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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08657
Pioneer Equity Income Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 2008 through October 31, 2009
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer Equity
Income Fund
- --------------------------------------------------------------------------------
Annual Report | October 31, 2009
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A PEQIX
Class B PBEQX
Class C PCEQX
Class R PQIRX
Class Y PYEQX
Class Z PEZQX
[LOGO]PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 25
Notes to Financial Statements 35
Report of Independent Registered Public Accounting Firm 42
Trustees, Officers and Service Providers 44
Pioneer Equity Income Fund | Annual Report | 10/31/09 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe have begun to recover this year from
one of their most tumultuous periods in history. This is a welcome relief, and
we are generally optimistic about the prospects for the economy going forward.
Still, challenges remain. Unemployment is high. Consumer demand and loan growth
are weak. And housing has not yet returned to normal.
At Pioneer, we have long advocated the benefits of investing for the long term.
This strategy has generally performed well for many investors. Those who
remained invested in the market during the downturn have most likely seen their
portfolios start to recover this year as the Dow Jones Industrial Average
climbed back towards the 10,000 level. Many bond investors have similarly seen
a strong rebound, with a broad-based recovery across many different fixed-income
asset classes. The riskiest asset classes, such as high-yield bonds, have
outperformed other fixed-income asset classes for most of 2009.
At Pioneer, we are not changing the approach to investing that we have used for
more than 80 years. We remain focused on company fundamentals and risk
management. Our investment process is based on careful research into individual
companies, 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 opportunities for making money in many corners
of the markets around the globe, it takes research and experience to separate
solid investment opportunities from speculation.
Following this difficult period, many investors are rethinking their approach
to investing and risk management. Some are questioning whether the basic
investment principles they were taught in the past are still useful in today's
markets. Complicating matters is that financial markets remain unpredictable.
Our advice, as always, is to work closely with a trusted financial advisor to
discuss your goals and work together to develop an investment strategy that
meets your individual needs. There is no single best strategy that works for
every investor.
2 Pioneer Equity Income Fund | Annual Report | 10/31/09
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. We greatly appreciate you putting your trust in us
and we 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 Equity Income Fund | Annual Report | 10/31/09 3
Portfolio Management Discussion | 10/31/09
Over the 12 months ended October 31, 2009, the U.S. economy experienced
significant turbulence, marked by a financial crisis, a stock market debacle,
massive government stimulus spending and intervention in the private economy,
and then a sharp market recovery, which defined the final eight months of the
period. In the following interview, John Carey, Executive Vice President and
Head of the U.S. Core Value Department at Pioneer Investments, discusses the
investment environment during the 12-month period and the Fund's performance.
Mr. Carey is responsible for the day-to-day management of Pioneer Equity Income
Fund.
Q Could you discuss the investment environment for the Fund during the 12
months ended October 31, 2009?
A Times of extreme fluctuation in the markets often leave one baffled. How
could things possibly have changed so much over such a short span? Why
would investors have switched in mood from deeply pessimistic to buoyantly
optimistic in a space of a few weeks? What could have prompted savers
suddenly to move money they were hiding under their pillows to stocks and
bonds of distressed companies? It is a mysterious matter, the tossing and
turning of the financial waves and what sets it in motion!
What appeared to turn things around this time was an enormous infusion of
money into the markets by the U.S. government, and the sudden realization
in early March 2009 that the government support was going to keep our
financial system from collapsing. Investor sentiment had also reached such
a low point that the only direction it could move was higher; market
technicians call that an "oversold condition," and what we had in early
2009 was an extreme version of that. The stock market also reflects
economic expectations, and by March 2009 some forecasters were predicting
improving conditions over the balance of the year and into 2010.
In the first stages of a market upturn, speculators are often drawn to the
depressed shares of troubled companies and other stocks hard hit by the
recession and bear market. Not unreasonably, they sense that the greatest
bargains may lie in those neglected corners of the market, but, less
rationally, they will often buy quite indiscriminately, scooping up
everything that had been beaten down in price, whether or not it represents
good value and regardless of whether the company has genuine chances for a
long-term recovery and future growth. We saw a similar phenomenon in 2003,
when, following the Internet debacle of the previous few years, the market
came roaring back and took aloft the stocks of many, many fallen favorites
from the late 1990s. In the end, though, the market had it right about the
loss of value in some of those "stories," and after the impressive rebounds
a lot of
4 Pioneer Equity Income Fund | Annual Report | 10/31/09
the same stocks fell right back into their torpor. Only time will tell what
will happen on this occasion.
Q How did Pioneer Equity Income Fund fare during that volatile period in the
markets?
A Over the 12 months ended October 31, 2009, Pioneer Equity Income Fund's Class
A shares returned -2.30% at net asset value, while the Fund's benchmark,
the Russell 1000 Value Index (the Russell Index), returned 4.78%. During
the same 12-month period, the average return of the 301 mutual funds in
Lipper's Equity Income category was 9.29%.
Q Could you please discuss the Fund's sector exposures during the last fiscal
year ended October 31, 2009, and how they affected the Fund's relative
performance during the 12-month period?
A The bulk of the Fund's underperformance versus our benchmark Russell Index
was attributable to our positioning in the financial services sector. As
the companies there cut or appeared at risk of cutting their dividends, we
sold the shares, as has been our discipline for the Fund. Unfortunately,
when the market turned around, it was precisely a number of the dividend-
cutting firms that came back most strongly price-wise. Similar decisions in
the materials and consumer-cyclical sectors had the same negative effect on
the Fund's performance results.
As we move into the Fund's new fiscal year (beginning November 1, 2009),
the portfolio remains underweight to the financials sector, though we have
restored holdings in a few of the companies where we have seen ongoing
potential for operational improvement and revenue gains. Otherwise we have
remained focused on maintaining a competitive dividend yield for the Fund's
shareholders and, accordingly, continue our search for worthwhile
investments across all of the market sectors.
Q What new purchases did you make in the Fund's portfolio during the Fund's
fiscal year ended October 31, 2009, and which positions did you eliminate?
A Stocks in the financials sector to which we either returned or added to the
Fund for the first time during the period included: Wells Fargo, JPMorgan
Chase, Bank of New York Mellon, and Aflac. Exxon Mobil expanded the Fund's
holdings in the energy sector. In materials, we bought shares of Sonoco
Products, manufacturer of industrial and consumer packaging. Intel enhanced
the Fund's exposure to information technology, and in telecommunication
services we assumed a position in CenturyTel following its acquisition of
Embarq, another Fund holding.
Pioneer Equity Income Fund | Annual Report | 10/31/09 5
On the sale side, in addition to our tendering of the Fund's shares in
Embarq, we disposed of positions in a number of companies that we thought
had either reached their potential or were no longer as compelling from an
investment standpoint as they had been when we made our initial purchases.
The sales from the Fund's portfolio included Pepsi, Air Products &
Chemicals, Campbell Soup, Pfizer, Whitney Holding, Plum Creek Timber,
Frontier Communications, Windstream, Edison International, FPL Group, and
PG&E.
Q The Fund has typically had a high regard for dividends. Given the many
cost-cutting measures taken by companies in the wake of the financial
crisis and recession, has identifying high-quality, dividend-paying stocks
become more difficult?
A Unquestionably, this has been a trying time for us as dividend-focused
investors, both because the dividend payers have had one of their rare
periods of significant underperformance in the market relative to
non-dividend payers and because the companies paying dividends have been
quite cautious about raising them. On the horizon there may also be changes
in the tax laws that affect dividend payments and companies' interest in
making them. But we do think that the companies maintaining their dividends
during the difficult times we have experienced have generally weathered the
economic storms better than the average company and that they are in good
shape to take part in the economy as it starts to grow again. It has been a
stiff test for companies and their financial skills as well as their
commitment to shareholders. We think that the companies passing that test
hold the potential for attractive total return for the Fund's shareholders
in the years ahead.
Q As we near the end of 2009, the U.S. economy appears to be recovering from
its worst recession in some years. However, unemployment remains high, and
the large Federal budget deficit -- with additional spending still under
discussion in Washington -- continues to be an area of concern. Could you
discuss your outlook for 2010 and how it may influence your investment
approach?
A We are generally constructive in our economic outlook, believing that the
momentum of recovery will more than offset whatever adverse effects may
result from policy changes and spending programs coming out of Washington.
While we share the concern over the deficit, we note that it should begin
diminishing as a percentage of GDP during the next year or two. We would
also note that, these days, an investment in U.S. stocks is not just a bet
on the U.S. economy, though we do still like that bet, too. Instead,
because of the growing contribution of overseas sales and earnings to U.S.
corporate results, one must think more broadly and take into account all of
the potential opportunities for U.S. companies throughout the world. From
6 Pioneer Equity Income Fund | Annual Report | 10/31/09
that point of view, we think that many of the Fund's holdings are very
attractively positioned indeed, with strong businesses in such growing
countries and areas as India, East Asia, and Latin America.
At the end of the day, we look at individual companies and their individual
prospects. We do not start with a "theme," an economic "macroview," or
opinion about a sector. Instead, we turn over companies one by one and
consider the unique prospects each of them has to develop over time and
become a good investment vehicle for our Fund. There are always things
about which one can worry. It is our goal to look through as much of the
confusion about current events as we can and see each company on its own
terms, and every stock for its particular potential.
Thank you for your continued support.
Please refer to the Schedule of Investments on pages 18-24 for a full listing
of Fund securities.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
Past performance is no guarantee of future results, and there is no guarantee
that the market forecast discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes.
Pioneer Equity Income Fund | Annual Report | 10/31/09 7
Portfolio Summary | 10/31/09
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 90.3%
Temporary Cash Investments 8.4%
Depositary Receipts for International Stocks 1.3%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Consumer Staples 15.4%
Financials 15.3%
Industrials 14.3%
Utilities 14.2%
Consumer Discretionary 9.7%
Energy 9.1%
Materials 8.7%
Information Technology 7.6%
Health Care 3.6%
Telecommunication Services 2.1%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Questar Corp. 3.22%
2. Gorman-Rupp Co. 2.85
3. PACCAR, Inc. 2.80
4. Valspar Corp. 2.66
5. Johnson Controls, Inc. 2.42
6. Colgate-Palmolive Co. 2.35
7. Chubb Corp. 2.32
8. EQT Corp. 2.25
9. U.S. Bancorp 2.03
10. Procter & Gamble Co. 2.03
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
8 Pioneer Equity Income Fund | Annual Report | 10/31/09
Prices and Distributions | 10/31/09
Net Asset Value per Share
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class 10/31/09 10/31/08
- --------------------------------------------------------------------------------
A $20.24 $21.28
- --------------------------------------------------------------------------------
B $20.10 $21.14
- --------------------------------------------------------------------------------
C $20.01 $21.04
- --------------------------------------------------------------------------------
R $20.43 $21.45
- --------------------------------------------------------------------------------
Y $20.37 $21.41
- --------------------------------------------------------------------------------
Z $20.27 $21.30
- --------------------------------------------------------------------------------
Distributions per Share: 11/1/08-10/31/09
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- --------------------------------------------------------------------------------
A $ 0.5022 $ -- $ --
- --------------------------------------------------------------------------------
B $ 0.3212 $ -- $ --
- --------------------------------------------------------------------------------
C $ 0.3438 $ -- $ --
- --------------------------------------------------------------------------------
R $ 0.4420 $ -- $ --
- --------------------------------------------------------------------------------
Y $ 0.5877 $ -- $ --
- --------------------------------------------------------------------------------
Z $ 0.5740 $ -- $ --
- --------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/09 9
Performance Update | 10/31/09 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2009)
- --------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------
10 Years 1.51% 0.91%
5 Years 0.33 -0.85
1 Year -2.30 -2.39
- --------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- --------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------
1.10% 1.10%
- --------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/99 9,425 10,000
10,075 10,552
10/01 9,147 9,300
7,993 8,368
10/03 9,263 10,283
10,776 11,871
10/05 11,947 13,280
14,529 16,130
10/07 16,014 17,877
11,211 11,299
10/09 10,953 11,839
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
10 Pioneer Equity Income Fund | Annual Report | 10/31/09
Performance Update | 10/31/09 Class B Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2009)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
10 Years 0.65% 0.65%
5 Years -0.56 -0.56
1 Year -3.26 -7.06
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
1.96% 1.96%
- -------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/99 10,000 10,000
10,604 10,552
10/01 9,554 9,300
8,280 8,368
10/03 9,514 10,283
10,973 11,871
10/05 12,058 13,280
14,537 16,130
10/07 15,889 17,877
11,030 11,299
10/09 10,671 11,839
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied
to withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus.
Note: Shares purchased prior to December 1, 2004, remain subject to the CDSC in
effect at the time you purchased those shares. For performance information for
shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
Pioneer Equity Income Fund | Annual Report | 10/31/09 11
Performance Update | 10/31/09 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2009)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
10 Years 0.68% 0.68%
5 Years -0.47 -0.47
1 Year -3.11 -3.11
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
1.87% 1.87%
- -------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/99 10,000 10,000
10,594 10,552
10/01 9,533 9,300
8,259 8,368
10/03 9,492 10,283
10,955 11,871
10/05 12,047 13,280
14,536 16,130
10/07 15,898 17,877
11,046 11,299
10/09 10,702 11,839
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not
reflect the 1% front-end sales charge in effect prior to February 1, 2004. If
you paid a 1% sales charge, your returns would be lower than those shown above.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
12 Pioneer Equity Income Fund | Annual Report | 10/31/09
Performance Update | 10/31/09 Class R Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2009)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
10 Years 1.24% 1.24%
5 Years 0.15 0.15
1 Year -2.50 -2.50
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
1.39% 1.39%
- -------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/99 10,000 10,000
10,637 10,552
10/01 9,609 9,300
8,355 8,368
10/03 9,656 10,283
11,223 11,871
10/05 12,416 13,280
15,075 16,130
10/07 16,596 17,877
11,595 11,299
10/09 11,305 11,839
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance of Class R shares for the period prior to the commencement of
operations of Class R shares on April 1, 2003 is based on the performance of
Class A shares, reduced to reflect the higher distribution and service fees of
Class R shares. For the period after April 1, 2003, the actual performance of
Class R shares is reflected. Class R shares are not subject to sales charges
and are available for limited groups of eligible investors, including
institutional investors. All results are historical and assume the reinvestment
of dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
Pioneer Equity Income Fund | Annual Report | 10/31/09 13
Performance Update | 10/31/09 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2009)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
10 Years 1.94% 1.94%
5 Years 0.74 0.74
1 Year -1.85 -1.85
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
0.72% 0.72%
- -------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/99 10,000 10,000
10,734 10,552
10/01 9,780 9,300
8,583 8,368
10/03 9,994 10,283
11,682 11,871
10/05 13,003 13,280
15,876 16,130
10/07 17,568 17,877
12,347 11,299
10/09 12,119 11,839
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class Y shares for the period prior to the
commencement of operations of Class Y shares on July 2, 1998, reflects the NAV
performance of the Fund's Class A shares. The performance does not reflect
differences in expenses, including the Rule 12b-1 fees applicable to Class A
shares. Since fees for Class A shares are generally higher than those of Class
Y shares, the performance for Class Y shares prior to their inception would
have been higher than the performance shown. Class Y shares are not subject to
sales charges and are available for limited groups of eligible investors,
including institutional investors. All results are historical and assume the
reinvestment of dividends and capital gains. Other share classes are available
for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
14 Pioneer Equity Income Fund | Annual Report | 10/31/09
Performance Update | 10/31/09 Class Z Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2009)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
10 Years 1.61% 1.61%
5 Years 0.51 0.51
1 Year -1.88 -1.88
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2009)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
0.76% 0.76%
- -------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/99 10,000 10,000
10,690 10,552
10/01 9,706 9,300
8,481 8,368
10/03 9,829 10,283
11,434 11,871
10/05 12,677 13,280
15,416 16,130
10/07 17,017 17,877
11,954 11,299
10/09 11,729 11,839
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 Class Z shares on July
6, 2007, reflects the NAV performance of the Fund's Class A shares. The
performance does not reflect differences in expenses, including the Rule 12b-1
fees applicable to Class A shares. Since fees for Class A shares are generally
higher than those of Class Z shares, the performance for Class Z shares prior
to their inception on July 6, 2007 would have been higher than the performance
shown. Class Z shares are not subject to sales charges and are available for
limited groups of eligible investors. All results are historical and assume the
reinvestment of dividends and capital gains. Other share classes are available
for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through March 1, 2012 for Class Z 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 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
Pioneer Equity Income Fund | Annual Report | 10/31/09 15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on actual returns from May 1, 2009 through October 31, 2009.
- ---------------------------------------------------------------------------------------------------------------------------
Share Class A B C R Y Z
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/09
- ---------------------------------------------------------------------------------------------------------------------------
Ending Account Value $1,151.58 $1,146.07 $1,146.76 $1,150.71 $1,154.03 $1,154.35
(after expenses)
on 10/31/09
- ---------------------------------------------------------------------------------------------------------------------------
Expenses Paid $6.67 $11.90 $11.04 $7.81 $4.07 $4.29
During Period*
- ---------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.23%, 2.20%,
2.04%, 1.44%, 0.75%, and 0.79%, for Class A, Class B, Class C, Class R,
Class Y and Class Z shares, respectively, multiplied by the average account
value over the period, multiplied by 184/365 (to reflect the partial year
period).
16 Pioneer Equity Income Fund | Annual Report | 10/31/09
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 Equity Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2009 through October 31, 2009.
- ---------------------------------------------------------------------------------------------------------------------------
Share Class A B C R Y Z
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/09
- ---------------------------------------------------------------------------------------------------------------------------
Ending Account Value $1,019.00 $1,014.12 $1,014.92 $1,017.95 $1,021.42 $1,021.22
(after expenses)
on 10/31/09
- ---------------------------------------------------------------------------------------------------------------------------
Expenses Paid $6.26 $11.17 $10.36 $7.32 $3.82 $4.02
During Period*
- ---------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.23%, 2.20%,
2.04%, 1.44%, 0.75%, and 0.79%, for Class A, Class B, Class C, Class R,
Class Y and Class Z shares, respectively, multiplied by the average account
value over the period, multiplied by 184/365 (to reflect the partial year
period).
Pioneer Equity Income Fund | Annual Report | 10/31/09 17
Schedule of Investments | 10/31/09
- -----------------------------------------------------------------------------------
Shares Value
- -----------------------------------------------------------------------------------
COMMON STOCKS -- 99.9%
ENERGY -- 9.1%
Integrated Oil & Gas -- 8.0%
162,200 Chevron Corp. $ 12,414,788
307,560 ConocoPhillips Co. 15,433,361
150,000 Exxon Mobil Corp. 10,750,500
541,600 Marathon Oil Corp. 17,314,952
210,000 Royal Dutch Shell Plc (A.D.R.) 12,476,100
------------
$ 68,389,701
- -----------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.1%
520,000 Spectra Energy Corp. $ 9,942,400
------------
Total Energy $ 78,332,101
- -----------------------------------------------------------------------------------
MATERIALS -- 8.7%
Diversified Chemical -- 1.7%
461,400 E.I. du Pont de Nemours and Co. $ 14,681,748
- -----------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.0%
270,000 Compass Minerals International, Inc. (b) $ 16,826,400
- -----------------------------------------------------------------------------------
Paper Packaging -- 0.6%
200,000 Sonoco Products Co. $ 5,350,000
- -----------------------------------------------------------------------------------
Specialty Chemicals -- 2.7%
900,000 Valspar Corp. $ 22,833,000
- -----------------------------------------------------------------------------------
Steel -- 1.7%
157,448 Carpenter Technology Corp. $ 3,311,131
293,000 Nucor Corp. 11,676,050
------------
$ 14,987,181
------------
Total Materials $ 74,678,329
- -----------------------------------------------------------------------------------
CAPITAL GOODS -- 13.4%
Construction & Farm Machinery & Heavy Trucks -- 4.9%
200,000 Caterpillar, Inc. (b) $ 11,012,000
160,000 Deere & Co. 7,288,000
641,905 PACCAR, Inc. 24,013,666
------------
$ 42,313,666
- -----------------------------------------------------------------------------------
Electrical Component & Equipment -- 1.5%
350,000 Emerson Electric Co. $ 13,212,500
- -----------------------------------------------------------------------------------
Industrial Machinery -- 7.0%
988,195 Gorman-Rupp Co.+(b) $ 24,398,535
303,700 Illinois Tool Works, Inc. 13,945,904
150,500 Parker Hannifin Corp. 7,970,480
200,000 Snap-On, Inc. (b) 7,306,000
295,000 The Timken Co. 6,498,850
------------
$ 60,119,769
------------
Total Capital Goods $115,645,935
- -----------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Equity Income Fund | Annual Report | 10/31/09
- --------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.7%
Office Services & Supplies -- 0.7%
240,000 Mine Safety Appliances Co. (b) $ 6,117,600
------------
Total Commercial Services & Supplies $ 6,117,600
- --------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 2.4%
Auto Parts & Equipment -- 2.4%
866,800 Johnson Controls, Inc. $ 20,733,856
------------
Total Automobiles & Components $ 20,733,856
- --------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.7%
Apparel, Accessories & Luxury Goods -- 1.7%
200,000 VF Corp. (b) $ 14,208,000
------------
Total Consumer Durables & Apparel $ 14,208,000
- --------------------------------------------------------------------------
CONSUMER SERVICES -- 2.2%
Leisure Facilities -- 0.9%
745,017 Cedar Fair LP (b) $ 7,457,620
- --------------------------------------------------------------------------
Restaurants -- 1.3%
200,000 McDonald's Corp. $ 11,722,000
------------
Total Consumer Services $ 19,179,620
- --------------------------------------------------------------------------
MEDIA -- 1.3%
Publishing -- 1.3%
170,000 McGraw-Hill Co., Inc. $ 4,892,600
200,000 Reed Elsevier Plc (b) 6,032,000
------------
$ 10,924,600
------------
Total Media $ 10,924,600
- --------------------------------------------------------------------------
RETAILING -- 2.1%
Distributors -- 1.2%
280,000 Genuine Parts Co. (b) $ 9,797,200
- --------------------------------------------------------------------------
Home Improvement Retail -- 0.9%
400,000 Lowe's Co., Inc. $ 7,828,000
------------
Total Retailing $ 17,625,200
- --------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 0.9%
Food Distributors -- 0.9%
300,000 Sysco Corp. $ 7,935,000
------------
Total Food & Drug Retailing $ 7,935,000
- --------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/09 19
Schedule of Investments | 10/31/09 (continued)
- -----------------------------------------------------------------------
Shares Value
- -----------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 8.8%
Packaged Foods & Meats -- 8.2%
165,000 General Mills, Inc. $ 10,876,800
422,550 H.J. Heinz Co., Inc. 17,003,412
330,000 Hershey Foods Corp. (b) 12,470,700
280,000 Kellogg Co. 14,431,200
271,000 Kraft Foods, Inc. 7,457,920
150,000 The J.M. Smucker Co. 7,909,500
------------
$ 70,149,532
- -----------------------------------------------------------------------
Soft Drinks -- 0.6%
100,000 Coca-Cola Co. $ 5,331,000
------------
Total Food, Beverage & Tobacco $ 75,480,532
- -----------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 5.7%
Household Products -- 5.7%
188,800 Clorox Co. $ 11,182,624
256,000 Colgate-Palmolive Co. 20,129,280
300,000 Procter & Gamble Co. 17,400,000
------------
$ 48,711,904
------------
Total Household & Personal Products $ 48,711,904
- -----------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.4%
Health Care Equipment -- 1.4%
220,000 Baxter International, Inc. $ 11,893,200
------------
Total Health Care Equipment & Services $ 11,893,200
- -----------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 6.2%
Pharmaceuticals -- 6.2%
306,600 Abbott Laboratories, Ltd. $ 15,504,762
539,500 Bristol-Myers Squibb Co. 11,761,100
380,000 Eli Lilly & Co. 12,923,800
409,700 Merck & Co., Inc. (b) 12,672,021
------------
$ 52,861,683
------------
Total Pharmaceuticals & Biotechnology $ 52,861,683
- -----------------------------------------------------------------------
BANKS -- 3.8%
Diversified Banks -- 2.8%
750,000 U.S. Bancorp $ 17,415,000
237,500 Wells Fargo & Co. 6,536,000
------------
$ 23,951,000
- -----------------------------------------------------------------------
Regional Banks -- 1.0%
450,000 SunTrust Banks, Inc. (b) $ 8,599,500
------------
Total Banks $ 32,550,500
- -----------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Equity Income Fund | Annual Report | 10/31/09
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.1%
Asset Management & Custody Banks -- 3.1%
150,000 Northern Trust Corp. $ 7,537,500
250,000 T. Rowe Price Associates, Inc. (b) 12,182,500
252,000 The Bank of New York Mellon Corp. 6,718,320
------------
$ 26,438,320
- --------------------------------------------------------------------------------
Diversified Financial Services -- 1.0%
200,000 JPMorgan Chase & Co. $ 8,354,000
------------
Total Diversified Financials $ 34,792,320
- --------------------------------------------------------------------------------
INSURANCE -- 5.2%
Life & Health Insurance -- 1.1%
228,800 Aflac, Inc. $ 9,492,912
- --------------------------------------------------------------------------------
Property & Casualty Insurance -- 4.1%
410,200 Chubb Corp. $ 19,902,904
200,000 Cincinnati Financial Corp. (b) 5,072,000
200,000 The Travelers Companies, Inc. 9,958,000
------------
$ 34,932,904
------------
Total Insurance $ 44,425,816
- --------------------------------------------------------------------------------
REAL ESTATE -- 2.2%
Office Real Estate Investment Trusts -- 0.6%
100,000 Alexandria Real Estate Equities, Inc. (b) $ 5,417,000
- --------------------------------------------------------------------------------
Retail Real Estate Investment Trusts -- 0.7%
173,300 Regency Centers Corp. (b) $ 5,814,215
- --------------------------------------------------------------------------------
Specialized Real Estate Investment Trusts -- 0.9%
250,000 Nationwide Health Properties, Inc. $ 8,062,500
------------
Total Real Estate $ 19,293,715
- --------------------------------------------------------------------------------
SEMICONDUCTORS -- 3.6%
Semiconductors -- 3.6%
410,300 Analog Devices, Inc. $ 10,515,989
455,000 Intel Corp. 8,695,050
500,000 Microchip Technology (b) 11,980,000
------------
$ 31,191,039
------------
Total Semiconductors $ 31,191,039
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.1%
Integrated Telecommunication Services -- 2.1%
237,000 Century Telephone Enterprises, Inc. $ 7,693,020
336,584 Verizon Communications, Inc. 9,959,521
------------
$ 17,652,541
------------
Total Telecommunication Services $ 17,652,541
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/09 21
Schedule of Investments | 10/31/09 (continued)
- --------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------
UTILITIES -- 14.3%
Electric Utilities -- 4.2%
740,000 Duke Energy Corp. (b) $ 11,706,800
240,200 FirstEnergy Corp. 10,395,856
120,900 PPL Corp. 3,559,296
340,000 Southern Co. 10,604,600
------------
$ 36,266,552
- --------------------------------------------------------------------------
Gas Utilities -- 7.1%
392,100 AGL Resources, Inc. $ 13,707,816
460,000 EQT Corp. 19,255,600
693,200 Questar Corp. 27,617,087
------------
$ 60,580,503
- --------------------------------------------------------------------------
Multi-Utilities -- 3.0%
530,000 NSTAR (b) $ 16,403,500
314,600 Public Service Enterprise Group, Inc. 9,375,080
------------
$ 25,778,580
------------
Total Utilities $122,625,635
- --------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $726,536,195) $856,859,126
- --------------------------------------------------------------------------
Principal
Amount
TEMPORARY CASH INVESTMENTS -- 9.2%
SECURITIES LENDING COLLATERAL -- 9.2% (c)
Certificates of Deposit:
$ 3,844,325 Bank of Nova Scotia, 0.25%, 11/17/09 $ 3,844,325
4,057,899 BNP Paribas NY, 0.3%, 11/17/09 4,057,899
2,562,883 Rabobank Nederland NY, 0.24%, 12/11/09 2,562,883
2,562,883 Societe Generale, 0.27%, 12/4/09 2,562,883
1,879,475 Nordea NY, 0.21%, 12/22/09 1,879,475
2,562,883 Toronto Dominion, 0.23%, 12/16/09 2,562,883
-----------
$17,470,348
- --------------------------------------------------------------------------
Commercial Paper:
4,270,926 BBVA London, 0.29%, 11/6/09 $ 4,270,926
2,561,749 CBA Financial, 0.27%, 12/29/09 2,561,749
2,561,922 HND AF, 0.3%, 12/15/09 2,561,922
2,135,280 HSBC, 0.24%, 12/2/09 2,135,280
427,053 HSBC, 0.24%, 12/3/09 427,053
3,843,179 NABPP, 0.29%, 12/7/09 3,843,179
2,562,328 Cafco, 0.4%, 12/9/09 2,562,328
1,495,000 Char FD, 0.3%, 11/2/09 1,495,000
1,281,171 Ciesco, 0.33%, 11/23/09 1,281,171
1,281,112 Ciesco, 0.25%, 12/7/09 1,281,112
2,135,168 ABB LLC, 0.59%, 12/28/09 2,135,168
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Annual Report | 10/31/09
- --------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------
Commercial Paper -- (continued):
$2,135,036 BCS FUN, 0.60%, 12/29/09 $ 2,135,036
2,135,695 Kithaw, 0.23%, 11/3/09 2,135,695
2,135,152 Ranger, 0.24%, 12/11/09 2,135,152
1,255,021 TB LLC, 0.20%, 12/10/09 1,255,021
2,135,151 GE, 0.23%, 12/28/09 2,135,151
1,490,788 Santander U.S. Debt, 0.37%, 11/20/09 1,490,788
------------
$ 35,841,731
- --------------------------------------------------------------------------
Tri-party Repurchase Agreements:
12,387,269 Deutsche Bank, 0.06%, 11/2/09 $ 12,387,269
9,467,376 Barclays Capital Markets, 0.05%, 11/2/09 9,467,376
------------
$ 21,854,645
- --------------------------------------------------------------------------
Shares
Money Market Mutual Funds:
1,708,589 Dreyfus Preferred Money Market Fund $ 1,708,589
2,135,736 Fidelity Prime Money Market Fund 2,135,736
------------
$ 3,844,325
------------
Total Securities Lending Collateral $ 79,011,049
- --------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $79,011,049) $ 79,011,049
- --------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 109.1%
(Cost $805,547,244) (a) $935,870,175
- --------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (9.1)% $(78,478,045)
- --------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $857,392,130
==========================================================================
(A.D.R.) American Depositary Receipt
+ Investment held by the Fund representing 5% or more of the outstanding
voting stock of such company.
(a) At October 31, 2009, the net unrealized gain on investments based on
cost for federal income tax purposes of $793,807,573 was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $187,899,175
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (45,836,573)
-------------
Net unrealized gain $142,062,602
=============
(b) At October 31, 2009, the following securities were out on loan:
- -----------------------------------------------------------------------------
Shares Security Value
- -----------------------------------------------------------------------------
98,300 Alexandria Real Estate Equities, Inc. $5,324,911
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/09 23
Schedule of Investments | 10/31/09 (continued)
- --------------------------------------------------------------------------
Shares Security Value
- --------------------------------------------------------------------------
100,000 Caterpillar, Inc. 5,506,000
572,700 Cedar Fair LP 5,732,727
121,800 Cincinnati Financial Corp. 3,088,848
30,400 Compass Minerals International, Inc. 1,894,528
70,100 Duke Energy Corp. 1,108,982
31,000 Genuine Parts Co. 1,084,690
564,032 Gorman-Rupp Co. + 13,925,950
70,300 Hershey Foods Corp. 2,656,637
391,600 Merck & Co., Inc. 12,112,188
495,000 Microchip Technology, Inc. 11,860,200
24,800 Mine Safety Appliances Co. 632,152
49,200 NSTAR 1,522,740
11,600 Reed Elsevier Plc 349,856
400 Regency Centers Corp. 13,420
51,500 Snap-On, Inc. 1,881,295
6,000 SunTrust Banks, Inc. 114,660
117,900 T. Rowe Price Associates, Inc. 5,745,267
12,400 VF Corp. 880,896
- --------------------------------------------------------------------------
Total $75,435,947
==========================================================================
(c) Securities lending collateral is managed by Credit Suisse AG, New York
Branch.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 2009 aggregated $247,531,105 and $227,050,539,
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 October 31, 2009, in valuing
the Fund's assets:
- --------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
- --------------------------------------------------------------------------------------------
Common Stock $856,859,126 $ -- $-- $856,859,126
Temporary Cash Investments -- 75,166,724 -- 75,166,724
Money Market Mutual Funds 3,844,325 -- -- 3,844,325
- --------------------------------------------------------------------------------------------
Total $860,703,451 $75,166,724 $-- $935,870,175
============================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Annual Report | 10/31/09
Statement of Assets and Liabilities | 10/31/09
ASSETS:
Investment in securities of unaffiliated issuers, at fair value
(including securities loaned of $75,435,947)
(cost $797,640,764) $911,471,640
Investment in securities of affiliated issuers, at fair value
(cost $7,906,480) 24,398,535
- --------------------------------------------------------------------------------------
Total Investment in securities, at fair value (cost $805,547,244) $935,870,175
Receivables --
Investment securities sold 1,824,421
Fund shares sold 704,437
Dividends 1,676,703
Due from Pioneer Investment Management, Inc. 33
Other 53,613
- --------------------------------------------------------------------------------------
Total assets $940,129,382
- --------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 1,069,822
Upon return of securities loaned 79,011,049
Due to bank 2,356,138
Due to affiliates 207,025
Accrued expenses 93,218
- --------------------------------------------------------------------------------------
Total liabilities $ 82,737,252
- --------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $949,412,094
Undistributed net investment income 12,191,599
Accumulated net realized loss on investments (234,534,494)
Net unrealized gain on investments 130,322,931
- --------------------------------------------------------------------------------------
Total net assets $857,392,130
======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $566,438,959/27,990,582 shares) $ 20.24
Class B (based on $42,950,048/2,137,123 shares) $ 20.10
Class C (based on $68,718,679/3,433,672 shares) $ 20.01
Class R (based on $68,903,799/3,373,502 shares) $ 20.43
Class Y (based on $110,147,767/5,406,312 shares) $ 20.37
Class Z (based on $232,878/11,490 shares) $ 20.27
MAXIMUM OFFERING PRICE:
Class A ($20.24 [divided by] 94.25%) $ 21.47
======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/09 25
Statement of Operations
For the Year Ended 10/31/09
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $103,320)
(including income from affiliated issuers of $395,278) $32,609,214
Interest 2,178
Income from securities loaned, net 762,775
- --------------------------------------------------------------------------------------------
Total investment income $ 33,374,167
- --------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 4,785,930
Transfer agent fees and expenses
Class A 939,479
Class B 196,292
Class C 128,649
Class R 7,842
Class Y 9,518
Class Z 258
Distribution fees
Class A 1,373,226
Class B 490,777
Class C 728,296
Class R 310,104
Shareholder communications expense 907,814
Administrative reimbursements 348,290
Custodian fees 38,464
Registration fees 130,410
Professional fees 96,942
Printing expense 114,388
Fees and expenses of nonaffiliated trustees 31,313
Miscellaneous 74,654
- ---------------------------------------------------------------------------------------------
Total expenses $ 10,712,646
Less fees waived and expenses reimbursed by
Pioneer Investment Management Inc (289)
Less fees paid indirectly (1,984)
- ---------------------------------------------------------------------------------------------
Net expenses $ 10,710,373
- ---------------------------------------------------------------------------------------------
Net investment income $ 22,663,794
- ---------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $(190,219,889)
- ---------------------------------------------------------------------------------------------
Change in net unrealized gain on investments $ 145,825,966
- ---------------------------------------------------------------------------------------------
Net loss on investments $ (44,393,923)
- ---------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (21,730,129)
=============================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Annual Report | 10/31/09
Statements of Changes in Net Assets
For the Years Ended 10/31/09 and 10/31/08, respectively
- --------------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/09 10/31/08
- --------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 22,663,794 $ 29,977,817
Net realized loss on investments (190,219,889) (46,325,098)
Change in net unrealized gain (loss) on investments 145,825,966 (386,285,177)
- --------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(21,730,129) $(402,632,458)
- --------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.50 and $0.67 per share, respectively) $(14,723,941) $ (21,469,714)
Class B ($0.32 and $0.44 per share, respectively) (859,684) (1,641,787)
Class C ($0.34 and $0.47 per share, respectively) (1,360,199) (2,217,613)
Class R ($0.44 and $0.62 per share, respectively) (1,438,614) (1,604,652)
Class Y ($0.59 and $0.77 per share, respectively) (1,903,303) (479,297)
Class Z ($0.57 and $0.76 per share, respectively) (5,589) (2,541)
Net realized gain:
Class A ($0.00 and $1.81 per share, respectively) -- (58,022,033)
Class B ($0.00 and $1.81 per share, respectively) -- (7,250,041)
Class C ($0.00 and $1.81 per share, respectively) -- (8,556,663)
Class R ($0.00 and $1.81 per share, respectively) -- (3,902,964)
Class Y ($0.00 and $1.81 per share, respectively) -- (569,956)
Class Z ($0.00 and $1.81 per share, respectively) -- (5,293)
Tax Return of Capital
Class A ($0.00 and $0.06 per share, respectively) -- (1,837,869)
Class B ($0.00 and $0.04 per share, respectively) -- (132,551)
Class C ($0.00 and $0.04 per share, respectively) -- (186,558)
Class R ($0.00 and $0.05 per share, respectively) -- (145,254)
Class Y ($0.00 and $0.07 per share, respectively) -- (50,846)
Class Z ($0.00 and $0.07 per share, respectively) -- (236)
- --------------------------------------------------------------------------------------------------
Total distributions to shareowners $(20,291,330) $(108,075,868)
- --------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $256,184,922 $ 283,606,912
Reinvestment of distributions 17,273,103 93,824,570
Cost of shares repurchased (262,044,803) (413,610,641)
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Fund
share transactions $ 11,413,222 $ (36,179,159)
- --------------------------------------------------------------------------------------------------
Net decrease in net assets $(30,608,237) $(546,887,485)
NET ASSETS:
Beginning of year 888,000,367 1,434,887,852
- --------------------------------------------------------------------------------------------------
End of year $857,392,130 $ 888,000,367
- --------------------------------------------------------------------------------------------------
Undistributed net investment income $ 12,191,599 $ 10,363,275
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/09 27
Statements of Changes in Net Assets (continued)
'09 Shares '09 Amount '08 Shares '08 Amount
Class A
Shares sold 6,831,723 $126,912,557 6,473,245 $177,530,067
Reinvestment of distributions 699,159 13,048,277 2,505,107 73,189,535
Less shares repurchased (9,581,788) (177,386,543) (11,076,135) (302,251,218)
- --------------------------------------------------------------------------------------------------------
Net decrease (2,050,906) $(37,425,709) (2,097,783) $(51,531,616)
========================================================================================================
Class B
Shares sold 255,365 $ 4,685,331 401,954 $ 10,993,041
Reinvestment of distributions 37,812 700,802 247,024 7,200,546
Less shares repurchased (1,302,936) (23,863,770) (1,595,953) (43,496,226)
- --------------------------------------------------------------------------------------------------------
Net decrease (1,009,759) $(18,477,637) (946,975) $(25,302,639)
========================================================================================================
Class C
Shares sold 745,551 $ 13,807,279 717,069 $ 19,582,553
Reinvestment of distributions 48,186 888,701 255,636 7,411,306
Less shares repurchased (1,555,650) (28,240,579) (1,587,472) (42,360,145)
- --------------------------------------------------------------------------------------------------------
Net decrease (761,913) $(13,544,599) (614,767) $(15,366,286)
========================================================================================================
Class R
Shares sold 1,077,124 $ 20,017,160 1,450,558 $ 40,479,999
Reinvestment of distributions 74,273 1,398,389 187,969 5,520,424
Less shares repurchased (787,987) (14,921,512) (645,440) (17,734,298)
- --------------------------------------------------------------------------------------------------------
Net increase 363,410 $ 6,494,037 993,087 $ 28,266,125
========================================================================================================
Class Y
Shares sold 4,875,243 $ 90,507,277 1,280,588 $ 35,000,916
Reinvestment of distributions 65,783 1,233,862 17,499 502,385
Less shares repurchased (896,241) (17,519,830) (281,251) (7,765,475)
- --------------------------------------------------------------------------------------------------------
Net increase 4,044,785 $ 74,221,309 1,016,836 $ 27,737,826
========================================================================================================
Class Z
Shares sold 13,823 $ 255,318 719 $ 20,336
Reinvestment of distributions 167 3,072 14 374
Less shares repurchased (6,044) (112,569) (115) (3,279)
- --------------------------------------------------------------------------------------------------------
Net increase 7,946 $ 145,821 618 $ 17,431
========================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Equity Income Fund | Annual Report | 10/31/09
Financial Highlights
- ----------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/09 10/31/08 10/31/07 10/31/06 10/31/05
- ----------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 21.28 $ 33.10 $ 33.53 $ 29.23 $ 26.91
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.58 $ 0.75 $ 0.69 $ 0.68 $ 0.61
Net realized and unrealized gain (loss) on investments (1.12) (10.03) 2.50 5.36 2.31
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.54) $ (9.28) $ 3.19 $ 6.04 $ 2.92
Distributions to shareowners:
Net investment income (0.50) (0.67) (0.73) (0.66) (0.60)
Net realized gain -- (1.81) (2.89) (1.08) --
Tax return of capital -- (0.06) -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.04) $ (11.82) $ (0.43) $ 4.30 $ 2.32
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 20.24 $ 21.28 $ 33.10 $ 33.53 $ 29.23
============================================================================================================================
Total return* (2.30)% (29.99)% 10.22% 21.61% 10.87%
Ratio of net expenses to average net assets+ 1.23% 1.11% 1.03% 1.04% 1.06%
Ratio of net investment income to average net assets+ 2.98% 2.67% 2.27% 2.27% 2.11%
Portfolio turnover rate 28% 19% 14% 32% 14%
Net assets, end of period (in thousands) $566,439 $639,388 $1,063,910 $840,640 $668,556
Ratios with reduction for fees paid indirectly:
Net expenses 1.23% 1.10% 1.02% 1.03% 1.06%
Net investment income 2.98% 2.68% 2.28% 2.28% 2.11%
============================================================================================================================
* Assumes initial investment at net asset value at the beginning of each year,
reinvestment of all distributions, the complete redemption of the investment
at net asset value at the end of each period and no sales charges. Total
return would be reduced if sales charges were taken into account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/09 29
Financial Highlights (continued)
- ----------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/09 10/31/08 10/31/07 10/31/06 10/31/05
- ----------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 21.14 $ 32.88 $ 33.32 $ 29.05 $ 26.75
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.51 $ 0.57 $ 0.51 $ 0.47 $ 0.38
Net realized and unrealized gain (loss) on investments (1.23) (10.02) 2.38 5.26 2.26
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.72) $ (9.45) $ 2.89 $ 5.73 $ 2.64
Distributions to shareowners:
Net investment income (0.32) (0.44) (0.44) (0.38) (0.34)
Net realized gain -- (1.81) (2.89) (1.08) --
Tax return of capital -- (0.04) -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.04) $(11.74) $ (0.44) $ 4.27 $ 2.30
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 20.10 $ 21.14 $ 32.88 $ 33.32 $ 29.05
============================================================================================================================
Total return* (3.26)% (30.58)% 9.30% 20.55% 9.89%
Ratio of net expenses to average net assets+ 2.20% 1.96% 1.90% 1.91% 1.93%
Ratio of net investment income to average net assets+ 2.08% 1.83% 1.42% 1.44% 1.24%
Portfolio turnover rate 28% 19% 14% 32% 14%
Net assets, end of period (in thousands) $42,950 $66,530 $134,618 $155,733 $157,889
Ratios with reduction for fees paid indirectly:
Net expenses 2.20% 1.96% 1.89% 1.90% 1.93%
Net investment income 2.08% 1.83% 1.43% 1.45% 1.24%
============================================================================================================================
* Assumes initial investment at net asset value at the beginning of each year,
reinvestment of all distributions, the complete redemption of the investment
at net asset value at the end of each period and no sales charges. Total
return would be reduced if sales charges were taken into account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Equity Income Fund | Annual Report | 10/31/09
Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/09 10/31/08 10/31/07 10/31/06 10/31/05
- ---------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 21.04 $ 32.75 $ 33.20 $ 28.96 $ 26.68
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.47 $ 0.55 $ 0.46 $ 0.45 $ 0.38
Net realized and unrealized gain (loss) on investments (1.16) (9.94) 2.44 5.29 2.28
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.69) $ (9.39) $ 2.90 $ 5.74 $ 2.66
Distributions to shareowners:
Net investment income (0.34) (0.47) (0.46) (0.42) (0.38)
Net realized gain -- (1.81) (2.89) (1.08) --
Tax return of capital -- (0.04) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.03) $(11.71) $ (0.45) $ 4.24 $ 2.28
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 20.01 $ 21.04 $ 32.75 $ 33.20 $ 28.96
===========================================================================================================================
Total return* (3.11)% (30.52)% 9.37% 20.66% 9.98%
Ratio of net expenses to average net assets+ 2.04% 1.87% 1.82% 1.83% 1.86%
Ratio of net investment income to average net assets+ 2.21% 1.92% 1.48% 1.49% 1.31%
Portfolio turnover rate 28% 19% 14% 32% 14%
Net assets, end of period (in thousands) $68,719 $88,291 $157,553 $139,915 $121,479
Ratios with reduction for fees paid indirectly:
Net expenses 2.04% 1.87% 1.81% 1.82% 1.86%
Net investment income 2.21% 1.92% 1.49% 1.50% 1.31%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each year,
reinvestment of all distributions, the complete redemption of the investment
at net asset value at the end of each period and no sales charges. Total
return would be reduced if sales charges were taken into account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/09 31
Financial Highlights (continued)
- ---------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/09 10/31/08 10/31/07 10/31/06 10/31/05
- ---------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 21.45 $ 33.34 $ 33.73 $ 29.39 $ 27.08
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.49 $ 0.68 $ 0.54 $ 0.51 $ 0.39
Net realized and unrealized gain (loss) on investments (1.07) (10.09) 2.63 5.51 2.48
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.58) $ (9.41) $ 3.17 $ 6.02 $ 2.87
Distributions to shareowners:
Net investment income (0.44) (0.62) (0.67) (0.60) (0.56)
Net realized gain -- (1.81) (2.89) (1.08) --
Tax return of capital -- (0.05) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.02) $(11.89) $ (0.39) $ 4.34 $ 2.31
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 20.43 $ 21.45 $ 33.34 $ 33.73 $ 29.39
===========================================================================================================================
Total return* (2.50)% (30.14)% 10.10% 21.41% 10.64%
Ratio of net expenses to average net assets+ 1.44% 1.33% 1.20% 1.23% 1.26%
Ratio of net investment income to average net assets+ 2.71% 2.44% 2.07% 2.00% 1.86%
Portfolio turnover rate 28% 19% 14% 32% 14%
Net assets, end of period (in thousands) $68,904 $64,559 $67,239 $26,140 $10,213
Ratios with reduction for fees paid indirectly:
Net expenses 1.44% 1.33% 1.19% 1.22% 1.26%
Net investment income 2.71% 2.44% 2.08% 2.01% 1.86%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each year,
reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Equity Income Fund | Annual Report | 10/31/09
- ---------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/09 10/31/08 10/31/07 10/31/06 10/31/05
- ---------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 21.41 $ 33.28 $ 33.68 $ 29.35 $27.02
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.42 $ 0.67 $ 0.91 $ 0.73 $ 0.63
Net realized and unrealized gain (loss) on investments (0.87) (9.89) 2.42 5.45 2.41
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.45) $ (9.22) $ 3.33 $ 6.18 $ 3.04
Distributions to shareowners:
Net investment income (0.59) (0.77) (0.84) (0.77) (0.71)
Net realized gain -- (1.81) (2.89) (1.08) --
Tax return of capital -- (0.07) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.04) $ (11.87) $ (0.40) $ 4.33 $ 2.33
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 20.37 $ 21.41 $ 33.28 $ 33.68 $29.35
===========================================================================================================================
Total return* (1.85)% (29.72)% 10.66% 22.10% 11.31%
Ratio of net expenses to average net assets+ 0.75% 0.72% 0.66% 0.65% 0.66%
Ratio of net investment income to average net assets+ 3.10% 3.09% 2.66% 2.61% 2.51%
Portfolio turnover rate 28% 19% 14% 32% 14%
Net assets, end of period (in thousands) $110,148 $ 29,157 $11,471 $12,956 $6,611
Ratios with reduction for fees paid indirectly:
Net expenses 0.75% 0.72% 0.66% 0.65% 0.66%
Net investment income 3.10% 3.09% 2.66% 2.61% 2.51%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each year,
reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/09 33
Financial Highlights (continued)
- --------------------------------------------------------------------------------------------------
Year Ended Year Ended 7/6/07 (a)
10/31/09 10/31/08 to 10/31/07
- --------------------------------------------------------------------------------------------------
Class Z
Net asset value, beginning of period $21.30 $ 33.12 $ 34.18
- --------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.45 $ 0.80 $ 0.24
Net realized and unrealized loss on investments (0.91) (9.98) (1.08)
- --------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $(0.46) $ (9.18) $ (0.84)
Distributions to shareowners:
Net investment income (0.57) (0.76) (0.22)
Net realized gain -- (1.81) --
Tax return of capital -- (0.07) --
- --------------------------------------------------------------------------------------------------
Net decrease in net asset value $(1.03) $(11.82) $ (1.06)
- --------------------------------------------------------------------------------------------------
Net asset value, end of period $20.27 $ 21.30 $ 33.12
==================================================================================================
Total return* (1.88)% (29.75)% (2.46)%(b)
Ratio of net expenses to average net assets 0.79% 0.76% 0.67%**
Ratio of net investment income to average net assets 3.24% 3.03% 2.26%**
Portfolio turnover rate 28% 19% 14%(b)
Net assets, end of period (in thousands) $ 233 $ 75 $ 97
Ratios with no waiver of fees and assumption of expenses
by the Adviser:
Net expenses 0.95% 0.76% 0.67%**
Net investment income 3.08% 3.03% 2.26%**
==================================================================================================
(a) Class Z shares were first publicly offered on July 6, 2007.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each year,
reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Equity Income Fund | Annual Report | 10/31/09
Notes to Financial Statements | 10/31/09
1. Organization and Significant Accounting Policies
Pioneer Equity Income Fund (the Fund) is a Delaware statutory trust. The Fund
is registered under the Investment Company Act of 1940 as a diversified,
open-end management investment company. The investment objective of the Fund is
current income and long-term growth of capital from a portfolio consisting
primarily of income producing equity securities of U.S. corporations.
The Fund offers six classes of shares designated as Class A, Class B, Class C,
Class R, Class Y and Class Z shares. Class R shares commenced operations on
April 1, 2003. Class Z shares were first publicly offered on July 6, 2007. Each
class of shares represents an interest in the same portfolio of investments of
the Fund and has identical rights (based on relative net asset values) to
assets and liquidation proceeds. Share classes can bear different rates of
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 from
net investment income earned 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 share class has 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
or Class Z shares. Class B shares convert to Class A shares eight years after
the date of purchase.
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 or 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 Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting year. Actual results could differ from those estimates.
Pioneer Equity Income Fund | Annual Report | 10/31/09 35
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 that have traded on an exchange 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 available, generally are valued at the mean
between the last bid and asked prices. Securities for which market prices
and/or quotations are not readily available or are considered to be
unreliable 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 use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset
value. Thus, the valuation of the Fund's securities may differ from exchange
prices. At October 31, 2009, there were no securities that were valued using
fair value methods (other than securities that were valued using prices
supplied by independent pricing services). Short-term fixed income
securities with remaining maturities of sixty days or less generally are
valued at amortized cost.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis. Dividend and
interest income are reported 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.
36 Pioneer Equity Income Fund | Annual Report | 10/31/09
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
share-owners. Therefore, no federal income tax provision is required. Tax
years 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.
At October 31, 2009, the Fund has reclassified $281,004 to decrease paid-in
capital, $544,140 to decrease undistributed net investment income and
$825,144 to decrease accumulated net realized loss on investments to reflect
permanent book/tax differences. The reclassification has no impact on the
net asset value of the Fund and is designed to present the Fund's capital
accounts on a tax basis.
At October 31, 2009 the Fund had a net capital loss carryforward of
$234,534,494 of which the following amounts will expire between 2016 and
2017 if not utilized: $44,876,558 in 2016 and $189,657,936 in 2017.
The tax character of distributions paid during the years ended October 31,
2009 and October 31, 2008 was as follows:
- --------------------------------------------------------------------------------
2009 2008
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $20,291,330 $ 27,415,604
Long-term capital gain -- 78,306,950
- --------------------------------------------------------------------------------
$20,291,330 $105,722,554
Return of capital -- 2,353,314
- --------------------------------------------------------------------------------
Total $20,291,330 $108,075,868
================================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2009:
- --------------------------------------------------------------------------------
2009
- --------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 451,928
Capital loss carryforward (234,534,494)
Unrealized appreciation 142,062,602
- --------------------------------------------------------------------------------
Total $ (92,019,964)
================================================================================
Pioneer Equity Income Fund | Annual Report | 10/31/09 37
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax basis adjustments on partnerships.
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 $48,992 in underwriting commissions on the sale of
Class A shares during the year ended October 31, 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 its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, Class C and Class R shares of the Fund,
respectively (see Note 4). Class Y and Class Z shares do not pay
distribution fees. All expenses and fees paid to the transfer agent, Pioneer
Investment Management Shareholder Services, Inc. (PIMSS), for its services,
are allocated among the classes of shares 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 net
investment income dividends to Class A, Class B, Class C, Class R, Class Y
and Class Z shares can reflect different transfer agent and distribution
expense rates.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian or a subcustodian of the Fund. The Fund's
investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
F. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors. When entering into a 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 investments.
38 Pioneer Equity Income Fund | Annual Report | 10/31/09
Credit Suisse AG, 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 payments in lieu of dividends or interest 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 is
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
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.60% of
the Fund's average daily net assets up to $10 billion and 0.575% of the excess
over $10 billion. For the year ended October 31, 2009, the effective management
fee (net of waivers and/or assumption of expenses) was equivalent to 0.60% of
the Fund's average daily net assets.
Pioneer has contractually agreed to limit ordinary operating expenses to the
extent required to reduce Class Z expenses to 0.85% of the average daily net
assets attributable to Class Z shares. This expense limitation is in effect
through March 1, 2012 for Class Z shares. There can be no assurance that PIM
will extend the expense limitation agreement beyond the date referred to above.
In addition, under the management and administrative agreements, certain other
services and costs, including accounting, regulatory reporting, and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$30,065 in management fees, administrative costs and certain other
reimbursements payable to PIM at October 31, 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 reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
Pioneer Equity Income Fund | Annual Report | 10/31/09 39
For the year ended October 31, 2009, such out-of-pocket expenses by class of
shares were as follows:
- --------------------------------------------------------------------------------
Shareholder Communications:
- --------------------------------------------------------------------------------
Class A $589,158
Class B 48,981
Class C 113,995
Class R 141,093
Class Y 14,389
Class Z 198
- --------------------------------------------------------------------------------
Total $907,814
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $159,807 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at October 31, 2009.
4. Distribution and Service Plans
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B, Class C
and Class R 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 also 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. Pursuant to the Plan, the Fund further pays PFD 0.50% of
the average daily net assets attributable to Class R shares for distribution
services. Included in "Due to affiliates" reflected on the Statement of Assets
and Liabilities is $17,153 in distribution fees payable to PFD at October 31,
2009.
The Fund also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Fund a
service fee of up to 0.25% of the Fund's average daily net assets attributable
to Class R shares held by such plans in reimbursement for actual expenditures.
In addition, redemptions of each class of shares (except Class R, Class Y and
Class Z 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 (within 12 months for
purchases made on or after April 1, 2009). Class B shares redeemed within five
years of purchase are subject to a CDSC at declining rates beginning at 4.00%,
based on the lower of cost or market value of shares being redeemed.
40 Pioneer Equity Income Fund | Annual Report | 10/31/09
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.
Shares purchased as part of an exchange remain subject to any CDSC that applied
to the original purchase of those shares. There is no CDSC for Class R, Class Y
or Class Z shares. Proceeds from the CDSCs are paid to PFD. For the year ended
October 31, 2009, CDSCs in the amount of $99,218 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended October 31, 2009, the Fund's expenses
were reduced by $1,984 under such arrangements.
6. Line Of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a $165 million committed, unsecured revolving line of
credit facility. Borrowings are used solely for temporary or emergency
purposes. The Fund may borrow up to the lesser of the amount available under
the facility or the limits set for borrowing by the Fund's prospectus and the
1940 Act. Interest on borrowings is payable at the higher of the London
Interbank Offered Rate (LIBOR) on the borrowing date plus 1.25% on an
annualized basis or the Federal Funds Rate on the borrowing date plus 1.25% on
an annualized basis. The Funds pay an annual commitment fee for this facility.
The commitment fee is allocated among participating Funds based on an
allocation schedule set forth in the credit agreement. For the year ended
October 31, 2009, the Fund had no borrowings under this agreement.
7. Affiliated Companies
The Fund's investments in certain companies may exceed 5% of the outstanding
voting stock of those companies. Such companies are deemed affiliates of the
Fund for financial reporting purposes. The following summarizes transactions
with affiliates of the Fund for the year ended October 31, 2009:
- -------------------------------------------------------------------------------------------------------
Beginning Corporate Ending
Balance Purchases Actions Balance Dividend
Affiliates (shares) (shares) (shares) (shares) Income Value
- -------------------------------------------------------------------------------------------------------
Gorman-Rupp Co. 988,195 -- -- 988,195 $395,278 $24,398,535
8. Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure through
December 21, 2009 and has determined that there were no subsequent events
requiring recognition or disclosure in the financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/09 41
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of
Pioneer Equity Income Fund:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Equity Income Fund (the "Fund"), including the schedule of investments, as of
October 31, 2009, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Fund's internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of October 31, 2009, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Equity Income Fund at October 31, 2009, the results of its operations
for the year then ended, the changes in its net assets for each of the two
years in the period then ended, and the financial highlights for each of the
periods indicated therein, in conformity with U.S. generally accepted
accounting principles.
/s/Ernst & Young LLP
Boston, Massachusetts
December 21, 2009
42 Pioneer Equity Income Fund | Annual Report | 10/31/09
ADDITIONAL INFORMATION (unaudited)
For the year ended October 31, 2009, 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 2009 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 100.00%.
Pioneer Equity Income Fund | Annual Report | 10/31/09 43
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.pioneerinvestments.com. This information is also available
on the Securities and Exchange Commission's web site at http://www.sec.gov.
Trustees and Officers
The Board of Trustees provides broad supervision over the Fund's affairs. The
officers of the Fund are responsible for the Fund's operations. The Trustees
and officers are listed below, together with their principal occupations during
the past five years. Trustees who are interested persons of the Fund within the
meaning of the 1940 Act are referred to as Interested Trustees. Trustees who
are not interested persons of the Fund are referred to as Independent Trustees.
Each of the Trustees, except Mr. West, serves as a Trustee of each of the 62
U.S. registered investment portfolios for which Pioneer serves as investment
adviser (the "Pioneer Funds"). Mr. West serves as a Trustee of 47 U.S.
registered investment portfolios for which Pioneer serves as investment
adviser. The address for all Trustees and all officers of the Fund is 60 State
Street, Boston, Massachusetts 02109.
44 Pioneer Equity Income Fund | Annual Report | 10/31/09
Interested Trustees
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (83)* Chairman of the Board, Serves until a successor Deputy Chairman and a None
Trustee and President trustee is elected or director of Pioneer Global
earlier retirement or Asset Management S.p.A.
removal. ("PGAM"); Non-Executive
Chairman and a director of
Pioneer Investment
Management USA Inc.
("PIM-USA"); Chairman and a
director of Pioneer;
Chairman and Director of
Pioneer Institutional Asset
Management, Inc. (since
2006); Director of Pioneer
Alternative Investment
Management Limited (Dublin);
President and a director of
Pioneer Alternative
Investment Management
(Bermuda) Limited and
affiliated funds; Director
of PIOGLOBAL Real Estate
Investment Fund (Russia)
(until June 2006); Director
of Nano-C, Inc. (since
2003); Director of Cole
Management Inc. (since
2004); Director of Fiduciary
Counseling, Inc.; President
and Director of Pioneer
Funds Distributor, Inc.
("PFD") (until May 2006);
President of all of the
Pioneer Funds; and Of
Counsel, Wilmer Cutler
Pickering Hale and Dorr LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (51)* Trustee and Executive Serves until a successor Director, CEO and President None
Vice President trustee is elected or of Pioneer Investment
earlier retirement or Management USA Inc. (since
removal. February 2007); Director and
President of Pioneer
Investment Management, Inc.
and Pioneer Institutional
Asset Management, Inc.
(since February 2007);
Executive Vice President of
all of the Pioneer Funds
(since March 2007); Director
of Pioneer Global Asset
Management S.p.A. (since
April 2007); Head of New
Markets Division, Pioneer
Global Asset Management
S.p.A. (2000 - 2007)
- ------------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers or directors of the Fund's investment adviser and
certain of its affiliates.
Pioneer Equity Income Fund | Annual Report | 10/31/09 45
Independent Trustees
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (65) Trustee Trustee since 2005. Managing Partner, Federal Director of
Serves until a successor City Capital Advisors Enterprise Community
trustee is elected or (boutique merchant bank) Investment, Inc.
earlier retirement or (1997 to 2004 and 2008 - (privately-held
removal. present); and Executive Vice affordable housing
President and Chief finance company);
Financial Officer, I-trax, Director of New York
Inc. (publicly traded health Mortgage Trust
care services company) (2004 (publicly traded
- 2007) mortgage REIT); and
Director of Oxford
Analytica, Inc.
(privately-held
research and
consulting company)
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (61) Trustee Trustee since 1997. President, Bush Director of Marriott
Serves until a successor International, LLC Interna- tional,
trustee is elected or (international financial Inc.; Director of
earlier retirement or advisory firm) Discover Financial
removal. Services (credit
card issuer and
electronic payment
services); Director
of Briggs & Stratton
Co. (engine
manufacturer);
Director of UAL
Corporation (airline
holding company);
Director of Mantech
International
Corporation
(national security,
defense, and
intelligence
technology firm);
and Member, Board of
Governors,
Investment Company
Institute
- ------------------------------------------------------------------------------------------------------------------------------------
46 Pioneer Equity Income Fund | Annual Report | 10/31/09
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (65) Trustee Trustee since 2008. Professor, Harvard University Trustee, Mellon
Serves until a successor Institutional Funds
trustee is elected or Investment Trust and
earlier retirement or Mellon Institutional
removal. Funds Master
Portfolio (oversees
17 portfolios in
fund complex)
- ------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (62) Trustee Trustee since 1990. Founding Director, None
Serves until a successor Vice-President and Corporate
trustee is elected or Secretary, The Winthrop
earlier retirement or Group, Inc. (consulting
removal. firm); and Desautels Faculty
of Management, McGill
University
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (59) Trustee Trustee since 2006. Chief Executive Officer, None
Serves until a successor Quadriserv, Inc. (technology
trustee is elected or products for securities
earlier retirement or lending industry) (2008 -
removal. present); Private investor
(2004 - 2008); and Senior
Executive Vice President,
The Bank of New York
(financial and securities
services) (1986 - 2004)
- ------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (61) Trustee Trustee since 1990. President and Chief Director of New
Serves until a successor Executive Officer, Newbury, America High Income
trustee is elected or Piret & Company, Inc. Fund, Inc.
earlier retirement or (investment banking firm) (closed-end
removal. investment company)
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (81) Trustee Trustee since 1993. Senior Counsel, Sullivan & Director, The Swiss
Serves until a successor Cromwell LLP (law firm) Helvetia Fund, Inc.
trustee is elected or (closed-end
earlier retirement or investment company)
removal.
- ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/09 47
Fund Officers
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Officer
- ------------------------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (61) Secretary Since 2003. Serves at Secretary of PIM-USA; Senior None
the discretion of the Vice President -- Legal of
Board Pioneer; Secretary/Clerk of
most of PIM-USA's
subsidiaries; and Secretary
of all of the Pioneer Funds
since September 2003
(Assistant Secretary from
November 2000 to September
2003)
- ------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (44) Assistant Secretary Since 2003. Serves at Associate General Counsel of None
the discretion of the Pioneer since January 2008
Board and Assistant Secretary of
all of the Pioneer Funds
since September 2003; Vice
President and Senior Counsel
of Pioneer from July 2002 to
December 2007
- ------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (49) Treasurer Since 2008. Serves at Vice President -- Fund None
the discretion of the Accounting, Administration
Board and Controllership Services
of Pioneer; and Treasurer of
all of the Pioneer Funds
since March 2008; Deputy
Treasurer of Pioneer from
March 2004 to February 2008;
Assistant Treasurer of all
of the Pioneer Funds from
March 2004 to February 2008;
and Treasurer and Senior
Vice President, CDC IXIS
Asset Management Services,
from 2002 to 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (44) Assistant Treasurer Since 2000. Serves at Assistant Vice President -- None
the discretion of the Fund Accounting,
Board Administration and
Controllership Services of
Pioneer; and Assistant
Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (51) Assistant Treasurer Since 2002. Serves at Fund Accounting Manager -- None
the discretion of the Fund Accounting,
Board Administration and
Controllership Services of
Pioneer; and Assistant
Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
48 Pioneer Equity Income Fund | Annual Report | 10/31/09
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Officer
- ------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (29) Assistant Treasurer Since 2009. Serves at Fund Administration Manager None
the discretion of the -- Fund Accounting,
Board Administration and
Controllership Services
since November 2008 and
Assistant Treasurer of all
of the Pioneer Funds since
January 2009; Client Service
Manager -- Institutional
Investor Services at State
Street Bank from March 2003
to March 2007
- ------------------------------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (50) Chief Compliance Since 2007. Serves at Chief Compliance Officer of None
Officer the discretion of the Pioneer since December 2006
Board and of all the Pioneer Funds
since January 2007; Vice
President and Compliance
Officer, MFS Investment
Management (August 2005 to
December 2006); Consultant,
Fidelity Investments
(February 2005 to July
2005); Independent
Consultant (July 1997 to
February 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
The outstanding capital stock of PFD, Pioneer and Pioneer Investment Management Shareholder Services, Inc. ("PIMSS") is indirectly
wholly owned by UniCredit S.p.A. ("UniCredit"), one of the largest banking groups in Italy. Pioneer, the Fund's investment adviser,
provides investment management and financial services to mutual funds, institutional and other clients.
Pioneer Equity Income Fund | Annual Report | 10/31/09 49
This page for your notes.
50 Pioneer Equity Income Fund | Annual Report | 10/31/09
This page for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/09 51
This page for your notes.
52 Pioneer Equity Income Fund | Annual Report | 10/31/09
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
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.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Audit Fees
Fees for audit services provided to the Fund, including fees
associated with the filings to update its Form N-2 and
issuance of comfort letters, totaled approximately $34,700
in 2009 and $34,400 in 2008.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no fees for audit-related or other services
provided to the Fund during the fiscal years ended October
31, 2009 and 2008.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Tax Fees
Fees for tax compliance services, primarily for tax returns,
totaled approximately $8,290 and $8,290 for 2009 and
2008, respectively.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
Other Fees
There were no fees for other services provided to the Fund
during the fiscal years ended October 31, 2009 and 2008.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Beginning with non-audit service contracts entered into on
or after May 6, 2003, the effective date of the new SEC
pre-approval rules, the Fund's audit committee is required
to pre-approve services to affiliates defined by SEC rules
to the extent that the services are determined to have a
direct impact on the operations or financial reporting of the
Fund. For the years ended October 31, 2009 and 2008,
there were no services provided to an affiliate that required
the Fund's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and affiliates, as
previously defined, totaled approximately $8,290 in 2009
and $8,290 in 2008.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Equity Income Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date December 29, 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 December 29, 2009
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date December 29, 2009
* Print the name and title of each signing officer under his or her signature.