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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 811-07870
Pioneer Real Estate Shares
(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: December 31
Date of reporting period: January 1, 2009 through December 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 Real
Estate Shares
- --------------------------------------------------------------------------------
Annual Report | December 31, 2009
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Ticker Symbols:
Class A PWREX
Class B PBREX
Class C PCREX
Class Y PYREX
[LOGO]PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 21
Notes to Financial Statements 29
Report of Independent Registered Public Accounting Firm 36
Approval of Investment Advisory and Sub-Advisory Agreements 37
Trustees, Officers and Service Providers 41
Pioneer Real Estate Shares | Annual Report | 12/31/09 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe have begun to recover over the past
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 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 over the past year, as the Dow Jones Industrial
Average climbed back from the depressed levels we saw in early 2009. Many bond
investors have similarly seen a strong rebound, with a broad-based recovery
occurring across many different fixed-income asset classes. The riskiest asset
classes, such as high-yield bonds, outperformed other fixed-income asset
classes during 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 Real Estate Shares | Annual Report | 12/31/09
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 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 Real Estate Shares | Annual Report | 12/31/09 3
Portfolio Management Discussion | 12/31/09
After a gloomy start to 2009, real estate investments recovered nicely
throughout the balance of the year. The sector's rebound was catalyzed by
several factors suggesting that it had successfully weathered the worst of the
recession. In the following interview, Matthew Troxell of AEW Capital
Management, L.P., Pioneer Real Estate Shares' subadviser, discusses the
environment for real estate investing and for the Fund over the 12 months ended
December 31, 2009.
Q What contributed to the turnaround in the real estate market over the 12
months ended December 31, 2009?
A Early in the Fund's fiscal year, a global recession, frozen credit markets,
rising unemployment, and waning investor sentiment contributed to difficult
conditions. The credit markets were especially challenging for real estate
investment trusts (REITs), as the dearth of third-party commercial mortgage
capital available, the higher cost of available debt, and tightened lending
standards curtailed commercial real estate transactions, which, in turn,
depressed property valuations.
Sentiment began to improve in March 2009, when indicators suggested that
the U.S. economy was beginning to stabilize. As the 12-month reporting
period progressed, REITs benefited from the positive influence of new
equity issuance activity, improving capital market conditions, a
strengthening of the financial sector, and a general perception that most
REITs had survived the worst of the recession.
Q How did the Fund perform over the 12 months ended December 31, 2009?
A Pioneer Real Estate Shares Class A shares returned 30.15% at net asset value
over the 12 months ended December 31, 2009, while the Fund's benchmark, the
Morgan Stanley Capital International (MSCI) U.S. REIT Index, returned 28.61%.
Over the same period, the average return of the 229 real estate funds tracked
by Lipper, Inc., returned 30.34%.
On the heels of its worst-ever annual performance in 2008, the U.S. REIT
market started 2009 in dismal fashion, losing approximately 40% from
January 1 through early March. However, the sector's rally that began in
March 2009 continued largely unabated through the final three quarters of
the year. The Fund's solid returns and outperformance of its benchmark for
the fiscal year were the result of effective stock selection, particularly
in the regional mall, office and diversified sectors.
4 Pioneer Real Estate Shares | Annual Report | 12/31/09
Q Which holdings or weightings contributed to the Fund's strong results during
the 12-month period ended December 31, 2009?
A Top contributors to the Fund's performance included overweight positions in
Macerich, a regional mall REIT, and HRPT Properties, an office REIT. Macerich
benefited from the firm's efforts to deleverage and eliminate much of its
near-term balance sheet risks. HRPT Properties rallied on the strength of the
company's stable balance sheet and a lack of exposure to development
property. From a sector allocation perspective, the Fund's underweight to
health care, which underperformed on a relative basis, and overweight
positioning in regional malls, which outperformed on a relative basis,
contributed positively to benchmark-relative performance over the 12-month
period.
Q Which holdings or weightings proved most disappointing for the Fund over the
12 months ended December 31, 2009?
A Shopping center company Regency Centers suffered significant erosion in its
share price early in 2009, which was the result of the weakened retail
environment and concerns over the company's exposure to development. However,
the company's stock price has since recovered somewhat, as the thawing in the
credit markets has allowed it to reduce its debt and eliminate most of its
near-term liquidity concerns. Kilroy Realty, an office REIT, struggled in the
first quarter of 2009 because of market concerns over the company's exposure
to Southern California -- which remains economically depressed -- as well as
some scheduled lease expirations. Kilroy's shares subsequently recovered,
considerably, on the merits of its relatively strong balance sheet and
positive investor sentiment towards the company's limited exposure to new
development.
On a sector basis, the Fund's overweighting to the storage sector, which
underperformed on a relative basis, and an underweight to the hotel sector,
which outperformed on a relative basis, were detractors from performance
over the 12-month period. The Fund's modest cash balance also detracted
from performance relative to the MSCI REIT Index, in light of the REIT
sector's positive absolute returns for the year.
Q Given the market's recovery, are the fundamentals in the various property
sectors showing improvement?
A While an economic recovery is under way, market fundamentals in all property
types continue to deteriorate, and we believe they likely will continue to do
so well into 2010. The lack of job growth is translating into weak leasing
demand in every sector. Not surprisingly, vacancy rates are at record levels
in retail, apartment and industrial markets. Some office market rents are
down by more than 20% from peak levels, and if leasing incentives and tenant
improvements are factored in, that number rises even more.
Pioneer Real Estate Shares | Annual Report | 12/31/09 5
Conditions in the apartment sector have been impacted both negatively and
positively by troubles in the single-family housing sector. Rising
foreclosures and stricter mortgage underwriting standards are forcing some
home buyers and would-be buyers to become renters, but rentals of
investor-owned homes and condominiums are providing housing alternatives to
apartments. The conditions are likely to persist until a clear bottom is
reached in single-family fundamentals. With home prices nearing a bottom,
pent-up sales are likely to limit any strong rebound in prices, as sellers
who have been trapped in their homes over the past several years will be
putting houses on the market at the first sign of increased sales velocity.
In the hotel sector, occupancies have declined recently compared with
levels from a year ago, and room rates are down by 5 to 10 percent. Luxury
hotels have been especially hard hit. Hotel fundamentals should show rapid
improvement as confidence improves, given the night-to-night nature of
their leases. However, revenue per available room will continue to be under
pressure as long as both leisure and business travelers remain cautious
about spending.
On a positive note, there already has been some slowing in the rate of
decline in all of the major real estate sectors. Vacancy rates have been
climbing at a much slower rate in recent quarters, and we expect that such
measures will begin to top out during 2010. Even rent declines began to
flatten in late 2009.
Q What is your outlook for the real estate market and the Fund in 2010?
A We believe real estate market conditions will remain difficult in 2010, but
will show improvement compared with the very challenging environment of the
past two years. While it appears that the worst of the downturn is behind us,
we believe a lack of job growth will translate into weak leasing demand
fundamentals in every sector for the foreseeable future.
Against that backdrop, our investment process for the Fund will continue to
focus on securities selection within each property sector, with the goal of
identifying those companies that we believe are mispriced relative to their
peers and, thus, represent the greatest relative value and strongest price
appreciation potential, as well as lower downside risk.
6 Pioneer Real Estate Shares | Annual Report | 12/31/09
Please refer to the Schedule of Investments on pages 16-20 for a full listing
of Fund securities.
The Fund invests in REIT securities, the value of which can fall for a variety
of reasons, such as declines in rental income, fluctuating interest rates, poor
property management, environmental liabilities, uninsured damage, increased
competition, or changes in real estate tax laws. 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.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes.
Pioneer Real Estate Shares | Annual Report | 12/31/09 7
Portfolio Summary | 12/31/09
Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 80.2%
Temporary Cash Investments 19.8%
Sector Diversification
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Apartment 17.1%
Regional Mall 14.7%
Office 12.7%
Healthcare 12.1%
Shopping Center 9.7%
Industrial 8.6%
Diversified 7.8%
Storage 7.5%
Hotel 5.7%
Triple Net Lease 3.4%
Manufactured Home 0.7%
10 Largest Holdings*
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
1. Simon Property Group, Inc. 9.81%
2. Equity Residential Property Trust 6.12
3. Vornado Realty Trust 5.31
4. Boston Properties, Inc. 4.93
5. Public Storage, Inc. 4.81
6. AvalonBay Communities, Inc. 4.74
7. The Macerich Co. 4.40
8. HCP, Inc. 4.18
9. Nationwide Health Properties, Inc. 4.13
10. Host Hotels & Resorts, Inc. 3.71
* This list excludes temporary cash and derivative instruments. Portfolio
holdings will vary for other periods. The holdings listed should not be
considered recommendations to buy or sell any securities listed.
8 Pioneer Real Estate Shares | Annual Report | 12/31/09
Prices and Distributions | 12/31/09
Net Asset Value per Share
- --------------------------------------------------------------------------------
- ----------------------------------------------
Class 12/31/09 12/31/08
- ----------------------------------------------
A $ 16.24 $ 13.00
- ----------------------------------------------
B $ 16.03 $ 12.84
- ----------------------------------------------
C $ 16.06 $ 12.86
- ----------------------------------------------
Y $ 16.23 $ 12.98
- ----------------------------------------------
Distributions per Share: 1/1/09-12/31/09
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term Non-Taxable
Class Income Capital Gains Capital Gains Distributions
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A $ 0.3429 $ -- $ -- $ 0.1431
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B $ 0.1768 $ -- $ -- $ 0.1431
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C $ 0.2207 $ -- $ -- $ 0.1431
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Y $ 0.4483 $ -- $ -- $ 0.1431
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Pioneer Real Estate Shares | Annual Report | 12/31/09 9
Performance Update | 12/31/09 Class A Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Real Estate Shares at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) U.S. REIT
Index.
Average Annual Total Returns
(As of December 31, 2009)
- ------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- ------------------------------------------------------------------------
10 Years 10.10% 9.46%
5 Years 0.18 -1.01
1 Year 30.15 22.70
- ------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2009)
- ------------------------------------------------------------------------
Gross Net
- ------------------------------------------------------------------------
2.04% 2.04%
- ------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
12/99 9,425 10,000
12,190 12,681
12/01 13,100 14,308
13,573 14,830
12/03 18,089 20,279
24,468 26,664
12/05 28,086 29,899
38,137 40,639
12/07 30,740 33,805
18,965 20,969
12/09 24,684 26,968
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 MSCI U.S. REIT Index is a widely used index comprising a broad
representation of the most actively traded real estate trusts, and is designed
to be a measure of real estate equity performance. Index returns assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in the Index.
10 Pioneer Real Estate Shares | Annual Report | 12/31/09
Performance Update | 12/31/09 Class B Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Real Estate Shares, compared to that of the Morgan
Stanley Capital International (MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of December 31, 2009)
- --------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------
10 Years 9.09% 9.09%
5 Years -0.89 -0.89
1 Year 28.38 24.38
- --------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2009)
- --------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------
3.57% 3.57%
- --------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
12/99 10,000 10,000
12,850 12,681
12/01 13,675 14,308
14,063 14,830
12/03 18,605 20,279
24,968 26,664
12/05 28,392 29,899
38,190 40,639
12/07 30,497 33,805
18,600 20,969
12/09 23,879 26,968
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 MSCI U.S. REIT Index is a widely used index comprising a broad
representation of the most actively traded real estate trusts, and is designed
to be a measure of real estate equity performance. Index returns assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
Pioneer Real Estate Shares | Annual Report | 12/31/09 11
Performance Update | 12/31/09 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Real Estate Shares, compared to that of the Morgan
Stanley Capital International (MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of December 31, 2009)
- --------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------
10 Years 9.22% 9.22%
5 Years -0.70 -0.70
1 Year 28.87 28.87
- --------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2009)
- --------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------
3.10% 3.10%
- --------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
12/99 10,000 10,000
12,842 12,681
12/01 13,693 14,308
14,075 14,830
12/03 18,629 20,279
25,015 26,664
12/05 28,479 29,899
38,334 40,639
12/07 30,641 33,805
18,737 20,969
12/09 24,148 26,968
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not
reflect the 1% front-end sales charge in effect prior to February 1, 2004. If
you paid a 1% sales charge, your returns would be lower than those shown above.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI U.S. REIT Index is a widely used index comprising a broad
representation of the most actively traded real estate trusts, and is designed
to be a measure of real estate equity performance. Index returns assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
12 Pioneer Real Estate Shares | Annual Report | 12/31/09
Performance Update | 12/31/09 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Real Estate Shares, compared to that of the Morgan
Stanley Capital International (MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of December 31, 2009)
- --------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------
10 Years 10.75% 10.75%
5 Years 0.78 0.78
1 Year 31.38 31.38
- --------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2009)
- --------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------
1.02% 1.02%
- --------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
12/99 10,000 10,000
12,999 12,681
12/01 14,039 14,308
14,630 14,830
12/03 19,628 20,279
26,687 26,664
12/05 30,787 29,899
42,003 40,639
12/07 34,011 33,805
21,122 20,969
12/09 27,749 26,968
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results
are historical and assume the reinvestment of dividends and capital gains.
Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI U.S. REIT Index is a widely used index comprising a broad
representation of the most actively traded real estate trusts, and is designed
to be a measure of real estate equity performance. Index returns assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in an Index.
Pioneer Real Estate Shares | Annual Report | 12/31/09 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Real Estate Shares
Based on actual returns from July 1, 2009 through December 31, 2009.
- --------------------------------------------------------------------------------------
Share Class A B C Y
- --------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 7/1/09
- --------------------------------------------------------------------------------------
Ending Account $1,441,79 $1,432.97 $1,435.40 $1,447.39
Value on 12/31/09
- --------------------------------------------------------------------------------------
Expenses Paid $ 11.39 $ 19.93 $ 17.74 $ 6.54
During Period*
- --------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.85%, 3.25%,
2.89% and 1.06% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
14 Pioneer Real Estate Shares | Annual Report | 12/31/09
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 Real Estate Shares
Based on a hypothetical 5% return per year before expenses, reflecting the
period from July 1, 2009 through December 31, 2009.
- -----------------------------------------------------------------------------------
Share Class A B C Y
- -----------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 7/1/09
- -----------------------------------------------------------------------------------
Ending Account $1,015.88 $1,008.82 $1,010.64 $1,019.86
Value on 12/31/09
- -----------------------------------------------------------------------------------
Expenses Paid $ 9.40 $ 16.46 $ 14.65 $ 5.40
During Period*
- -----------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.85%, 3.25%,
2.89% and 1.06% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
Pioneer Real Estate Shares | Annual Report | 12/31/09 15
Schedule of Investments | 12/31/09
- ---------------------------------------------------------------------------------
Shares Value
- ---------------------------------------------------------------------------------
COMMON STOCKS -- 97.9%
CONSUMER SERVICES -- 1.3%
Hotels, Resorts & Cruise Lines -- 1.3%
43,600 Starwood Hotels & Resorts Worldwide, Inc. $ 1,594,452
------------
Total Consumer Services $ 1,594,452
- ---------------------------------------------------------------------------------
REAL ESTATE -- 96.6%
Diversified Real Estate Activities -- 0.6%
35,600 Pebblebrook Hotel Trust* $ 783,556
- ---------------------------------------------------------------------------------
Diversified Real Estate Investment Trusts -- 9.1%
138,700 Liberty Property Trust (b) $ 4,439,787
61,000 Retail Opportunity Investment Corp.* 615,490
95,023 Vornado Realty Trust (b) 6,645,909
------------
$ 11,701,186
- ---------------------------------------------------------------------------------
Industrial Real Estate Investment Trusts -- 6.8%
100,500 AMB Property Corp. (b) $ 2,567,775
531,000 DCT Industrial Trust, Inc. 2,665,620
128,200 Dupont Fabros Technology, Inc. 2,306,318
90,200 First Potomac Realty Trust 1,133,814
------------
$ 8,673,527
- ---------------------------------------------------------------------------------
Office Real Estate Investment Trusts -- 13.1%
11,100 Alexandria Real Estate Equities, Inc. (b) $ 713,619
150,000 BioMed Property Trust, Inc. 2,367,000
92,000 Boston Properties, Inc. 6,170,440
51,900 Digital Realty Trust, Inc. (b) 2,609,532
18,600 HRPT Properties Trust 120,342
111,300 Kilroy Realty Corp. (b) 3,413,571
37,800 Mack-Cali Realty Corp. 1,306,746
------------
$ 16,701,250
- ---------------------------------------------------------------------------------
Residential Real Estate Investment Trusts -- 17.5%
72,301 AvalonBay Communities, Inc. (b) $ 5,936,635
101,100 Camden Property Trust (b) 4,283,607
17,700 Equity Lifestyle Properties, Inc. (b) 893,319
227,000 Equity Residential Property Trust 7,668,060
33,200 Essex Property Trust, Inc. (b) 2,777,180
41,100 Post Properties, Inc. 805,560
------------
$ 22,364,361
- ---------------------------------------------------------------------------------
Retail Real Estate Investment Trusts -- 25.3%
67,800 Federal Realty Investment Trust (b) $ 4,591,416
162,300 Kimco Realty Corp. 2,195,919
276,200 Kite Realty Group Trust 1,124,134
76,700 National Retail Properties LP (b) 1,627,574
33,600 Realty Income Corp. (b) 870,576
100,500 Regency Centers Corp. (b) 3,523,530
153,882 Simon Property Group, Inc. 12,279,759
The accompanying notes are an integral part of these financial statements.
16 Pioneer Real Estate Shares | Annual Report | 12/31/09
- ----------------------------------------------------------------------------------
Shares Value
- ----------------------------------------------------------------------------------
Retail Real Estate Investment Trusts -- (continued)
19,400 Taubman Centers, Inc. (b) $ 696,654
153,191 The Macerich Co. (b) 5,507,220
------------
$ 32,416,782
- ----------------------------------------------------------------------------------
Specialized Real Estate Investment Trusts -- 24.2%
48,500 Entertainment Properties Trust (b) $ 1,710,595
296,100 Extra Space Storage, Inc. 3,419,955
171,300 HCP, Inc. 5,231,502
17,700 HealthCare Real Estate Investment Trust, Inc. 784,464
397,938 Host Hotels & Resorts, Inc. (b) 4,643,936
147,000 Nationwide Health Properties, Inc. 5,171,460
205,700 Omega Healthcare Investors 4,000,865
74,000 Public Storage, Inc. 6,027,300
------------
$ 30,990,077
------------
Total Real Estate $123,630,739
- ----------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $92,348,636) $125,225,191
- ----------------------------------------------------------------------------------
- ---------------------------------------------------------------------------
Principal
Amount
- ---------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 24.1%
Securities Lending Collateral -- 24.1% (c)
Certificates of Deposit:
$ 913,596 Bank of Nova Scotia, 0.19%, 2/17/10 $ 913,596
913,596 DnB NOR Bank ASA NY, 0.2%, 2/17/10 913,596
332,580 Nordea Bank Finland, 0.19%, 1/28/10 332,580
830,562 Svenska NY, 0.20%, 3/30/10 830,562
996,650 Rabobank Nederland NY, 0.19%, 3/2/10 996,650
89,086 Westpac Banking NY, 1.35%, 3/19/10 89,086
830,542 Societe Generale, 0.21%, 3/4/10 830,542
913,594 CBA Financial, 0.27%, 1/3/11 913,594
252,975 BNP Paribas, 0.78%, 6/4/10 252,975
590,021 Wachovia Bank NA, 1.17%, 5/14/10 590,021
------------
$ 6,663,202
- ---------------------------------------------------------------------------
Commercial Paper:
664,041 BBVA London, 0.28%, 3/18/10 $ 664,041
178,246 US Bancorp, 0.26%, 5/6/10 178,246
167,296 American Honda Finance, 0.22%, 2/5/10 167,296
249,382 GE Capital Corp., 0.45%, 8/20/10 249,382
89,910 GE Capital Corp., 0.38%, 10/21/10 89,910
90,511 GE Capital Corp., 0.34%, 10/6/10 90,511
664,234 HND AF, 0.18%, 3/2/10 664,234
913,347 HSBC, 0.20%, 2/19/10 913,347
92,640 John Deer Capital Corp., 0.36%, 7/6/10 92,640
703,481 JPMorgan Chase & Co., 0.57%, 9/24/10 703,481
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Annual Report | 12/31/09 17
Schedule of Investments | 12/31/09 (continued)
- ------------------------------------------------------------------------
Principal
Amount Value
- ------------------------------------------------------------------------
Commercial Paper -- (continued)
$ 830,260 NABPP, 0.19%, 3/8/10 $ 830,260
647,337 PARFIN, 0.25%, 4/19/10 647,337
830,205 Cafco, 0.20%, 3/15/10 830,205
913,308 Char FD, 0.18%, 3/5/10 913,308
829,700 WSTPAC, 0.25%, 5/27/10 829,700
498,142 Ciesco, 0.20%, 3/8/10 498,142
415,160 Ciesco, 0.20%, 2/18/10 415,160
830,377 Fasco, 0.17%, 2/12/10 830,377
415,856 Kithaw, 0.21%, 3/2/10 415,856
425,992 Kithaw, 0.20%, 2/23/10 425,992
570,340 Old LLC, 0.19%, 3/17/10 570,340
232,896 Old LLC, 0.18%, 2/17/10 232,896
283,536 Ranger, 0.20%, 3/12/10 283,536
282,335 SRCPP, 0.19%, 2/3/10 282,335
581,256 SRCPP, 0.19%, 2/10/10 581,256
248,946 TB LLC, 0.19%, 2/8/10 248,946
456,546 TB LLC, 0.20%, 3/5/10 456,546
166,192 TB LLC, 0.10%, 2/9/10 166,192
947,669 Bank of America, 0.87%, 5/12/10 947,669
166,132 BBVA Senior US, 0.30%, 3/12/10 166,132
941,849 Santander, 0.33%, 7/23/10 941,849
332,095 WFC, 0.49%, 8/20/10 332,095
------------
$ 15,659,217
- ------------------------------------------------------------------------
Tri-party Repurchase Agreements:
3,322,167 Deutsche Bank, 0.01%, 1/4/10 $ 3,322,167
1,661,083 JPMorgan, 0.0%, 1/4/10 1,661,083
2,244,207 Barclays Capital Markets, 0.0%, 1/4/10 2,244,207
------------
$ 7,227,457
- ------------------------------------------------------------------------
- -----------------------------------------------------------------------
Shares
- -----------------------------------------------------------------------
Money Market Mutual Funds:
664,433 Dreyfus Preferred Money Market Fund $ 664,433
664,433 Blackrock Liquidity Temporary Cash Fund 664,433
------------
$ 1,328,866
------------
Total Securities Lending Collateral $ 30,878,742
- -----------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $30,878,742) $ 30,878,742
- -----------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 122.0%
(Cost $123,227,378) (a) $156,103,933
- -----------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (22.0)% $(28,154,722)
- -----------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $127,949,211
=======================================================================
The accompanying notes are an integral part of these financial statements.
18 Pioneer Real Estate Shares | Annual Report | 12/31/09
* Non-income producing security.
(a) At December 31, 2009, the net unrealized gain on investments based on
cost for federal income tax purposes of $131,089,199 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $32,127,206
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (7,112,472)
-----------
Net unrealized gain $25,014,734
===========
(b) At December 31, 2009, the following securities were out on loan:
- --------------------------------------------------------------------
Shares Security Value
- --------------------------------------------------------------------
5,000 Alexandria Real Estate Equities, Inc. $ 321,450
2,000 AMB Property Corp. 51,100
73,500 AvalonBay Communities, Inc. 6,035,085
1,500 Camden Property Trust 63,555
48,400 Digital Realty Trust, Inc. 2,433,552
8,300 Entertainment Properties Trust 292,741
5,500 Equity Lifestyle Properties, Inc. 277,585
11,100 Essex Property Trust, Inc. 928,515
52,400 Federal Realty Investment Trust 3,548,528
203,700 Host Hotels & Resorts, Inc. 2,377,179
104,500 Kilroy Realty Corp. 3,205,015
105,000 Liberty Property Trust 3,361,050
98,816 The Macerich Co. 3,552,435
19,000 National Retail Properties LP 403,180
33,250 Realty Income Corp. 861,507
16,700 Regency Centers Corp. 585,502
7,600 Taubman Centers, Inc. 272,916
17,923 Vornado Realty Trust 1,253,535
- --------------------------------------------------------------------
Total $29,824,430
====================================================================
(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 December 31, 2009 aggregated $26,761,107 and $21,701,128,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Annual Report | 12/31/09 19
Schedule of Investments | 12/31/09 (continued)
The following is a summary of the inputs used as of December 31, 2009, in
valuing the Fund's assets:
- --------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
- --------------------------------------------------------------------------------------------
Common Stocks $125,225,191 $ -- $-- $125,225,191
Temporary Cash Investments -- 29,549,876 -- 29,549,876
Money Market Mutual Funds 1,328,866 -- -- 1,328,866
- --------------------------------------------------------------------------------------------
Total $126,554,057 $29,549,876 $-- $156,103,933
============================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Real Estate Shares | Annual Report | 12/31/09
Statement of Assets and Liabilities | 12/31/09
ASSETS:
Investment in securities (including securities loaned of
$29,824,430) (cost $123,227,378) $156,103,933
Cash 2,511,701
Receivables --
Investment securities sold 551,313
Fund shares sold 77,141
Dividends 630,870
Other 33,930
- ---------------------------------------------------------------------------
Total assets $159,908,888
- ---------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 364,537
Fund shares repurchased 629,469
Upon return of securities loaned 30,878,742
Due to affiliates 37,310
Accrued expenses 49,619
- ---------------------------------------------------------------------------
Total liabilities $ 31,959,677
- ---------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $131,745,990
Accumulated net realized loss on investments (36,673,334)
Net unrealized gain on investments 32,876,555
- ---------------------------------------------------------------------------
Total net assets $127,949,211
===========================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $67,510,179/4,157,002 shares) $ 16.24
Class B (based on $8,753,157/546,106 shares) $ 16.03
Class C (based on $9,152,766/570,031 shares) $ 16.06
Class Y (based on $42,533,109/2,621,184 shares) $ 16.23
MAXIMUM OFFERING PRICE:
Class A ($16.24 [divided by] 94.25%) $ 17.23
===========================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Annual Report | 12/31/09 21
Statement of Operations
For the Year Ended 12/31/09
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $4,761) $4,323,547
Interest and other income 3,001
Income from securities loaned, net 147,418
- ------------------------------------------------------------------------------------------
Total investment income $ 4,473,966
- ------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 777,838
Transfer agent fees and expenses
Class A 224,764
Class B 68,480
Class C 44,032
Class Y 624
Distribution fees
Class A 132,526
Class B 72,009
Class C 69,144
Shareholder communication expense 105,504
Administrative reimbursements 32,982
Custodian fees 10,849
Registration fees 59,780
Professional fees 60,601
Printing expense 53,132
Fees and expenses of nonaffiliated trustees 7,577
Miscellaneous 14,833
- ------------------------------------------------------------------------------------------
Total expenses $ 1,734,675
Less fees paid indirectly (23)
- ------------------------------------------------------------------------------------------
Net expenses $ 1,734,652
- ------------------------------------------------------------------------------------------
Net investment income $ 2,739,314
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $ (25,661,256)
- ------------------------------------------------------------------------------------------
Change in net unrealized gain on investments $ 53,330,486
- ------------------------------------------------------------------------------------------
Net gain on investments $ 27,669,230
- ------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 30,408,544
==========================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Real Estate Shares | Annual Report | 12/31/09
Statement of Changes in Net Assets
For the Years Ended 12/31/09 and 12/31/08, respectively
- ------------------------------------------------------------------------------------------------
Year Ended Year Ended
12/31/09 12/31/08
- ------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 2,739,314 $ 3,106,813
Net realized loss on investments (25,661,256) (9,879,430)
Change in net unrealized gain (loss) on investments 53,330,486 (55,661,050)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $ 30,408,544 $(62,433,667)
- ------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.34 and $0.46 per share, respectively) $ (1,438,940) $ (1,997,135)
Class B ($0.18 and $0.24 per share, respectively) (102,822) (171,449)
Class C ($0.22 and $0.29 per share, respectively) (123,573) (179,329)
Class Y ($0.45 and $0.58 per share, respectively) (1,073,979) (1,079,004)
Tax return of capital:
Class A ($0.14 and $0.29 per share, respectively) (601,023) (1,249,707)
Class B ($0.14 and $0.29 per share, respectively) (82,898) (206,544)
Class C ($0.14 and $0.29 per share, respectively) (80,134) (178,055)
Class Y ($0.14 and $0.29 per share, respectively) (341,939) (536,147)
- ------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (3,845,308) $ (5,597,370)
- ------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 22,897,579 $ 39,347,126
Reinvestment of distributions 2,404,017 4,971,103
Cost of shares repurchased (21,548,877) (54,576,418)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Fund
share transactions $ 3,752,719 $(10,258,189)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 30,315,955 $(78,289,226)
NET ASSETS:
Beginning of year 97,633,256 175,922,482
- ------------------------------------------------------------------------------------------------
End of year $127,949,211 $ 97,633,256
- ------------------------------------------------------------------------------------------------
Undistributed net investment income $ -- $ --
================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Annual Report | 12/31/09 23
Statement of Changes in Net Assets (continued)
- ----------------------------------------------------------------------------------------------
'09 Shares '09 Amount '08 Shares '08 Amount
- ----------------------------------------------------------------------------------------------
Class A
Shares sold 1,045,870 $12,568,673 1,308,307 $27,208,478
Reinvestment of distributions 140,891 1,676,324 149,644 2,795,752
Less shares repurchased (1,288,054) (15,497,747) (1,652,413) (31,691,972)
- ----------------------------------------------------------------------------------------------
Net decrease (101,293) $(1,252,750) (194,462) $(1,687,742)
==============================================================================================
Class B
Shares sold 81,080 $ 964,620 171,590 $ 3,400,601
Reinvestment of distributions 15,601 176,412 19,100 350,488
Less shares repurchased (207,052) (2,430,205) (381,164) (7,322,566)
- ----------------------------------------------------------------------------------------------
Net decrease (110,371) $(1,289,173) (190,474) $(3,571,477)
==============================================================================================
Class C
Shares sold 151,985 $ 1,984,736 144,485 $ 2,878,143
Reinvestment of distributions 15,004 173,266 16,748 304,205
Less shares repurchased (189,338) (2,312,012) (265,784) (5,214,556)
- ----------------------------------------------------------------------------------------------
Net decrease (22,349) $ (154,010) (104,551) $(2,032,208)
==============================================================================================
Class Y
Shares sold 665,022 $ 7,379,550 394,808 $ 5,859,904
Reinvestment of distributions 41,332 378,015 83,015 1,520,658
Less shares repurchased (105,841) (1,308,913) (499,132) (10,347,324)
- ----------------------------------------------------------------------------------------------
Net increase (decrease) 600,513 $ 6,448,652 (21,309) $(2,966,762)
==============================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Real Estate Shares | Annual Report | 12/31/09
Financial Highlights
- ----------------------------------------------------------------------------------------
Year Ended Year Ended
12/31/09 12/31/08
- ----------------------------------------------------------------------------------------
Class A
Net asset value, beginning of year $ 13.00 $ 21.94
- ----------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.35 $ 0.43
Net realized and unrealized gain (loss) on investments 3.37 (8.62)
- ----------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.72 $ (8.19)
Distributions to shareowners:
Net investment income (0.34) (0.46)
Net realized gain -- --
Tax return of capital (0.14) (0.29)
- ----------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.24 $ (8.94)
- ----------------------------------------------------------------------------------------
Net asset value, end of period $ 16.24 $ 13.00
========================================================================================
Total return* 30.15% (38.31)%
Ratio of net expenses to average net assets+ 1.85% 1.63%
Ratio of net investment income to average net assets+ 2.77% 2.10%
Portfolio turnover rate 23% 18%
Net assets, end of period (in thousands) $67,510 $55,353
Ratios no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 1.85% 1.63%
Net investment income 2.77% 2.10%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 1.85% 1.63%
Net investment income 2.77% 2.10%
========================================================================================
- -----------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended
12/31/07 12/31/06 12/31/05
- -----------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of year $ 33.07 $ 25.87 $ 24.52
- -----------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.36 $ 0.28 $ 0.28
Net realized and unrealized gain (loss) on investments (6.76) 8.88 3.29
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (6.40) $ 9.16 $ 3.57
Distributions to shareowners:
Net investment income (0.36) (0.28) (0.24)
Net realized gain (4.37) (1.68) (1.84)
Tax return of capital -- -- (0.14)
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(11.13) $ 7.20 $ 1.35
- -----------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.94 $ 33.07 $ 25.87
=====================================================================================================
Total return* (19.39)% 35.79% 14.79%
Ratio of net expenses to average net assets+ 1.36% 1.37% 1.50%
Ratio of net investment income to average net assets+ 1.10% 0.98% 1.14%
Portfolio turnover rate 21% 20% 24%
Net assets, end of period (in thousands) $97,691 $163,088 $110,217
Ratios no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 1.36% 1.37% 1.50%
Net investment income 1.10% 0.98% 1.14%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 1.35% 1.36% 1.50%
Net investment income 1.11% 0.99% 1.14%
=====================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales charges.
Total return would be reduced if sales charges were taken into account.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Annual Report | 12/31/09 25
Financial Highlights (continued)
- ----------------------------------------------------------------------------------------
Year Ended Year Ended
12/31/09 12/31/08
- ----------------------------------------------------------------------------------------
Class B
Net asset value, beginning of year $12.84 $ 21.68
- ----------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.17 $ 0.19
Net realized and unrealized gain (loss) on investments 3.34 (8.50)
- ----------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.51 $ (8.31)
Distributions to shareowners:
Net investment income (0.18) (0.24)
Net realized gain -- --
Tax return of capital (0.14) (0.29)
- ----------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.19 $ (8.84)
- ----------------------------------------------------------------------------------------
Net asset value, end of period $16.03 $ 12.84
========================================================================================
Total return* 28.38% (39.01)%
Ratio of net expenses to average net assets+ 3.25% 2.72%
Ratio of net investment income to average net assets+ 1.41% 0.89%
Portfolio turnover rate 23% 18%
Net assets, end of period (in thousands) $8,753 $ 8,428
Ratios no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 3.25% 2.72%
Net investment income 1.41% 0.89%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 3.25% 2.71%
Net investment income 1.41% 0.90%
========================================================================================
- ------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended
12/31/07 12/31/06 12/31/05
- ------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of year $ 32.74 $ 25.64 $ 24.32
- ------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.06 $ 0.01 $ 0.06
Net realized and unrealized gain (loss) on investments (6.68) 8.78 3.24
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (6.61) $ 8.79 $ 3.30
Distributions to shareowners:
Net investment income (0.07) (0.01) (0.05)
Net realized gain (4.37) (1.68) (1.84)
Tax return of capital -- -- (0.09)
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(11.06) $ 7.10 $ 1.32
- ------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.68 $ 32.74 $ 25.64
======================================================================================================
Total return* (20.14)% 34.51% 13.72%
Ratio of net expenses to average net assets+ 2.28% 2.31% 2.42%
Ratio of net investment income to average net assets+ 0.11% 0.00%(a) 0.14%
Portfolio turnover rate 21% 20% 24%
Net assets, end of period (in thousands) $18,364 $35,442 $29,992
Ratios no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 2.28% 2.31% 2.42%
Net investment income 0.11% 0.00%(a) 0.14%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 2.26% 2.30% 2.42%
Net investment income 0.13% 0.01% 0.14%
======================================================================================================
(a) Amount rounds to less than 0.01% per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Real Estate Shares | Annual Report | 12/31/09
- ----------------------------------------------------------------------------------------
Year Ended Year Ended
12/31/09 12/31/08
- ----------------------------------------------------------------------------------------
Class C
Net asset value, beginning of year $12.86 $ 21.72
- ----------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.22 $ 0.25
Net realized and unrealized gain (loss) on investments 3.34 (8.53)
- ----------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.56 $ (8.28)
Distributions to shareowners:
Net investment income (0.22) (0.29)
Net realized gain -- --
Tax return of capital (0.14) (0.29)
- ----------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.20 $ (8.86)
- ----------------------------------------------------------------------------------------
Net asset value, end of period $16.06 $ 12.86
========================================================================================
Total return* 28.87% (38.85)%
Ratio of net expenses to average net assets+ 2.89% 2.50%
Ratio of net investment income to average net assets+ 1.76% 1.18%
Portfolio turnover rate 23% 18%
Net assets, end of period (in thousands) $9,153 $ 7,619
Ratios no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 2.89% 2.50%
Net investment income 1.76% 1.18%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 2.89% 2.49%
Net investment income 1.76% 1.19%
========================================================================================
- ------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended
12/31/07 12/31/06 12/31/05
- ------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of year $ 32.80 $ 25.68 $ 24.35
- ------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.10 $ 0.02 $ 0.08
Net realized and unrealized gain (loss) on investments (6.70) 8.80 3.26
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (6.60) $ 8.82 $ 3.34
Distributions to shareowners:
Net investment income (0.11) (0.02) (0.07)
Net realized gain (4.37) (1.68) (1.84)
Tax return of capital -- -- (0.10)
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(11.08) $ 7.12 $ 1.33
- ------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.72 $ 32.80 $ 25.68
======================================================================================================
Total return* (20.07)% 34.60% 13.85%
Ratio of net expenses to average net assets+ 2.17% 2.24% 2.32%
Ratio of net investment income to average net assets+ 0.26% 0.10% 0.27%
Portfolio turnover rate 21% 20% 24%
Net assets, end of period (in thousands) $15,139 $27,209 $19,824
Ratios no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 2.17% 2.24% 2.32%
Net investment income 0.26% 0.10% 0.27%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 2.16% 2.23% 2.32%
Net investment income 0.27% 0.11% 0.27%
======================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Annual Report | 12/31/09 27
Financial Highlights (continued)
- ----------------------------------------------------------------------------------------
Year Ended Year Ended
12/31/09 12/31/08
- ----------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of year $ 12.98 $ 21.90
- ----------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.44 $ 0.54
Net realized and unrealized gain (loss) on investments 3.40 (8.59)
- ----------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.84 $ (8.05)
Distributions to shareowners:
Net investment income (0.45) (0.58)
Net realized gain -- --
Tax return of capital (0.14) (0.29)
- ----------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.25 $ (8.92)
- ----------------------------------------------------------------------------------------
Net asset value, end of period $ 16.23 $ 12.98
========================================================================================
Total return* 31.38% (37.90)%
Ratio of net expenses to average net assets+ 1.06% 1.02%
Ratio of net investment income to average net assets+ 3.49% 2.76%
Portfolio turnover rate 23% 18%
Net assets, end of period (in thousands) $42,533 $26,233
Ratios no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 1.06% 1.02%
Net investment income 3.49% 2.76%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 1.06% 1.02%
Net investment income 3.49% 2.76%
========================================================================================
- -----------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended
12/31/07 12/31/06 12/31/05
- -----------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of year $ 33.03 $ 25.84 $ 24.49
- -----------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.49 $ 0.42 $ 0.35
Net realized and unrealized gain (loss) on investments (6.75) 8.87 3.34
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (6.26) $ 9.29 $ 3.69
Distributions to shareowners:
Net investment income (0.50) (0.42) (0.34)
Net realized gain (4.37) (1.68) (1.84)
Tax return of capital -- -- (0.16)
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(11.13) $ 7.19 $ 1.35
- -----------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.90 $ 33.03 $ 25.84
=====================================================================================================
Total return* (19.03)% 36.43% 15.36%
Ratio of net expenses to average net assets+ 0.90% 0.87% 1.00%
Ratio of net investment income to average net assets+ 1.81% 1.54% 1.84%
Portfolio turnover rate 21% 20% 24%
Net assets, end of period (in thousands) $44,729 $46,436 $26,490
Ratios no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 0.90% 0.87% 1.00%
Net investment income 1.81% 1.54% 1.84%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 0.90% 0.87% 1.00%
Net investment income 1.81% 1.54% 1.84%
=====================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at the end of each period.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Real Estate Shares | Annual Report | 12/31/09
Notes to Financial Statements | 12/31/09
1. Organization and Significant Accounting Policies
Pioneer Real Estate Shares (the Fund) is a Delaware statutory trust registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is to seek long-term
growth of capital. Current income is a secondary objective.
The Fund offers four classes of shares designated as Class A, Class B, Class C
and Class Y shares. Effective as of the close of business on December 31, 2009,
Class B shares are no longer offered to new or existing shareholders, except
that dividends and/or capital gain distributions may continue to be reinvested
in Class B shares, and shareholders may exchange their Class B shares for Class
B shares of other Pioneer funds, as permitted by existing exchange privileges.
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
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares. Class B shares convert to Class A shares
approximately eight years after the date of purchase.
Because the Fund may invest a substantial portion of its assets in Real Estate
Investment Trusts (REITs), the Fund may be subject to certain risks associated
with direct investments in REITs. REITs may be affected by changes in the value
of their underlying properties and by defaults of their borrowers or tenants.
REITs depend generally on their ability to generate cash flow to make
distributions to shareowners, and certain REITs have self-liquidation
provisions by which mortgages held may be paid in full and distributions of
capital returns may be made at any time. In addition, the performance of a REIT
may be affected by its failure to qualify for tax-free pass through of income
under the Internal Revenue Code or its failure to maintain exemption from
registration under the Investment Company Act of 1940. The Fund's prospectuses
Pioneer Real Estate Shares | Annual Report | 12/31/09 29
contain unaudited information regarding the Fund's principal risks. Please
refer to those documents when considering the Fund's 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 period. Actual results could differ from those estimates.
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 fair
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 fair 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 December 31, 2009, there were no securities that were valued using fair
value methods. Inputs used in the valuation of a security using fair value
methods include credit ratings, the financial condition of the company,
current market conditions and comparable securities. Short-term fixed income
securities with remaining maturities of sixty days or less generally are
valued at amortized cost. Money market mutual funds are valued at net asset
value.
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend
30 Pioneer Real Estate Shares | Annual Report | 12/31/09
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.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years remain subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or net realized gain on investment transactions, or as from paid-in
capital, depending on the type of book/tax differences that may exist.
A portion of the dividend income recorded by the Fund is from distributions
by publicly traded REITs, and such distributions for tax purposes may also
consist of capital gains and return of capital. The actual return of capital
and capital gains portions of such distributions will be determined by formal
notifications from the REITs subsequent to the calendar year-end.
Distributions received from the REITs that are determined to be a return of
capital are recorded by the Fund as a reduction of the cost basis of the
securities held and those determined to be capital gain are reflected as such
on the Statement of Operations.
The Fund has elected to defer $1,435,822 of capital losses recognized between
November 1, 2009 and December 31, 2009 to its fiscal year ending December 31,
2010.
At December 31, 2009, the Fund had a net capital loss carryforward of
$27,375,691 of which $7,060,199 will expire in 2016 and $20,315,492 will
expire in 2017 if not utilized.
Pioneer Real Estate Shares | Annual Report | 12/31/09 31
The tax character of distributions paid during the years ended December 31,
2009 and December 31, 2008 was as follows:
- ------------------------------------------------------------
2009 2008
- ------------------------------------------------------------
Distributions paid from:
Ordinary income $2,739,314 $3,426,917
Return of capital 1,105,994 2,170,453
- ------------------------------------------------------------
Total $3,845,308 $5,597,370
============================================================
The following shows the components of distributable earnings on a federal
income tax basis at December 31, 2009:
- ------------------------------------------------------------
2009
- ------------------------------------------------------------
Distributable earnings:
Capital loss carryforward $(27,375,691)
Post-October loss deferred (1,435,822)
Unrealized appreciation 25,014,734
- ------------------------------------------------------------
Total $ (3,796,779)
============================================================
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned approximately $8,848 in underwriting commissions on the sale of Class
A shares during the year ended December 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 their respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund, respectively
(see Note 4). Class Y shares do not pay distribution fees. Shareowners of
each class participate in all expenses and fees paid to the transfer agent,
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), for its
services, which are allocated based on the number of accounts in each class
and the ratable allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment
32 Pioneer Real Estate Shares | Annual Report | 12/31/09
income dividends to Class A, Class B, Class C and Class Y shares can reflect
different transfer agent and distribution expense rates.
E. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors. When entering into a securities loan transaction,
the Fund typically receives cash collateral from the borrower equal to at
least the fair value of the securities loaned, which is invested in temporary
investments. 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 fair 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 fair value of the loaned
securities. If the required market value of the collateral is less than the
fair value of the loaned securities, the borrower is required to deliver
additional collateral for the account of the Fund prior to the close of the
next business day. 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.
F. 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.
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 0.80% of
the Fund's average daily net assets up to $1 billion; and 0.75% of the Fund's
average daily net assets over $1 billion. Prior to January 1, 2010, management
fees were calculated daily at the annual rate of 0.80% of the Fund's average
daily net assets. PIM pays a portion of the fee it receives from the Fund to
AEW Capital Management, L.P. as compensation for sub-advisory services to the
Fund.
Pioneer Real Estate Shares | Annual Report | 12/31/09 33
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the statement of Assets and Liabilities is
$4,013 in management fees, administrative costs and certain other
reimbursements payable to PIM at December 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.
For the year ended December 31, 2009, such out-of-pocket expenses by class of
shares were as follows:
- --------------------------------------------
Shareholder Communications:
- --------------------------------------------
Class A $ 70,287
Class B 18,005
Class C 14,267
Class Y 2,945
- --------------------------------------------
Total $105,504
============================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $32,323 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at December 31, 2009.
4. Distribution Plan
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 and Class C
shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund 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. Included in "Due to affiliates" reflected on the Statement of Assets
and Liabilities is $974 in distribution fees payable to PFD at December 31,
2009.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase (within 12 months for purchases made
34 Pioneer Real Estate Shares | Annual Report | 12/31/09
on or after April 1, 2009). Class B shares that are redeemed within five years
of purchase are subject to a CDSC at declining rates beginning at 4.00%, based
on the lower of cost or market value of shares being redeemed. Redemptions of
Class C shares within one year of purchase are subject to a CDSC of 1.00%,
based on the lower of cost or market value of shares being redeemed. 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 Y shares.
Proceeds from the CDSCs are paid to PFD. For the year ended December 31, 2009,
CDSCs in the amount of $11,512 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 December 31, 2009, the Fund's expenses
were reduced by $23 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
December 31, 2009, the Fund had no borrowings under this agreement.
7. Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure through
February 22, 2010 and has determined that there were no subsequent events
requiring recognition or disclosure in the financial statements.
Pioneer Real Estate Shares | Annual Report | 12/31/09 35
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareowners of
Pioneer Real Estate Shares:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Real Estate Shares (the "Fund"), including the schedule of investments, as of
December 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 five years in
the period then ended. 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 December 31, 2009, by correspondence
with the custodian and broker 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 Real Estate Shares at December 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 financial highlights for each of the five
years in the period then ended, in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
February 22, 2010
36 Pioneer Real Estate Shares | Annual Report | 12/31/09
Approval of Investment Advisory and Sub-Advisory Agreements
(unaudited)
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Real Estate Shares (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. PIM has retained AEW Capital Management,
L.P. (AEW) to serve as the sub-adviser to the Fund pursuant to a sub-advisory
agreement between PIM and the sub-adviser. In order for PIM and AEW to remain
the investment adviser and sub-adviser of the Fund, respectively, the Trustees
of the Fund must determine annually whether to renew the investment advisory
agreement and the sub-advisory agreement for the Fund.
The contract review process began in March 2009 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the
process. In July 2009, the Trustees approved the format of the contract review
materials and submitted their formal request to PIM to furnish information
necessary to evaluate the terms of the investment advisory agreement and the
sub-advisory agreement. The contract review materials were provided to the
Trustees in August 2009. After reviewing and discussing the materials, the
Trustees submitted a request for additional information to PIM in September
2009, and materials were provided in response to this request. Meetings of the
independent Trustees of the Fund were held in July, September, October, and
November, 2009 to review and discuss the contract review materials. In
addition, the Trustees took into account the information related to the Fund
provided to the Trustees at each regularly scheduled meeting.
At a meeting held on November 10, 2009, based on their evaluation of the
information provided by PIM, the sub-adviser and third parties, the Trustees of
the Fund, including the independent Trustees voting separately, unanimously
approved the renewal of the investment advisory agreement and the sub-advisory
agreement for another year. In considering the renewal of the investment
advisory agreement and the sub-advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreements.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM and the sub-adviser to the Fund, taking into account the
investment objective and strategy of the Fund. The Trustees reviewed the terms
of the investment advisory agreement and the sub-advisory agreement. The
Trustees also reviewed the sub-adviser's investment approach for the Fund, its
research process and its process for trade execution. The Trustees considered
the resources of PIM and the sub-adviser and the personnel of PIM and the
Pioneer Real Estate Shares | Annual Report | 12/31/09 37
sub-adviser who provide investment management services to the Fund. The
Trustees considered the non-investment resources and personnel of PIM involved
in PIM's services to the Fund, including PIM's compliance and legal resources
and personnel. The Trustees also considered the substantial attention and high
priority given by PIM's senior management to the Pioneer fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers (including the sub-adviser) and provides the Fund with
personnel (including Fund officers) and other resources that are necessary for
the Fund's business management and operations. The Trustees also considered
that, as administrator, PIM is responsible for the administration of the Fund's
business and other affairs. The Trustees considered the fees paid to PIM for
the provision of administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM and the sub-adviser to
the Fund were satisfactory and consistent with the terms of the investment
advisory agreement and the sub-advisory agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
performance of its peer group of funds as classified by Morningstar, Inc.
(Morningstar), an independent provider of investment company data, and with the
performance of the Fund's benchmark index. The Trustees considered that the
Fund's annualized total return was in the third quintile of its Morningstar
category for the one, three and ten year periods ended June 30, 2009 and in the
second quintile of its Morningstar category for the five year period ended June
30, 2009. (In all quintile rankings referred to throughout this disclosure,
first quintile is most favorable to the Fund's shareowners. Thus, highest
relative performance would be first quintile and lowest relative expenses would
also be first quintile.) The Trustees concluded that the investment performance
of the Fund was satisfactory.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund
in comparison to the management fees of its peer group of funds as classified
by Morningstar and the expense ratios of a peer group of funds selected on the
basis of criteria determined by the independent Trustees for this purpose using
data provided by Strategic Insight Mutual Trust Research and Consulting, LLC
(Strategic Insight), an independent third party. The Trustees also considered
that PIM, not the Fund, paid the sub-adviser pursuant to the sub-advisory
agreement. The Trustees evaluated both the fee under the sub-advisory agreement
and the portion of the fee under the investment advisory agreement retained by
PIM.
38 Pioneer Real Estate Shares | Annual Report | 12/31/09
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2009 was in the third quintile relative to the management fees
paid by other funds in its Morningstar peer group for the comparable period.
The Trustees also considered that the Fund's expense ratio for the twelve
months ended June 30, 2009 was in the fifth quintile relative to its Strategic
Insight peer group for the comparable period. The Trustees considered that,
effective January 1, 2010, a breakpoint would be added to the Fund's management
fee schedule on assets over $1 billion.
The Trustees also reviewed management fees charged by PIM to its institutional
and other clients. In evaluating the fees associated with PIM's client
accounts, the Trustees took into account the respective demands, resources and
complexity associated with the Fund and client accounts. The Trustees noted
that in some instances the fee rates for those clients were lower than the
management fee for the Fund and considered that, under the investment advisory
agreement with the Fund, PIM performs additional services for the Fund that it
does not provide to those other clients or services that are broader in scope,
including oversight of the Fund's other service providers and activities
related to compliance and the extensive regulatory and tax regimes to which the
Fund is subject. The Trustees also reviewed management fees charged by the sub-
adviser to its other clients. The Trustees noted that in most instances the fee
rates for those clients were higher than the sub-advisory fees paid to the sub-
adviser with respect to the Fund.
The Trustees concluded that the management fee payable by the Fund to PIM, as
well as the fees payable by PIM to the sub-adviser of the Fund, were reasonable
in relation to the nature and quality of the services provided by PIM and the
sub-adviser. The Trustees also concluded that the Fund's expense ratio was
reasonable taking into account the nature and quality of services provided by
PIM and the sub-adviser.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. The Trustees further
considered the sub-advisory fees received by the sub-adviser with respect to
the Fund and the percentage that such fees represented of the sub-adviser's
overall revenues (for the 12-month period ended December 31, 2008). They
further reviewed the financial results realized by PIM and its affiliates from
non-fund businesses. The Trustees considered PIM's profit margins with respect
to the Fund in comparison to the limited industry data available and noted that
the profitability of any adviser was affected by numerous factors, including
its organizational structure and method for allocating
Pioneer Real Estate Shares | Annual Report | 12/31/09 39
expenses. The Trustees concluded that the profit margins with respect to the
management of the Fund were not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with funds and fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify and that, among other factors that may be relevant, are the following:
fee levels, expense subsidization, investment by PIM in research and analytical
capabilities and PIM's commitment and resource allocation to the Funds. The
Trustees noted that profitability also may be an indicator of the availability
of any economies of scale, although profitability may vary for other reasons
particularly, for example during the difficult year in 2008 for financial
markets, as the level of services was maintained notwithstanding a significant
decline in PIM's fee revenues from the Funds. Accordingly, the Trustees
concluded that economies of scale, if any, were being appropriately shared with
the Fund.
Other Benefits
The Trustees considered the other benefits to each of PIM and the sub-adviser
from its relationship with the Fund. The Trustees considered the character and
amount of fees paid by the Fund, other than under the investment advisory
agreement, for services provided by PIM and its affiliates. The Trustees
further considered the revenues and profitability of PIM's businesses other
than the fund business. The Trustees also considered the benefits to the Fund
and to the sub-adviser and its affiliates from the use of "soft" commission
dollars generated by the Fund to pay for research and brokerage services. The
Trustees considered the intangible benefits to each of PIM and the sub-adviser
by virtue of its relationship with the Fund and the other Pioneer funds. The
Trustees concluded that the receipt of these benefits was reasonable in the
context of the overall relationship between each of PIM and the sub-adviser and
the Fund.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including all of the independent Trustees, concluded that each of
the investment advisory agreement between PIM and the Fund and the sub-advisory
agreement between PIM and the sub-adviser, including the fees payable
thereunder, was fair and reasonable and voted to approve the proposed renewal
of each of the investment advisory agreement and the sub-advisory agreement for
the Fund.
40 Pioneer Real Estate Shares | Annual Report | 12/31/09
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 61
U.S. registered investment portfolios for which Pioneer serves as investment
adviser (the "Pioneer Funds"). Mr. West serves as a Trustee of 46 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.
Pioneer Real Estate Shares | Annual Report | 12/31/09 41
Interested Trustees
- --------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- --------------------------------------------------------------------------------
John F. Cogan, Jr. (83)* Chairman of the Board, Trustee since 1995.
Trustee and President Serves until a successor
trustee is elected or
earlier retirement or
removal.
- --------------------------------------------------------------------------------
Daniel K. Kingsbury (51)* Trustee and Executive Trustee since 2007.
Vice President Serves until a successor
trustee is elected or
earlier retirement or
removal.
- --------------------------------------------------------------------------------
* 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.
Interested Trustees
- -------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Trustee
- -------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (83)* Deputy Chairman and a director of Pioneer Global Asset None
Management S.p.A. ("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)* Director, CEO and President of Pioneer Investment Management None
USA Inc. (since 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); and 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.
42 Pioneer Real Estate Shares | Annual Report | 12/31/09
Independent Trustees
- ------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- ------------------------------------------------------------------------
David R. Bock (66) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ------------------------------------------------------------------------
Mary K. Bush (61) Trustee Trustee since 1997.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ------------------------------------------------------------------------
Independent Trustees
- -----------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Trustee
- -----------------------------------------------------------------------------------------------------------------------
David R. Bock (66) Managing Partner, Federal City Capital Advisors (corporate Director of Enterprise
advisory services company) (1997 to 2004 and 2008 to present); Community Investment, Inc.
and Executive Vice President and Chief Financial Officer, I-trax, (privately held affordable
Inc. (publicly traded health care services company) (2004 - 2007) housing finance company);
and Director of Oxford
Analytica, Inc. (privately
held research and consulting
company)
- -----------------------------------------------------------------------------------------------------------------------
Mary K. Bush (61) President, Bush International, LLC (international financial - Director of Marriott -
advisory firm) International, Inc.; Director
of Discover Financial 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
- -----------------------------------------------------------------------------------------------------------------------
Pioneer Real Estate Shares | Annual Report | 12/31/09
43
Independent Trustees (continued)
- -------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- -------------------------------------------------------------------------
Benjamin M. Friedman (65) Trustee Trustee since 2008.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
Margaret B.W. Graham (62) Trustee Trustee since 1995.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
Thomas J. Perna (59) Trustee Trustee since 2006.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
Marguerite A. Piret (61) Trustee Trustee since 1995.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
Stephen K. West (81) Trustee Trustee since 1995.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (65) Professor, Harvard University
- ------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (62) Founding Director, Vice President and Corporate Secretary, The None
Winthrop Group, Inc. (consulting firm); and Desautels Faculty of
Management, McGill University
- ------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (59) Chief Executive Officer, Quadriserv, Inc. (technology products for None
securities lending industry) (2008 - 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) President and Chief Executive Officer, Newbury, Piret & Company, Director of New America
Inc. (investment banking firm) High Income Fund, Inc.
(closed-end investment
company)
- ------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (81) Senior Counsel, Sullivan & Cromwell LLP (law firm) Director, The Swiss Helvetia
Fund, Inc. (closed-end
investment company)
- ------------------------------------------------------------------------------------------------------------------------------
44 Pioneer Real Estate Shares | Annual Report | 12/31/09
Fund Officers
- --------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- --------------------------------------------------------------------------------
Dorothy E. Bourassa (61) Secretary Since 2003. Serves at
the discretion of the
Board.
- --------------------------------------------------------------------------------
Christopher J. Kelley (45) Assistant Secretary Since 2003. Serves at
the discretion of the
Board.
- --------------------------------------------------------------------------------
Mark E. Bradley (50) Treasurer Since 2008. Serves at
the discretion of the
Board.
- --------------------------------------------------------------------------------
Luis I. Presutti (44) Assistant Treasurer Since 2000. Serves at
the discretion of the
Board.
- --------------------------------------------------------------------------------
Gary Sullivan (51) Assistant Treasurer Since 2002. Serves at
the discretion of the
Board.
- --------------------------------------------------------------------------------
David F. Johnson (30) Assistant Treasurer Since 2009. Serves at
the discretion of the
Board.
- --------------------------------------------------------------------------------
Fund Officers
- ----------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
- ----------------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (61) Secretary of PIM-USA; Senior Vice President -- Legal of Pioneer; None
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 (45) Associate General Counsel of Pioneer since January 2008 and Assistant None
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 (50) Vice President -- Fund Accounting, Administration and Controllership None
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 Vice President -- Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all of
the Pioneer Funds
- ----------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (51) Fund Accounting Manager -- Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all of
the Pioneer Funds
- ----------------------------------------------------------------------------------------------------------------------------
David F. Johnson (30) Fund Administration Manager -- Fund Accounting, Administration and None
Controllership Services since November 2008; Assistant Treasurer of
all of the Pioneer Funds since January 2009; and Client Service
Manager -- Institutional Investor Services at State Street Bank from
March 2003 to March 2007
- ----------------------------------------------------------------------------------------------------------------------------
Pioneer Real Estate Shares | Annual Report | 12/31/09 45
Fund Officers (continued)
- --------------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
- --------------------------------------------------------------------------------
Teri W. Anderholm (50) Chief Compliance Officer Since 2007. Serves at
the discretion of the
Board.
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
- ----------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (50) Chief Compliance Officer of Pioneer since December 2006 and of None
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); and Independent Consultant (July 1997 to
February 2005)
- ----------------------------------------------------------------------------------------------------------------
46 Pioneer Real Estate Shares | Annual Report | 12/31/09
This page for your notes.
Pioneer Real Estate Shares | Annual Report | 12/31/09 47
This page for your notes.
48 Pioneer Real Estate Shares | Annual Report | 12/31/09
This page for your notes.
Pioneer Real Estate Shares | Annual Report | 12/31/09 49
This page for your notes.
50 Pioneer Real Estate Shares | Annual Report | 12/31/09
This page for your notes.
Pioneer Real Estate Shares | Annual Report | 12/31/09 51
This page for your notes.
52 Pioneer Real Estate Shares | Annual Report | 12/31/09
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: pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
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 routine and non routine filings of its
Form N-1A, totaled approximately $38,200 in 2009 and
$37,900 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 audit-related services provided to
the Fund during the fiscal years ended December 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 $8,290 in 2009 and $8,290 in 2008.
(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 other services provided to
the Fund during the fiscal years ended December 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.
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- ------------------------------------- -------------------------
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"
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SECTION III - POLICY DETAIL, CONTINUED
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SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
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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"
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SECTION III - POLICY DETAIL, CONTINUED
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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 December 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 $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 Real Estate Shares
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date March 1, 2010
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 March 1, 2010
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date March 1, 2010
* Print the name and title of each signing officer under his or her signature.