class C shares may be subject to a
contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on
redemptions of certain net asset value purchases of Class A shares within 18
months of purchase. Redemptions of Class C shares within one year of purchase
are subject to a CDSC of 1.00%, 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, no CDSCs
were paid to PFD.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09 31
5. 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.
32 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham Dorothy E. Bourassa, Secretary
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
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 Disciplined Growth Fund | Semiannual Report | 2/28/09 33
This page for your notes.
34 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09
This page for your notes.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/09 35
This page for your notes.
36 Pioneer Disciplined Growth 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 preceded or 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.
Pioneer Disciplined
Value Fund*
- --------------------------------------------------------------------------------
Semiannual Report | February 28, 2009
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A SERSX
Class C PRVCX
Class Y PRUYX
*Effective April 1, 2009, Pioneer Research Value Fund was renamed Pioneer
Disciplined Value Fund.
[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 13
Schedule of Investments 15
Financial Statements 21
Notes to Financial Statements 27
Trustees, Officers and Service Providers 33
Pioneer Disciplined Value 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 see potential chances for making money in many corners of the market,
it takes
2 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
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 Disciplined Value Fund | Semiannual Report | 2/28/09 3
Portfolio Management Discussion | 2/28/09
The domestic stock market lost approximately 40% of its value during the six-
month period ended February 28, 2009, as investor confidence collapsed in the
face of mounting evidence of a deteriorating U.S. economy. In the following
discussion, Pioneer's Diego Franzin, Ashesh Savla and John Peckham review the
factors that affected the performance of Pioneer Disciplined Value Fund during
the six-month period. Mr. Franzin is Head of Global Quantitative Research &
Management at Pioneer; Mr. Savla is a Quantitative Analyst at Pioneer; and Mr.
Peckham, CFA, is Head of Pioneer's Global Fundamental Research Group. All are
members of the Fund's management team.
Q How did Pioneer Disciplined Value Fund perform during the six months ended
February 28, 2009?
A The Fund's Class A shares returned -36.62% at net asset value for the six
months, while the Fund's benchmark, the Russell 1000 Value Index, returned
-44.71%. During the same six-month period, the 625 funds in Lipper's Large
Cap Value category posted an average return of -42.36%.
Q What were the principal factors affecting the Fund's performance during the
six months ended February 28, 2009?
A As the credit markets came close to freezing up and the financials sector
imploded, the equity market underwent waves of fierce selling that drove
stock prices down substantially during the six months ended February 28,
2009. The Standard & Poor's 500 Index and the Russell 1000 Index, two
common benchmarks for large-cap stocks, declined by 41.79% and 42.25%,
respectively, during the period, while many small-cap and mid-cap indices
fell by even more. Value stock indices, primarily because of their heavier
weightings in financials stocks, tended to underperform growth-stock
benchmarks. The dismal results came amid disappointing news about the U.S.
economy. The U.S. Commerce Department announced that the nation's gross
domestic product (GDP) had begun to contract. Meanwhile, a drumbeat of
reports continued telling a story of declining profit growth, rising
unemployment, falling commodity prices and widespread uncertainty about the
nation's economic policy responses.
In this difficult market, the Fund was not immune to the downward pull of
stock prices, and we are disappointed with its performance results. But the
Fund did manage to outperform its benchmark, the Russell 1000 Value Index
(the Russell Index), over the six-month period ended February 28, 2009. The
Fund's performance edge over the benchmark was due primarily
4 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
to stock selection, especially in the financials, industrials and consumer
discretionary sectors. In general, we successfully avoided some of the
biggest blowups in the market. The Fund had no investments, for example, in
such notably poor performers as Bank of America, Citigroup, American
International Group and General Electric. On the negative side, stock
selections in health care and energy tended to detract from the Fund's
results relative to the Russell Index.
We maintained a relatively defensively positioned portfolio over the six
months ended February 28, 2009, emphasizing stocks of corporations with
strong balance sheets and with relatively low exposure to the deteriorating
credit markets. The Fund maintained a portfolio of stocks in about 50
different companies. The stocks are always selected with the help of
qualitative research analysis and quantitative analytical tools.
Q What were some of the individual investments that most affected the Fund's
results relative to the Russell 1000 Value Index during the six months
ended February 28, 2009?
A The financials sector was the poorest performing part of the market, as the
stock valuations of many prominent institutions plummeted mainly because of
their exposures to credit problems. Our decisions not to own shares of many
of the major financial corporations were a substantial factor contributing
to the Fund's outperformance relative to the Russell Index. The Fund's lack
of exposure to Bank of America, for example, was the single biggest factor
supporting its relative performance, while not owning any shares of
Citigroup, Wells Fargo or American International Group also helped the Fund
outperform the Russell Index.
Similarly, the Fund's lack of any investment in General Electric (GE)
helped its relative performance in the industrials sector. We avoided GE
because we were concerned about the vulnerability of its financial services
businesses, which have accounted for approximately 50% of its profits.
Conversely, the Fund benefited from its investments in diversified capital
goods companies United Technologies and 3M. In the consumer discretionary
sector, the leading contributor was fast-food chain McDonald's. The company
reported consistent growth in same-store sales in markets throughout the
world, which may have been helped by the tendency of consumers to search
for lower cost meals during a time of economic insecurity. Among other
holdings, we sold the Fund's investment in global mining corporation
Freeport McMoRan Copper & Gold at the right time. The Fund had a position
in the corporation early in the reporting period, when it still was
performing well, but we then sold it out of the portfolio and managed to
avoid most of the damage to its stock price created by falling commodity
prices.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09 5
Investments in the energy and health care sectors were not as successful
for the Fund. In energy, Weatherford International produced particularly
disappointing results. Weatherford, an oil field services company, was
removed from the Standard & Poor's 500 Index, which led to share price
losses as index funds sold their positions. In addition, investors became
concerned about the outlook for oil field services companies due to falling
oil prices. Conversely, the Fund had an underweighted position in
ExxonMobil, which hurt relative performance as the integrated oil company
was able to withstand the effects of falling oil prices better than most
energy corporations. In health care, the Fund saw disappointing results
from its holding in Cigna, an HMO, and Fund returns also were negatively
impacted by not owning a stake in Wyeth. The share price of CIGNA was
pulled down both by higher-than-expected operating costs and by investor
concerns that the potential health care policies of the new Obama
administration might affect profits of managed health care companies. Wyeth
outperformed after agreeing to merge with Pfizer, and not owning the stock
hurt the Fund's relative performance during the period.
Q What is your investment outlook?
A We intend to maintain a relatively defensive positioning for the Fund as we
await an eventual improvement in the environment for equity investments. A
cautious approach should be especially important for our stock selections
in the energy and financials sectors, two large parts of the benchmark
Russell Index that are particularly vulnerable to economic swings. In
energy, we expect to be especially careful about investing in oil and
natural gas exploration and production companies, particularly given that
commodity prices have fallen and demand appears weak. In the financials
group, we intend to emphasize corporations with strong balance sheets,
while generally avoiding any companies with significant exposure to
mortgages.
We expect that individual stock-picking will continue to drive Fund
performance.
Please refer to the Schedule of Investments on pages 15-20 for a full listing
of Fund securities.
Investing in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies. The Fund invests in a limited number of
securities and, as a result, the Fund's performance may be more volatile than
the performance of other funds holding more securities. At times, the Fund's
investments may represent industries or industry sectors that are interrelated
or have common risks, making it more susceptible to any economic, political, or
regulatory developments or other risks affecting those industries and sectors.
6 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09 7
Portfolio Summary | 2/28/09
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 99.1%
Temporary Cash Investment 0.9%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 19.7%
Energy 18.3%
Health Care 13.6%
Consumer Discretionary 9.8%
Consumer Staples 9.1%
Utilities 8.3%
Industrials 7.8%
Telecommunications Services 7.3%
Materials 3.2%
Information Technology 2.9%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Johnson & Johnson Co. 4.44%
- --------------------------------------------------------------------------------
2. Verizon Communications, Inc. 4.39
- --------------------------------------------------------------------------------
3. Chevron Corp. 4.19
- --------------------------------------------------------------------------------
4. Exxon Mobil Corp. 3.56
- --------------------------------------------------------------------------------
5. AT&T Corp. 2.89
- --------------------------------------------------------------------------------
6. Amgen, Inc. 2.89
- --------------------------------------------------------------------------------
7. The Travelers Co., Inc. 2.86
- --------------------------------------------------------------------------------
8. PG&E Corp. 2.85
- --------------------------------------------------------------------------------
9. Home Depot, Inc. 2.69
- --------------------------------------------------------------------------------
10. CVS/Caremark Corp. 2.66
- --------------------------------------------------------------------------------
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any
securities listed.
8 Pioneer Disciplined Value 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 $ 5.99 $ 9.60
- --------------------------------------------------------------------------------
C $ 6.04 $ 9.61
- --------------------------------------------------------------------------------
Y $ 6.04 $ 9.62
- --------------------------------------------------------------------------------
Distributions per Share: 9/1/08-2/28/09
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- --------------------------------------------------------------------------------
A $ 0.1079 $ -- $ --
- --------------------------------------------------------------------------------
C $ 0.0209 $ -- $ --
- --------------------------------------------------------------------------------
Y $ 0.0651 $ -- $ --
- --------------------------------------------------------------------------------
Pioneer Disciplined Value 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 Disciplined Value Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of February 28, 2009)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
Life-of-Class
(12/15/05) -11.23% -12.86%
1 Year -39.70 -43.19
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
16.02% 1.25%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE/MTN CHART IN THE PRINTED MATERIAL]
Pioneer
Disciplined Russell 1000
Value Fund Value Fund
----------- ------------
12/05 9,425 10,000
2/06 9,781 10,452
2/07 11,164 12,188
2/08 10,780 11,224
2/09 6,500 5,909
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 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 Russell 1000[RegTM] Value Index measures the performance of large-cap U.S.
value stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
10 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
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 Disciplined Value Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of February 28, 2009)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(7/16/08) -35.03% -35.68%
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
25.47% 2.15%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE/MTN CHART IN THE PRINTED MATERIAL]
Pioneer
Disciplined Russell 1000
Value Fund Value Fund
----------- ------------
7/08 10,000 10,000
2/09 6,344 5,623
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 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 Russell 1000[RegTM] Value Index measures the performance of large-cap U.S.
value stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09 11
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 Disciplined Value Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of February 28, 2009)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(7/16/08) -11.17% -11.17%
1 Year -39.57 -39.57
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
10.11% 0.90%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE/MTN CHART IN THE PRINTED MATERIAL]
Pioneer
Disciplined Russell 1000
Value Fund Value Fund
----------- ------------
12/05 10,000 10,000
2/06 10,374 10,452
2/07 11,840 12,188
2/08 11,433 11,224
2/09 6,909 5,909
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.
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 Y Shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Value Index measures the performance of large-cap U.S.
value stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
12 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
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 Research Value Fund
Based on actual returns from September 1, 2008 through February 28, 2009.
- --------------------------------------------------------------------------------
Actual
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/08
- --------------------------------------------------------------------------------
Ending Account Value $ 633.80 $ 631.50 $ 633.80
(after expenses) on 2/28/09
- --------------------------------------------------------------------------------
Expenses Paid $ 5.06 $ 7.73 $ 3.65
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 1.91%,
and 0.90% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
181/365 (to reflect the partial year period).
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09 13
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 Research Value Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2008 through February 28, 2009.
- --------------------------------------------------------------------------------
Hypothetical
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/08
- --------------------------------------------------------------------------------
Ending Account Value $ 1,018.60 $ 1,015.32 $ 1,020.33
(after expenses) on 2/28/09
- --------------------------------------------------------------------------------
Expenses Paid $ 6.26 $ 9.54 $ 4.51
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 1.91%,
and 0.90% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
181/365 (to reflect the partial year period).
14 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
Schedule of Investments | 2/28/09 (unaudited)
- --------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------
COMMON STOCKS -- 94.9%
ENERGY -- 17.4%
Integrated Oil & Gas -- 7.4%
436 Chevron Corp. $ 26,470
332 Exxon Mobil Corp. 22,542
--------
$ 49,012
- --------------------------------------------------------------------
Oil & Gas Drilling -- 1.7%
192 Transocean, Ltd.* $ 11,476
- --------------------------------------------------------------------
Oil & Gas Equipment & Services -- 3.8%
866 Halliburton Co.* $ 14,124
1,048 Weatherford International, Inc.* 11,182
--------
$ 25,306
- --------------------------------------------------------------------
Oil & Gas Exploration & Production -- 2.3%
256 Apache Corp. $ 15,127
- --------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 2.2%
2,218 El Paso Corp. $ 14,972
--------
Total Energy $115,893
- --------------------------------------------------------------------
MATERIALS -- 3.0%
Fertilizers & Agricultural Chemicals -- 1.7%
134 Potash Corporation Saskatchewan, Inc. $ 11,252
- --------------------------------------------------------------------
Industrial Gases -- 1.3%
286 Airgas, Inc. $ 8,806
--------
Total Materials $ 20,058
- --------------------------------------------------------------------
CAPITAL GOODS -- 6.1%
Aerospace & Defense -- 4.4%
376 Northrop Grumman Corp.* $ 14,047
382 United Technologies Corp. 15,597
--------
$ 29,644
- --------------------------------------------------------------------
Industrial Conglomerates -- 1.7%
245 3M Co. $ 11,138
--------
Total Capital Goods $ 40,782
- --------------------------------------------------------------------
TRANSPORTATION -- 1.3%
Railroads -- 1.3%
272 Norfolk Southern Corp. $ 8,628
--------
Total Transportation $ 8,628
- --------------------------------------------------------------------
CONSUMER SERVICES -- 2.1%
Restaurants -- 2.1%
262 McDonald's Corp. $ 13,690
--------
Total Consumer Services $ 13,690
- --------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09 15
Schedule of Investments | 2/28/09 (unaudited) (continued)
- ----------------------------------------------------------------
Shares Value
- ----------------------------------------------------------------
MEDIA -- 3.6%
Movies & Entertainment -- 3.6%
2,022 Time Warner, Inc. $ 15,427
561 Viacom, Inc. (Class B)* 8,634
--------
$ 24,061
--------
Total Media $ 24,061
- ----------------------------------------------------------------
RETAILING -- 3.6%
Apparel Retail -- 1.0%
313 TJX Co., Inc. $ 6,971
- ----------------------------------------------------------------
Home Improvement Retail -- 2.6%
815 Home Depot, Inc. $ 17,025
--------
Total Retailing $ 23,996
- ----------------------------------------------------------------
FOOD & DRUG RETAILING -- 2.5%
Drug Retail -- 2.5%
653 CVS/Caremark Corp. $ 16,807
--------
Total Food & Drug Retailing $ 16,807
- ----------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.2%
Tobacco -- 4.2%
905 Altria Group, Inc. $ 13,973
235 Lorillard, Inc. 13,733
--------
$ 27,706
--------
Total Food, Beverage & Tobacco $ 27,706
- ----------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 1.9%
Personal Products -- 1.9%
576 Alberto-Culver Co. (Class B) $ 12,753
--------
Total Household & Personal Products $ 12,753
- ----------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 2.1%
Managed Health Care -- 2.1%
725 United Healthcare Group, Inc.* $ 14,246
--------
Total Health Care Equipment & Services $ 14,246
- ----------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 10.8%
Biotechnology -- 2.8%
373 Amgen, Inc.* $ 18,251
- ----------------------------------------------------------------
Pharmaceuticals -- 8.0%
258 Abbott Laboratories, Ltd. $ 12,214
720 Bristol-Myers Squibb Co. 13,255
562 Johnson & Johnson 28,100
--------
$ 53,569
--------
Total Pharmaceuticals & Biotechnology $ 71,820
- ----------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
- -------------------------------------------------------------------------
Shares Value
- -------------------------------------------------------------------------
BANKS -- 5.0%
Regional Banks -- 5.0%
1,146 First Horizon National Corp.* $ 10,509
984 KeyCorp 6,898
393 PNC Bank Corp. 10,745
533 Zions Bancorporation (b) 4,994
--------
$ 33,146
--------
Total Banks $ 33,146
- -------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 7.5%
Asset Management & Custody Banks -- 4.0%
239 Franklin Resources, Inc. $ 10,946
716 The Bank of New York Mellon Corp. 15,874
--------
$ 26,820
- -------------------------------------------------------------------------
Diversified Finance Services -- 2.3%
661 JPMorgan Chase & Co. $ 15,104
- -------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.8%
236 Lazard, Ltd. $ 5,730
- -------------------------------------------------------------------------
Specialized Finance -- 0.4%
14 CME Group, Inc. $ 2,554
--------
Total Diversified Financials $ 50,208
- -------------------------------------------------------------------------
INSURANCE -- 4.5%
Property & Casualty Insurance -- 4.5%
532 Axis Capital Holdings, Ltd. $ 11,906
501 The Travelers Co., Inc. 18,111
--------
$ 30,017
--------
Total Insurance $ 30,017
- -------------------------------------------------------------------------
REAL ESTATE -- 1.8%
Specialized Real Estate Investment Trusts -- 1.8%
216 Plum Creek Timber Co., Inc. $ 5,666
110 Public Storage, Inc. 6,103
--------
$ 11,769
--------
Total Real Estate $ 11,769
- -------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.9%
Systems Software -- 0.9%
390 Microsoft Corp. $ 6,299
--------
Total Software & Services $ 6,299
- -------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.8%
Computer Hardware -- 1.8%
405 Hewlett-Packard Co. $ 11,757
--------
Total Technology Hardware & Equipment $ 11,757
- -------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09 17
Schedule of Investments | 2/28/09 (unaudited) (continued)
- ---------------------------------------------------------------------------
Shares Value
- ---------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 6.9%
Integrated Telecommunication Services -- 6.9%
768 AT&T Corp. $ 18,255
973 Verizon Communications, Inc. 27,760
--------
$ 46,015
--------
Total Telecommunication Services $ 46,015
- ---------------------------------------------------------------------------
UTILITIES -- 7.9%
Electric Utilities -- 2.5%
542 Southern Co. $ 16,428
- ---------------------------------------------------------------------------
Multi-Utilities -- 5.4%
244 NSTAR $ 7,849
472 PG&E Corp. 18,040
252 Sempra Energy 10,476
--------
$ 36,365
--------
Total Utilities $ 52,793
- ---------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $862,694) $632,444
- ---------------------------------------------------------------------------
Principal
Amount
- ---------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 0.8%
Securities Lending Collateral -- 0.8% (c)
Certificates of Deposit:
$ 133 Abbey National Plc, 2.52%, 8/13/09 $ 133
133 Bank of Nova Scotia, 1.58%, 5/5/09 133
213 Bank of Scotland NY, 1.44%, 6/5/09 213
240 Barclays Bank, 1.2%, 5/27/09 240
267 CBA, 1.31%, 7/16/09 267
240 DNB NOR Bank ASA NY, 2.41%, 6/5/09 240
244 Intesa SanPaolo S.p.A., 1.1%, 5/22/09 244
15 NORDEA NY, 0.44%, 4/9/09 15
200 Royal Bank of Canada NY, 1.44%, 8/7/09 200
133 Royal Bank of Scotland, 2.45%, 3/5/09 133
267 Societe Generale, 2.62%, 9/4/09 267
240 Svenska Bank NY, 1.73%, 7/8/09 240
267 U.S. Bank NA, 1.35%, 8/24/09 267
--------
$ 2,595
- ---------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
- --------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------
Commercial Paper:
$ 25 BBVA U.S., 2.11%, 3/12/09 $ 25
267 Monumental Global Funding, Ltd., 1.64%, 8/17/09 267
133 CME Group, Inc., 1.44%, 8/6/09 133
133 General Electric Capital Corp., 1.96%, 3/16/09 133
262 American Honda Finance Corp., 1.29%, 7/14/09 262
267 HSBC Bank, Inc., 1.64%, 8/14/09 267
67 IBM, 1.47%, 9/25/09 67
240 MetLife Global Funding, 2.47%, 6/12/09 240
240 New York Life Global, 2.31%, 9/4/09 240
227 Westpac Banking Corp., 1.0%, 6/1/09 227
--------
$ 1,862
- --------------------------------------------------------------------------
Tri-party Repurchase Agreements:
267 Deutsche Bank, 0.27%, 3/2/09 $ 267
534 Merrill Lynch, 0.27%, 3/2/09 534
101 Barclays Capital Markets, 0.25%, 3/2/09 101
--------
$ 901
- --------------------------------------------------------------------------
Money Market Mutual Fund:
267 JPMorgan, U.S. Government Money Market Fund $ 267
--------
Total Securities Lending Collateral $ 5,625
- --------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $5,625) $ 5,625
- --------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 95.7%
(Cost $868,319)(a) $638,069
- --------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 4.3% $ 28,543
- --------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $666,612
==========================================================================
* Non-income producing security.
(a) At February 28, 2009, the net unrealized loss on investments based on
cost for federal income tax purposes of $872,740 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 1,238
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (235,909)
----------
Net unrealized loss $ (234,671)
==========
(b) At February 28, 2009, the following security was out on loan:
- ------------------------------------------------
Shares Security Value
- ------------------------------------------------
500 Zions Bancorporation $ 4,685
(c) Securities lending collateral is managed by Credit Suisse, New York
Branch.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09 19
Schedule of Investments | 2/28/09 (unaudited) (continued)
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 28, 2009 aggregated $556,725 and $543,724,
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 $632,444
Level 2 -- Other Significant Observable Inputs 5,625
Level 3 -- Significant Unobservable Inputs --
- -----------------------------------------------------------------
Total $638,069
=================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
Statement of Assets and Liabilities | 2/28/09 (unaudited)
ASSETS:
Investment in securities, at value (including securities loaned of
$4,685) (cost $868,319) $ 638,069
Cash 5,396
Receivables --
Dividends 2,226
Due from Pioneer Investment Management, Inc. 27,072
Other 25,775
- ------------------------------------------------------------------------------------
Total assets $ 698,538
- ------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Upon return of securities loaned 5,625
Due to affiliates 169
Accrued expenses 26,132
- ------------------------------------------------------------------------------------
Total liabilities $ 31,926
- ------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 1,072,310
Undistributed net investment income 2,705
Accumulated net realized loss on investments (178,153)
Net unrealized loss on investments (230,250)
- ------------------------------------------------------------------------------------
Total net assets $ 666,612
- ------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $346,924/57,869 shares) $ 5.99
Class C (based on $161,803/26,767 shares) $ 6.04
Class Y (based on $157,885/26,123 shares) $ 6.04
MAXIMUM OFFERING PRICE:
Class A ($5.99 [divided by] 94.25%) $ 6.36
====================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09 21
Statement of Operations (unaudited)
For the Six Months Ended 2/28/09
INVESTMENT INCOME:
Dividends $11,493
Income from securities loaned, net 208
- ------------------------------------------------------------------------------------
Total investment income $ 11,701
- ------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 2,617
Transfer agent fees
Class A 15
Distribution fees
Class A 518
Class C 988
Shareholder communication expense 120
Administrative fees 141
Custodian fees 6,752
Registration fees 25,328
Professional fees 25,240
Printing expense 10,866
Fees and expenses of nonaffiliated trustees 3,525
Miscellaneous 1,771
- ------------------------------------------------------------------------------------
Total expenses $ 77,881
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. $ (72,545)
- ------------------------------------------------------------------------------------
Net expenses $ 5,336
- ------------------------------------------------------------------------------------
Net investment income $ 6,365
- ------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments $ (151,964)
- ------------------------------------------------------------------------------------
Change in net unrealized loss on investments $ (235,480)
- ------------------------------------------------------------------------------------
Net loss on investments $ (387,444)
- ------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (381,079)
- ------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
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 Year Ended
2/28/09 8/31/08
- ------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 6,365 $ 6,680
Net realized loss on investments (151,964) (23,090)
Change in net unrealized loss on investments (235,480) (55,082)
- ------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (381,079) $ (71,492)
- ------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.11 and $0.11 per share, respectively) $ (6,136) $ (6,091)
Class C ($0.02 and $0.00 per share, respectively) (559) --
Class Y ($0.07 and $0.00 per share, respectively) (1,701) --
Net realized gain:
Class A ($0.00 and $0.77 per share, respectively) -- (38,340)
- ------------------------------------------------------------------------------------------
Total distributions to shareowners $ (8,396) $ (44,431)
- ------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 21,744 $ 500,000
Reinvestment of distributions 6,136 44,430
- ------------------------------------------------------------------------------------------
Net increase net assets resulting from Fund share
transactions $ 27,880 $ 544,430
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (361,595) $ 428,507
NET ASSETS:
Beginning of period $ 1,028,207 $ 599,700
- ------------------------------------------------------------------------------------------
End of period $ 666,612 $ 1,028,207
- ------------------------------------------------------------------------------------------
Undistributed net investment income $ 2,705 $ 4,736
==========================================================================================
- -----------------------------------------------------------------------------------
'09 Shares '09 Amount '08 Shares '08 Amount
(unaudited) (unaudited)
- -----------------------------------------------------------------------------------
Class A
Shares sold 2,854 $ 21,744 -- $ --
Reinvestment of distributions 896 6,136 4,119 44,430
- -----------------------------------------------------------------------------------
Net increase 3,750 $ 27,880 4,119 $ 44,430
===================================================================================
Class C*
Shares sold -- $ -- 26,767 $250,000
- -----------------------------------------------------------------------------------
Net increase -- $ -- 26,767 $250,000
===================================================================================
Class Y**
Shares sold -- $ -- 26,123 $250,000
- -----------------------------------------------------------------------------------
Net increase -- $ -- 26,123 $250,000
===================================================================================
* Class C shares were first publicly offered on July 17, 2008.
** Class Y shares were first publicly offered on July 31, 2008.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09 23
Financial Highlights
- -------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year
2/28/09 Ended Ended 12/15/05 (a)
(unaudited) 8/31/08 8/31/07 to 8/31/06
- -------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.60 $ 11.99 $ 10.69 $ 10.00
- -------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.06 $ 0.11 $ 0.12 $ 0.09
Net realized and unrealized gain (loss) on
investments (3.56) (1.62) 1.58 0.60
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ (3.50) $ (1.51) $ 1.70 $ 0.69
Distributions to shareowners:
Net investment income (0.11) (0.11) (0.12) --
Net realized gain -- (0.77) (0.28) --
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (3.61) $ (2.39) $ 1.30 $ 0.69
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 5.99 $ 9.60 $ 11.99 $ 10.69
=============================================================================================================
Total return* (36.62)% (13.34)% 16.24% 6.90%(b)
Ratio of net expenses to average net assets 1.25%** 1.25% 1.25% 1.25%**
Ratio of net investment income to average
net assets 1.67%** 1.07% 1.01% 1.21%**
Portfolio turnover rate 138%** 116% 88% 66%(b)
Net assets, end of period (in thousands) $ 347 $ 520 $ 600 $ 535
Ratios with no waiver of fees and assumption of
expenses by PIM and no reduction for fees
paid indirectly:
Net expenses 19.33%** 16.02% 13.35% 19.33%**
Net investment loss 16.42)%** (13.70)% (11.09)% (16.87)%**
=============================================================================================================
(a) The Fund commenced operations on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
- ---------------------------------------------------------------------------------------------
Six Months
Ended
2/28/09 7/17/08 (a)
(unaudited) to 8/31/08
- ---------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.61 $ 9.34
- ---------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.03 $ 0.01
Net realized and unrealized gain (loss) on investments (3.58) 0.26
- ---------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (3.55) $ 0.27
- ---------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.02) $ --
- ---------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.02) $ 0.27
- ---------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.04 $ 9.61
=============================================================================================
Total return* (36.85)% 2.89%(b)
Ratio of net expenses to average net assets 1.91%** 2.15%**
Ratio of net investment income to average net assets 0.99%** 0.40%**
Portfolio turnover rate 138%** 116%(b)
Net assets, end of period (in thousands) $ 162 $ 257
Ratios with no waiver of fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 19.84%** 25.47%**
Net investment loss (16.94)%** (22.92)%**
=============================================================================================
(a) Class C shares were first publicly offered on July 17, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09 25
Financial Highlights (continued)
- --------------------------------------------------------------------------------------------
Six Months
Ended
2/28/09 7/31/08 (a)
(unaudited) to 8/31/08
- --------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.62 $ 9.57
- --------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.07 $ 0.02
Net realized and unrealized gain (loss) on investments (3.58) 0.03
- --------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (3.51) $ 0.05
Distributions to shareowners:
Net investment income $ (0.07) $ --
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.07) $ 0.05
- --------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.04 $ 9.62
============================================================================================
Total return* (36.62)% 0.52%(b)
Ratio of net expenses to average net assets 0.90%** 0.90%**
Ratio of net investment income to average net assets 2.00%** 2.37%**
Portfolio turnover rate 138%** 116%(b)
Net assets, end of period (in thousands) $ 158 $ 251
Ratios with no waiver of fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 18.83%** 10.11%**
Net investment loss (15.93)%** (6.84)%**
============================================================================================
(a) Class Y shares were first publicly offered on July 31, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
Notes to Financial Statements | 2/28/09 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Disciplined Value Fund, formerly Pioneer Research Value Fund (the Fund),
is one of five portfolios comprising Pioneer Series Trust V, a Delaware
statutory trust registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company. The Fund was organized on
October 12, 2005, and commenced operations on December 15, 2005. Pioneer
Investment Management Inc. (PIM), the Fund's investment advisor, paid all
organizational costs of the Fund. Prior to December 15, 2005, the Fund had no
operations other than those relating to organizational matters and the initial
capitalization of the Fund by Pioneer Funds Distributor, Inc. (PFD), the
principal underwriter for the Fund. The Fund's investment objective is to seek
long-term capital growth.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Class C shares were first publicly offered on July 17, 2008. Class Y
shares were first publicly offered on July 31, 2008. Each class of shares
represents and 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 gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
Investing in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09 27
larger, more established companies. 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.
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. Trading in foreign securities
is substantially completed each day at various times prior to the close of
the NYSE. The values of such securities used in computing the net asset
value of the Fund's shares are determined as of such times. The Fund may
also use fair value methods to value a security, including a non-U.S.
security, when the closing market price on the principal exchange where the
security is traded no longer reflects the value of the security. At
February 28, 2009, there were no securities that were valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services). Temporary cash investments are valued at
cost which approximates market value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis,
net of unrecoverable foreign taxes withheld at the applicable country
rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years are subject to examination by tax
authorities.
28 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
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 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:
------------------------------------------------
2008
------------------------------------------------
Distributions paid from:
Ordinary income $22,689
Long-term capital gain 21,742
------------------------------------------------
Total $44,431
================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2008:
----------------------------------------------------------
2008
----------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 4,697
Current year post October loss deferred (21,729)
Unrealized appreciation 809
----------------------------------------------------------
Total $ (16,223)
==========================================================
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned approximately $16 in underwriting commissions on the
sale of Class A shares during the six months ended February 28, 2009.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09 29
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 C, and Class Y shares bear different transfer agent and distribution
expense rates.
E. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors. When entering into a securities loan
transaction, the Fund typically receives cash collateral from the borrower
equal to at least the value of the securities loaned, which is invested in
temporary cash investments. Credit Suisse, New York Branch, as the Fund's
securities lending agent, manages the Fund's securities lending collateral.
The income earned on the investment of collateral is shared with the
borrower and the lending agent in payment of any rebate due to the borrower
with respect to the securities loan, and in compensation for the lending
agent's services to the Fund. The Fund also continues to receive interest
or payments in lieu of dividends on the securities loaned. Gain or loss on
the value of the loaned securities that may occur during the term of the
loan will be for the account of the Fund. The amount of the collateral is
required to be adjusted daily to reflect any price fluctuation in the value
of the loaned securities. The Fund has the right, under the lending
agreement, to terminate the loan and recover the securities from the
borrower with prior notice. The Fund will be required to return the cash
collateral to the borrower and could suffer a loss if the value of the
collateral, as invested, has declined.
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 0.75% of the Fund's average daily net assets up to $1 billion
and 0.70% of the excess over $1 billion. For the six months ended February 28,
2009, the effective management fee (net of waivers and/or assumption of
expenses) was equivalent to 0.75% of the Fund's average net assets.
PIM has agreed not to impose all or a portion of its management fee and to
assume other operating expenses of the Fund to the extent necessary to limit the
Fund's expenses to 1.25%, 2.15%, and 0.90% of the average daily net assets
30 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
attributable to Class A, Class C, and Class Y shares, respectively. These
limitations are in effect through January 1, 2012 for Class A shares and January
1, 2010 for Class C shares and Class Y shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. There were no management fees, administrative
costs or other services payable to PIM at February 28, 2009.
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc. (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, out-of-pocket expenses by class of shares were as
follows:
- ---------------------------------------------
Shareholder Communications
- ---------------------------------------------
Class A $120
- ---------------------------------------------
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $155 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 its Class A 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 C shares. The fee for 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 or distribution services with
regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $14 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. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%, based on the lower of
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09 31
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, no CDSCs were paid to PFD.
5. 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.
32 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham Dorothy E. Bourassa, Secretary
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
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 Disciplined Value Fund | Semiannual Report | 2/28/09 33
This page for your notes.
34 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09
This page for your notes.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/09 35
This page for your notes.
36 Pioneer Disciplined Value 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.
Pioneer Global
Equity Fund*
- --------------------------------------------------------------------------------
Semiannual Report | February 28, 2009
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A GLOSX
Class B GBSLX
Class C GCSLX
Class Y PGSYX
* Effective April 1, 2009, Pioneer Global Select Equity Fund was renamed
Pioneer Global Equity Fund.
[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 22
Notes to Financial Statements 30
Trustees, Officers and Service Providers 38
Pioneer Global 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 Global 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 Global Equity Fund | Semiannual Report | 2/28/09 3
Portfolio Management Discussion | 2/28/09
In the following interview, portfolio manager Piergaetano Iaccarino discusses
the factors that influenced the Fund's performance for the semiannual period
ended February 28, 2009.
Q How did the Fund perform over the six-month period ended February 28, 2009?
A The Fund slightly outperformed its benchmark, the Morgan Stanley Capital
International (MSCI) World Index, during the six months, a period which saw
a sharp deterioration in the environment for equities globally. For the
six-month period ended February 28, 2009, the Fund's Class A shares posted
a total return of -40.71% at net asset value, compared with a return of
-43.38% for the MSCI World Index. Over the same six-month period, the
average return of the 94 Global Large Cap Growth Funds tracked by Lipper,
Inc. was -43.47%.
Q Could you describe the environment in the global equity markets over the
six-month period ended February 28, 2009?
A Global equity markets dropped dramatically during the six-month period,
with much of the damage occurring in the wake of the September 2008 turmoil
in the credit markets. Across the globe, major financial institutions fell
victim to a lack of liquidity due to a seizing up of credit markets. In the
U.S., the failure of investment banking icon Lehman Brothers was the
signature event. Lehman's failure was followed shortly by the U.S.
government's bailout of global insurer AIG and the takeover of giant thrift
Washington Mutual (by JP Morgan Chase). As September came to a close,
venerable investment banks Morgan Stanley and Goldman Sachs converted to
bank holding companies in order to assure ongoing liquidity support from
the U.S. Federal Reserve Board (the Fed), as they sought shelter from the
credit market storm. In Europe, governments were forced to pull together in
October 2008 to rescue the continent's largest banks and prevent the global
financial system from collapsing.
Reflecting the severity of the damage to the global economy, the Fed
implemented during the period a broad range of emergency facilities
designed to add liquidity to the financial system. In addition, by December
2008, the Fed had lowered its target Federal funds rate (for short-term
borrowing) from 2.00% to the unprecedented 0.00% to 0.25% range.
Given the backdrop of an imperilled global financial system, equities in
all regions experienced severe declines over the six months ended February
28, 2009. U.S. equities held up slightly better over the six months than
did their
4 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
European and Japanese counterparts. From a sector perspective, the
strongest areas in the global equity markets were consumer staples and
pharmaceuticals. Leading the way down was financials, followed by real
estate, materials and capital goods.
Q Can you review the Fund's overall investment approach?
A We look at mid- and large-capitalization stocks in more than 30 countries
and from that universe build a somewhat concentrated portfolio of less than
50 stocks. Each stock the Fund holds will generally be overweighted by at
least one percentage point compared with the MSCI World Index. In selecting
securities for the Fund, we look for "growth at a reasonable price," and so
there is a strong value component to our analysis. We try to find companies
for the Fund that not only are benefiting from operating efficiencies as
reflected in things like increased market share and revenues, but companies
that also use their capital efficiently. In particular, we look for strong
free cash flow, because this gives companies the flexibility to do things
like make share buybacks, reinvest in their businesses, make acquisitions,
and raise dividends.
Finally, we try to assess not only the potential price gains for each stock
but also the potential for a decline in price if things go wrong, and we
favor those stocks with the highest upside relative to their downside. In
the extraordinary investment environment seen in recent months,
characterized by a global financial crisis, this analysis has led us to
invest the Fund in stocks within more defensive sectors.
Q What holdings helped and hurt the Fund's performance over the six-month
period ended February 28, 2009?
A In the current environment, most prevailing theories of individual stock
selection have been rendered ineffective by the narrow market preference
for defensive sectors and companies positioned to weather the harshest
economic and financing conditions. So it is no surprise that the Fund's
outperformance versus the MSCI World Index over the six months was driven
primarily by its sector allocations. In this vein, the Fund was underweight
in financials, the sector which experienced the steepest declines during
the period. The Fund was overweight in the relatively defensive
pharmaceutical sector and also benefited from good stock selection within
the sector. In particular, Bristol-Myers Squibb and Schering Plough held up
much better than the rest of the market. The Fund had significant exposure
to consumer staples stocks, which generally fell less than the overall
market during the six months ended February 28, 2009. Within consumer
staples, the Fund was overweight in low-cost retailer Wal-Mart Stores,
which outperformed by a wide margin. Finally, stock selection within the
materials sector added to
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 5
the Fund's benchmark-relative performance, including overweight exposures
to materials manufacturer 3M and gold producers Newmont Mining and
Goldcorp.
On the negative side of the ledger, stock selection within energy detracted
from the Fund's performance over the six months ended February 28, 2009,
specifically, not owning diversified energy company ExxonMobil and
overweighting oil producer El Paso. While underweighting the insurance
group as a whole helped the Fund's returns, its exposure to Swiss
Reinsurance was a leading negative contributor to performance, as the
firm's stock experienced a severe decline related to its subprime mortgage
exposure. Within telecommunications, our decision to favor Sprint over AT&T
held back the Fund's performance, as Sprint fell substantially more than
the rest of the sector. Finally, the Fund's overweight to French bank
Societe Generale was a particularly strong performance detractor.
Q What is your outlook and how is it reflected in the Fund's positioning?
A At the end of February 2009, confirmation of the severity of the decline in
economic conditions was delivered with the news that the U.S. economy (as
measured by Gross Domestic Product) had contracted at an annual rate of
more than 6% in the fourth quarter of 2008. We do not believe the global
economy is likely to grow its way out of the financial crisis that
originated in the subprime mortgage area anytime soon. Accordingly, we have
positioned the Fund to potentially benefit from a deflationary environment.
This means emphasizing companies that meet our criteria within more
defensive sectors, such as consumer staples and pharmaceuticals, while
downplaying exposure to firms within energy and materials. We also have
been underweighting industrial companies that are heavily reliant on
large-scale capital expenditures, while monitoring the impact of recent
monetary initiatives designed to increase the availability of capital.
On the positive side, the Federal and European central banks have shown
that they will go to almost any length necessary to add liquidity to the
financial system. In addition, we feel the significant drop in the price of
crude oil that occurred over the second half of 2008 has the potential to
help improve conditions for the major economies. Going forward, we believe
our focus on companies with a strong cash position may hold the Fund in
good stead as investors seek to weather the current economic storm.
6 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
Please refer to the Schedule of Investments on pages 16-21 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. Investments in mid-sized companies may offer the
potential for higher returns, but are also subject to greater short-term price
fluctuations than larger, more established companies. The Fund is
non-diversified and invests in a limited number of securities and, as a result,
the Fund's performance may be more volatile than the performance of funds
holding more securities. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making it more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors.
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.
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 7
Portfolio Summary | 2/28/09
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Information Technology 14.6%
Health Care 13.0%
Financials 12.8%
Materials 11.4%
Consumer Staples 11.3%
Energy 10.6%
Industrials 9.8%
Consumer Discretionary 9.2%
Utilities 4.2%
Telecommunication Services 3.1%
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA IS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
United States 50.9%
United Kingdom 9.8%
Japan 8.2%
Germany 7.7%
France 7.5%
Switzerland 5.5%
Canada 3.8%
Spain 1.6%
Finland 1.5%
Greece 1.2%
Norway 1.2%
Hong Kong 1.1%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Microsoft Corp. 3.36%
2. New York Community Bancorp, Inc. 3.25
3. Vodafone Group Plc 3.14
4. Bristol-Myers Squibb Co. 2.98
5. United Technologies Corp. 2.97
6. Unilever Plc 2.84
7. Procter & Gamble Co. 2.76
8. Newmont Mining Corp. 2.74
9. Medtronic, Inc. 2.72
10. Eutelsat Communications SA 2.64
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
8 Pioneer Global 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 $ 6.03 $ 10.42
- ---------------------------------------
B $ 5.99 $ 10.28
- ---------------------------------------
C $ 6.00 $ 10.26
- ---------------------------------------
- ---------------------------------------
2/28/09 12/31/08
- ---------------------------------------
Y $ 6.03 $ 7.25
- ---------------------------------------
Distributions per Share: 9/1/08-2/28/09
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- -------------------------------------------------------------------
A $ 0.1706 $ -- $ --
- -------------------------------------------------------------------
B $ 0.0869 $ -- $ --
- -------------------------------------------------------------------
C $ 0.0648 $ -- $ --
- -------------------------------------------------------------------
Y $ -- $ -- $ --
- -------------------------------------------------------------------
Pioneer Global 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 Global Equity Fund at public offering price, compared
to that of the Morgan Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of February 28, 2009)
- -----------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- -----------------------------------------------------------------------
Life-of-Class
(12/15/05) -11.40% -13.02%
1 Year -46.04 -49.15
- -----------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- -----------------------------------------------------------------------
Gross Net
- -----------------------------------------------------------------------
4.61% 1.30%
- -----------------------------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Global MSCI
Equity Fund World Index
12/05 $ 9,425 $10,000
2/06 $ 9,840 $10,437
2/07 $11,516 $12,152
2/08 $11,861 $12,147
2/09 $ 6,400 $ 6,467
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 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) World Index measures the
performance of stock markets in the developed world. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
10 Pioneer Global 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 Global Equity Fund, compared to that of the Morgan
Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of February 28, 2009)
- ---------------------------------------------------------------
If If
Period Held Redeemed
- ---------------------------------------------------------------
Life-of-Class
(12/15/05) -12.22% -12.72%
1 Year -46.56 -48.67
- ---------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- ---------------------------------------------------------------
Gross Net
- ---------------------------------------------------------------
5.37% 2.20%
- ---------------------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Global MSCI
Equity Fund World Index
12/05 $10,000 $10,000
2/06 $10,420 $10,437
2/07 $12,087 $12,152
2/08 $12,334 $12,147
2/09 $ 6,471 $ 6,467
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus for details.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 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) World Index measures the
performance of stock markets in the developed world. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
Pioneer Global 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 Global Equity Fund, compared to that of the Morgan
Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of February 28, 2009)
- ---------------------------------------------------------------
If If
Period Held Redeemed
- ---------------------------------------------------------------
Life-of-Class
(12/15/05) -12.19% -12.19%
1 Year -46.50 -47.03
- ---------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- ---------------------------------------------------------------
Gross Net
- ---------------------------------------------------------------
5.45% 2.20%
- ---------------------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Global MSCI
Equity Fund World Index
12/05 $10,000 $10,000
2/06 $10,420 $10,437
2/07 $12,077 $12,152
2/08 $12,334 $12,147
2/09 $ 6,599 $ 6,467
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 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 taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
12 Pioneer Global 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 Global Equity Fund, compared to that of the Morgan
Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of February 28, 2009)
- ---------------------------------------------------------------
If If
Period Held Redeemed
- ---------------------------------------------------------------
Life-of-Class
(12/15/05) -11.40% -11.40%
1 Year -46.04 -46.04
- ---------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- ---------------------------------------------------------------
Gross Net
- ---------------------------------------------------------------
4.36% 0.80%
- ---------------------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Global MSCI
Equity Fund World Index
12/05 $10,000 $10,000
2/06 $10,440 $10,437
2/07 $12,219 $12,152
2/08 $12,585 $12,147
2/09 $ 6,791 $ 6,467
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for periods prior to the inception of the Fund's Class Y
shares on September 20, 2001 reflects the NAV performance of the Fund's Class A
shares. The performance does not reflect differences in expenses, including the
Rule 12b-1 fees applicable to Class A shares. Since fees for Class A shares are
generally higher than those of Class Y shares, the performance for Y shares
prior to their inception would have been higher. Class A shares are used as a
proxy through 9/20/01. Class Y shares are not subject to sales charges and are
available for limited groups of eligible investors, including institutional
investors. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/10 for Class Y shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
Pioneer Global 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 and
redemption fees.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global 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 $ 592.90 $ 590.00 $ 590.30 $ 831.70
Value on 2/28/09
- -------------------------------------------------------------------------------------
Expenses Paid $ 5.09 $ 8.67 $ 8.64 $ 1.19
During Period*
- -------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.29%, 2.20%,
2.19%, and 0.79 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 (60/365 for Class Y) (to reflect the partial year
period).
** 12/31/08 for Class Y shares.
14 Pioneer Global 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) or redemption fees that are charged at the time of the
transaction. Therefore, the table below is useful in comparing ongoing costs
only and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs were included, your
costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global Equity Fund
Based on a hypothetical 5% return 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 9/01/08**
- -------------------------------------------------------------------------------------
Ending Account $ 1,018.40 $ 1,013.88 $ 1,013.93 $ 1,006.92
Value on 2/28/09
- -------------------------------------------------------------------------------------
Expenses Paid $ 6.46 $ 10.99 $ 10.94 $ 1.30
During Period*
- -------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.29%, 2.20%,
2.19%, and 0.79 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 (60/365 for Class Y) (to reflect the partial year
period).
** 12/31/08 for Class Y shares.
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 15
Schedule of Investments | 2/28/09 (unaudited)
- ---------------------------------------------------------------------
Shares Value
- ---------------------------------------------------------------------
COMMON STOCKS -- 98.0%
ENERGY -- 10.4%
Integrated Oil & Gas -- 7.8%
1,592 ConocoPhillips Co. $ 59,461
1,200 Occidental Petroleum Corp. 62,244
3,130 Repsol SA 48,248
3,083 Royal Dutch Shell Plc 68,070
----------
$ 238,023
- ---------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.2%
596 Apache Corp. $ 35,218
- ---------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.4%
6,335 El Paso Corp. $ 42,761
----------
Total Energy $ 316,002
- ---------------------------------------------------------------------
MATERIALS -- 11.1%
Diversified Chemical -- 2.0%
2,235 BASF AG $ 62,095
- ---------------------------------------------------------------------
Diversified Metals & Mining -- 1.5%
1,777 Rio Tinto Plc $ 45,551
- ---------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 2.6%
1,292 Agrium, Inc. $ 44,936
1,710 Yara International ASA 36,412
----------
$ 81,348
- ---------------------------------------------------------------------
Gold -- 5.0%
2,383 Goldcorp, Inc. $ 69,376
1,961 Newmont Mining Corp. 81,636
----------
$ 151,012
----------
Total Materials $ 340,006
- ---------------------------------------------------------------------
CAPITAL GOODS -- 9.6%
Aerospace & Defense -- 4.6%
1,280 Thales SA $ 52,035
2,174 United Technologies Corp. 88,764
----------
$ 140,799
- ---------------------------------------------------------------------
Industrial Conglomerates -- 1.4%
812 Siemens AG $ 41,445
- ---------------------------------------------------------------------
Industrial Machinery -- 3.6%
1,381 Flowserve Corp. $ 69,699
3,712 Gea Group AG* 40,083
----------
$ 109,782
----------
Total Capital Goods $ 292,026
- ---------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
- -----------------------------------------------------------------
Shares Value
- -----------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 1.2%
Tires & Rubber -- 1.2%
2,700 Bridgestone Corp.* $ 36,316
----------
Total Automobiles & Components $ 36,316
- -----------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.2%
Homebuilding -- 1.2%
9,000 Sekisui Chemical Co, Ltd. $ 38,146
----------
Total Consumer Durables & Apparel $ 38,146
- -----------------------------------------------------------------
MEDIA -- 2.6%
Cable & Satellite -- 2.6%
3,809 Eutelsat Communications SA $ 78,866
----------
Total Media $ 78,866
- -----------------------------------------------------------------
RETAILING -- 4.0%
Apparel Retail -- 4.0%
2,603 Abercrombie & Fitch Co. $ 57,240
2,843 TJX Companies, Inc. 63,314
----------
$ 120,554
----------
Total Retailing $ 120,554
- -----------------------------------------------------------------
FOOD & DRUG RETAILING -- 3.6%
Hypermarkets & Supercenters -- 3.6%
1,458 Carrefour Supermarch SA $ 49,394
1,251 Wal-Mart Stores, Inc. 61,599
----------
$ 110,993
----------
Total Food & Drug Retailing $ 110,993
- -----------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.7%
Packaged Foods & Meats -- 2.8%
4,379 Unilever Plc $ 84,840
- -----------------------------------------------------------------
Tobacco -- 1.9%
3,762 Altria Group, Inc. $ 58,085
----------
Total Food, Beverage & Tobacco $ 142,925
- -----------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.7%
Household Products -- 2.7%
1,707 Procter & Gamble Co.* $ 82,226
----------
Total Household & Personal Products $ 82,226
- -----------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 2.7%
Health Care Equipment -- 2.7%
2,746 Medtronic, Inc. $ 81,254
----------
Total Health Care Equipment & Services $ 81,254
- -----------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 17
Schedule of Investments | 2/28/09 (unaudited) (continued)
- -----------------------------------------------------------------
Shares Value
- -----------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 10.1%
Pharmaceuticals -- 10.1%
4,835 Bristol-Myers Squibb Co. $ 89,012
1,303 Novartis AG 47,472
2,342 Pfizer, Inc. 28,830
603 Roche Holdings AG 68,455
4,188 Schering-Plough Corp. 72,829
----------
$ 306,598
----------
Total Pharmaceuticals & Biotechnology $ 306,598
- -----------------------------------------------------------------
BANKS -- 6.4%
Diversified Banks -- 3.2%
1,340 Societe Generale SA $ 42,244
1,700 Sumitomo Mitsui Financial Group, Inc. 54,049
----------
$ 96,293
- -----------------------------------------------------------------
Thrifts & Mortgage Finance -- 3.2%
9,856 New York Community Bancorp, Inc. $ 97,082
----------
Total Banks $ 193,375
- -----------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.4%
Diversified Capital Markets -- 1.5%
1,907 CS Group $ 46,880
- -----------------------------------------------------------------
Diversified Financial Services -- 1.9%
2,528 J.P. Morgan Chase & Co. $ 57,765
----------
Total Diversified Financials $ 104,645
- -----------------------------------------------------------------
INSURANCE -- 1.0%
Multi-Line Insurance -- 1.0%
451 Allianz AG $ 30,597
----------
Total Insurance $ 30,597
- -----------------------------------------------------------------
REAL ESTATE -- 1.7%
Diversified Real Estate Activities -- 1.7%
10,000 Henderson Land Development, Ltd. $ 33,183
2,000 Mitsui Fudosan Co. 19,906
----------
$ 53,089
----------
Total Real Estate $ 53,089
- -----------------------------------------------------------------
SOFTWARE & SERVICES -- 7.2%
Home Entertainment Software -- 3.9%
3,902 Electronic Arts, Inc.* $ 63,642
200 Nintendo Corp., Ltd. 56,080
----------
$ 119,722
- -----------------------------------------------------------------
Systems Software -- 3.3%
6,215 Microsoft Corp. $ 100,372
----------
Total Software & Services $ 220,094
- -----------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
- -----------------------------------------------------------------
Shares Value
- -----------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 7.1%
Communications Equipment -- 4.1%
5,393 Cisco Systems, Inc.* $ 78,576
4,860 Nokia Oyj 45,358
----------
$ 123,934
- -----------------------------------------------------------------
Computer Hardware -- 1.7%
1,776 Hewlett-Packard Co. $ 51,557
- -----------------------------------------------------------------
Office Electronics -- 1.3%
1,600 Canon, Inc.* $ 40,314
----------
Total Technology Hardware & Equipment $ 215,805
- -----------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 3.1%
Wireless Telecommunication Services -- 3.1%
52,772 Vodafone Group Plc $ 93,838
----------
Total Telecommunication Services $ 93,838
- -----------------------------------------------------------------
UTILITIES -- 4.2%
Electric Utilities -- 4.2%
2,099 E.On AG* $ 54,362
2,424 Public Power Corp. 36,805
1,161 Southern Co. 35,190
----------
$ 126,357
----------
Total Utilities $ 126,357
- -----------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $4,354,645) $2,983,712
- -----------------------------------------------------------------
RIGHTS/WARRANTS -- 0.0%
ENERGY -- 0.0%
Integrated Oil & Gas -- 0.0%
3,083 Royal Dutch Shell Rights Exp. 3/11/09* $ --
- -----------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $0) $ --
- -----------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 98.0%
(Cost $4,354,645) (a)(b) $2,983,712
- -----------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 2.0% $ 59,548
- -----------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $3,043,260
=================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 19
Schedule of Investments | 2/28/09 (unaudited) (continued)
* Non-income producing security.
(a) At February 28, 2009, the net unrealized loss on investments based on cost
for federal income tax purposes of $4,570,796 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 10,374
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (1,597,458)
-------------
Net unrealized loss $ (1,587,084)
=============
(b) Distributions of investment by country of issue, as a percentage of total
investment in securities (excluding temporary cash investments), is as
follows:
United States 50.9%
United Kingdom 9.8
Japan 8.2
Germany 7.7
France 7.5
Switzerland 5.5
Canada 3.8
Spain 1.6
Finland 1.5
Greece 1.2
Norway 1.2
Hong Kong 1.1
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 28, 2009 aggregated $2,092,041 and $2,010,290,
respectively.
FAS 157 Footnote Disclosures
Floating Rate Note 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 accompanying notes are an integral part of these financial statements.
20 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
The following is a summary of the inputs used as of February 28, 2009, in
valuing the Fund's assets:
- ---------------------------------------------------------------------------------
Other
Valuation Investments Financial
Inputs in Securities Instruments
- ---------------------------------------------------------------------------------
Level 1 -- Quoted Prices $1,563,293 $--
Level 2 -- Other Significant Observable Inputs 1,420,419 64
Level 3 -- Significant Unobservable Inputs -- --
- ---------------------------------------------------------------------------------
Total $2,983,712 $64
=================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 21
Statement of Assets and Liabilities | 2/28/09 (unaudited)
ASSETS:
Investment in securities (cost $4,354,645) $2,983,712
Cash 19,785
Receivables --
Investment securities sold 38,250
Fund shares sold 3,801
Dividends and foreign taxes withheld 12,325
Forward foreign currency settlement hedge contracts, open-net 64
Due from Pioneer Investment Management, Inc. 11,696
Other 32,532
- -----------------------------------------------------------------------------------
Total assets $3,102,165
- -----------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 19,399
Fund shares repurchased 88
Due to affiliates 4,159
Accrued expenses 35,259
- -----------------------------------------------------------------------------------
Total liabilities $ 58,905
- -----------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $5,829,522
Undistributed net investment income 8,142
Accumulated net realized loss on investments and foreign currency
transactions (1,422,858)
Net unrealized loss on investments (1,370,933)
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (613)
- -----------------------------------------------------------------------------------
Total net assets $3,043,260
===================================================================================
- -----------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, Unlimited number of shares authorized)
Class A (based on $1,795,604/297,823 shares) $ 6.03
Class B (based on $661,615/110,457 shares) $ 5.99
Class C (based on $577,723/96,272 shares) $ 6.00
Class Y (based on $8,318/1,379 shares) $ 6.03
MAXIMUM OFFERING PRICE:
Class A ($6.03 [divided by] 94.25%) $ 6.40
===================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
Statement of Operations (unaudited)
For the Six Months Ended 2/28/09
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $2,026) $ 41,478
Interest 453
- -----------------------------------------------------------------------------------------------------------
Total investment income $ 41,931
- -----------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 13,727
Transfer agent fees
Class A 4,496
Class B 1,786
Class C 1,223
Distribution fees
Class A 2,630
Class B 4,482
Class C 3,284
Shareholder Communications Expense 2,020
Administrative fees 727
Custodian fees 15,824
Registration fees 24,153
Professional fees 24,543
Printing expense 9,170
Fees and expenses of nonaffiliated trustees 3,069
Miscellaneous 10,518
- -----------------------------------------------------------------------------------------------------------
Total expenses $ 121,652
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (90,924)
Less fees paid indirectly (79)
- -----------------------------------------------------------------------------------------------------------
Net expenses $ 30,649
- -----------------------------------------------------------------------------------------------------------
Net investment income $ 11,282
- -----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (1,075,583)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies 1,960 $ (1,073,623)
- -----------------------------------------------------------------------------------------------------------
Change in net unrealized loss on:
Investments $ (1,073,498)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (155) $ (1,073,653)
- -----------------------------------------------------------------------------------------------------------
Net loss on investments and foreign currency transactions $ (2,147,276)
- -----------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (2,135,994)
===========================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 23
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 $ 11,282 $ 48,349
Net realized loss on investments and foreign currency
transactions (1,073,623) (240,571)
Change in net unrealized loss on investments and foreign
currency transactions (1,073,653) (468,687)
- --------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (2,135,994) $ (660,909)
- --------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.17 and $0.11 per share, respectively) $ (46,040) $ (25,830)
Class B ($0.09 and $0.00 per share, respectively) (9,859) --
Class C ($0.06 and $0.04 per share, respectively) (5,821) (2,959)
Net realized gain:
Class A ($0.00 and $0.76 per share, respectively) -- (156,608)
Class B ($0.00 and $0.76 per share, respectively) -- (89,951)
Class C ($0.00 and $0.76 per share, respectively) -- (54,041)
- --------------------------------------------------------------------------------------------
Total distributions to shareowners $ (61,720) $ (329,389)
- --------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 856,048 $3,206,325
Reinvestment of distributions 45,154 219,893
Cost of shares repurchased (941,078) (1,697,361)
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ (39,876) $1,728,857
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (2,237,590) $ 738,559
NET ASSETS:
Beginning of period 5,280,850 4,542,291
- --------------------------------------------------------------------------------------------
End of period $ 3,043,260 $5,280,850
- --------------------------------------------------------------------------------------------
Undistributed net investment income $ 8,142 $ 58,580
- --------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
- ------------------------------------------------------------------------------------------------
'09 Shares '09 Amount '08 Shares '08 Amount
(unaudited) (unaudited)
- ------------------------------------------------------------------------------------------------
Class A
Shares sold 57,285 $ 418,677 155,742 $1,821,223
Reinvestment of distributions 5,268 36,618 12,440 147,629
Less shares repurchased (58,263) (445,681) (79,044) (918,111)
- ------------------------------------------------------------------------------------------------
Net increase 4,290 $ 9,614 89,138 $1,050,741
================================================================================================
Class B
Shares sold 21,793 $ 159,478 78,707 $ 935,715
Reinvestment of distributions 768 5,310 4,397 51,111
Less shares repurchased (48,571) (359,345) (43,611) (501,438)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) (26,010) $ (194,557) 39,493 $ 485,388
================================================================================================
Class C
Shares sold 32,395 $ 267,893 39,001 $ 449,387
Reinvestment of distributions 465 3,226 1,816 21,153
Less shares repurchased (16,326) (136,052) (24,043) (277,812)
- ------------------------------------------------------------------------------------------------
Net increase 16,534 $ 135,067 16,774 $ 192,728
================================================================================================
Class Y*
Shares sold 1,379 $ 10,000 -- $ --
- ------------------------------------------------------------------------------------------------
Net increase 1,379 $ 10,000 -- $ --
================================================================================================
* Class Y shares were first publicly offered on December 31, 2008.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 25
Financial Highlights
- -----------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year
2/28/09 Ended Ended 12/15/05 (a)
(unaudited) 8/31/08 8/31/07 to 8/31/06
- -----------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.42 $ 12.53 $ 11.18 $ 10.00
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.05 $ 0.14 $ 0.08 $ 0.07
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (4.27) (1.38) 1.53 1.11
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (4.22) $ (1.24) $ 1.61 $ 1.18
Distribution to shareowners:
Net investment income (0.17) (0.11) (0.05) --
Net realized gain -- (0.76) (0.21) --
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (4.39) $ (2.11) $ 1.35 $ 1.18
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.03 $ 10.42 $ 12.53 $ 11.18
=======================================================================================================================
Total return* (40.71)% (10.68)% 14.58% 11.80%(b)
Ratio of net expenses to average net assets+ 1.30%** 1.31% 1.30% 1.30%**
Ratio of net investment income to average net assets+ 0.99%** 1.30% 1.05% 1.42%**
Portfolio turnover rate 109%** 137% 74% 35%(b)
Net assets, end of period (in thousands) $ 1,795 $ 3,060 $ 2,562 $ 832
Ratios with no waiver of fees and assumption of expenses
by PIM and no reductions for fees paid indirectly:
Net expenses 6.35%** 4.61% 6.11% 11.05%**
Net investment loss (4.06)%** (2.00)% (3.76)% (8.33)%**
Ratios with waiver of fees by PIM and reductions for
fees paid indirectly:
Net expenses 1.29%** 1.30% 1.30% 1.30%**
Net investment income 0.99%** 1.31% 1.05% 1.42%**
- -----------------------------------------------------------------------------------------------------------------------
(a) Class A shares were first publicly offered on December 15, 2005.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period 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.
26 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
- -----------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year
2/28/09 Ended Ended 12/15/05 (a)
(unaudited) 8/31/08 8/31/07 to 8/31/06
- -----------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 10.28 $ 12.37 $ 11.10 $ 10.00
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.03 $ 0.03 $ 0.00(c) $ 0.03
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (4.23) (1.36) 1.49 1.07
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (4.20) $ (1.33) $ 1.49 $ 1.10
Distribution to shareowners:
Net investment income (0.09) -- (0.01) --
Net realized gain -- (0.76) (0.21) --
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (4.29) $ (2.09) $ 1.27 $ 1.10
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 5.99 $ 10.28 $ 12.37 $ 11.10
=======================================================================================================================
Total return* (41.00)% (11.46)% 13.55% 11.00%(b)
Ratio of net expenses to average net assets+ 2.20%** 2.21% 2.20% 2.20%**
Ratio of net investment income to average net assets+ 0.07%** 0.41% 0.12% 0.45%**
Portfolio turnover rate 109%** 137% 74% 35%(b)
Net assets, end of period (in thousands) $ 662 $ 1,403 $ 1,200 $ 549
Ratios with no waiver of fees and assumption of
expenses by PIM
Net expenses 7.05%** 5.37% 6.84% 11.40%**
Net investment loss (4.78)%** (2.75)% (4.52)% (8.75)%**
Ratios with waiver of fees by PIM and reductions for
fees paid indirectly:
Net expenses 2.20%** 2.20% 2.20% 2.20%**
Net investment income 0.07%** 0.42% 0.12% 0.45%**
- -----------------------------------------------------------------------------------------------------------------------
(a) Class B shares were first publicly offered on December 15, 2005.
(b) Not Annualized.
(c) Amount rounds to less than $0.01 per share.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 27
Financial Highlights (continued)
- -----------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year
2/28/09 Ended Ended 12/15/05 (a)
(unaudited) 8/31/08 8/31/07 to 8/31/06
- -----------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.26 $ 12.39 $ 11.10 $ 10.00
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ (0.01) $ 0.03 $ 0.01 $ 0.03
Net realized and unrealized gain (loss)
on investments and foreign currency transactions (4.19) (1.36) 1.49 1.07
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (4.20) $ (1.33) $ 1.50 $ 1.10
Distribution to shareowners:
Net investment income (0.06) (0.04) -- --
Net realized gain -- (0.76) (0.21) --
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (4.26) $ (2.13) $ 1.29 $ 1.10
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.00 $ 10.26 $ 12.39 $ 11.10
=======================================================================================================================
Total return* (40.97)% (11.47)% 13.65% 11.00%(b)
Ratio of net expenses to average net assets+ 2.19%** 2.21% 2.20% 2.20%**
Ratio of net investment income to average net assets+ 0.13%** 0.35% 0.12% 0.45%**
Portfolio turnover rate 109%** 137% 74% 35%(b)
Net assets, end of period (in thousands) $ 578 $ 818 $ 780 $ 445
Ratios with no waiver of fees and assumption of
expenses by PIM
Net expenses 7.04%** 5.45% 6.70% 10.98%**
Net investment income (loss) (4.72)%** (2.89)% 4.38% (8.33)%**
Ratios with waiver of fees by PIM and reductions for
fees paid indirectly:
Net expenses 2.19%** 2.20% 2.20% 2.20%**
Net investment income 0.13%** 0.36% 0.12% 0.45%**
- -----------------------------------------------------------------------------------------------------------------------
(a) Class C shares were first publicly offered on December 15, 2005.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period 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.
28 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
Financial Highlights
- ------------------------------------------------------------------------------------------
12/31/08 (a)
to 2/28/09
(unaudited)
- ------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 7.25
- ------------------------------------------------------------------------------------------
Decrease from investment operations:
Net investment income $ 0.10
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (1.32)
- ------------------------------------------------------------------------------------------
Net decrease from investment operations $ (1.22)
- ------------------------------------------------------------------------------------------
Net decrease in net asset value $ (1.22)
- ------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.03
==========================================================================================
Total return* (16.83)%(b)
Ratio of net expenses to average net assets+ 0.79%**
Ratio of net investment income to average net assets+ 1.98%**
Portfolio turnover rate 109%(b)
Net assets, end of period (in thousands) $ 8
Ratios with no waiver of fees and assumption of expenses by PIM
Net expenses 5.80%**
Net investment loss (3.04)%**
Ratios with waiver of fees by PIM and reductions for fees paid indirectly:
Net expenses 0.79%**
Net investment income 1.98%**
- ------------------------------------------------------------------------------------------
(a) Class Y shares were first publicly offered on December 31, 2008.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 29
Notes to Financial Statements | 2/28/09 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Global Equity Fund, formerly Pioneer Global Select Equity Fund, (the
Fund), is one of five portfolios comprising Pioneer Series Trust V, a Delaware
statutory business trust registered under the Investment Company Act of 1940 as
an open-end management investment company. The Fund is non-diversified. The Fund
was organized on October 12, 2005, and commenced operations on December 15,
2005. The Fund's investment objective is to seek long-term capital growth.
The Fund offers four classes of shares designated as Class A, Class B, Class C
and Class Y shares. Class Y shares were first publicly offered on December 31,
2008. 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. Each class of
shares can bear different transfer agent and distribution fees. 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. Class B shares convert to Class A shares
approximately eight years after the date of purchase.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting periods.
Actual results could differ from those estimates.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
30 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
industries and sectors. 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.
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 using the last sale
price on the principal exchange where they are traded. Securities that have
not traded on the date of valuation, or securities for which sale prices
are not generally reported, are valued using the mean between the last bid
and asked prices. Securities for which market quotations are not readily
available are valued using fair value methods pursuant to procedures
adopted by the Board of Trustees ("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. At February 28, 2009 there were no
securities that were management appraised. Temporary cash investments are
valued at cost which approximates market value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as 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.
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 31
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. 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 tax character of current year distributions payable 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:
--------------------------------------------
2008
--------------------------------------------
Distributions paid from:
Ordinary income $ 127,503
Long-term capital gain 201,886
--------------------------------------------
Total $ 329,389
============================================
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned $370 in underwriting commissions on the sale of Class A
shares during the six months ended February 28, 2009.
D. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates. Net realized gains and losses on foreign currency
transactions, if any, represent, among other things, the net realized gains
and losses on foreign currency contracts, disposition of foreign currencies
and the difference between the amount of income accrued and the U.S.
dollars actually received. Further, the effects of changes in foreign
currency exchange rates on investments are not segregated in the statement
of operations from the effects of changes in market price of those
securities but are included with the net realized and unrealized gain or
loss on investments.
32 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
E. 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 entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (See Note 6).
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning
of the day. Distribution fees are calculated based on the average daily net
asset value attributable to Class A, Class B 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, Class C and Class Y shares can bear different transfer agent and
distribution expense rates.
G. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors. When entering into a securities loan
transaction, the Fund typically receives cash collateral from the borrower
equal to at least the value of the securities loaned, which is invested in
temporary cash investments. Credit Suisse, New York Branch, as the Fund's
security lending agent, manages the Fund's securities lending collateral.
The income earned on the investment of collateral is shared with the
borrower and the lending agent in payment of any rebate due to the borrower
with respect to the securities loan, and in compensation for the lending
agent's services to the Fund. The Fund also continues to receive interest
or payments in lieu of dividends on
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 33
the securities loaned. Gain or loss on the value of the loaned securities
that may occur during the term of the loan will be for the account of the
Fund. The amount of the collateral is required to be adjusted daily to
reflect any price fluctuation in the value of the loaned securities. The
Fund has the right, under the lending agreement, to terminate the loan and
recover the securities from the borrower with prior notice. The Fund will
be required to return the cash collateral to the borrower and could suffer
a loss if the value of the collateral, as invested, has declined.
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 0.75% of the Fund's average daily net assets up to $500
million; 0.70% of the next $500 million and 0.65% of the excess over $1 billion.
For the six months ended February 28, 2009, the effective management fee (net of
waivers and/or assumption of expense) was equivalent to 0.75% of the Fund's
average net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund to
the extent required to reduce the Fund's expenses to 1.30%, 2.20%, 2.20%, and
0.80% of the average daily net assets attributable to Class A, Class B, Class C
and Class Y shares, respectively. These expense limitations are in effect
through January 1, 2012 for Class A, and through January 1, 2010 for Class B,
Class C and Class Y shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $2,078 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 month
period ended February 28, 2009, such out of pocket expenses by class of shares
were as follows:
- -----------------------------------------------
Shareholder Communications:
- -----------------------------------------------
Class A $1,238
Class B 554
Class C 228
- -----------------------------------------------
Total: $2,020
===============================================
34 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $1,988 in transfer agent fees and shareholder communications
expense payable to PIMSS at February 28, 2009
4. Distribution Plans and Service Plans
The Fund adopted a Distribution Plan pursuant to Rule 12b-1 of the Investment
Company Act of 1940 with respect to its 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 or
distribution services with regard to Class B and Class C shares. Prior to
February 1, 2008, PFD was reimbursed under the Distribution Plan for
distribution expenses in an amount of up to 0.25% of the average daily net
assets attributable to Class A shares. Included in "Due to affiliates" reflected
on the Statement of Assets and Liabilities is $93 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. Proceeds from the CDSCs
are paid to PFD. For the six months ended February 28, 2009, CDSCs in the amount
of $623 were paid to PFD.
5. Expense Offsets 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 $79 under such arrangements.
6. Forward Foreign Currency Contracts
At February 28, 2009, the Fund had entered into various contracts that obligate
the Fund to deliver currencies at specified future dates. At the maturity of a
contract, the Fund must make delivery of the foreign currency. Alternatively,
prior to the settlement date of a portfolio hedge, the Fund may close out such
contracts by entering into an offsetting hedge contract. At February 28, 2009,
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 35
the Fund had no outstanding portfolio hedges. The Fund's gross forward currency
settlement contracts receivable and payable were $1,107 and $1,043,
respectively, resulting in a net receivable of $64.
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.
36 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
ADDITIONAL INFORMATION (unaudited)
For the year ended August 31, 2008, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax
Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate up to
the maximum amount of such dividends allowable under the Act, as taxed at a
maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2008 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 27.91%.
The percentages of the Fund's ordinary income distributions that are exempt from
nonresident alien (NRA) tax withholding resulting from qualified interest income
and qualified short term gains were 0% and 59.52%, respectively.
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 37
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham Dorothy E. Bourassa, Secretary
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
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.
38 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
This page for your notes.
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 39
This page for your notes.
40 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
This page for your notes.
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 41
This page for your notes.
42 Pioneer Global Equity Fund | Semiannual Report | 2/28/09
This page for your notes.
Pioneer Global Equity Fund | Semiannual Report | 2/28/09 43
This page for your notes.
44 Pioneer Global 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: www.pioneerinvestments.com
This report must be accompanied by a prospectus.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
Pioneer High Income
Municipal Fund
- --------------------------------------------------------------------------------
Semiannual Report | February 28, 2009
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A PIMAX
Class C HICMX
Class Y HIMYX
[LOGO]PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Prices and Distributions 8
Performance Update 9
Comparing Ongoing Fund Expenses 12
Schedule of Investments 14
Financial Statements 20
Notes to Financial Statements 27
Trustees, Officers and Service Providers 32
Pioneer High Income Municipal 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 High Income Municipal 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 High Income Municipal Fund | Semiannual Report | 2/28/09 3
Portfolio Management Discussion | 2/28/09
In the following interview, portfolio manager Timothy Pynchon discusses the
factors that affected the municipal bond market and the Pioneer High Income
Municipal Fund over the six-month period ended February 28, 2009.
Q How did the Fund perform during the six-month period ended February 28, 2009?
A For the six-month period ended February 28, 2009, Pioneer High Income
Municipal Fund's Class A shares produced a total return of -25.57% at net
asset value. Over the same six-month period, the Fund's benchmark, the
Barclays Capital (formerly Lehman Brothers) High Yield Municipal Bond Index
returned -18.99%, while the average return of the 110 funds in the Lipper High
Yield Municipal Debt Funds category was -17.69%.
At a time when there was great disruption in the municipal bond market,
investors were rewarded with a relatively high level of dividend income. As of
February 28, 2009, the Fund's Class A shares generated a 30-day SEC yield of
9.09%; and the Fund's current yield (at NAV) was 8.89%, which translates into
a taxable equivalent yield of 13.68%, based on the maximum Federal income tax
rate of 35%.
Q What was the investment environment like during the six-month period ended
February 28, 2009?
A There was great unrest in the financial markets, especially during the first
four months of the period (September through December 2008), as problems in
some of the biggest financial institutions led to unprecedented intervention
by the U.S. Federal Reserve Board (the Fed) and a multibillion dollar U.S.
government rescue package. Likewise, there was virtually no shelter in the
high-yield municipal market from the downward price pressure, and the Fund
suffered as a result. In this environment, the municipal bond market saw
liquidity dry up, new issuance come to a halt, forced selling by several
financial institutions, and a huge number of redemptions, as investors fled to
the safety of the U.S. Treasury market. As a result of the turmoil, municipal
bond yields rose to historic levels versus Treasury yields. Rarely in history
has the ratio of municipal bond yields to Treasury yields been so high. The
typical rate of municipal yields to Treasury yields has been about 90%. In
December of 2008, the ratio increased to over 200%. In January and February of
2009, the municipal bond market rebounded. Liquidity improved slightly, and
municipal bond prices rose, although their yields remained higher than
Treasury yields.
4 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09
Q How did you manage the Fund in this environment?
A Like much of the market, the Fund felt the adverse effects of the market
conditions stated above. We made no material changes to the Fund's portfolio,
and we maintained our focus on high-yield municipal securities in areas that
underpin the U.S. economy. The Fund's biggest weightings remain in those
sectors essential to the U.S. economy. For example, as of February 28, 2009,
investments in health care, which includes hospitals and life-care facilities,
accounted for almost 36% of net assets; education was at more than 14% of net
assets; prisons were at more than 12% of net assets; and public power also was
at about 12% of net assets. Only about 20% of the Fund's investments were
subject to the Federal Alternative Minimum Tax (AMT). At the end of the period
on February 28, 2009, the Fund had 53 issues in 27 states. The average credit
quality of the Fund's portfolio was BB+.
Q What factors most affected the Fund's performance during the six-month period
ended February 28, 2009?
A The generally poor performance of the financial markets had a negative impact
on virtually every type of bond over the past six months and, therefore, on
the Fund's performance. The Fund was particularly affected by the poor
performance of the tobacco settlement bonds and continuing-care retirement
communities. Although both sectors are normally stalwart performers, the
economic climate caused tobacco bonds to fall from favor and the marketing of
life-care facilities to flatten. We continue to believe that good value
remains in these credits, but the price performance has been overstated to the
downside in the short term. Additionally, some investments defaulted, but they
accounted for less than 3% of the Fund's holdings. We avoided virtually all
housing bonds and real-estate development bonds (also known as "dirt" bonds),
which were particularly hard hit in the wake of the subprime mortgage crisis.
While the Fund had a setback over the past six months, its portfolio comprised
what we believe are solid investments that could weather the current storm in
the economy and the financial markets. As has always been the case at Pioneer,
our investment decisions were based on a value-oriented, risk-managed
investment approach that uses independent research, a bottom-up security
selection process and top-down economic and market analysis. We are taking
steps to further diversify the Fund's portfolio and to invest a portion of its
assets in more liquid credits.
Q What is your outlook?
A As we look ahead, we believe that the second half of 2009 could be more
positive for municipal bonds, as the credit markets continue to thaw and
investors come back to the market. Over the past several months, the Fed
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 5
and the U.S. government have taken several steps to help remedy the problems
in the banking industry and in credit markets, and to stimulate economic
growth. States and municipalities are slated to receive a substantial portion
of the government's economic stimulus package funding, which can be used for
infrastructure repair, and medical and education programs. The infusion of
money should be helpful to the municipal market, and we believe the Fund is
well-positioned to benefit from a rebound in the high-yield municipal market
when it eventually comes. Additionally, one of the long-term costs of
increased government spending and new government programs may be higher taxes
down the road. With that in mind, we believe the Pioneer High Income Municipal
Fund may be a suitable investment option for appropriate long-term investors
seeking relatively high income free from Federal taxes.
Please refer to the Schedule of Investments on pages 14-19 for a full listing
of Fund securities.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. The Fund may invest in securities of issuers that
are in default or that are in bankruptcy.
A portion of the income may be subject to state, federal, and/or alternative
minimum tax. Capital gains, if any, are subject to a capital gains tax. The
fund is not diversified, which means that it can invest a higher percentage of
its assets in any one issuer than a diversified fund. Being non-diversified may
magnify the Fund's losses from adverse events affecting a particular issuer. By
investing primarily in municipal securities, the portfolio is more susceptible
to adverse economic, political or regulatory developments than is a portfolio
that invests more broadly.
When interest rates rise, the prices of fixed-income securities in the Fund
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise. Investments in the
Fund are subject to possible loss due to the financial failure of issuers of
underlying securities and their inability to meet their debt obligations. At
times, the Fund's investments may represent industries or industry sectors that
are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
Past performance is not a 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 opinions should not be relied upon for any other purposes.
6 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09
Portfolio Summary | 2/28/09
Portfolio Quality
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE DATA BELOW WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
AA 2.2%
BBB 9.4%
BB & LOWER 88.4%
Maturity Distribution
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE DATA BELOW WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
1-3 Years 1.5%
3-6 Years 9.0%
6-8 Years 19.9%
8-10 Years 57.2%
10+ Years 12.4%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of debt holdings)*
1. Louisiana Local Government Environment, 6.75%, 11/1/32 4.51%
2. California Statewide, 9.0%, 12/1/38 4.45
3. Grand Island Nebraska Solid Waste, 7.0%, 6/1/23 3.81
4. Massachusetts State Health, 6.5%, 1/15/38 3.67
5. Liberty County Florida, 8.25%, 7/1/28 3.66
6. Colorado Health Facilities Authority, 5.75%, 1/1/37 3.58
7. Burnet County Texas Public, 7.75%, 8/1/29 3.53
8. Los Angeles California Revenue, 7.5%, 12/1/24 3.40
9. Nassau County Industrial Development, 6.7%, 1/1/43 3.38
10. Pima County Arizona Development Authority, 7.0%, 1/1/38 3.31
* 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.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 7
Prices and Distributions | 2/28/09
Net Asset Value per Share
- --------------------------------------------------------------------------------
Class 2/28/09 8/31/08
A $ 6.21 $ 8.70
- ------------------------------------------------
C $ 6.20 $ 8.68
- ------------------------------------------------
Y $ 6.17 $ 8.63
- ------------------------------------------------
Distributions per Share: 9/1/08-2/28/09
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
A $ 0.2810 $ -- $ --
- -----------------------------------------------------------------------------
C $ 0.2473 $ -- $ --
- -----------------------------------------------------------------------------
Y $ 0.2770 $ -- $ --
- -----------------------------------------------------------------------------
Index Definitions
- --------------------------------------------------------------------------------
The Barclays Capital (formerly Lehman Brothers) High Yield Municipal Bond Index
measures the performance of the high-yield municipal bond market. Index returns
are calculated monthly, assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" charts
shown on pages 9-11.
8 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09
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 in Pioneer High Income Municipal Fund at public offering price,
compared to that of the Barclays Capital High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 28, 2009)
- ------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- ------------------------------------------------------------------------
Life-of-Class
(10/17/06) -13.07% -14.74%
1 Year -23.60 -27.03
- ------------------------------------------------------------------------
Expense Ratio*
(Per prospectus dated December 31, 2008)
- ------------------------------------------------------------------------
Gross Net
- ------------------------------------------------------------------------
1.21% 0.90%
- ------------------------------------------------------------------------
[THE DATA BELOW WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer High Income Municipal Fund Barclays Capital High Yield Municipal Bond Index
10/06 9,550 10,000
2/07 9,909 10,101
2/08 8,948 9,578
2/09 6,836 10,208
* Some expenses are based on estimated amounts for the current fiscal year.
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 4.5% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 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.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 9
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 High Income Municipal Fund, compared to that of the
Barclays Capital High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 28, 2009)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
Life-of-Class
(10/17/06) -13.93% -13.93%
1 Year -24.18 -24.18
- -------------------------------------------------------------------
Expense Ratio*
(Per prospectus dated December 31, 2008)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
1.95% 1.80%
- -------------------------------------------------------------------
[THE DATA BELOW WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer High Income Municipal Fund Barclays Capital High Yield Municipal Bond Index
10/06 10,000 10,000
2/07 10,329 10,101
2/08 9,219 9,578
2/09 6,990 10,208
* Some expenses are based on estimated amounts for the current fiscal year.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitation 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.
10 Pioneer High Income Municipal 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 High Income Municipal Fund, compared to that of the
Barclays Capital High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 28, 2009)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
Life-of-Class
(10/17/06) -13.34% -13.34%
1 Year -23.51 -23.51
- -------------------------------------------------------------------
Expense Ratio*
(Per prospectus dated December 31, 2008)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
1.00% 1.00%
- -------------------------------------------------------------------
[THE DATA BELOW WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer High Income Municipal Fund Barclays Capital High Yield Municipal Bond Index
10/06 10,000 10,000
2/07 10,374 10,101
2/08 9,288 9,578
2/09 7,104 10,208
* Some expenses are based on estimated amounts for the current fiscal year.
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.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 11
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on actual returns from September 1, 2008 through February 28, 2009.
Share Class A C Y
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 9/1/08
- -------------------------------------------------------------------
Ending Account $744.30 $741.20 $745.30
Value on 2/28/09
- -------------------------------------------------------------------
Expenses Paid $3.89 $7.77 $3.85
During Period*
- -------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.80% and
0.89% for Class A, Class C, and Class Y shares, respectively, multiplied by
the average account value over the period, multiplied by 181/365 (to reflect
the half year period).
12 Pioneer High Income Municipal 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 High Income Municipal Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from September 1, 2008 through February 28, 2009.
Share Class A C Y
Beginning Account Value $1,000.00 $1,000.00 $1,000.00
on 9/1/08
- --------------------------------------------------------------------------
Ending Account Value $1,020.33 $1,015.87 $1,020.38
on 2/28/09
- --------------------------------------------------------------------------
Expenses Paid $4.51 $9.00 $4.46
During Period*
- --------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.80% and
0.89% for Class A, Class C and Class Y shares, respectively, multiplied by
the average account value over the period, multiplied by 181/365 (to reflect
the half year period).
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 13
Schedule of Investments | 2/28/09 (unaudited)
Principal Floating S&P/Moody's
Amount Rate (c) Ratings Value
COLLATERALIZED DEBT OBLIGATION -- 2.3%
No State -- 2.3%
$1,175,000 12.00 NR/NR Non-Profit Preferred Funding, Various
States, Floating Rate Note, 9/15/37 $ 1,026,304
- ------------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED
DEBT OBLIGATION
(Cost $1,172,200) $ 1,026,304
- ------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.6%
Alabama -- 4.4%
1,000,000 NR/NR Huntsville-Redstone, 5.5%, 1/1/43 $ 557,790
2,000,000 NR/NR Huntsville-Redstone, 6.875%, 1/1/43 1,406,780
-----------
$ 1,964,570
- ------------------------------------------------------------------------------------------------------
Arizona -- 3.3%
2,000,000 NR/NR Pima County Arizona Development
Authority, 7.0%, 1/1/38 $ 1,476,200
-----------
$ 1,476,200
- ------------------------------------------------------------------------------------------------------
California -- 8.5%
2,500,000 NR/NR California Statewide, 9.0%, 12/1/38 $ 1,983,750
2,000,000 B-/Caa2 Los Angeles California Revenue,
7.5%, 12/1/24 1,517,080
400,000 C/NR Valley Health Systems California,
6.5%, 5/15/25 255,200
-----------
$ 3,756,030
- ------------------------------------------------------------------------------------------------------
Colorado -- 5.3%
2,500,000 BB/Ba2 Colorado Health Facilities Authority,
5.75%, 1/1/37 $ 1,595,650
1,000,000 NR/NR Colorado Springs Colorado Urban,
7.0%, 12/1/29 753,980
-----------
$ 2,349,630
- ------------------------------------------------------------------------------------------------------
Connecticut -- 1.2%
1,000,000 BB+/Ba1 Mashantucket Pequot Tribe,
5.75%, 9/1/34 (144A) $ 516,160
-----------
$ 516,160
- ------------------------------------------------------------------------------------------------------
Florida -- 12.6%
1,000,000 AA/NR Broward County Florida Housing,
6.75%, 10/1/45 $ 971,030
2,200,000 BB/NR Lee County Florida Industrial Development
Authority, 5.375%, 6/15/37 1,215,126
2,000,000 NR/NR Liberty County Florida, 8.25%, 7/1/28 1,629,480
475,000 NR/NR Madison County Florida Revenue,
6.0%, 7/1/25 331,911
1,000,000 BB/NR Miami Beach Florida Health Facilities
5.375%, 11/15/28 543,860
The accompanying notes are an integral part of these financial statements.
14 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09
Principal Floating S&P/Moody's
Amount Rate (c) Ratings Value
Florida -- (continued)
$1,140,000 BB/Ba1 Miami Beach Health Facilities Authority,
6.7%, 11/15/19 $ 875,292
-----------
$ 5,566,699
- -------------------------------------------------------------------------------------------------------
Georgia -- 2.3%
2,000,000 NR/NR Fulton County Georgia Water and Sewer
Revenue, 5.125%, 7/1/42 $ 1,031,940
-----------
$ 1,031,940
- -------------------------------------------------------------------------------------------------------
Iowa -- 1.6%
1,250,000 BBB/Baa3 Tobacco Settlement Authority of Iowa,
5.5%, 6/1/42 $ 686,513
-----------
$ 686,513
- -------------------------------------------------------------------------------------------------------
Illinois -- 4.6%
500,000 NR/NR Illinois Finance Authority, 7.0%, 12/1/37 $ 339,745
1,000,000 NR/NR Illinois Finance Authority, 7.0%, 12/1/42 671,180
1,500,000 NR/NR Southwestern Illinois Development
Authority Revenue, 6.625%, 6/1/37 1,030,155
-----------
$ 2,041,080
- -------------------------------------------------------------------------------------------------------
Indiana -- 1.5%
1,040,000 NR/NR St. Joseph County Industrial Educational,
6.0%, 5/15/38 $ 672,204
-----------
$ 672,204
- -------------------------------------------------------------------------------------------------------
Louisiana -- 5.4%
3,050,000 BB+/Ba3 Louisiana Local Government Environment,
6.75%, 11/1/32 $ 2,009,615
390,000 NR/NR Louisiana Public Facilities Authority
Revenue, 6.25%, 10/1/11 368,538
-----------
$ 2,378,153
- -------------------------------------------------------------------------------------------------------
Massachusetts -- 8.1%
1,000,000 NR/NR Massachusetts Development Finance
Agency, 5.75%, 11/15/42 $ 545,180
2,000,000 NR/NR Massachusetts State Development
Finance Agency, 6.75%, 10/25/37 1,401,920
2,500,000 NR/NR Massachusetts State Health,
6.5%, 1/15/38 1,634,375
-----------
$ 3,581,475
- -------------------------------------------------------------------------------------------------------
Michigan -- 7.3%
160,000 NR/NR Doctor Charles Drew Academy,
5.7%, 11/1/36 $ 87,214
1,450,000 NR/NR Michigan Public Educational Facilities
Authority Revenue, 5.875%, 6/1/37 914,457
1,000,000 BBB-/NR Michigan Public Educational Facilities
Authority Revenue, 6.5%, 9/1/37 736,870
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 15
Schedule of Investments | 2/28/09 (unaudited) (continued)
Principal Floating S&P/Moody's
Amount Rate (c) Ratings Value
Michigan -- (continued)
$2,500,000 BBB/NR Michigan Tobacco Settlement Finance,
6.0%, 6/1/48 $ 1,466,925
-----------
$ 3,205,466
- -------------------------------------------------------------------------------------------------------
Minnesota -- 2.2%
1,250,000 NR/NR Baytown Minnesota Lease Revenue,
7.0%, 8/1/38 $ 970,113
-----------
$ 970,113
- -------------------------------------------------------------------------------------------------------
Missouri -- 0.9%
500,000 NR/Caa2 St. Louis Missouri Development Authority,
7.2%, 12/15/28 $ 109,815
1,260,000 NR/Caa2 St. Louis Missouri Industrial Development.
Revenue, 7.25%, 12/15/35 276,721
-----------
$ 386,536
- -------------------------------------------------------------------------------------------------------
Montana -- 2.1%
2,215,000 NR/NR Hardin Montana Tax Increment,
0.0%, 9/1/31 $ 908,593
-----------
$ 908,593
- -------------------------------------------------------------------------------------------------------
Nebraska -- 3.8%
2,250,000 NR/NR Grand Island Nebraska Solid Waste,
7.0%, 6/1/23 $ 1,700,753
-----------
$ 1,700,753
- -------------------------------------------------------------------------------------------------------
New Jersey -- 0.6%
300,000 B/B3 New Jersey Economic Development
Authority, 9.0%, 6/1/33 $ 254,925
-----------
$ 254,925
- -------------------------------------------------------------------------------------------------------
Nevada -- 0.1%
430,000 NR/NR Director State Nevada Department
Business, 7.375%, 1/1/40 $ 34,400
-----------
$ 34,400
- -------------------------------------------------------------------------------------------------------
New York -- 4.9%
1,000,000 NR/NR Erie County New York, 6.0%, 11/15/36 $ 612,360
2,000,000 NR/NR Nassau County Industrial Development,
6.7%, 1/1/43 1,505,000
135,000 CCC+/Caa2 New York City Industrial, 6.9%, 8/1/24 55,693
-----------
$ 2,173,053
- -------------------------------------------------------------------------------------------------------
Ohio -- 4.8%
2,250,000 BBB/Baa3 Buckeye Ohio Tobacco Settlement,
6.5%, 6/1/47 $ 1,405,395
1,065,000 NR/NR Tuscarawas County Ohio Hospital,
6.35%, 11/1/37 701,590
-----------
$ 2,106,985
- -------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09
Principal Floating S&P/Moody's
Amount Rate (c) Ratings Value
Oklahoma -- 0.2%
$ 110,000 BB/NR Jackson County Oklahoma Memorial
Hospital, 7.3%, 8/1/15 $ 107,251
-----------
$ 107,251
- -------------------------------------------------------------------------------------------------------
Pennsylvania -- 3.0%
1,500,000 BB/Ba3 Allegheny County Pennsylvania Hospital
Development Authority,
5.375%, 11/15/40 $ 806,893
650,000 NR/NR Lancaster County Pennsylvania Hospital
Authority Revenue, 6.5%, 7/1/40 502,522
-----------
$ 1,309,415
- -------------------------------------------------------------------------------------------------------
Rhode Island -- 3.2%
2,100,000 NR/NR Central Falls Rhode Island Detention
Facility Corp., 7.25%, 7/15/35 $ 1,419,747
-----------
$ 1,419,747
- -------------------------------------------------------------------------------------------------------
Texas -- 4.6%
2,000,000 NR/NR Burnet County Texas Public,
7.75%, 8/1/29 $ 1,572,460
150,000 NR/NR Gulf Coast Waste Disposal Authority, Texas
Revenue, 7.0%, 12/1/36 96,150
500,000 NR/NR Willacy County Texas Local Government,
6.875%, 9/1/28 362,100
-----------
$ 2,030,710
- -------------------------------------------------------------------------------------------------------
Utah -- 2.0%
1,400,000 NR/NR Spanish Fork City Utah Charter
5.7%, 11/15/36 (144A) $ 891,912
-----------
$ 891,912
- -------------------------------------------------------------------------------------------------------
Wisconsin -- 0.1%
580,000 NR/NR Aztalan Wisconsin Exempt Facility
Revenue, 7.5%, 5/1/18 $ 34,510
-----------
$ 34,510
- -------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $59,778,156) $43,555,023
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 100.9%
(Cost $60,950,356) (a)(b) $44,581,327
- -------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES --
(0.9)% $ (383,474)
- -------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $44,197,853
- -------------------------------------------------------------------------------------------------------
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
February 28, 2009, the value of these securities amounted to $1,408,072
or 3.2% of total net assets.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 17
Schedule of Investments | 2/28/09 (unaudited) (continued)
(a) The concentration of investments by type of obligation/market sector is
as follows:
Revenue Bonds:
Health Revenue 33.1%
Special Revenue 8.2
Various Revenues 26.8
Transportation Revenue 4.3
Housing 2.2
Pollution Control Revenue 3.9
Power 7.0
Education Revenue 14.5
- -------------------------------------------------
100.0%
=================================================
(b) At February 28, 2009, the net unrealized loss on investments based on
cost for federal income tax purposes of $61,018,640 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 41,240
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (16,478,553)
------------
Net unrealized loss $(16,437,313)
============
(c) Debt obligation with a variable interest rate. Rate shown is rate at end
of period.
NR Not rated by either S&P or Moody's.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended February 28, 2009 aggregated $15,560,248 and $13,831913,
respectively.
FAS 157 Footnote Disclosures
Floating Rate Note 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 accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09
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 $ --
Level 2 -- Other Significant Observable Inputs 44,581,327
Level 3 -- Significant Unobservable Inputs --
- -----------------------------------------------------------------
Total $44,581,327
=================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 19
Statement of Assets and Liabilities | 2/28/09 (unaudited)
ASSETS:
Investment in securities (cost $60,950,356) $44,581,327
Receivables --
Fund shares sold 155,275
Interest 1,062,672
Due from Pioneer Investment Management, Inc. 16,733
Other 25,224
- -----------------------------------------------------------------
Total assets $45,841,231
- -----------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 600
Dividends 228,712
Due to bank 1,372,659
Due to affiliates 6,468
Accrued expenses 34,939
- -----------------------------------------------------------------
Total liabilities $ 1,643,378
- -----------------------------------------------------------------
NET ASSETS:
Paid-in capital $67,815,119
Distributions in excess of net investment income (2,909)
Accumulated net realized loss on investments (7,245,328)
Net unrealized loss on investments (16,369,029)
- -----------------------------------------------------------------
Total net assets $44,197,853
- -----------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $27,471,385/4,421,714 shares) $ 6.21
Class C (based on $15,901,996/2,564,027 shares) $ 6.20
Class Y (based on $824,472/133,658 shares) $ 6.17
MAXIMUM OFFERING PRICE:
Class A ($6.21 [divided by] 95.5%) $ 6.50
=================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09
Statement of Operations (unaudited)
For the Six Months Ended 2/28/09
INVESTMENT INCOME:
Interest $ 2,152,007
- ------------------------------------------------------------------------------------
EXPENSES:
Management fees $119,910
Transfer agent fees
Class A 10,770
Class C 2,924
Class Y 148
Distribution fees
Class A 37,487
Class C 85,310
Shareholder communications expense 7,231
Administrative fees 8,746
Custodian fees 2,881
Registration fees 23,305
Professional fees 29,820
Printing expense 12,598
Fees and expenses of nonaffiliated trustees 4,177
Miscellaneous 7,790
- ------------------------------------------------------------------------------------
Total expenses $ 353,097
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (61,832)
Less fees paid indirectly (130)
- ------------------------------------------------------------------------------------
Net expenses $ 291,135
- ------------------------------------------------------------------------------------
Net investment income $ 1,860,872
- ------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments: $ (5,157,308)
- ------------------------------------------------------------------------------------
Change in net unrealized loss on investments: $(12,246,270)
- ------------------------------------------------------------------------------------
Net loss on investments $(17,403,578)
- ------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(15,542,706)
====================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal 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 $ 1,860,872 $ 2,404,136
Net realized loss on investments (5,157,308) (1,465,155)
Change in net unrealized loss on investments (12,246,270) (3,762,796)
- --------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(15,542,706) $(2,823,815)
- --------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.28 and $0.55 per share, respectively) $ (1,209,859) $(1,607,291)
Class C ($0.25 and $0.46 per share, respectively) (609,356) (749,539)
Class Y ($0.28 and $0.54 per share, respectively) (36,795) (76,353)
- --------------------------------------------------------------------------------------------
Total distributions to shareowners $ (1,856,010) $(2,433,183)
- --------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 15,956,891 $58,866,137
Reinvestment of distributions 476,236 535,691
Cost of shares repurchased (15,610,213) (17,532,210)
- --------------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund
share transactions $ 822,914 $41,869,618
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(16,575,802) $36,612,620
- --------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period $ 60,773,655 $24,161,035
- --------------------------------------------------------------------------------------------
End of period $ 44,197,853 $60,773,655
- --------------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (2,909) $ (7,771)
- --------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09
'09 Shares '09 Amount '08 Shares '08 Amount
(unaudited) (unaudited)
Class A
Shares sold 1,596,293 $10,914,698 4,244,251 $39,040,701
Reinvestment of distributions 48,187 319,600 41,506 374,315
Less shares repurchased (1,673,416) (11,569,087) (1,546,087) (14,057,963)
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) (28,936) $ (334,789) 2,739,670 $25,357,053
=====================================================================================================
Class C
Shares sold 731,783 $ 5,042,193 2,096,536 $19,490,543
Reinvestment of distributions 22,362 147,684 15,570 139,860
Less shares repurchased (599,828) (4,041,126) (365,945) (3,329,926)
- -----------------------------------------------------------------------------------------------------
Net increase 154,317 $ 1,148,751 1,746,161 $16,300,477
=====================================================================================================
Class Y
Shares sold -- $ -- 34,762 $ 334,893
Reinvestment of distributions 1,351 8,952 2,374 21,516
Less shares repurchased -- -- (16,283) (144,321)
- -----------------------------------------------------------------------------------------------------
Net increase 1,351 $ 8,952 20,853 $ 212,088
=====================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 23
Financial Highlights
Six Months 10/17/06 (a)
Ended Year (Commencement
2/28/09 Ended of Operations)
(unaudited) 8/31/08 to 8/31/07
Class A
Net asset value, beginning of period $ 8.70 $ 9.72 $ 10.00
- ---------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.28 $ 0.54 $ 0.44
Net realized and unrealized loss on investments (2.49) (1.01) (0.29)
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
investment operations $ (2.21) $ (0.47) $ 0.15
Distributions to shareowners:
Net investment income (0.28) (0.55) (0.43)
- ---------------------------------------------------------------------------------------------------
Net decrease in net asset value $ (2.49) $ (1.02) $ (0.28)
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.21 $ 8.70 $ 9.72
===================================================================================================
Total return* (25.57)% (4.95)% 1.45%***
Ratio of net expenses to average net assets 0.90%** 0.90% 0.90%**
Ratio of net investment income to average net assets 8.07%** 5.92% 5.31%**
Portfolio turnover rate 57%** 59% 130%***
Net assets, end of period (in thousands) $27,471 $38,717 $16,637
Ratios with no waiver of fees and assumption of
expenses by PIM
Net expenses 1.20%** 1.21% 1.77%**
Net investment income 7.77%** 5.61% 4.44%**
Ratios with waiver of fees and assumption of
expenses by PIM and reduction for fees
paid indirectly:
Net expenses 0.90%** 0.90% 0.90%**
Net investment income 8.07%** 5.92% 5.31%**
- ---------------------------------------------------------------------------------------------------
(a) Class A shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09
Six Months 10/17/06 (a)
Ended Year (Commencement
2/28/09 Ended of Operations)
(unaudited) 8/31/08 to 8/31/07
Class C
Net asset value, beginning of period $ 8.68 $ 9.71 $10.00
- ---------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.25 $ 0.46 $ 0.36
Net realized and unrealized loss on investments (2.48) (1.03) (0.30)
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
investment operations $ (2.23) $ (0.57) $ 0.06
Distributions to shareowners:
Net investment income (0.25) (0.46) (0.35)
- ---------------------------------------------------------------------------------------------------
Net decrease in net asset value $ (2.48) $ (1.03) $(0.29)
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.20 $ 8.68 $ 9.71
===================================================================================================
Total return* (25.88)% (5.94)% 0.56%***
Ratio of net expenses to average net assets 1.80%** 1.80% 1.80%**
Ratio of net investment income to average net assets 7.20%** 5.11% 4.35%**
Portfolio turnover rate 57%** 59% 130%***
Net assets, end of period (in thousands) $15,902 $20,915 $6,445
Ratios with no waiver of fees and assumption of
expenses by PIM
Net expenses 1.95%** 1.95% 2.72%**
Net investment income 7.05%** 4.96% 3.43%**
Ratios with waiver of fees and assumption of
expenses by PIM and reduction for fees
paid indirectly:
Net expenses 1.80%** 1.80% 1.80%**
Net investment income 7.20%** 5.11% 4.35%**
- ---------------------------------------------------------------------------------------------------
(a) Class C shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 25
Financial Highlights (continued)
Six Months 10/17/06 (a)
Ended Year (Commencement
2/28/09 Ended of Operations)
(unaudited) 8/31/08 to 8/31/07
Class Y
Net asset value, beginning of period $ 8.63 $ 9.69 $10.00
- ---------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.28 $ 0.53 $ 0.42
Net realized and unrealized loss on investments (2.46) (1.05) (0.30)
- ---------------------------------------------------------------------------------------------------
Net increase(decrease) in net assets from
investment operations $ (2.18) $(0.52) $ 0.12
Distributions to shareowners:
Net investment income (0.28) (0.54) (0.43)
- ---------------------------------------------------------------------------------------------------
Net decrease in net asset value $ (2.46) $(1.06) $(0.31)
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.17 $ 8.63 $ 9.69
===================================================================================================
Total return* (25.47)% (5.45)% 1.12%***
Ratio of net expenses to average net assets 0.89%** 1.00% 1.23%**
Ratio of net investment income to average net assets 8.11%** 5.80% 4.70%**
Portfolio turnover rate 57%** 59% 130%***
Net assets, end of period (in thousands) $ 824 $1,142 $1,080
Ratios with no waiver of fees and assumption of
expenses by PIM
Net expenses 0.91%** 1.00% 2.11%**
Net investment income 8.09%** 5.80% 3.82%**
Ratios with waiver of fees and assumption of
expenses by PIM and reduction for fees
paid indirectly:
Net expenses 0.89%** 0.99% 1.23%**
Net investment income 8.11%** 5.81% 4.70%**
- ---------------------------------------------------------------------------------------------------
(a) Class Y shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09
Notes to Financial Statements | 2/28/09 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer High Income Municipal Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust registered under
the Investment Company Act of 1940 as an open-end management investment
company. The Fund is non-diversified. The Fund commenced operations on October
17, 2006. The investment objective of the Fund is to maximize total return
through a combination of income that is exempt from regular federal income tax
and capital appreciation.
The Fund offers three classes of shares designated as Class A, Class C and
Class Y shares. Class A, Class C and Class Y shares were first publicly offered
on October 17, 2006. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has 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. Each class of shares can bear different transfer
agent and distribution fees. 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 gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. The fund's prospectuses contain unaudited information
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 27
regarding the fund's principal risks. Please refer to those documents when
considering the Fund's principal risks.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements which, are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Securities
are valued at prices supplied by independent pricing services, which consider
such factors as Treasury spreads, yields, maturities and ratings. Valuations
may be supplemented by dealers and other sources, as required. Securities for
which market quotations are not readily available are valued using fair value
methods pursuant to procedures adopted by the Board of Trustees. At February
28, 2009, there were no securities that were valued using fair value methods.
Temporary cash investments are valued at cost which approximates market
value.
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis with a
corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income, exempt interest income, and net realized capital
gains, if any, to its shareowners. Therefore, no federal tax provision is
required. Tax returns for the prior two 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.
28 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09
The tax character of current year distributions payable 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:
2008
Distributions paid from:
Tax-exempt income $2,433,183
Ordinary income --
- -----------------------------------------------
Total $2,433,183
===============================================
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A., (UniCredit),
earned $7,601 in underwriting commissions on the sale of Class A shares
during the six months ended February 28th, 2009.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning of
the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A 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).
The Fund declares, as daily dividends, substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily dividends.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that Class A,
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 0.50% of the Fund's average daily net assets up to
$500 million; 0.475% of the next $500 million; and 0.45% of the excess over
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 29
$1 billion. For the six months ended February 28, 2009, the effective
management fee (net of waivers and/or assumption of expenses) was equivalent to
0.25% of the Fund's average net assets.
PIM has contractually agreed to limit ordinary operating expenses (excluding
taxes, commissions, interest and extraordinary expenses) of the Fund to the
extent required to reduce the Fund's expenses to 0.90% and 1.80% of the average
daily net assets attributable to Class A shares and Class C shares,
respectively. The Class A limitation is in effect through January 1, 2012 and
the Class C limitation is in effect through January 1, 2010.
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 $1,275 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 $4,477
Class C 2,748
Class Y 6
- ------------------------------------------
Total $7,231
- ------------------------------------------
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $3,953 in transfer agent fees and shareholder communications
expense payable to PIMSS at February 28, 2009.
4. Distribution Plans
The Fund adopted a Distribution Plan pursuant to Rule 12b-1 of the Investment
Company Act of 1940 with respect to its Class A 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 C shares. The fee for Class C shares consists of a
30 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09
0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Prior to February 1, 2008, PFD was reimbursed
under the Distribution Plan for distribution expenses in an amount of up to
0.25% of the average daily net assets attributable to Class A shares. Included
in "Due to affiliates" reflected on the Statement of Assets and Liabilities is
$1,240 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. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00% based on the lower of cost or market
value of shares being redeemed. Proceeds from the CDSCs are paid to PFD. For
the six months ended February 28, 2009, no CDSCs were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned
on cash held by PIMSS. For the six months ended February 28, 2009, the Fund's
expenses were reduced by $130 under such arrangements.
6. 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.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 31
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.
32 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09
This page for your notes.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 33
This page for your notes.
34 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09
This page for your notes.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/09 35
This page for your notes.
36 Pioneer High Income Municipal 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.
Pioneer Oak Ridge
All Cap Growth Fund
- --------------------------------------------------------------------------------
Semiannual Report | February 28, 2009
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A ORACX
Class C ORCCX
Class Y ORAYX
[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 13
Schedule of Investments 15
Financial Statements 21
Notes to Financial Statements 27
Approval of Sub-Advisory Agreement 32
Trustees, Officers and Service Providers 35
Pioneer Oak Ridge All Cap Growth 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 Oak Ridge All Cap Growth 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 Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 3
Portfolio Management Discussion | 2/28/09
The U.S. equity market experienced a sharp decline during the six months ended
February 28, 2009. The reasons for the downturn have been well documented in the
media, as the financial crisis spread beyond the banking system to affect the
broader global economy, growth stalled and the outlook for corporate earnings
darkened. Additionally, stock prices have been pressured at various times by
institutional investors' forced selling, questions regarding the effectiveness
of the U.S. government's response, and the impact of sharply falling commodity
prices. In the following interview, Robert McVicker, Pioneer Oak Ridge All Cap
Growth Fund's Lead Portfolio Manager, discusses these and other factors that
influenced the Fund's performance during the semiannual period ended February
28, 2009.
Q How did the Fund perform during the past half-year ended February 28, 2009?
A As would be expected during such a difficult time for the market, the Class
A shares of the Fund posted an absolute return of -38.69% during the
six-month period ended February 28, 2009. While we understand that our
investors are distressed by the extent of the Fund's losses, we believe it
is important to point out that the Fund managed to outperform its
benchmark, the Russell 3000 Growth Index (the Russell Index), which
returned -40.43% over the same period. In addition, during the same six
months ended February 28, 2009, the average return of the 538 Multi-Cap
Growth Funds tracked by Lipper, Inc. was -41.56%.
In managing the Fund, we strive to purchase excellent businesses at
attractive valuations. In the wake of the market's decline, we have been
finding what we believe to be a wealth of attractively valued companies
with strong fundamentals and the potential to generate strong annual
earnings growth over the next three to five years. We believe our focus on
such companies was an important factor in the Fund's outperformance of the
benchmark and Lipper average during the semiannual period ended February
28, 2009.
Q Where did the Fund deliver its best performance during the six months ended
February 28, 2009?
A The Fund had the most success in health care, due largely to our decision
to focus on biotechnology stocks over pharmaceuticals. While the latter
group has been plagued by concerns about patent expirations and weak
pipelines of new drugs, the biotech sector is home to a greater number of
companies where neither issue is a concern. The result was outperformance
for the Fund in biotech relative to both the health care sector of the
benchmark and the broader U.S. market. In this environment, the Fund
benefited from a
4 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
weighting of about 8% in this sector as of the end of the period, well
above the 3.5% weighting in the Russell Index. The Fund's leading
performers in the health care area were Gilead Sciences and Genentech,
which has been engaged in takeover discussions with Roche Pharmaceuticals.
The Fund's performance in health care also was helped by a position in
Thermo Fisher. The company, which has been gaining market share in the life
sciences tools business, managed to generate organic sales growth of 4%
during the extremely challenging fourth quarter of 2008. We believe the
shares of the market-leading company are an outstanding value, with a
price-to-earnings (P/E) ratio of about 10, which is below our expectations
for a 12% earnings growth rate in the next three to five years.
The energy sector also was a source of positive performance for the Fund
during the six-month period ended February 28, 2009. While the Fund's
holdings produced a negative absolute return -- consistent with the
downturn in the broader sector -- holdings such as XTO Energy and
Southwestern Energy outperformed their peers due to their strong production
profiles. Even if energy prices remain at depressed levels, we believe both
companies can continue to outperform their peers by exploiting attractive
drilling prospects to drive their production growth.
As part of our investment process, we look for companies that generate
consistent, predictable earnings. This is true even in the industrials
sector, where we have focused on investing the Fund in less economically
sensitive companies with steadier, recurring revenue streams. The Fund's
leading contributor in the industrials group was Stericycle, which manages
the removal and disposal of hospitals' medical waste. As such, Stericycle
offers a stable business model and steady revenue growth, both favorable
attributes in the current environment.
Q What were some areas in which the Fund underperformed during the six months
ended February 28, 2009?
A The Fund's underperformance was most significant in the technology sector.
While we believe the technology companies held by the Fund remain
attractive on a fundamental basis, this was not reflected in their recent
market performance. For example, shares of both Google and Apple continued
to fall sharply amid the weakness in the broader market. With respect to
Google, we remain positive on the stock since it is now trading at a
valuation in line with that of the broader market, even though it has a
stronger-than-expected growth rate. Similarly, Apple has fallen to a 16
P/E, despite an expected growth rate in the low-to-mid teens and a history
of offering breakthrough products. While the two stocks were depressed
during the semiannual reporting period, we expect both can perform well
over a full market cycle due to their attractive underlying fundamentals.
Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 5
In the consumer staples sector, the Fund's relative performance was hurt
both by what the Fund owned as well as what it did not own. Specifically,
the Fund's position in Central European Distributors, an American company
whose primary business is the distribution of spirits throughout Russia and
Eastern Europe, fell sharply due to the declining value of the Russian
ruble and Polish zloty. While the fundamentals of the company remain
strong, the effect of currency exchange rates makes its performance
inherently unpredictable. We therefore elected to eliminate the stock from
the Fund's portfolio. Also weighing on performance during the period was
the Fund's lack of a position in Wal-Mart Stores, which was one of the best
performing stocks in the Russell Index, as cash-strapped consumers traded
down to less expensive alternatives.
In our annual report to shareholders dated August 31, 2008, we cited our
focus on financial companies outside of the troubled banking sector as
being a key positive factor in the Fund's performance. During the past six
months, however, the positioning failed to add value, as falling stock
prices weighed on the performance of the Fund's holdings in Charles Schwab
and IntercontinentalExchange. Insurer Aflac also pressured the Fund's
performance mainly due to its holdings in bonds issued by European banks.
The potential for the nationalization of banks in Europe, along with the
prospect of default on the bonds, has increased significantly. Not wanting
to expose the Fund to the risk associated with that potential development,
we elected to sell Aflac from the Fund's portfolio.
Q Has the bear market provided opportunities to add some new stocks to the
Fund's portfolio?
A Yes, it has. In the past, we would typically consider a stock to be trading
at a P/E-to-growth rate (or PEG) of under two to be a reasonable value.
Today, we have been finding a wealth of stocks that are trading with PEGs
of less than one. Notably, these are not lower-quality stocks, but the kind
of stable growers in which we seek to invest the Fund's assets. Some
examples of what we believe to be strong companies whose stocks we were
able to purchase at good valuation levels include: International Business
Machines (IBM), Kroger, ResMed and Quanta Services.
IBM is a company that we expect to grow strongly over the next three to
five years. We like IBM for its strong balance sheet and the recurring
revenues it generates from its longer-term service contracts. Supermarket
chain Kroger is another company whose stock price declined with the overall
market, but in which we see the potential for solid earnings growth over a
full economic cycle. Kroger is able to offer very competitive pricing to
consumers as a result of its ongoing efforts to streamline its business,
enabling it to take market share in a tough environment. ResMed, a maker of
sleep apnea treatment products, also was added to the Fund as its stock
price dipped with the
6 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
overall market. We believe ResMed has very strong potential due to the
increasing awareness of sleep apnea as a medical problem that afflicts
millions of people, and the need for new and innovative treatments of the
condition. Quanta Services is a utility services company that we expect
will capitalize on the need to upgrade the U.S. power grid. We also expect
that the company will benefit from the Obama administration's
infrastructure investment program. We expect Quanta to generate reliable
growth in the coming years.
Q What is your outlook?
A Like most money managers, we remain very cautious on the short-term outlook
for the market. Still, we see reasons for longer-term optimism. The
widespread and indiscriminate selling that has characterized the recent
market downturns has created compelling values among high-quality
companies, several of which were noted above. On the whole, we believe the
companies we hold in the Fund will be able to hold up well through the
downturn, and then may ultimately flourish as an improving economic
environment eventually lifts the pressure currently weighing on the
valuations of otherwise healthy companies. As we believe that long-term
investors will likely look back on this period as a favorable time to
invest, we view the ongoing market volatility as an opportunity to purchase
proven franchises for the Fund at very attractive valuations.
Please refer to the Schedule of Investments on pages 15-20 for a full listing of
Fund securities.
The Fund invests in a limited number of securities and, as a result, the Fund's
performance may be more volatile than the performance of other funds holding
more securities. At times, the Fund's investments may represent industries or
industry sectors that are interrelated or have common risks, making it more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 7
Portfolio Summary | 2/28/09
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[The following data was represented as a pie chart in the printed material]
U.S. Common Stocks 94.0%
Temporary Cash Investment 4.2%
Depositary Receipts for International Stocks 1.8%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[The following data was represented as a pie chart in the printed material]
Information Technology 27.7%
Health Care 21.4%
Industrials 14.9%
Consumer Staples 10.8%
Energy 10.5%
Consumer Discretionary 6.1%
Materials 4.8%
Financials 3.8%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Southwestern Energy Co. 3.90%
2. Qualcomm, Inc. 3.48
3. Google, Inc. 3.37
4. Procter & Gamble Co. 3.15
5. Church & Dwight Co, Inc. 3.14
6. Genentech, Inc. 3.10
7. Abbott Laboratories, Inc. 3.03
8. Gilead Sciences, Inc. 2.87
9. Waste Connections, Inc. 2.81
10. Thermo Fisher Scientific, Inc. 2.79
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
8 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
Prices and Distributions | 2/28/09
Net Asset Value per Share
- --------------------------------------------------------------------------------
- -----------------------------------------------
Class 2/28/09 8/31/08
- -----------------------------------------------
A $ 6.37 $ 10.39
- -----------------------------------------------
C $ 6.25 $ 10.22
- -----------------------------------------------
Y $ 6.40 $ 10.42
- -----------------------------------------------
Distributions per Share: 9/1/08-2/28/09
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ---------------------------------------------------------------------
A $ -- $ -- $ --
- ---------------------------------------------------------------------
C $ -- $ -- $ --
- ---------------------------------------------------------------------
Y $ -- $ -- $ --
- ---------------------------------------------------------------------
Index Definitions
- --------------------------------------------------------------------------------
The Russell 3000 Growth Index measures the performance of large-cap U.S. growth
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" charts on
pages 10-12.
Pioneer Oak Ridge All Cap Growth 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 Oak Ridge All Cap Growth Fund at public offering
price, compared to that of the Russell 3000 Growth Index.
Average Annual Total Returns
(As of February 28, 2009)
- ------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- ------------------------------------------------------------------------
Life-of-Class
(10/16/06) -17.33% -19.37%
1 Year -38.28 -41.83
- ------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- ------------------------------------------------------------------------
Gross Net
- ------------------------------------------------------------------------
4.72% 1.25%
- ------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Oak Ridge
All Cap Russell 3000
Growth Fund Growth Index
10/06 9,425 10,000
2/07 9,681 10,305
2/08 9,690 10,275
2/09 5,981 6,149
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.
POP returns reflect deduction of maximum 5.75% sales charge. NAV results
represent the percent change in net asset value per share. Returns would have
been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Some expenses are based on estimated amounts for the current fiscal year.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 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.
10 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
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 Oak Ridge All Cap Growth Fund, compared to that of
the Russell 3000 Growth Index.
Average Annual Total Returns
(As of February 28, 2009)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
Life-of-Class
(10/16/06) -17.99% -17.99%
1 Year -38.79 -38.79
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
5.72% 2.15%
- -------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Oak Ridge
All Cap Russell 3000
Growth Fund Growth Index
10/06 10,000 10,000
2/07 10,239 10,305
2/08 10,169 10,275
2/09 6,225 6,149
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Some expenses are based on estimated amounts for the current fiscal year.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/10 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.
Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 11
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 Oak Ridge All Cap Growth Fund, compared to that of
the Russell 3000 Growth Index.
Average Annual Total Returns
(As of February 28, 2009)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
Life-of-Class
(10/16/06) -17.16% -17.16%
1 Year -38.10 -38.10
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2008)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
4.76% 0.95%
- -------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Oak Ridge
All Cap Russell 3000
Growth Fund Growth Index
10/06 10,000 10,000
2/07 10,259 10,305
2/08 10,319 10,275
2/09 6,387 6,149
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.
Some expenses are based on estimated amounts for the current fiscal year.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/10 for Class Y 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.
12 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Oak Ridge All Cap Growth Fund
Based on actual returns from September 1, 2008 through February 28, 2009.
- --------------------------------------------------------------------------------
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/08
- --------------------------------------------------------------------------------
Ending Account $ 613.10 $ 611.50 $ 614.20
Value on 2/28/09
- --------------------------------------------------------------------------------
Expenses Paid $ 5.00 $ 8.59 $ 3.80
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2,15%,
and 0.95%, for Class A, 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 Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 13
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Oak Ridge All Cap Growth 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 C Y
- --------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/08
- --------------------------------------------------------------------------------
Ending Account $ 1,018.60 $ 1,014.13 $ 1,020.08
Value on 2/28/09
- --------------------------------------------------------------------------------
Expenses Paid $ 6.26 $ 10.74 $ 4.76
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%
and 0.95%, for Class A, 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 Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
Schedule of Investments | 2/28/09 (unaudited)
- ---------------------------------------------------------------------
Shares Value
- ---------------------------------------------------------------------
COMMON STOCKS -- 97.0%
ENERGY -- 10.2%
Oil & Gas Equipment & Services -- 2.1%
3,090 Schlumberger, Ltd. $ 117,605
- ---------------------------------------------------------------------
Oil & Gas Exploration & Production -- 8.1%
4,130 Denbury Resources, Inc.* $ 53,194
3,275 Petrohawk Energy Corp.* 55,741
7,195 Southwestern Energy Co.* 207,000
4,002 XTO Energy, Inc. 126,703
----------
$ 442,638
----------
Total Energy $ 560,243
- ---------------------------------------------------------------------
MATERIALS -- 4.6%
Fertilizers & Agricultural Chemicals -- 1.0%
745 Monsanto Co. $ 56,821
----------
Industrial Gases -- 1.9%
3,310 Airgas, Inc. $ 101,915
----------
Specialty Chemicals -- 1.7%
2,975 Ecolab, Inc. $ 94,546
----------
Total Materials $ 253,282
- ---------------------------------------------------------------------
CAPITAL GOODS -- 8.7%
Aerospace & Defense -- 3.0%
1,255 Precision Castparts Corp. $ 69,565
2,420 Raytheon Co. 96,727
----------
$ 166,292
- ---------------------------------------------------------------------
Construction & Engineering -- 1.7%
5,180 Quanta Services, Inc.* $ 91,168
- ---------------------------------------------------------------------
Industrial Machinery -- 4.0%
2,700 Danaher Corp. $ 137,052
4,190 Idex Corp. 80,951
----------
$ 218,003
----------
Total Capital Goods $ 475,463
- ---------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 4.9%
Environmental & Facilities Services -- 4.9%
2,465 Stericycle, Inc.* $ 118,271
6,265 Waste Connections, Inc.* 149,358
----------
$ 267,629
----------
Total Commercial Services & Supplies $ 267,629
- ---------------------------------------------------------------------
TRANSPORTATION -- 0.9%
Railroads -- 0.9%
2,695 Kansas City Southern Industries, Inc.*(b) $ 47,675
----------
Total Transportation $ 47,675
- ---------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 15
Schedule of Investments | 2/28/09 (unaudited) (continued)
- ------------------------------------------------------------------
Shares Value
- ------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 1.0%
Auto Parts & Equipment -- 1.0%
4,635 Johnson Controls, Inc. $ 52,746
----------
Total Automobiles & Components $ 52,746
- ------------------------------------------------------------------
RETAILING -- 4.9%
Computer & Electronics Retail -- 1.6%
3,170 Gamestop Corp.* $ 85,336
- ------------------------------------------------------------------
General Merchandise Stores -- 1.1%
2,240 Target Corp. $ 63,414
- ------------------------------------------------------------------
Specialty Stores -- 2.2%
7,585 Staples, Inc. (b) $ 120,981
----------
Total Retailing $ 269,731
- ------------------------------------------------------------------
FOOD & DRUG RETAILING -- 1.7%
Food Retail -- 1.7%
4,430 Kroger Co. $ 91,568
----------
Total Food & Drug Retailing $ 91,568
- ------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 2.7%
Distillers & Vintners -- 0.3%
2,095 Central Euro Distribution Corp* $ 13,974
- ------------------------------------------------------------------
Soft Drinks -- 2.4%
2,785 PepsiCo, Inc. $ 134,070
----------
Total Food, Beverage & Tobacco $ 148,044
- ------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 6.1%
Household Products -- 6.1%
3,410 Church & Dwight Co., Inc. $ 166,817
3,475 Procter & Gamble Co.* 167,391
----------
$ 334,208
----------
Total Household & Personal Products $ 334,208
- ------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.1%
Health Care Distributors -- 1.8%
2,630 Henry Schein, Inc.* $ 96,468
- ------------------------------------------------------------------
Health Care Equipment -- 2.0%
3,005 ResMed, Inc.* $ 110,824
- ------------------------------------------------------------------
Health Care Services -- 1.3%
3,460 Catalyst Health Solutions, Inc.* $ 72,937
----------
Total Health Care Equipment & Services $ 280,229
- ------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
- -----------------------------------------------------------------
Shares Value
- -----------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 15.6%
Biotechnology -- 7.8%
2,490 Celgene Corp* $ 111,378
1,925 Genentech, Inc.* 164,684
3,400 Gilead Sciences, Inc.* $ 152,320
----------
$ 428,382
- -----------------------------------------------------------------
Life Sciences Tools & Services -- 2.7%
4,085 Thermo Fisher Scientific, Inc.* $ 148,122
- -----------------------------------------------------------------
Pharmaceuticals -- 5.1%
3,400 Abbott Laboratories, Inc. $ 160,956
3,095 Allergan, Inc. 119,900
----------
$ 280,856
----------
Total Pharmaceuticals & Biotechnology $ 857,360
- -----------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.7%
Asset Management & Custody Banks -- 0.8%
1,255 Affiliated Managers Group, Inc.* $ 45,155
- -----------------------------------------------------------------
Investment Banking & Brokerage -- 1.7%
7,340 Charles Schwab Corp. $ 93,291
- -----------------------------------------------------------------
Specialized Finance -- 1.2%
1,135 IntercontinentalExchange, Inc.* $ 64,434
----------
Total Diversified Financials $ 202,880
- -----------------------------------------------------------------
SOFTWARE & SERVICES -- 12.6%
Application Software -- 4.8%
4,280 Adobe Systems, Inc.* $ 71,476
4,425 Ansys, Inc.* 89,252
3,160 SAP AG (A.D.R.)*(b) 101,562
----------
$ 262,290
- -----------------------------------------------------------------
Data Processing & Outsourced Services -- 2.8%
2,400 Alliance Data Systems Corp.*(b) $ 71,040
1,425 Visa, Inc. 80,812
----------
$ 151,852
- -----------------------------------------------------------------
Internet Software & Services -- 3.3%
530 Google, Inc.* $ 179,135
- -----------------------------------------------------------------
Systems Software -- 1.7%
5,885 Microsoft Corp. $ 95,043
----------
Total Software & Services $ 688,320
- -----------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 17
Schedule of Investments | 2/28/09 (unaudited) (continued)
- -----------------------------------------------------------------------
Shares Value
- -----------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 11.7%
Communications Equipment -- 6.0%
10,035 Cisco Systems, Inc.* $ 146,210
5,535 Qualcomm, Inc. 185,035
----------
$ 331,245
- -----------------------------------------------------------------------
Computer Hardware -- 5.7%
1,340 Apple, Inc.* $ 119,675
3,470 Hewlett-Packard Co. 100,734
995 IBM Corp.* 91,570
----------
$ 311,979
----------
Total Technology Hardware & Equipment $ 643,224
- -----------------------------------------------------------------------
SEMICONDUCTORS -- 2.6%
2,750 Hittite Microwave Corp.* $ 75,845
4,490 Texas Instruments, Inc. 64,432
----------
$ 140,277
----------
Total Semiconductors $ 140,277
- -----------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $7,808,035) $5,312,879
- -----------------------------------------------------------------------
Principal
Amount
- -----------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 4.2%
Securities Lending Collateral -- 4.2% (c)
Certificates of Deposit:
$ 5,474 Abbey National Plc, 2.52%, 8/13/09 $ 5,474
5,473 Bank of Nova Scotia, 1.58%, 5/5/09 5,473
8,751 Bank of Scotland NY, 1.44%, 6/5/09 8,751
9,853 Barclays Bank, 1.2%, 5/27/09 9,853
10,948 CBA, 1.31%, 7/16/09 10,948
9,853 DNB NOR Bank ASA NY, 2.41%, 6/5/09 9,853
10,028 Intesa SanPaolo S.p.A., 1.1%, 5/22/09 10,028
635 NORDEA NY, 0.44%, 4/9/09 635
8,211 Royal Bank of Canada NY, 1.44%, 8/7/09 8,211
5,474 Royal Bank of Scotland, 2.45%, 3/5/09 5,474
10,948 Societe Generale, 2.62%, 9/4/09 10,948
9,853 Svenska Bank NY, 1.73%, 7/8/09 9,853
10,948 U.S. Bank NA, 1.35%, 8/24/09 10,943
----------
$ 106,444
- -----------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
- -----------------------------------------------------------------------------
Principal
Amount Value
- -----------------------------------------------------------------------------
Commercial Paper:
$ 1,044 BBVA U.S., 2.11%, 3/12/09 $ 1,044
10,948 Monumental Global Funding, Ltd., 1.64%, 8/17/09 10,948
5,474 CME Group, Inc., 1.44%, 8/6/09 5,474
5,474 General Electric Capital Corp., 1.96%, 3/16/09 5,474
10,750 American Honda Finance Corp., 1.29%, 7/14/09 10,750
10,948 HSBC Bank, Inc., 1.64%, 8/14/09 10,948
2,737 IBM, 1.47%, 9/25/09 2,737
9,853 Met Life Global Funding, 2.47%, 6/12/09 9,853
9,853 New York Life Global, 2.31%, 9/4/09 9,853
9,305 Westpac Banking Corp., 1.00%, 6/1/09 9,305
-----------
$ 76,386
- -----------------------------------------------------------------------------
Tri-party Repurchase Agreements:
10,948 Deutsche Bank, 0.27%, 3/2/09 $ 10,948
21,895 Merrill Lynch, 0.27%, 3/2/09 21,895
4,129 Barclays Capital Markets, 0.25%, 3/2/09 4,129
-----------
$ 36,972
- -----------------------------------------------------------------------------
- --------------------------------------------------------------------------
Shares
- --------------------------------------------------------------------------
Money Market Mutual Fund:
10,948 JP Morgan, U.S. Government Money Market Fund $ 10,948
-----------
$ 10,948
- --------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $230,750) $ 230,750
- --------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 101.2%
(Cost $8,038,785) (a) $ 5,543,629
==========================================================================
OTHER ASSETS AND LIABILITIES - (1.2)% $ (67,168)
==========================================================================
TOTAL NET ASSETS -- 100.0% $ 5,476,461
==========================================================================
* Non-income producing security.
(A.D.R.) American Depositary Receipt.
(a) At February 28, 2009, the net unrealized loss on investments based on
cost for federal income tax purposes of $8,071,244 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 20,596
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (2,548,211)
-----------
Net unrealized loss $(2,527,615)
===========
The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 19
Schedule of Investments | 2/28/09 (unaudited) (continued)
(b) At February 28, 2009, the following securities were out on loan:
Shares Security Value
2,300 Alliance Data Systems Corp. * $ 68,080
1,300 Kansas City Southern Industries, Inc. * 22,997
3,000 SAP AG (A.D.R.) * 96,420
2,000 Staples, Inc. 31,900
- -------------------------------------------------------------------
$219,397
===================================================================
(c) Securities lending collateral is managed by Credit Suisse, New York
Branch.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 28, 2009 aggregated $1,889,262 and $339,971,
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 $5,312,879
Level 2 -- Other Significant Observable Inputs 230,750
Level 3 -- Significant Unobservable Inputs --
- --------------------------------------------------------------
Total $5,543,629
==============================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
Statement of Assets and Liabilities | 2/28/09 (unaudited)
ASSETS:
Investment in securities (including securities loaned
of $219,397) (cost $8,038,785) $ 5,543,629
Cash 312,195
Receivables --
Fund shares sold 173
Dividends 4,056
Due from Pioneer Investment Management, Inc. 7,604
Other 21,715
- -------------------------------------------------------------------------------
Total assets $ 5,889,372
- -------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 145,844
Fund shares repurchased 60
Upon return of securities loaned 230,750
Due to affiliates 4,697
Accrued expenses 31,560
- -------------------------------------------------------------------------------
Total liabilities $ 412,911
- -------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 8,544,018
Accumulated net investment loss (14,323)
Accumulated net realized loss on investments (558,078)
Net unrealized loss on investments (2,495,156)
- -------------------------------------------------------------------------------
Total net assets $ 5,476,461
================================================================================
NET ASSET VALUE PER SHARE:
(No par value, Unlimited number of shares authorized)
Class A (based on $4,402,633/690,783 shares) $ 6.37
Class C (based on $860,337/137,730 shares) $ 6.25
Class Y (based on $213,491/33,333 shares) $ 6.40
MAXIMUM OFFERING PRICE:
Class A ($6.37 [divided by] 94.25%) $ 6.76
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 21
Statement of Operations (unaudited)
For the Six Months Ended 2/28/09
INVESTMENT INCOME:
Dividends $21,646
Interest 711
Income from securities loaned, net 1,204
- ---------------------------------------------------------------------------------------
Total investment income $ 23,561
- ---------------------------------------------------------------------------------------
EXPENSES:
Management fees $20,674
Transfer agent fees
Class A 3,816
Class C 1,012
Class Y 102
Distribution fees
Class A 5,447
Class C 4,505
Shareholder communications expenses 1,121
Administrative fees 1,011
Custodian fees 3,029
Registration fees 20,996
Professional fees 24,340
Printing expense 10,384
Fees and expenses of nonaffiliated trustees 4,272
Miscellaneous 1,361
- ---------------------------------------------------------------------------------------
Total expenses $ 102,112
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (64,125)
Less fees paid indirectly (61)
- ---------------------------------------------------------------------------------------
Net expenses $ 37,884
- ---------------------------------------------------------------------------------------
Net investment loss $ (14,323)
- ---------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments $ (340,714)
- ---------------------------------------------------------------------------------------
Change in net unrealized loss on investments $ (2,455,038)
- ---------------------------------------------------------------------------------------
Net loss on investments $ (2,795,752)
- ---------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (2,810,075)
=======================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
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 loss $ (14,323) $ (23,185)
Net realized loss on investments (340,714) (206,331)
Change in net unrealized loss on investments (2,455,038) (220,205)
- --------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(2,810,075) $ (449,721)
======================================================================================
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 1,866,721 $ 6,424,890
Cost of shares repurchased (493,601) (1,125,679)
- --------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund
share transactions $ 1,373,120 $ 5,299,211
- --------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(1,436,955) $ 4,849,490
NET ASSETS:
Beginning of period 6,913,416 2,063,926
- --------------------------------------------------------------------------------------
End of period $ 5,476,461 $ 6,913,416
- --------------------------------------------------------------------------------------
Accumulated net investment loss $ (14,323) --
- --------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
'09 Shares '09 Amount '08 Shares '08 Amount
(unaudited) (unaudited)
- ------------------------------------------------------------------------------------
Class A*
Shares sold 224,255 $ 1,611,159 514,703 $ 5,625,809
Less shares repurchased (54,403) (411,872) (88,738) (933,947)
- ------------------------------------------------------------------------------------
Net increase 169,852 $ 1,199,287 425,965 $ 4,691,862
====================================================================================
Class C*
Shares sold 35,609 $ 255,562 74,221 $ 794,781
Less shares repurchased (10,800) (81,729) (16,948) (177,017)
- ------------------------------------------------------------------------------------
Net increase 24,810 $ 173,833 57,273 $ 617,764
====================================================================================
Class Y*
Shares sold -- $ -- 422 $ 4,300
Less shares repurchased -- -- (1,309) (14,715)
- ------------------------------------------------------------------------------------
Net decrease -- -- (887) $ (10,415)
====================================================================================
* Class A, Class C, and Class Y shares were first publicly offered on October
17, 2006.
The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 23
Financial Highlights
- ----------------------------------------------------------------------------------------------------
Six Months
Ended Year
2/28/09 Ended 10/17/06 (a)
(unaudited) 8/31/08 to 8/31/07
- ----------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 10.39 $ 11.19 $ 10.00
- ----------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.01) $ (0.02) $ (0.01)
Net realized and unrealized gain (loss) on investments (4.01) (0.78) 1.20
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
investment operations $ (4.02) $ (0.80) $ 1.19
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.37 $ 10.39 $ 11.19
====================================================================================================
Total return* (38.69)% (7.15)% 11.90%(b)
Ratio of net expenses to average net assets+ 1.25%** 1.25% 1.25%**
Ratio of net investment loss to average net assets+ (0.40)%** (0.36)% (0.22)%**
Portfolio turnover rate 12.50%** 34% 41%(b)
Net assets, end of period (in thousands) $ 4,403 $ 5,412 $ 1,063
Ratios with no waiver of fees and assumption of expenses
by PIM and no reduction for fees paid indirectly:
Net expenses 3.61%** 4.72% 8.72%**
Net investment loss (2.75)%** (3.83)% (7.69)%**
Ratios with waiver of fees and assumption of expenses by
PIM and reduction for fees paid indirectly:
Net expenses 1.25%** 1.25% 1.25%**
Net investment loss (0.39)%** (0.36)% (0.22)%**
- ----------------------------------------------------------------------------------------------------
(a) Class A shares were first publicly offered on October 17, 2006.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period 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.
24 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
- --------------------------------------------------------------------------------------------------------
Six Months
Ended Year
2/28/09 Ended 10/17/06 (a)
(unaudited) 8/31/08 to 8/31/07
- --------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 10.22 $ 11.11 $ 10.00
- --------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.04) $ (0.10) $ (0.09)
Net realized and unrealized gain (loss) on investments (3.93) (0.79) 1.20
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
investment operations $ (3.97) $ (0.89) $ 1.11
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.25 $ 10.22 $ 11.11
========================================================================================================
Total return* (38.85)% (8.01)% 11.10%(b)
Ratio of net expenses to average net assets+ 2.15%** 2.16% 2.15%**
Ratio of net investment loss to average net assets+ (1.30)%** (1.24)% (1.13)%**
Portfolio turnover rate 12.50%** 34% 41%(b)
Net assets, end of period (in thousands) $ 860 $ 1,155 $ 618
Ratios with no waiver of fees and assumption of expenses
by PIM and no reduction for fees paid indirectly:
Net expenses 4.38%** 5.72% 9.61%**
Net investment loss (3.53)%** (4.80)% (8.59)%**
Ratios with waiver of fees and assumption of expenses by
PIM and reduction for fees paid indirectly:
Net expenses 2.15%** 2.15% 2.15%**
Net investment loss (1.30)%** (1.23)% (1.13)%**
- --------------------------------------------------------------------------------------------------------
(a) Class C shares were first publicly offered on October 17, 2006.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period 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 Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 25
Financial Highlights (continued)
- -----------------------------------------------------------------------------------------------------
Six Months
Ended Year
2/28/09 Ended 10/17/06 (a)
(unaudited) 8/31/08 to 8/31/07
- -----------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 10.42 $ 11.19 $ 10.00
- -----------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.00)(c) $ (0.01) $ (0.02)
Net realized and unrealized gain (loss) on investments (4.01) (0.76) 1.21
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
investment operations $ (4.02) $ (0.77) $ 1.19
- -----------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.40 $ 10.42 $ 11.19
=====================================================================================================
Total return* (38.58)% (6.88)% 11.90%(b)
Ratio of net expenses to average net assets+ 0.95%** 1.03% 1.25%**
Ratio of net investment loss to average net assets+ (0.10)%** (0.12)% (0.25)%**
Portfolio turnover rate 12.50%** 34% 41%(b)
Net assets, end of period (in thousands) $ 213 $ 347 $ 383
Ratios with no waiver of fees and assumption of expenses
by PIM and no reduction of fees paid indirectly:
Net expenses 3.13%** 4.76% 8.41%**
Net investment loss (2.29)%** (3.85)% (7.41)%**
Ratios with waiver of fees and assumption of expenses by
PIM and reduction of fees paid indirectly:
Net expenses 0.95%** 1.03% 1.25%**
Net investment loss (0.10)%** (0.12)% (0.25)%**
- -----------------------------------------------------------------------------------------------------
(a) Class Y shares were first publicly offered on October 17, 2006.
(b) Not annualized.
(c) Amount round to less than $0.01 per share.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
Notes to Financial Statements | 2/28/09 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Oak Ridge All Cap Growth Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust registered under
the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is capital
appreciation.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Class A, Class C and Class Y shares were first publicly offered on
October 17, 2006. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has 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. Each class of shares can bear different transfer agent and distribution
fees. 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.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. The Fund's prospectuses contain unaudited information
regarding the Fund's principal risks. Please refer to those documents when
considering the Fund's principal risks.
Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 27
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 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 quotations are not readily available are valued
using fair value methods pursuant to procedures adopted by the Board of
Trustees. Trading in foreign securities is substantially completed each day
at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. The Fund may also use fair value methods to
value a security, including a non-U.S. security, when the closing market
price on the principal exchange where the security is traded no longer
reflects the value of the security. At February 28, 2009 there were no
securities that were valued using fair value methods. Temporary cash
investments are valued at cost which approximates market value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Dividend and interest income
is recorded on the accrual basis, net of unrecoverable foreign taxes
withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
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
28 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
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 tax character of current year distributions payable will be determined
at the end of the current taxable year. There were no distributions paid
during the year ended August 31, 2008.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned approximately $1,069 in underwriting commissions on the
sale of Class A shares during the six months ended February 28, 2009.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, 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, at the same time and on the
same day, except that Class A, Class C, and Class Y shares bear different
transfer agent and distribution expense rates.
E. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors. When entering into a securities loan
transaction, the Fund typically receives cash collateral from the borrower
equal to at least the value of the securities loaned, which is invested in
temporary cash investments. Credit Suisse, New York Branch, as the Fund's
security lending agent, manages the Fund's securities lending collateral.
The income earned on the investment of collateral is shared with the
borrower and the lending agent in payment of any rebate due to the borrower
with respect to the securities loan, and in compensation for the lending
agent's services to the Fund. The Fund also continues to receive interest
or payments in lieu of dividends on
Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 29
the securities loaned. Gain or loss on the value of the loaned securities
that may occur during the term of the loan will be for the account of the
Fund. The amount of the collateral is required to be adjusted daily to
reflect any price fluctuation in the value of the loaned securities. The
Fund has the right, under the lending agreement, to terminate the loan and
recover the securities from the borrower with prior notice. The Fund will
be required to return the cash collateral to the borrower and could suffer
a loss if the value of the collateral, as invested, has declined.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary of
UniCredit, manages the Fund's portfolio. PIM receives a basic fee that is
calculated at the annual rate of 0.75% of the Fund's average daily net assets up
to $500 million; and 0.70% on assets over $500 million. The management fees were
equivalent to 0.75% of the average daily net assets for the six months ended
February 28, 2009.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.25% and 2.15% of the average daily net
assets attributable to Class A and Class C shares, respectively. These expense
limitations are in effect through January 1, 2012 for Class A shares and through
January 1, 2010 for Class C shares. Effective January 1, 2009, PIM has
contractually agreed to limit Class Y expenses to 0.95% of the average daily net
assets attributable to Class Y shares. This expense limitation is in effect
through January 1, 2010.
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 $3,572 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 paid out-of-pocket expenses incurred by PIMSS related to
shareholder activities such as proxy and statement mailing, outgoing phone calls
and omnibus relation contracts. For the six months ended February 28, 2009,
out-of-pocket expenses were as follows:
- -----------------------------------------------
Shareholder Communications
- -----------------------------------------------
Class A $1,153
Class C 86
Class Y (118)
- -----------------------------------------------
Total $1,121
===============================================
30 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $1,017 in transfer agent fees and shareholder communications
expense payable to PIMSS at February 28, 2009.
4. Distribution Plans
The Fund adopted a Distribution Plan pursuant to Rule 12b-1 of the Investment
Company Act of 1940 with respect to its Class A 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 C shares. The fee for 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 or distribution services with
regard to Class C shares. Prior to February 1, 2008, PFD was reimbursed under
the Distribution Plan for distribution expenses in an amount of up to 0.25% of
the average daily net assets attributable to Class A shares. Included in "Due to
affiliates" reflected on the Statement of Assets and Liabilities is $108 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. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00% based on the lower of cost or market
value of shares being redeemed. Proceeds from the CDSCs are paid to PFD. For the
six months ended February 28, 2009, no CDSCs were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into an expense offset arrangement with PIMSS resulting in
a reduction in the Fund's total expenses due to interest earned on cash held by
PIMSS. For the six months ended February 28, 2009, the Fund's expenses were
reduced by $61 under such arrangements.
6. 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.
Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 31
Approval of Sub-Advisory Agreement (unaudited)
Pioneer Investment Management, Inc. (PIM) serves as the Fund's investment
adviser pursuant to an investment advisory agreement between PIM and the Fund.
PIM has retained Oak Ridge Investments, LLC to serve as the sub-adviser to the
Fund pursuant to a sub-advisory agreement between PIM and the sub-adviser.
At a meeting held on January 8, 2008, the Trustees of the Fund approved an
amended and restated investment advisory agreement between the Fund and PIM.
Shareholders of the Fund approved the amended and restated investment advisory
agreement on May 13, 2008. The material factors and conclusions with respect
thereto that formed the basis for the Trustees' approval of the amended and
restated investment advisory agreement are included in the Fund's semi-annual
report for the period ended June 30, 2008.
At a meeting held on November 11, 2008, based on their evaluation of the
information provided by PIM and the sub-adviser, the Trustees of the Fund,
including the independent Trustees voting separately, unanimously approved the
continuation of the sub-advisory agreement for the Fund for another year. In
considering the continuation of the sub-advisory agreement, the Trustees
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the continuation of the sub-
advisory agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services provided
to the Fund by the sub-adviser, taking into account the investment objective and
strategy of the Fund and the information related to the Fund provided to the
Trustees at each quarterly meeting. The Trustees reviewed the terms of the
sub-advisory agreement. The Trustees also reviewed the sub-adviser's investment
approach for the Fund and its research process. The Trustees considered the
resources of the sub-adviser and the personnel of the sub-adviser who provide
investment management services to the Fund.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services provided by the sub-adviser to the Fund were
satisfactory and consistent with the terms of the sub-advisory agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
average performance of its peer group of funds as classified by
32 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
Morningstar, Inc. (Morningstar), an independent provider of investment company
data, and with the performance of the Fund's benchmark index. The Trustees noted
that the Fund commenced operations on October 16, 2006. The Trustees considered
that the Fund's annualized total return was in the third quintile of its
Morningstar category for the one year period ended June 30, 2008. (In all
quintile rankings referred to throughout this disclosure, first quintile is most
favorable to the Fund's shareowners. Thus, highest relative performance would be
first quintile and lowest relative expenses would also be first quintile.) The
Trustees concluded that the investment performance of the Fund was satisfactory.
Sub-advisory Fee and Expenses
The Trustees considered the fees payable to the sub-adviser under the sub-
advisory agreement. They also considered that PIM, not the Fund, paid the
sub-adviser out of the management fees paid to PIM under the investment advisory
agreement. The Trustees considered information regarding the management fees and
expenses of the Fund in comparison to the management fees of its peer group of
funds as classified by Morningstar and the expense ratios of a peer group of
funds selected on the basis of criteria determined by the independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2008 was in the third quintile relative to the management fees
paid by other funds in its peer group Morningstar category for the comparable
period. The Trustees also considered that the Fund's expense ratio for the
twelve months ended June 30, 2008 was in the second quintile relative to its
Strategic Insight peer group.
The Trustees also reviewed the advisory fees charged by the sub-adviser to its
other clients with similar investment strategies as the Fund. The Trustees noted
that the fee rates for those clients generally were higher than the sub-advisory
fees paid to the sub-adviser with respect to the Fund.
The Trustees concluded that the sub-advisory fee payable by PIM to the sub-
adviser of the Fund was reasonable in relation to the nature and quality of
services provided by the sub-adviser. The Trustees also concluded that the
Fund's expense ratio was reasonable.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. They also considered PIM's profit margin in connection
with the overall operation of the Fund. The Trustees further considered the
sub-advisory fees received by the sub-adviser with respect to the
Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 33
Fund and the percentage that such fees represented of the sub-adviser's overall
revenues (for the 12-month period ended December 31, 2007). They also reviewed
the financial results realized by PIM and its affiliates from non-fund
businesses. The Trustees considered the profit margins with respect to the Fund
in comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
recognized that each of PIM and the sub-adviser should be entitled to earn a
reasonable level of profit for the services provided to the Fund. The Trustees
concluded that the profit margins with respect to the management of the Fund
were not unreasonable.
Economies of Scale
The Trustees considered the economies of scale with respect to the management of
the Fund, whether the Fund had appropriately benefited from any economies of
scale, and whether there was potential for realization of any further economies
of scale. The Trustees concluded that, because of the breakpoints in the
management and sub-advisory fee schedules and the reduced fee rates above
certain asset levels, any perceived or potential economies of scale would be
shared with the Fund.
Other Benefits
The Trustees considered the other benefits to the sub-adviser from its
relationship with the Fund, including the benefits to the sub-adviser and its
affiliates from the use of "soft" commission dollars generated by the Fund to
pay for research and brokerage services. The Trustees further considered the
intangible benefits to the sub-adviser by virtue of its relationship with the
Fund and certain of the other Pioneer funds. The Trustees concluded that the
receipt of these benefits was reasonable in the context of the overall
relationship between the sub-adviser and the Fund.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the independent Trustees, concluded that the
sub-advisory agreement for the Fund between PIM and the sub-adviser, including
the fees payable thereunder, was fair and reasonable and voted to approve the
continuation of the sub-advisory agreement for the Fund.
34 Pioneer Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham Dorothy E. Bourassa, Secretary
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
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 Oak Ridge All Cap Growth Fund | Semiannual Report | 2/28/09 35
This page for your notes.
36 Pioneer Oak Ridge All Cap Growth 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.
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 Series Trust V
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.