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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21823
Pioneer Series Trust V
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: August 31
Date of reporting period: September 1, 2009 through February 28, 2010
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 Disciplined
Growth Fund*
- --------------------------------------------------------------------------------
Semiannual Report | February 28, 2010
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A SRSGX
Class C PRGCX
Class Y PRGYX
* Effective April 1, 2009, Pioneer Research Growth Fund was renamed Pioneer
Disciplined Growth Fund.
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Prices and Distributions 8
Performance Update 9
Comparing Ongoing Fund Expenses 12
Schedule of Investments 14
Financial Statements 19
Notes to Financial Statements 26
Approval of Investment Advisory Agreement 32
Trustees, Officers and Service Providers 36
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 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 Disciplined Growth Fund | Semiannual Report | 2/28/10
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.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 3
Portfolio Management Discussion | 2/28/10
In the following discussion, Pioneer's Diego Franzin, John Peckham, CFA, and
Ashesh Savla review the factors that affected the performance of Pioneer
Disciplined Growth Fund during the six months ended February 28, 2010. Mr.
Franzin is Head of Global Quantitative Research at Pioneer; Mr. Peckham, CFA,
is Head of Global Fundamental Research at Pioneer; and Mr. Savla is a
Quantitative Research Analyst at Pioneer. All are members of the Fund's
management team.
Q How did the Fund perform over the six months ended February 28, 2010?
A The Fund's Class A shares returned 9.07% at net asset value over the six
months ended February 28, 2010, compared with an 11.32% return for the Fund's
benchmark, the Russell 1000 Growth Index (the Russell Index). Over the same
period, the 871 funds in Lipper's Large Cap Growth category returned 9.92%.
Q Could you describe the investment environment for growth stocks over the six
months ended February 28, 2010?
A For the six months ended February 28, 2010, large-cap stocks, as measured by
the Standard and Poor's 500 Index (the S&P 500), lagged small- and mid-cap
stocks (as measured by the Russell Mid Cap Growth Index), by more than 400
basis points (more than 4%). As the economy has been recovering from the
recession, the companies recovering the fastest have been many of the smaller
companies. The small- and mid-cap rally has been mainly in the Energy, Health
Care and Information Technology sectors, where the Fund's stock selection
tended to mitigate any large-cap versus small- and mid-cap discrepancies.
Q What were some of the investment decisions that had the most positive impact
on the Fund's performance during the six months ended February 28, 2010?
A The Fund had excellent returns from stock selection in the Information
Technology sector, the largest part of the growth stock universe over the
six-month period. We saw good results from stock selections across a broad
base of technology companies, including both hardware and software companies.
Stock selection in the Industrials and Energy sectors also significantly
helped the Fund's returns during the period.
Within Information Technology, Apple was the most prominent contributor to
the Fund's performance during the six-month period, as its share price rose
on the success of its iPhone, iPod and personal computer products, along
with the anticipation of its iPad announcement. Other top performers
4 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
for the Fund during the period included Citrix Systems, which produces a
product enabling users to access personal computers from remote locations,
as well as Microsoft, Google, Cisco, and Oracle. We maintained the Fund's
investments in all those companies as of February 28, 2010.
In Industrials, the Fund's performance received significant help from
investments in defense contractor Northrop-Grumman; JB Hunt, a trucking and
logistics company; and United technologies, a diversified industrial
conglomerate and defense contractor.
Among the Fund's Energy holdings, Anadarko, an oil and gas exploration and
production company, returned significant performance on a better-than-average
discovery success rate. In addition, the Fund managed to avoid a potential
overhang of holding ExxonMobil, a stock that underperformed during the six
months ended February 28, 2010.
Q What were some of the main detractors from the Fund's benchmark-relative
performance during the six months ended February 28, 2010?
A Stock selection in Consumer Staples and Financials included several
disappointments for the Fund during the six-month period. Within Consumer
Staples, the most notable underperformers included Constellation Brands, a
wine and spirits corporation; Lorillard, a tobacco company; and CVS/
Caremark, a drugstore company. Constellation's stock value dropped on worries
about the decline in wine consumption during the recession, while Lorillard's
share price fell because of investors' concerns over potential taxes on
menthol. CVS/Caremark, meanwhile, was hampered by surprisingly lower pharmacy
benefit management (PBM) contracts. We eliminated the Fund's investments in
CVS/Caremark and Constellation.
In Financials, custodial bank State Street was a major detractor from the
Fund's performance during the period.
Q What is your outlook?
A Economic growth is the cure for many ills, including high unemployment and
large deficits. We remain optimistic about the prospects for U.S. economic
growth, provided policy makers make good judgments and avoid damaging
actions. Our optimism is driven by the conditions in place to support
economic growth: the capital markets are open, interest rates are low,
inflation is under control and there appears to be adequate monetary and
fiscal stimulus to sustain the recovery.
We believe modest economic growth could fuel a better-than-expected
earnings recovery given the operating leverage provided by aggressive
corporate cost cutting. We consider that a reasonable scenario and remain
optimistic about the prospects for equities.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 5
Please refer to the Schedule of Investments on pages 14-18 for a full listing
of Fund securities.
Small- and mid-sized companies may offer the potential for higher returns, but
are also subject to greater short-term price fluctuations than larger, more
established companies. The Fund invests in a limited number of securities and,
as a result, the Fund's performance may be more volatile than the performance
of other funds holding more securities. At times, the Fund's investments may
represent industries or industry sectors that are interrelated or have common
risks, making it more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
6 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
Portfolio Summary | 2/28/10
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[The following data was represented as a pie chart in the printed material]
U.S. Common Stocks 100.0%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[The following data was represented as a pie chart in the printed material]
Information Technology 31.9%
Health Care 16.3%
Consumer Staples 16.0%
Consumer Discretionary 10.5%
Industrials 10.5%
Financials 5.2%
Materials 4.1%
Energy 3.7%
Utilities 1.1%
Telecommunication Services 0.7%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Apple, Inc. 4.55%
2. Cisco Systems, Inc. 4.27
3. Wal-Mart Stores, Inc. 4.24
4. Microsoft Corp. 4.03
5. Google, Inc. 3.77
6. Oracle Corp. 3.68
7. Phillip Morris International, Inc. 3.66
8. Qualcomm, Inc. 3.00
9. Intel Corp. 2.86
10. Amgen, Inc. 2.70
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any
securities listed.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 7
Prices and Distributions | 2/28/10
Net Asset Value per Share
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class 2/28/10 8/31/09
- --------------------------------------------------------------------------------
A $ 9.12 $ 8.59
- --------------------------------------------------------------------------------
C $ 9.05 $ 8.54
- --------------------------------------------------------------------------------
Y $ 9.15 $ 8.62
- --------------------------------------------------------------------------------
Distributions per Share: 9/1/09-2/28/10
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- --------------------------------------------------------------------------------
A $ 0.0274 $ 0.2183 $ 0.0026
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C $ -- $ 0.2183 $ 0.0026
- --------------------------------------------------------------------------------
Y $ 0.0446 $ 0.2183 $ 0.0026
- --------------------------------------------------------------------------------
8 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
Performance Update | 2/28/10 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Disciplined Growth Fund at public offering price,
compared to that of the Russell 1000 Growth Index.
Average Annual Total Returns
(As of February 28, 2010)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
Life-of-Class
(12/15/05) 0.96% -0.45%
1 Year 50.63 41.95
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
10.79% 1.25%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Disciplined Russell 1000
Growth Fund Growth Index
12/05 9,425 10,000
2/06 9,587 10,159
2/07 10,762 10,977
2/08 10,981 11,022
2/09 6,640 6,609
2/10 10,001 10,191
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through January 1, 2012, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitations beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 9
Performance Update | 2/28/10 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Disciplined Growth Fund at public offering price,
compared to that of the Russell 1000 Growth Index.
Average Annual Total Returns
(As of February 28, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(7/16/08) -2.99% -2.99%
1 Year 49.30 49.30
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
11.44% 2.15%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Disciplined Russell 1000
Growth Fund Growth Index
7/08 10,000 10,000
2/09 6,356 6,074
2/10 9,490 9,366
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through January 1, 2011, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitations beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
10 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
Performance Update | 2/28/10 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Disciplined Growth Fund at public offering price,
compared to that of the Russell 1000 Growth Index.
Average Annual Total Returns
(As of February 28, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(12/15/05) 0.51% 0.51%
1 Year 51.14 51.14
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.70% 0.90%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Disciplined Russell 1000
Growth Fund Growth Index
12/05 10,000 10,000
2/06 10,173 10,159
2/07 11,350 10,977
2/08 11,437 11,022
2/09 6,891 6,609
2/10 10,416 10,191
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class Y shares for the period prior to the inception
of Class Y shares on July 31, 2008, is the net asset value performance of the
Fund's Class A shares, which has not been restated to reflect any differences
in expenses, including Rule 12b-1 fees applicable to Class A shares. Since fees
for Class A shares generally are higher than those of Class Y shares, the
performance of Class Y shares prior to their inception would have been higher
than the performance shown.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results
are historical and assume the reinvestment of dividends and capital gains.
Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through January 1, 2011, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitations beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 11
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Disciplined Growth Fund
Based on actual returns from September 1, 2009 through February 28, 2010.
- --------------------------------------------------------------------------------
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/09
- --------------------------------------------------------------------------------
Ending Account Value $ 1,090.70 $ 1,085.60 $ 1,092.40
(after expenses) on 2/28/10
- --------------------------------------------------------------------------------
Expenses Paid $ 6.48 $ 10.96 $ 4.67
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.12%
and 0.90% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
181/365 (to reflect the one-half year period).
12 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
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 Disciplined Growth Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2009 through February 28, 2010.
- --------------------------------------------------------------------------------
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/09
- --------------------------------------------------------------------------------
Ending Account Value $ 1,018.65 $ 1,014.78 $ 1,020.33
(after expenses) on 2/28/10
- --------------------------------------------------------------------------------
Expenses Paid $ 6.26 $ 10.59 $ 4.51
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.12%
and 0.90% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
181/365 (to reflect the one-half year period).
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 13
Schedule of Investments | 2/28/10 (unaudited)
- -----------------------------------------------------------------------------
Shares Value
- -----------------------------------------------------------------------------
COMMON STOCKS -- 98.0%
ENERGY -- 3.6%
Integrated Oil & Gas -- 1.7%
7,800 Chevron Corp. $ 563,940
- -----------------------------------------------------------------------------
Oil & Gas Drilling -- 1.9%
7,478 Transocean, Ltd.* $ 596,894
-----------
Total Energy $ 1,160,834
- -----------------------------------------------------------------------------
MATERIALS -- 4.0%
Diversified Chemical -- 1.9%
10,700 FMC Corp. $ 611,719
- -----------------------------------------------------------------------------
Diversified Metals & Mining -- 2.1%
9,000 Freeport-McMoRan Copper & Gold, Inc. (Class B) $ 676,440
-----------
Total Materials $ 1,288,159
- -----------------------------------------------------------------------------
CAPITAL GOODS -- 8.2%
Aerospace & Defense -- 4.3%
9,900 Northrop Grumman Corp.* $ 606,474
11,419 United Technologies Corp. 783,914
-----------
$ 1,390,388
- -----------------------------------------------------------------------------
Construction & Engineering -- 1.0%
14,845 KBR, Inc. $ 307,440
- -----------------------------------------------------------------------------
Industrial Machinery -- 1.1%
13,300 Kennametal, Inc. $ 346,465
- -----------------------------------------------------------------------------
Trading Companies & Distributors -- 1.8%
5,700 W.W. Grainger, Inc. $ 579,405
-----------
Total Capital Goods $ 2,623,698
- -----------------------------------------------------------------------------
TRANSPORTATION -- 2.0%
Trucking -- 2.0%
18,400 J.B. Hunt Transport Services, Inc.* $ 652,832
-----------
Total Transportation $ 652,832
- -----------------------------------------------------------------------------
CONSUMER SERVICES -- 4.4%
Restaurants -- 4.4%
11,837 McDonald's Corp. $ 755,792
28,700 Starbucks Corp.* 657,517
-----------
$ 1,413,309
-----------
Total Consumer Services $ 1,413,309
- -----------------------------------------------------------------------------
MEDIA -- 1.5%
Movies & Entertainment -- 1.5%
16,400 Viacom, Inc. (Class B)* $ 486,260
-----------
Total Media $ 486,260
- -----------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
- ---------------------------------------------------------------------
Shares Value
- ---------------------------------------------------------------------
RETAILING -- 4.4%
Apparel Retail -- 4.4%
30,800 Gap, Inc. $ 662,200
17,564 TJX Companies, Inc. 731,189
-----------
$ 1,393,389
-----------
Total Retailing $ 1,393,389
- ---------------------------------------------------------------------
FOOD & DRUG RETAILING -- 4.2%
Hypermarkets & Supercenters -- 4.2%
24,574 Wal-Mart Stores, Inc.* $ 1,328,716
-----------
Total Food & Drug Retailing $ 1,328,716
- ---------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 9.0%
Distillers & Vintners -- 1.6%
33,400 Constellation Brands, Inc.* $ 502,336
- ---------------------------------------------------------------------
Packaged Foods & Meats -- 2.2%
17,416 Hershey Foods Corp. $ 692,460
- ---------------------------------------------------------------------
Tobacco -- 5.2%
7,200 Lorillard, Inc. $ 525,888
23,400 Phillip Morris International, Inc. 1,146,132
-----------
$ 1,672,020
-----------
Total Food, Beverage & Tobacco $ 2,866,816
- ---------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.5%
Household Products -- 2.5%
9,800 Colgate-Palmolive Co. $ 812,812
-----------
Total Household & Personal Products $ 812,812
- ---------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.5%
Health Care Services -- 1.7%
20,000 Omnicare, Inc. $ 541,400
- ---------------------------------------------------------------------
Managed Health Care -- 3.8%
21,300 AETNA, Inc. $ 638,787
17,428 United Healthcare Group, Inc. 590,112
-----------
$ 1,228,899
-----------
Total Health Care Equipment & Services $ 1,770,299
- ---------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 10.4%
Biotechnology -- 5.6%
13,786 Alexion Pharmaceuticals, Inc.* $ 682,683
14,974 Amgen, Inc.* 847,678
12,800 Cubist Pharmaceuticals, Inc.* 269,312
-----------
$ 1,799,673
- ---------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 15
Schedule of Investments | 2/28/10 (unaudited) (continued)
- --------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------
Pharmaceuticals -- 4.8%
30,001 Bristol-Myers Squibb Co. $ 735,325
21,600 Merck & Co., Inc. 796,608
-----------
$ 1,531,933
-----------
Total Pharmaceuticals & Biotechnology $ 3,331,606
- --------------------------------------------------------------------
BANKS -- 0.9%
Diversified Banks -- 0.9%
10,400 Wells Fargo & Co. $ 284,336
-----------
Total Banks $ 284,336
- --------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.9%
Asset Management & Custody Banks -- 2.0%
14,300 State Street Corp. $ 642,213
- --------------------------------------------------------------------
Investment Banking & Brokerage -- 0.9%
8,000 Lazard, Ltd. $ 287,440
-----------
Total Diversified Financials $ 929,653
- --------------------------------------------------------------------
INSURANCE -- 1.3%
Property & Casualty Insurance -- 1.3%
8,400 ACE, Ltd. $ 419,916
-----------
Total Insurance $ 419,916
- --------------------------------------------------------------------
SOFTWARE & SERVICES -- 13.3%
Application Software -- 2.0%
15,025 Citrix Systems, Inc.* $ 646,225
- --------------------------------------------------------------------
Internet Software & Services -- 3.7%
2,245 Google, Inc.* $ 1,182,666
- --------------------------------------------------------------------
Systems Software -- 7.6%
44,121 Microsoft Corp. $ 1,264,508
46,754 Oracle Corp. 1,152,486
-----------
$ 2,416,994
-----------
Total Software & Services $ 4,245,885
- --------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 13.9%
Communications Equipment -- 7.1%
55,056 Cisco Systems, Inc.* $ 1,339,512
25,600 Qualcomm, Inc. 939,264
-----------
$ 2,278,776
- --------------------------------------------------------------------
Computer Hardware -- 4.5%
6,966 Apple, Inc.* $ 1,425,383
- --------------------------------------------------------------------
Electronic Equipment & Instruments -- 1.2%
13,700 Flir Systems, Inc.* $ 367,297
- --------------------------------------------------------------------
Office Electronics -- 1.1%
38,800 Xerox Corp. $ 363,556
-----------
Total Technology Hardware & Equipment $ 4,435,012
- --------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
- -------------------------------------------------------------------
Shares Value
- -------------------------------------------------------------------
SEMICONDUCTORS -- 4.2%
43,600 Intel Corp. $ 895,108
54,600 ON Semiconductor Corp.* 434,616
-----------
$ 1,329,724
-----------
Total Semiconductors $ 1,329,724
- -------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.7%
Integrated Telecommunication Services -- 0.7%
7,600 Verizon Communications, Inc. $ 219,869
-----------
Total Telecommunication Services $ 219,869
- -------------------------------------------------------------------
UTILITIES -- 1.1%
Gas Utilities -- 1.1%
8,400 Questar Corp. $ 352,716
-----------
Total Utilities $ 352,716
- -------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $26,839,736) $31,345,841
- -------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 98.0%
(Cost $26,839,736) (a) $31,345,841
- -------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 2.0% $ 643,925
- -------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $31,989,766
===================================================================
* Non-income producing security.
(a) At February 28, 2010, the net unrealized gain on investments based on cost
for federal income tax purposes of $26,866,048 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $4,857,285
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (377,492)
----------
Net unrealized gain $4,479,793
==========
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 17
Schedule of Investments | 2/28/10 (unaudited) (continued)
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended February 28, 2010 aggregated $13,687,301 and $13,647,322,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of February 28, 2010, in
valuing the Fund's assets:
- -----------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
- -----------------------------------------------------------------------------
Common stocks $31,345,841 $-- $-- $31,345,841
- -----------------------------------------------------------------------------
Total $31,345,841 $-- $-- $31,345,841
=============================================================================
The accompanying notes are an integral part of these financial statements.
18 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
Statement of Assets and Liabilities | 2/28/10 (unaudited)
ASSETS:
Investment in securities (cost $26,839,736) $31,345,841
Cash 493,558
Receivables --
Fund shares sold 110,742
Dividends 56,875
Due from Pioneer Investment Management, Inc. 2,390
Other 20,505
- -------------------------------------------------------------------
Total assets $32,029,911
- -------------------------------------------------------------------
LIABILITIES:
Due to affiliates $ 859
Accrued expenses 39,276
- -------------------------------------------------------------------
Total liabilities $ 40,135
- -------------------------------------------------------------------
NET ASSETS:
Paid-in capital $25,981,786
Undistributed net investment income 25,229
Accumulated net realized gain on investments 1,476,655
Net unrealized gain on investments 4,506,106
- -------------------------------------------------------------------
Total net assets $31,989,776
- -------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $1,016,266/111,403 shares) $ 9.12
Class C (based on $321,587/35,554 shares) $ 9.05
Class Y (based on $30,651,923/3,349,066 shares) $ 9.15
MAXIMUM OFFERING PRICE:
Class A ($9.12 [divided by] 94.25%) $ 9.68
===================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 19
Statement of Operations (unaudited)
For the Six Months Ended 2/28/10
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $276) $238,773
Income from securities loaned, net 36
- -------------------------------------------------------------------------------------
Total investment income $ 238,809
- -------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 99,436
Transfer agent fees
Class A 588
Class C 225
Class Y 82
Distribution fees
Class A 1,009
Class C 1,426
Shareholder communications expense 60
Administrative reimbursements 4,990
Custodian fees 1,468
Registration fees 24,046
Professional fees 29,106
Printing expense 16,366
Fees and expenses of nonaffiliated trustees 4,091
Miscellaneous 1,870
- -------------------------------------------------------------------------------------
Total expenses $ 184,763
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (43,833)
- -------------------------------------------------------------------------------------
Net expenses $ 140,930
- -------------------------------------------------------------------------------------
Net investment income $ 97,879
- -------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $2,006,982
- -------------------------------------------------------------------------------------
Change in net unrealized gain on investments $ 595,156
- -------------------------------------------------------------------------------------
Net gain on investments $2,602,138
- -------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $2,700,017
=====================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
Statements of Changes in Net Assets
For the Six Months Ended 2/28/10 and the Year Ended 8/31/09, respectively
- -----------------------------------------------------------------------------------------
Six Months
Ended
2/28/10 Year Ended
(unaudited) 8/31/09
- -----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 97,879 $ 75,608
Net realized gain on investments 2,006,982 232,637
Change in net unrealized gain on investments 595,156 3,893,009
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 2,700,017 $ 4,201,254
- -----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.03 and $0.02 per share, respectively) $ (2,401) $ (1,454)
Class C ($0.00 and $0.00 per share, respectively) -- --
Class Y ($0.04 and $0.02 per share, respectively) (145,392) (575)
Net realized gain:
Class A ($0.22 and $0.00 per share, respectively) (18,711) --
Class C ($0.22 and $0.00 per share, respectively) (6,699) --
Class Y ($0.22 and $0.00 per share, respectively) (719,567) --
- -----------------------------------------------------------------------------------------
Total distributions to shareowners $ (892,770) $ (2,029)
- -----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 1,979,129 $24,339,642
Reinvestment of distributions 8,447 1,503
Cost of shares repurchased (900,263) (505,317)
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund
share transactions $ 1,087,313 $23,835,828
- -----------------------------------------------------------------------------------------
Net increase in net assets $ 2,894,560 $28,035,053
NET ASSETS:
Beginning of period 29,095,216 1,060,163
- -----------------------------------------------------------------------------------------
End of period $31,989,776 $29,095,216
- -----------------------------------------------------------------------------------------
Undistributed net investment income $ 25,229 $ 75,143
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 21
Statements of Changes in Net Assets (continued)
- ---------------------------------------------------------------------------------------------
'10 Shares '10 Amount '09 Shares '09 Amount
(unaudited) (unaudited)
- ---------------------------------------------------------------------------------------------
Class A
Shares sold 40,272 $ 366,364 22,325 $ 163,626
Reinvestment of
distributions 813 7,418 222 1,454
Less shares repurchased (7,292) (65,948) (155) (1,299)
- ---------------------------------------------------------------------------------------------
Net increase 33,793 $ 307,834 22,392 $ 163,781
=============================================================================================
Class C
Shares sold 7,768 $ 70,610 4,195 $ 30,863
Reinvestment of
distributions 114 1,029 -- --
Less shares repurchased (2,190) (19,607) -- --
- ---------------------------------------------------------------------------------------------
Net increase 5,692 $ 52,032 4,195 $ 30,863
=============================================================================================
Class Y
Shares sold 171,182 $1,542,155 3,303,383 $24,145,202
Less shares repurchased (89,851) (814,708) (60,977) (504,018)
- ---------------------------------------------------------------------------------------------
Net increase 81,331 $ 727,447 3,242,406 $23,641,184
=============================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
Financial Highlights
- -------------------------------------------------------------------------------------------------------------
Six Months
Ended
2/28/10 Year Ended
(unaudited) 8/31/09
- -------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 8.59 $ 9.98
- -------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.01 $ 0.02
Net realized and unrealized gain (loss) on investments 0.77 (1.39)
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.78 $ (1.37)
Distributions to shareowners:
Net investment income (0.03) (0.02)
Net realized gain (0.22) --
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.53 $ (1.39)
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.12 $ 8.59
=============================================================================================================
Total return* 9.07% (13.64)%
Ratio of net expenses to average net assets 1.25%** 1.25%
Ratio of net investment income to average net assets 0.33%** 0.39%
Portfolio turnover rate 92%** 106%
Net assets, end of period (in thousands) $ 1,016 $ 667
Ratios with no waiver of fees and assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 1.58%** 10.79%
Net investment loss 0.00%**(c) (9.15)%
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
12/15/05 (a)
Year Ended Year Ended to
8/31/08 8/31/07 8/31/06
- -------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 12.25 $ 10.18 $ 10.00
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.02 $ 0.01 $ 0.02
Net realized and unrealized gain (loss) on investments (1.12) 2.09 0.16
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.10) $ 2.10 $ 0.18
Distributions to shareowners:
Net investment income -- (0.03) --
Net realized gain (1.17) -- --
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.27) $ 2.07 $ 0.18
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.98 $ 12.25 $ 10.18
===================================================================================================================
Total return* (10.03)% 20.69% 1.80%(b)
Ratio of net expenses to average net assets 1.25% 1.25% 1.25%**
Ratio of net investment income to average net assets 0.22% 0.09% 0.30%**
Portfolio turnover rate 92% 95% 73%(b)
Net assets, end of period (in thousands) $ 551 $ 613 $ 509
Ratios with no waiver of fees and assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 16.35% 13.49% 21.63%**
Net investment loss (14.88)% (12.15)% (20.08)%**
- -------------------------------------------------------------------------------------------------------------------
(a) The Fund commenced operations on December 15, 2005.
(b) Not annualized.
(c) Amount rounds to less than 0.01% per share.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 23
Financial Highlights (continued)
- ---------------------------------------------------------------------------------------------------
Six Months
Ended 7/17/08 (a)
2/28/10 Year Ended to
(unaudited) 8/31/09 8/31/08
- ---------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 8.54 $ 9.97 $ 9.74
- ---------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.02) $ (0.03) $ 0.00(c)
Net realized and unrealized gain (loss) on investments 0.75 (1.40) 0.23
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ 0.73 $ (1.43) $ 0.23
- ---------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net realized gain (0.22) -- --
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.51 $ (1.43) $ 0.23
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.05 $ 8.54 $ 9.97
===================================================================================================
Total return* 8.56% (14.34)% 2.36%(b)
Ratio of net expenses to average net assets 2.12%** 2.15% 1.83%**
Ratio of net investment loss to average net assets (0.56)%** (0.52)% (0.05)%**
Portfolio turnover rate 92%** 106% 92%(b)
Net assets, end of period (in thousands) $ 322 $ 255 $ 256
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for fees
paid indirectly:
Net expenses 2.40%* * 11.44% 30.50%**
Net investment loss (0.84)%** (9.82)% (28.72)%**
- ---------------------------------------------------------------------------------------------------
(a) Class C shares were first publicly offered on July 17, 2008.
(b) Not annualized.
(c) The amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
- ---------------------------------------------------------------------------------------------------
Six Months
Ended 7/17/08 (a)
2/28/10 Year Ended to
(unaudited) 8/31/09 8/31/08
- ---------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 8.62 $ 9.98 $ 9.87
- ---------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.03 $ 0.03 $ 0.01
Net realized and unrealized gain (loss) on investments 0.77 (1.37) 0.10
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ 0.80 $ (1.34) $ 0.11
Distributions to shareowners:
Net investment income (0.04) (0.02) --
Net realized gain (0.22) -- --
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.53 $ (1.36) $ 0.11
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.15 $ 8.62 $ 9.98
===================================================================================================
Total return* 9.24% (13.34)% 1.11%(b)
Ratio of net expenses to average net assets 0.90%** 0.90% 0.90%**
Ratio of net investment income to average net assets 0.66%** 0.88% 1.60%**
Portfolio turnover rate 92%** 106% 92%(b)
Net assets, end of period (in thousands) $30,652 $28,173 $ 253
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for fees
paid indirectly:
Net expenses 1.19%** 1.70% 20.69%**
Net investment income (loss) 0.37%** 0.07% (18.19)%**
- ---------------------------------------------------------------------------------------------------
(a) Class Y shares were first publicly offered on July 31, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 25
Notes to Financial Statements | 2/28/10 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Disciplined Growth Fund, formerly Pioneer Research Growth Fund (the
Fund), is one of four portfolios comprising Pioneer Series Trust V, a Delaware
statutory trust. The Fund is registered under the Investment Company Act of
1940 as a diversified, open-end management investment company. The Fund was
organized on October 12, 2005, and commenced operations on December 15, 2005.
The Fund's investment objective is to seek long-term capital growth.
The Fund offers three classes of shares designated as Class A, Class C and
Class Y shares. Class C shares were first publicly offered on July 17, 2008.
Class Y shares were first publicly offered on July 31, 2008. Each class of
shares represents an interest in the same portfolio of investments of the Fund
and has identical rights (based on relative net asset values) to assets and
liquidation proceeds. Share classes can bear different rates of class-specific
fees and expenses such as transfer agent and distribution fees. Differences in
class-specific fees and expenses will result in differences in net investment
income and, therefore, the payment of different dividends from net investment
income earned by each class. The Amended and Restated Declaration of Trust of
the Fund gives the Board the flexibility to specify either per-share voting or
dollar-weighted voting when submitting matters for shareholder approval. Under
per-share voting, each share of a class of the Fund is entitled to one vote.
Under dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y shares.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. The Fund's prospectuses contain unaudited information
regarding the Fund's principal risks. Please refer to those documents when
considering the Fund's principal risks.
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
26 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
of income, expenses and gain or loss 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 valued at
the last sale price on the principal exchange where they are traded.
Securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued at the mean between
the last bid and asked prices. Securities for which market prices and/or
quotations are not readily available or are considered to be unreliable are
valued using fair value methods pursuant to procedures adopted by the Board
of Trustees.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times.
The Fund may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset value.
Thus, the valuation of the Fund's securities may differ from exchange prices.
At February 28, 2010, there were no securities that were valued using fair
value methods (other than securities that were valued using prices supplied
by independent pricing services). Short-term fixed income securities with
remaining maturities of sixty days or less generally are valued at amortized
cost. 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 data in the
exercise of reasonable diligence. Interest income 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.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 27
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years are subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
The tax character of current year distributions payable will be determined at
the end of the current taxable year. The tax character of distributions paid
during the year ended August 31, 2009 was as follows:
- ---------------------------------------------
2009
- ---------------------------------------------
Distributions paid from:
Ordinary income $2,029
Long-term capital gain --
- ---------------------------------------------
Total $2,029
=============================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2009:
- ------------------------------------------------
2009
- ------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 356,898
Undistributed long-term gain 8,664
Post-October loss deferred (49,457)
Unrealized appreciation 3,884,638
- ------------------------------------------------
Total $4,200,743
================================================
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 $386 in underwriting commissions on the sale of Class A
shares during the six months ended February 28, 2010.
28 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning of
the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services, are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, and Class Y shares 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 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 business on that
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.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 29
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary
of UniCredit, manages the Fund's portfolio. Management fees are calculated
daily at the annual rate of 0.65% of the Fund's average daily net assets up to
$1 billion, 0.60% of the next $4 billion and 0.55% on assets over $5 billion.
For the six months ended February 28, 2010, the effective management fee
(excluding waivers and/or assumption of expenses) was equivalent to 0.65% of
the Fund's average net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund
to the extent required to reduce Fund expenses to 1.25%, 2.15%, and 0.90% of
the average daily net assets attributable to Class A, Class C, and Class Y
shares, respectively. These expense limitations are in effect through January
1, 2012 for Class A shares and January 1, 2011 for Class C shares and Class Y
shares. There can be no assurance that PIM will extend the expense limitation
agreement for a class of shares beyond the date referred to above.
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
$339 in management fees, administrative costs and certain other reimbursements
payable to PIM at February, 28 2010.
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 six months ended February 28, 2010, such out-of-pocket expenses by
class of shares were as follows:
- -------------------------------------------
Shareholder Communications:
- -------------------------------------------
Class A $ (71)
Class C $ 68
Class Y $ 63
- -------------------------------------------
Total $ 60
===========================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $473 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 28, 2010.
30 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
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 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 C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $47 in distribution fees payable to PFD
at February 28, 2010.
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 on or after
April 1, 2009). 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 six
months ended February 28, 2010, no CDSCs were paid to PFD.
5. Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
subsequent events and transactions for potential recognition or disclosure
through April 22, 2010, and has determined that there were no subsequent events
requiring recognition or disclosure in the financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 31
Approval of Investment Advisory Agreement (unaudited)
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Disciplined Growth Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether
to renew the investment 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. 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 and third parties, the Trustees of the Fund,
including the independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for
the Fund, its research process and its process for trade execution. The
Trustees considered the resources of PIM and the personnel of PIM 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.
32 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers 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 to the Fund were
satisfactory and consistent with the terms of the investment advisory
agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
performance of its peer group of funds as classified by Morningstar, Inc.
(Morningstar), an independent provider of investment company data, and with the
performance of the Fund's benchmark index. The Trustees considered that the
Fund's annualized total return was in the second quintile of its Morningstar
category for the one year period ended June 30, 2009 and in the first quintile
of its Morningstar category for the three 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 considered that the Fund's management fee for the twelve months
ended June 30, 2009 was in the second 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 second quintile relative to its Strategic
Insight peer group for the comparable period. The Trustees considered the
breakpoints in the management fee schedule and the reduced fee rates above
certain asset levels.
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
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 33
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 concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by
PIM. 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
contractual expense limitation agreed to by PIM with respect to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was 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.
34 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
Other Benefits
The Trustees considered the other benefits to PIM 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 PIM 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 PIM by
virtue of its relationship with the Fund and the other Pioneer funds. The
Trustees concluded that the receipt of these benefits was reasonable in the
context of the overall relationship between PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including all of the independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10 35
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at http://www.sec.gov.
36 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/10
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.
Pioneer Disciplined
Value Fund*
- --------------------------------------------------------------------------------
Semiannual Report | February 28, 2010
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A SERSX
Class C PRVCX
Class Y PRUYX
* Effective April 1, 2009, Pioneer Research Value Fund was renamed Pioneer
Disciplined Value Fund.
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Prices and Distributions 8
Performance Update 9
Comparing Ongoing Fund Expenses 12
Schedule of Investments 14
Financial Statements 19
Notes to Financial Statements 26
Approval of Investment Advisory Agreement 32
Trustees, Officers and Service Providers 36
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 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 Disciplined Value Fund | Semiannual Report | 2/28/10
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.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 3
Portfolio Management Discussion | 2/28/10
In the following discussion, Pioneer's Diego Franzin, John Peckham, CFA, and
Ashesh Savla review the factors that affected the performance of Pioneer
Disciplined Value Fund during the six months ended February 28, 2010. Mr.
Franzin is Head of Global Quantitative Research at Pioneer; Mr. Peckham, CFA, is
Head of Global Fundamental Research at Pioneer; and Mr. Savla is a Quantitative
research analyst at Pioneer. All are members of the Fund's management team.
Q How did the Fund perform over the six months ended February 28, 2010?
A The Fund's Class A shares returned 7.11% at net asset value over the six
months ended February 28, 2010, compared with an 8.52% return for the Fund's
benchmark, the Russell 1000 Value Index (the Russell Index). Over the same
period, the 543 funds in Lipper's Large Cap Value category returned 7.94%.
Q What characterized the investment environment for equities during the six
months ended February 28, 2010?
A For the six months ended February 28, 2010, large-cap stocks, as measured by
the Standard and Poor's 500 Index (the S&P 500), lagged small- and mid-cap
stocks by more than 400 basis points (more than 4%). As the economy has been
recovering from the recession, the companies recovering the fastest have been
many of the smaller companies. The rally in small- and mid-cap stocks has
been mainly concentrated in the Energy, Health Care and Information
Technology sectors, where the Fund's stock selection tended to mitigate any
large-cap versus small- and mid-cap discrepancies.
Q What were some of the investment decisions that had the most positive impact
on Fund performance during the six months ended February 28, 2010?
A Stock selection in the Energy sector, one of the largest parts of the value
stock universe, generated excellent returns for the Fund during the period.
We saw good results from stock selections across a broad base of energy
companies, including integrated corporations, drilling, services, and
exploration companies. Stock selection in the Telecommunications Services
sector also significantly helped the Fund's returns during the six months
ended February 28, 2010.
Within Energy, Smith International was the most prominent contributor to
the Fund's performance, as its share price rose when fellow service and
equipment company Schlumberger announced a buyout proposal. We dropped
Smith from the Fund as the details of the acquisition became firm.
4 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
Other top performers for the Fund during the six-month period included
Halliburton and Apache. In addition, the Fund managed to avoid a potential
overhang of holding ExxonMobil, a weak performer, as an overweight position
during the period.
In Telecommunications Services, the Fund's performance received significant
help from investments in Rural Telecommunications Group and Windstream, and
by avoiding AT&T.
Q What were some of the main detractors from the Fund's benchmark-relative
performance during the six months ended February 28, 2010?
A Stock selections in Consumer Staples and Consumer Discretionary included
several disappointments for the Fund during the six-month period. Within
Consumer Staples, the most notable underperformers included Constellation
Brands, a wine and spirits corporation; Philip Morris International, a
tobacco company; and CVS/Caremark, a drugstore company. Constellation's stock
value dropped on worries about the decline in wine consumption during the
recession, while Philip Morris's share price fell on a strengthening dollar.
CVS/Caremark, meanwhile, was hampered by surprisingly lower pharmacy benefits
management (PBM) contracts.
In Consumer Discretionary, Viacom, a movie and entertainment company, was
the major detractor from the Fund's performance during the period. We
continue to hold Viacom in the Fund's portfolio based on its cheap
valuation in comparison with its peers, strong affiliate fee growth, an
improving ad market, and its profitable film division.
Q What is your outlook?
A Economic growth is the cure for many ills, including high unemployment and
large deficits. We remain optimistic about the prospects for U.S. economic
growth, provided policy makers make good judgments and avoid damaging
actions. Our optimism is driven by the conditions in place to support
economic growth: the capital markets are open, interest rates have remained
low, inflation is under control and there appears to be adequate monetary and
fiscal stimulus to sustain the recovery.
We believe modest economic growth could fuel a better-than-expected
earnings recovery, given the operating leverage provided by aggressive
corporate cost cutting over the past 18 months. We consider that a
reasonable scenario and remain optimistic about the prospects for equities.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 5
Please refer to the Schedule of Investments on pages 14-18 for a full listing
of Fund securities.
Small- and mid-sized companies may offer the potential for higher returns, but
are also subject to greater short-term price fluctuations than larger, more
established companies. The Fund invests in a limited number of securities and,
as a result, the Fund's performance may be more volatile than the performance
of other funds holding more securities. At times, the Fund's investments may
represent industries or industry sectors that are interrelated or have common
risks, making it more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
6 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
Portfolio Summary | 2/28/10
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[The following data was represented as a pie chart in the printed material]
U.S. Common Stocks 100.0%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[The following data was represented as a pie chart in the printed material]
Financials 24.7%
Enery 18.1%
Industrials 11.3%
Consumer Discretionay 10.4%
Health Care 9.3%
Utilities 6.6%
Consumer Staples 5.3%
Telecommunication Sevices 5.0%
Information Technoloy 5.0%
Materials 4.3%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Exxon Mobil Corp. 4.50%
2. Wells Fargo & Co. 4.25
3. Chevron Corp. 4.13
4. Pfizer, Inc. 3.73
5. JPMorgan Chase & Co. 3.54
6. Verizon Communications, Inc. 3.06
7. Comcast Corp. 2.89
8. Smith International, Inc. 2.69
9. Devon Energy Corp. 2.58
10. Halliburton Co. 2.52
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any
securities listed.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 7
Prices and Distributions | 2/28/10
Net Asset Value per Share
- --------------------------------------------------------------------------------
- ----------------------------------------------------
Class 2/28/10 8/31/09
- ----------------------------------------------------
A $ 8.35 $ 8.19
- ----------------------------------------------------
C $ 8.40 $ 8.23
- ----------------------------------------------------
Y $ 8.45 $ 8.27
- ----------------------------------------------------
Distributions per Share: 9/1/09-2/28/10
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- -------------------------------------------------------------------------
A $ 0.0683 $ 0.3534 $ --
- -------------------------------------------------------------------------
C $ 0.0244 $ 0.3534 $ --
- -------------------------------------------------------------------------
Y $ 0.0721 $ 0.3534 $ --
- -------------------------------------------------------------------------
8 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
Performance Update | 2/28/10 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Disciplined Value Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of February 28, 2010)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
Life-of-Class
(12/15/05) -0.01% -1.41%
1 Year 46.45 37.93
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
13.37% 1.25%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Disciplined Russell 1000
Value Fund Value Index
12/05 9,425 10,000
2/06 9,781 10,452
2/07 11,164 12,188
2/08 10,780 11,224
2/09 6,500 5,909
2/10 9,520 9,248
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through January 1, 2012, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitations beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000(R) Value Index measures the performance of large-cap U.S. value
stocks. Index returns assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in any index.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 9
Performance Update | 2/28/10 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Disciplined Value Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of February 28, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(7/16/08) -3.58% -3.58%
1 Year 45.08 45.08
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
13.76% 2.15%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Disciplined Russell 1000
Value Fund Value Index
7/08 10,000 10,000
2/09 6,408 5,623
2/10 9,297 8,800
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through January 1, 2011, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitations beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000(R) Value Index measures the performance of large-cap U.S. value
stocks. Index returns assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in any index.
10 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
Performance Update | 2/28/10 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Disciplined Value Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of February 28, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(12/15/05) -0.44% -0.44%
1 Year 46.97 46.97
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.88% 0.90%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer
Disciplined Russell 1000
Value Fund Value Index
12/05 10,000 10,000
2/06 10,374 10,452
2/07 11,768 12,188
2/08 11,222 11,224
2/09 6,746 5,909
2/10 9,914 9,248
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class Y shares for the period prior to the inception
of Class Y shares on July 31, 2008, is the net asset value performance of the
Fund's Class A shares, which has not been restated to reflect any differences
in expenses, including Rule 12b-1 fees applicable to Class A shares. Since fees
for Class A shares generally are higher than those of Class Y shares, the
performance of Class Y shares prior to their inception would have been higher
than the performance shown.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results
are historical and assume the reinvestment of dividends and capital gains.
Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through January 1, 2011, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitations beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000(R) Value Index measures the performance of large-cap U.S.
value stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 11
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Disciplined Value Fund
Based on actual returns from September 1, 2009 through February 28, 2010.
- --------------------------------------------------------------------------------
Actual
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/09
- --------------------------------------------------------------------------------
Ending Account Value $ 1,071.10 $ 1,066.50 $ 1,073.40
(after expenses) on 2/28/10
- --------------------------------------------------------------------------------
Expenses Paid $ 6.42 $ 11.02 $ 4.63
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25, 2.15%
and 0.90% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
181/365 (to reflect the one-half year period).
12 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
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 Disciplined Value Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2009 through February 28, 2010.
Hypothetical
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/09
- --------------------------------------------------------------------------------
Ending Account Value $ 1,018.60 $ 1,014.13 $ 1,020.33
(after expenses) on 2/28/10
- --------------------------------------------------------------------------------
Expenses Paid $ 6.26 $ 10.74 $ 4.51
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%
and 0.90% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
181/365 (to reflect the one-half year period).
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 13
Schedule of Investments | 2/28/10 (unaudited)
- ---------------------------------------------------------------
Shares Value
- ---------------------------------------------------------------
COMMON STOCKS -- 93.5%
ENERGY -- 16.9%
Integrated Oil & Gas -- 8.1%
14,443 Chevron Corp. $ 1,044,229
17,500 Exxon Mobil Corp. 1,137,500
-----------
$ 2,181,729
- ---------------------------------------------------------------
Oil & Gas Drilling -- 1.5%
5,185 Transocean Ltd.* $ 413,867
- ---------------------------------------------------------------
Oil & Gas Equipment & Services -- 4.9%
21,107 Halliburton Co.* $ 636,376
16,600 Smith International, Inc. 680,434
-----------
$ 1,316,810
- ---------------------------------------------------------------
Oil & Gas Exploration & Production -- 2.4%
9,469 Devon Energy Corp. $ 652,035
-----------
Total Energy $ 4,564,441
- ---------------------------------------------------------------
MATERIALS -- 4.1%
Diversified Chemical -- 2.1%
9,900 FMC Corp. $ 565,983
- ---------------------------------------------------------------
Paper Packaging -- 2.0%
23,000 Packaging Corp. of America $ 547,400
-----------
Total Materials $ 1,113,383
- ---------------------------------------------------------------
CAPITAL GOODS -- 8.9%
Aerospace & Defense -- 3.9%
8,500 Northrop Grumman Corp.* $ 520,710
7,904 United Technologies Corp. 542,610
-----------
$ 1,063,320
- ---------------------------------------------------------------
Construction & Engineering -- 1.0%
12,357 KBR, Inc. $ 255,913
- ---------------------------------------------------------------
Industrial Conglomerates -- 1.5%
5,196 3M Co. $ 416,459
- ---------------------------------------------------------------
Industrial Machinery -- 0.9%
9,600 Kennametal, Inc. $ 250,080
- ---------------------------------------------------------------
Trading Companies & Distributors -- 1.6%
4,200 W.W. Grainger, Inc. $ 426,930
-----------
Total Capital Goods $ 2,412,702
- ---------------------------------------------------------------
TRANSPORTATION -- 1.6%
Trucking -- 1.6%
12,400 J.B. Hunt Transport Services, Inc.* $ 439,952
-----------
Total Transportation $ 439,952
- ---------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
- ------------------------------------------------------------------
Shares Value
- ------------------------------------------------------------------
CONSUMER SERVICES -- 2.0%
Restaurants -- 2.0%
8,412 McDonald's Corp. $ 537,106
-----------
Total Consumer Services $ 537,106
- ------------------------------------------------------------------
MEDIA -- 4.6%
Cable & Satellite -- 2.7%
44,500 Comcast Corp. $ 731,580
- ------------------------------------------------------------------
Movies & Entertainment -- 1.9%
17,000 Viacom, Inc. (Class B)* $ 504,050
-----------
Total Media $ 1,235,630
- ------------------------------------------------------------------
RETAILING -- 3.2%
Apparel Retail -- 3.2%
27,200 Gap, Inc. $ 584,800
6,600 TJX Companies, Inc. 274,758
-----------
$ 859,558
-----------
Total Retailing $ 859,558
- ------------------------------------------------------------------
FOOD & DRUG RETAILING -- 2.1%
Drug Retail -- 2.1%
17,144 CVS/Caremark Corp. $ 578,610
-----------
Total Food & Drug Retailing $ 578,610
- ------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 2.8%
Distillers & Vintners -- 1.9%
34,360 Constellation Brands, Inc.* $ 516,774
- ------------------------------------------------------------------
Tobacco -- 0.9%
4,900 Phillip Morris International, Inc. $ 240,002
-----------
Total Food, Beverage & Tobacco $ 756,776
- ------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.6%
Managed Health Care -- 3.6%
12,800 AETNA, Inc. $ 383,872
17,002 United Healthcare Group, Inc. 575,688
-----------
$ 959,560
-----------
Total Health Care Equipment & Services $ 959,560
- ------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 5.2%
Pharmaceuticals -- 5.2%
18,341 Bristol-Myers Squibb Co. $ 449,538
53,782 Pfizer, Inc. 943,874
-----------
$ 1,393,412
-----------
Total Pharmaceuticals & Biotechnology $ 1,393,412
- ------------------------------------------------------------------
BANKS -- 6.0%
Diversified Banks -- 4.0%
39,300 Wells Fargo & Co. $ 1,074,462
- ------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 15
Schedule of Investments | 2/28/10 (unaudited) (continued)
- -----------------------------------------------------------------
Shares Value
- -----------------------------------------------------------------
Regional Banks -- 2.0%
77,300 KeyCorp $ 552,695
-----------
Total Banks $ 1,627,157
- -----------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 11.4%
Asset Management & Custody Banks -- 3.6%
4,949 Franklin Resources, Inc. $ 503,412
10,500 State Street Corp. 471,555
-----------
$ 974,967
- -----------------------------------------------------------------
Diversified Financial Services -- 3.3%
21,300 JPMorgan Chase & Co. $ 893,961
- -----------------------------------------------------------------
Investment Banking & Brokerage -- 2.3%
21,900 Morgan Stanley Co. $ 617,142
- -----------------------------------------------------------------
Specialized Finance -- 2.2%
2,000 CME Group, Inc. $ 603,380
-----------
Total Diversified Financials $ 3,089,450
- -----------------------------------------------------------------
INSURANCE -- 5.1%
Life & Health Insurance -- 3.0%
5,100 Prudential Financial, Inc. $ 267,291
26,800 UNUM Group, Inc. 557,708
-----------
$ 824,999
- -----------------------------------------------------------------
Property & Casualty Insurance -- 2.1%
11,100 ACE, Ltd. $ 554,889
-----------
Total Insurance $ 1,379,888
- -----------------------------------------------------------------
REAL ESTATE -- 0.5%
Specialized Real Estate Investment Trust -- 0.5%
1,685 Public Storage, Inc. $ 138,490
-----------
Total Real Estate $ 138,490
- -----------------------------------------------------------------
SOFTWARE & SERVICES -- 1.0%
Systems Software -- 1.0%
9,885 Microsoft Corp. $ 283,304
-----------
Total Software & Services $ 283,304
- -----------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 2.0%
Office Electronics -- 2.0%
57,300 Xerox Corp. $ 536,901
-----------
Total Technology Hardware & Equipment $ 536,901
- -----------------------------------------------------------------
SEMICONDUCTORS -- 1.7%
98,700 Atmel Corp.* $ 445,137
-----------
Total Semiconductors $ 445,137
- -----------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
- -------------------------------------------------------------------
Shares Value
- -------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.7%
Integrated Telecommunication Services -- 4.7%
14,400 Century Telephone Enterprises, Inc. $ 493,489
26,754 Verizon Communications, Inc. 773,993
-----------
$ 1,267,482
-----------
Total Telecommunication Services $ 1,267,482
- -------------------------------------------------------------------
UTILITIES -- 6.1%
Electric Utilities -- 1.3%
9,200 FirstEnergy Corp. $ 355,580
- -------------------------------------------------------------------
Gas Utilities -- 1.7%
11,000 Questar Corp. $ 461,890
- -------------------------------------------------------------------
Multi-Utilities -- 3.1%
14,700 Public Service Enterprise Group, Inc. $ 436,884
8,251 Sempra Energy Co. 405,702
-----------
$ 842,586
-----------
Total Utilities $ 1,660,056
- -------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $22,407,155) $25,278,995
- -------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 93.5%
(Cost $22,407,155) (a) $25,278,995
- -------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 6.5% $ 1,762,103
- -------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $27,041,098
===================================================================
* Non-income producing security.
(a) At February 28, 2010, the net unrealized gain on investments based on cost
for federal income tax purposes of $22,433,969 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $3,077,354
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (232,328)
----------
Net unrealized gain $2,845,026
==========
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended February 28, 2010 aggregated $12,641,104 and $12,355,750,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 17
Schedule of Investments | 2/28/10 (unaudited) (continued)
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of February 28, 2010, in
valuing the Fund's assets:
- -----------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
- -----------------------------------------------------------------------------
Common stocks $25,278,995 $-- $-- $25,278,995
- -----------------------------------------------------------------------------
Total $25,278,995 $-- $-- $25,278,995
=============================================================================
The accompanying notes are an integral part of these financial statements.
18 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
Statement of Assets and Liabilities | 2/28/10 (unaudited)
ASSETS:
Investment in securities, at value (cost $22,407,155) $25,278,995
Cash 482,254
Receivables --
Fund shares sold 1,224,910
Dividends 54,810
Due from Pioneer Investment Management, Inc. 21,797
Other 21,518
- -----------------------------------------------------------------------
Total assets $27,084,284
- -----------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 3,501
Due to affiliates 2,364
Accrued expenses 37,321
- -----------------------------------------------------------------------
Total liabilities $ 43,186
- -----------------------------------------------------------------------
NET ASSETS:
Paid-in capital $22,678,848
Undistributed net investment income 56,884
Accumulated net realized gain on investments 1,433,526
Net unrealized gain on investments 2,871,840
- -----------------------------------------------------------------------
Total net assets $27,041,098
=======================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $700,406/83,878 shares) $ 8.35
Class C (based on $434,900/51,771 shares) $ 8.40
Class Y (based on $25,905,792/3,066,896 shares) $ 8.45
MAXIMUM OFFERING PRICE:
Class A ($8.35 [divided by] 94.25%) $ 8.86
=======================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 19
Statement of Operations (unaudited)
For the Six Months Ended 2/28/10
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $547) $274,723
Income from securities loaned, net 23
- -------------------------------------------------------------------------------------
Total investment income $ 274,746
- -------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 80,591
Transfer agent fees
Class A 528
Class C 256
Class Y 86
Distribution fees
Class A 770
Class C 1,755
Shareholder communication expense 217
Administrative reimbursements 4,046
Custodian fees 2,070
Registration fees 21,569
Professional fees 29,942
Printing expense 19,826
Fees and expenses of nonaffiliated trustees 3,502
Miscellaneous 1,867
- -------------------------------------------------------------------------------------
Total expenses $ 167,025
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (52,159)
- -------------------------------------------------------------------------------------
Net expenses $ 114,866
- -------------------------------------------------------------------------------------
Net investment income $ 159,880
- -------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $2,143,832
- -------------------------------------------------------------------------------------
Change in net unrealized gain on investments $ (523,043)
- -------------------------------------------------------------------------------------
Net gain on investments $1,620,789
- -------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $1,780,669
=====================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
Statement of Changes in Net Assets
For the Six Months Ended 2/28/10 and the Year Ended 8/31/09, respectively
- -------------------------------------------------------------------------------------------
Six Months
Ended
2/28/10 Year Ended
(unaudited) 8/31/09
- -------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 159,880 $ 109,065
Net realized gain on investments 2,143,832 339,540
Change in net unrealized gain (loss) on investments (523,043) 3,389,653
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 1,780,669 $ 3,838,258
- -------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.07 and $0.11 per share, respectively) $ (5,373) $ (6,136)
Class C ($0.02 and $0.02 per share, respectively) (960) (559)
Class Y ($0.07 and $0.07 per share, respectively) (201,918) (1,701)
Net realized gain:
Class A ($0.35 and $0.00 per share, respectively) (24,123) --
Class C ($0.35 and $0.00 per share, respectively) (13,699) --
Class Y ($0.35 and $0.00 per share, respectively) (985,985) --
- -------------------------------------------------------------------------------------------
Total distributions to shareowners $(1,232,058) $ (8,396)
- -------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 3,453,987 $19,606,131
Reinvestment of distributions 10,885 6,136
Cost of shares repurchased (800,578) (642,143)
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 2,664,294 $18,970,124
- -------------------------------------------------------------------------------------------
Net increase in net assets $ 3,212,905 $22,799,986
NET ASSETS:
Beginning of period 23,828,193 1,028,207
- -------------------------------------------------------------------------------------------
End of period $27,041,098 $23,828,193
- -------------------------------------------------------------------------------------------
Undistributed net investment income $ 56,884 $ 105,255
===========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 21
Statement of Changes in Net Assets (continued)
- ---------------------------------------------------------------------------------------------------
'10 Shares '10 Amount '09 Shares '09 Amount
(unaudited) (unaudited)
- ---------------------------------------------------------------------------------------------------
Class A
Shares sold 22,149 $ 187,804 11,763 $ 91,815
Reinvestment of distributions 754 6,320 897 6,136
Less shares repurchased (3,275) (28,009) (2,529) (17,883)
- ---------------------------------------------------------------------------------------------------
Net increase 19,628 $ 166,115 10,131 $ 80,068
===================================================================================================
Class C
Shares sold 26,415 $ 227,993 5,491 $ 42,908
Reinvestment of distributions 541 4,565 -- (18)
Less shares repurchased (7,441) (62,943) (2) --
- ---------------------------------------------------------------------------------------------------
Net increase 19,515 $ 169,615 5,489 $ 42,890
===================================================================================================
Class Y
Shares sold 362,113 $3,038,190 2,841,402 $19,471,408
Less shares repurchased (82,135) (709,626) (80,607) (624,242)
- ---------------------------------------------------------------------------------------------------
Net increase 279,978 $2,328,564 2,760,795 $18,847,166
===================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
Financial Highlights
- -------------------------------------------------------------------------------------------------------
Six Months
Ended
2/28/10 Year Ended
(unaudited) 8/31/09
- -------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 8.19 $ 9.60
- -------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.03 $ 0.09
Net realized and unrealized gain (loss) on investments 0.55 (1.39)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 0.58 $ (1.30)
Distributions to shareowners:
Net investment income (0.07) (0.11)
Net realized gain (0.35) --
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.16 $ (1.41)
- -------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.35 $ 8.19
=======================================================================================================
Total return* 7.11% (13.34)%
Ratio of net expenses to average net assets 1.25%** 1.25%
Ratio of net investment income to average net assets 0.96%** 1.34%
Portfolio turnover rate 103%** 114%
Net assets, end of period (in thousands) $ 700 $ 526
Ratios with no waiver of fees and assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 1.75%** 13.37%
Net investment income (loss) 0.46%** (10.78)%
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended 12/15/05 (a)
8/31/08 8/31/07 to 8/31/06
- -------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 11.99 $ 10.69 $ 10.00
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.11 $ 0.12 $ 0.09
Net realized and unrealized gain (loss) on investments (1.62) 1.58 0.60
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ (1.51) $ 1.70 $ 0.69
Distributions to shareowners:
Net investment income (0.11) (0.12) --
Net realized gain (0.77) (0.28) --
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.39) $ 1.30 $ 0.69
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.60 $ 11.99 $ 10.69
===================================================================================================================
Total return* (13.34)% 16.24% 6.90%(b)
Ratio of net expenses to average net assets 1.25% 1.25% 1.25%**
Ratio of net investment income to average net assets 1.07% 1.01% 1.21%**
Portfolio turnover rate 116% 88% 66%(b)
Net assets, end of period (in thousands) $ 520 $ 600 $ 535
Ratios with no waiver of fees and assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 16.02% 13.35% 19.33%**
Net investment income (loss) (13.70)% (11.09)% (16.87)%**
- -------------------------------------------------------------------------------------------------------------------
(a) The Fund commenced operations on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 23
Financial Highlights (continued)
- --------------------------------------------------------------------------------------------------------------
Six Months
Ended
2/28/10 Year Ended 7/17/08(a)
(unaudited) 8/31/09 to 8/31/08
- --------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 8.23 $ 9.61 $ 9.34
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01) $ 0.03 $ 0.01
Net realized and unrealized gain (loss) on investments 0.55 (1.39) 0.26
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
investment operations $ 0.54 $ (1.36) $ 0.27
Distributions to shareowners:
Net investment income (0.02) (0.02) --
Net realized gain (0.35) -- --
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.17 $ (1.38) $ 0.27
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.40 $ 8.23 $ 9.61
==============================================================================================================
Total return* 6.65% (14.10)% 2.89%(b)
Ratio of net expenses to average net assets 2.15%** 1.99% 2.15%**
Ratio of net investment income to average net assets 0.05%** 0.59% 0.40%**
Portfolio turnover rate 103%** 114% 116%(b)
Net assets, end of period (in thousands) $ 435 $ 265 $ 257
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for fees
paid indirectly:
Net expenses 2.54%* * 13.76% 25.47%**
Net investment loss (0.34)%** (11.18)% (22.92)%**
- --------------------------------------------------------------------------------------------------------------
(a) Class C shares were first publicly offered on July 17, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
- --------------------------------------------------------------------------------------------------------------
Six Months
Ended
2/28/10 Year Ended 7/31/08(a)
(unaudited) 8/31/09 to 8/31/08
- --------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 8.27 $ 9.62 $ 9.57
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.05 $ 0.06 $ 0.02
Net realized and unrealized gain (loss) on investments 0.55 (1.34) 0.03
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
investment operations $ 0.60 $ (1.28) $ 0.05
Distributions to shareowners:
Net investment income (0.07) (0.07) --
Net realized gain (0.35) -- --
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.18 $ (1.35) $ 0.05
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.45 $ 8.27 $ 9.62
==============================================================================================================
Total return* 7.34% (13.22)% 0.52%(b)
Ratio of net expenses to average net assets 0.90%** 0.90% 0.90%**
Ratio of net investment income to average net assets 1.32%** 1.41% 2.37%**
Portfolio turnover rate 103%** 114% 116%(b)
Net assets, end of period (in thousands) $25,906 $23,037 $ 251
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for fees
paid indirectly:
Net expenses 1.32%** 1.88% 10.11%**
Net investment income (loss) 0.89%** 0.43% (6.84)%**
- --------------------------------------------------------------------------------------------------------------
(a) Class Y shares were first publicly offered on July 31, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 25
Notes to Financial Statements | 2/28/10 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Disciplined Value Fund, formerly Pioneer Research Value Fund (the
Fund), is one of four portfolios comprising Pioneer Series Trust V, a Delaware
statutory trust. The Fund is registered under the Investment Company Act of
1940 as a diversified, open-end management investment company. The Fund was
organized on October 12, 2005, and commenced operations on December 15, 2005.
Pioneer Investment Management Inc. (PIM), the Fund's investment advisor, paid
all organizational costs of the Fund.
The Fund offers three classes of shares designated as Class A, Class C and
Class Y shares. Class C shares were first publicly offered on July 17, 2008.
Class Y shares were first publicly offered on July 31, 2008. Each class of
shares represents an interest in the same portfolio of investments of the Fund
and has identical rights (based on relative net asset values) to assets and
liquidation proceeds. Share classes can bear different rates of class-specific
fees and expenses such as transfer agent and distribution fees. Differences in
class-specific fees and expenses will result in differences in net investment
income and, therefore, the payment of different dividends from net investment
income earned by each class. The Amended and Restated Declaration of Trust of
the Fund gives the Board the flexibility to specify either per-share voting or
dollar-weighted voting when submitting matters for shareholder approval. Under
per-share voting, each share of a class of the Fund is entitled to one vote.
Under dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y shares.
Small and mid-sized companies may offer the potential for higher returns, but
are also subject to greater short-term price fluctuations than larger, more
established companies. The Fund's prospectuses contain unaudited information
regarding the Fund's principal risks. Please refer to those documents when
considering the Fund's principal risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
26 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In
computing the net asset value, securities that have traded on an exchange
are valued at the last sale price on the principal exchange where they are
traded. Securities that have not traded on the date of valuation, or
securities for which sale prices are not available, generally are valued at
the mean between the last bid and asked prices. Securities for which market
prices and/or quotations are not readily available or are considered to be
unreliable are valued using fair value methods pursuant to procedures
adopted by the Board of Trustees.
Trading in foreign securities is substantially completed each day at
various times prior to the close of the NYSE. The values of such securities
used in computing the net asset value of the Fund's shares are determined
as of such times.
The Fund may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset
value. Thus, the valuation of the Fund's securities may differ from
exchange prices. At February 28, 2010, there were no securities that were
valued using fair value methods (other than securities that were valued
using prices supplied by independent pricing services). Short-term fixed
income securities with remaining maturities of sixty days or less generally
are valued at amortized cost.
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income 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
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 27
years for the prior three fiscal years are subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain on investment transactions,
or as from paid-in capital, depending on the type of book/tax differences
that may exist.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
paid during the year ended August 31, 2009 was as follows:
- -----------------------------------------
2009
- -----------------------------------------
Distributions paid from:
Ordinary income $8,396
Long-term capital gain --
- -----------------------------------------
Total $8,396
=========================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2009:
- ---------------------------------------------------
2009
- ---------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 105,255
Undistributed long-term gain 385,914
Post-October loss deferred (45,599)
Unrealized appreciation 3,368,069
- ---------------------------------------------------
Total $3,813,639
===================================================
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. PFD,
the principal underwriter for the Fund and a wholly owned indirect
subsidiary of UniCredit S.p.A. (UniCredit), earned approximately $153 in
underwriting commissions on the sale of Class A shares during the six
months ended February 28, 2010.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
28 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services, are allocated among the classes
of shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class 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 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 business on that 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.
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 0.65% of
the Fund's average daily net assets up to $1 billion, 0.60% of the next $4
billion and 0.55% on assets over $5 billion. For the six months ended February
28, 2010, the effective management fee (excluding waivers and/or assumption of
expenses) was equivalent to 0.65% of the Fund's average net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund
to the extent required to reduce Fund expenses to 1.25%, 2.15%, and 0.90% of
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 29
the average daily net assets attributable to Class A, Class C, and Class Y
shares, respectively. These expense limitations are in effect through January
1, 2012 for Class A shares and January 1, 2011 for Class C shares and Class Y
shares. There can be no assurance that PIM will extend the expense limitation
agreement for a class of shares beyond the date referred to above.
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
$1,710 in management fees, administrative costs and certain other
reimbursements payable to PIM at February, 28 2010.
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 six months ended February 28, 2010, such out-of-pocket expenses by
class of shares were as follows:
- -------------------------------------------
Shareholder Communications:
- -------------------------------------------
Class A $ 21
Class C 100
Class Y 96
- -------------------------------------------
Total $217
===========================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $604 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 28, 2010.
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 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 C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected
30 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
on the Statement of Assets and Liabilities is $50 in distribution fees payable
to PFD at February 28, 2010.
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 on or after
April 1, 2009). 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 six
months ended February 28, 2010, no CDSCs were paid to PFD.
5. Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
subsequent events and transactions for potential recognition or disclosure
through April 22, 2010, and has determined that there were no subsequent events
requiring recognition or disclosure in the financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 31
Approval of Investment Advisory Agreement (unaudited)
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Disciplined Value Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether
to renew the investment 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. 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 and third parties, the Trustees of the Fund,
including the independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for
the Fund, its research process and its process for trade execution. The
Trustees considered the resources of PIM and the personnel of PIM 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.
32 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers 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 to the Fund were
satisfactory and consistent with the terms of the investment advisory
agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
performance of its peer group of funds as classified by Morningstar, Inc.
(Morningstar), an independent provider of investment company data, and with the
performance of the Fund's benchmark index. The Trustees considered that the
Fund's annualized total return was in the second quintile of its Morningstar
category for the one year period ended June 30, 2009 and in the first quintile
of its Morningstar category for the three 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 considered that the Fund's management fee for the twelve months
ended June 30, 2009 was in the second 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 second quintile relative to its Strategic
Insight peer group for the comparable period. The Trustees considered the
breakpoints in the management fee schedule and the reduced fee rates above
certain asset levels.
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
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 33
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 concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by
PIM. 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
contractual expense limitation agreed to by PIM with respect to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was 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.
34 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
Other Benefits
The Trustees considered the other benefits to PIM 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 PIM 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 PIM by
virtue of its relationship with the Fund and the other Pioneer funds. The
Trustees concluded that the receipt of these benefits was reasonable in the
context of the overall relationship between PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including all of the independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10 35
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at http://www.sec.gov.
36 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/10
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.
- --------------------------------------------------------------------------------
Pioneer Global
Equity Fund*
- --------------------------------------------------------------------------------
Semiannual Report | February 28, 2010
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A GLOSX
Class B GBSLX
Class C GCSLX
Class Y PGSYX
* Effective April 1, 2009, Pioneer Global Select Equity Fund was renamed
Pioneer Global Equity Fund.
[LOGO]PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 21
Notes to Financial Statements 29
Approval of Investment Advisory Agreement 37
Trustees, Officers and Service Providers 41
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 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 Global Equity Fund | Semiannual Report | 2/28/10
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.
Respectfully,
/s/Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 3
Portfolio Management Discussion | 2/28/10
In the following interview, portfolio manager Piergaetano Iaccarino discusses
the factors that influenced the performance of Pioneer Global Equity Fund during
the six-month period ended February 28, 2010. Mr. Iaccarino is responsible for
the day-to-day management of the Fund.
Q How did the Fund perform over the six-month period ended February 28, 2010?
A In a generally positive period for global equities, the Fund's Class A
shares returned 4.14% at net asset value over the six months ended February
28, 2010, underperforming the 5.41% return of the Fund's benchmark, the
Morgan Stanley Capital International (MSCI) World Index1. Over the same
period, the average return of the 102 funds in Lipper's Global Large Cap
Core category was 5.85%.
Q Can you review the investment climate for global equities over the six-
month period ended February 28, 2010?
A In the fall of 2009, the rally in riskier assets that had begun the
previous spring remained in place. Investor sentiment was supported by the
unprecedented efforts of global governments to end the financial crisis and
by investor conviction that the worst-case scenarios had been averted. In
addition to a more stable financial backdrop, we attributed a large portion
of the gains to the market's favorable response to "less bad" economic
news, rather than a return to pre-crisis economic conditions. Any
weaker-than-expected economic data, or investor nervousness that
accommodative fiscal and monetary policies were about to reverse usually
sparked immediate profit taking.
As expected, the United States emerged from recession in the third quarter
of 2009, following successive quarters of decline in its gross domestic
product (GDP). The U.S. economy has been boosted by huge fiscal and
monetary stimulus, including tax credits for first-time home buyers.
Elsewhere, the euro zone also emerged from recession in the third quarter
(though France and Germany reported weaker growth than had been expected),
as did Russia and South Africa. In contrast to the sub-par recovery in much
of the world, growth and economic momentum in China and some other emerging
countries continued to be strong.
The global stock market's risk rally gradually tapered off during the six-
month period ended February 28, 2010, based on several concerns, including
historically high unemployment and the troubled finances of a number of
governments, with problems in Greece being a major focus. For the full
4 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
six-month period, all of the major asset classes provided positive returns,
with riskier asset classes continuing to lead the way.
Q Can you describe the Fund's overall investment approach?
A We examine mid- and large-capitalization stocks in more than 30 countries.
From that universe, we build a concentrated portfolio in the Fund of about
50 stocks. Each stock that the Fund's portfolio holds generally will be
overweighted by at least one percentage point compared with the benchmark
MSCI World Index. In selecting securities for the Fund's portfolio, we look
for "growth at a reasonable price" opportunities, and so there is a strong
value component to our analysis. We seek to invest the Fund's assets in
companies that not only are benefiting from operating efficiencies -- as
reflected in factors such as increased market share and revenues -- but
that also use their capital efficiently. In particular, we look for strong
free cash flow, because that provides companies with the flexibility to
make share buybacks, reinvest in their businesses, make acquisitions and
raise dividends.
Finally, we attempt to assess not only the potential price gains for each
stock but also the potential for a decline in price if circumstances become
unfavorable. We prefer stocks with the highest upside relative to their
downside.
Q What investment allocations helped and hurt the Fund's performance over the
six months ended February 28, 2010, and what changes did you make to the
portfolio during the period?
A For the six-month period, sector allocation helped the Fund's performance,
while overall stock selection detracted from returns. The Fund's overweight
to the consumer staples sector, as well as stock selection in the health
care, materials and utilities sectors, were key positives for performance.
On the flip side, stock selection within financials was by far the largest
detractor from the Fund's relative performance, while selection in the
information technology and industrials sectors also hurt returns.
We maintain investments in the Fund across all 10 sectors, as we constantly
look to add value from stock selection. The Fund's largest overweights at
the end of the period were in consumer staples, information technology and
health care, while financials, utilities and industrials constituted the
main underweights.
Within the information technology sector, we sold Electronic Arts (EA) from
the Fund, following a period where the stock had not delivered on our
expectations. We instead switched our focus to EA's rival, Activision
Blizzard, which was formed in 2008 as the result of a merger between
Activision and Vivendi Games. We feel that Activision is more dynamic and
is delivering better-quality products than EA. In pharmaceuticals, we
switched the
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 5
Fund out of Novartis into a new position in Sanofi-Aventis, based on
Sanofi's more attractive valuation.
Late in the period, we made two other changes to the Fund's portfolio based
on valuation, selling out of Bank of America and Dell and replacing them
with positions in JPMorgan Chase and CSR. JPMorgan is one of the largest
diversified financial companies in America, and we think the company will
garner further benefits from its acquisitions of Washington Mutual and Bear
Stearns, which occurred during the financial crisis. CSR designs multi-
function connectivity and location platforms such as Bluetooth, GPS and
Wi-Fi chips -- in a market that is expanding rapidly.
Lastly, one of our key portfolio themes is to focus on increasing the
Fund's dividend yield. On average, dividend yield makes up a substantial
portion (approximately 50%) of overall returns from equities over the long
term. In 2009, dividends contributed only about 10% to overall equity
return, and we are looking for a reversion toward the mean average,
especially during a period of more subdued global growth.
Q What is your outlook and how is it reflected in the Fund's positioning?
A In general, we retain a defensive bias. The principal problem that caused
the financial crisis was excess leverage, which we believe has yet to be
dealt with adequately. We believe that the market went up too far, too
fast. Thus we remain more concerned with having downside protection rather
than chasing cyclicality. However, we still also want to be able to
participate in the market rally should it persist, and therefore the Fund
is exposed to a mixture of growth drivers.
Massive liquidity injections from governments and improving economic data
enabled the market rebound, but leverage and its residual effects
(indebtedness, tax increases, slower growth, higher unemployment, higher
savings rates) may constitute a continuing headwind through 2010.
Additionally, there remains spare capacity in most industries. A key reason
why we have been high on information technology companies is because spare
capacity in the sector can quickly be reduced due to technological
innovations and the rapid pace of change.
In terms of the global economic situation, we believe we've turned the
corner. However, there seems to have been a change in investor behavior and
sentiment over the past few months: Optimism and market rallies have
started to become more balanced by caution and occasional sell-offs. The
markets have been fairly flat since last October, and seem to be in the
consolidation phase that we had been expecting for some time.
In the coming months, we will continue to focus on fundamentals and stock
selection, which we think will become increasingly important to global
stock market performance.
6 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
1 The MSCI information may only be used for your internal use, may not be
reproduced or re-disseminated in any form and may not be used as a basis
for or a component of any financial instruments or products or indices.
None of the MSCI information is intended to constitute investment advice or
a recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis
should not be taken as an indication or guarantee of any future performance
analysis, forecast or prediction. The MSCI information is provided on an
"as is" basis and the user of this information assumes the entire risk of
any use made of this information. MSCI, each of its affiliates and each
other person involved in or related to compiling, computing or creating any
MSCI information (collectively, the "MSCI Parties") expressly disclaims all
warranties (including, without limitation, any warranties of originality,
accuracy, completeness, timeliness, non-infringement, merchantability and
fitness for a particular purpose) with respect to this information. Without
limiting any of the foregoing, in no event shall any MSCI Party have any
liability for any direct, indirect, special, incidental, punitive,
consequential (including, without limitation, lost profits) or any other
damages. (www.mscibarra.com)
Please refer to the Schedule of Investments on pages 16-20 for a full listing of
fund securities.
Investing in foreign and/or emerging markets securities involves certain risks,
including risks relating to interest rates, currency exchange rates, economic
and political conditions. Investments in mid-sized companies may offer the
potential for higher returns, but are also subject to greater short-term price
fluctuations than larger, more established companies. The Fund is
non-diversified and invests in a limited number of securities and, as a result,
the Fund's performance may be more volatile than the performance of funds
holding more securities. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making it more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 7
Portfolio Summary | 2/28/10
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
Financials 18.4%
Information Technology 14.6%
Consumer Staples 13.1%
Health Care 11.9%
Energy 9.6%
Consumer Discretionary 9.5%
Industrials 9.1%
Materials 7.7%
Telecommunication Services 4.7%
Utilities 1.4%
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA IS A REPRESENTATION OF A BAR CHART IN THE PRINTED MATERIAL]
United States 52.1%
France 10.7%
United Kingdom 9.2%
Japan 8.7%
Switzerland 6.5%
People's Republic of China 2.1%
Germany 2.0%
Canada 1.7%
Netherlands 1.7%
Bermuda 1.4%
Italy 1.4%
Paupa New Guinea 1.3%
Spain 1.2%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Pfizer, Inc. 3.50%
2. Procter & Gamble Co. 3.42
3. United Technologies Corp. 3.17
4. Wal-Mart Stores, Inc. 3.03
5. Altria Group, Inc. 2.95
6. Microsoft Corp. 2.94
7. Medtronic, Inc. 2.70
8. Hewlett-Packard Co. 2.69
9. Apache Corp. 2.65
10. Vodafone Group Plc 2.59
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
8 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
Prices and Distributions | 2/28/10
Net Asset Value per Share
- --------------------------------------------------------------------------------
- -------------------------------------
Class 2/28/10 8/31/09
- -------------------------------------
A $ 8.89 $ 8.56
- -------------------------------------
B $ 8.78 $ 8.47
- -------------------------------------
C $ 8.79 $ 8.48
- -------------------------------------
Y $ 8.92 $ 8.59
- -------------------------------------
Distributions per Share: 9/1/09-2/28/10
- --------------------------------------------------------------------------------
- ---------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ---------------------------------------------------------
A $ 0.0252 $ -- $ --
- ---------------------------------------------------------
B $ -- $ -- $ --
- ---------------------------------------------------------
C $ -- $ -- $ --
- ---------------------------------------------------------
Y $ 0.0536 $ -- $ --
- ---------------------------------------------------------
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 9
Performance Update | 2/28/10 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Equity Fund at public offering price, compared
to that of the Morgan Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of February 28, 2010)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
Life-of-Class
(12/15/05) 0.07% -1.33%
1 Year 47.83 39.28
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009,
as revised February 9, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
2.25% 1.30%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI World
Equity Fund Index
12/05 $ 9,425 $10,000
2/06 $ 9,840 $10,437
2/07 $11,516 $12,152
2/08 $11,861 $12,147
2/09 $ 6,400 $ 6,467
2/10 $ 9,461 $10,035
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 for Class A shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
10 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
Performance Update | 2/28/10 Class B Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Equity Fund, compared to that of the Morgan
Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of February 28, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(12/15/05) -0.84% -1.05%
1 Year 46.58 42.58
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009,
as revised February 9, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
4.14% 2.20%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI World
Equity Fund Index
12/05 $10,000 $10,000
2/06 $10,420 $10,437
2/07 $12,087 $12,152
2/08 $12,334 $12,147
2/09 $6,591 $6,467
2/10 $9,574 $10,035
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/11 for Class B shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 11
Performance Update | 2/28/10 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Equity Fund, compared to that of the Morgan
Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of February 28, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(12/15/05) -0.83% -0.83%
1 Year 46.50 46.50
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009, as
revised February 9, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
3.76% 2.20%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI World
Equity Fund Index
12/05 $10,000 $10,000
2/06 $10,420 $10,437
2/07 $12,077 $12,152
2/08 $12,334 $12,147
2/09 $6,599 $6,467
2/10 $9,667 $10,035
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/11 for Class C shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
12 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
Performance Update | 2/28/10 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Equity Fund, compared to that of the Morgan
Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of February 28, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(12/15/05) -0.50% -0.50%
1 Year 48.78 48.78
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009,
as revised February 9, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.10% 0.80%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI World
Equity Fund Index
12/05 $10,000 $10,000
2/06 $10,440 $10,437
2/07 $12,141 $12,152
2/08 $12,344 $12,147
2/09 $6,588 $6,467
2/10 $9,802 $10,035
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for periods prior to the inception of the Fund's Class Y
shares on December 31, 2008 reflects the NAV performance of the Fund's Class A
shares. The performance does not reflect differences in expenses, including the
Rule 12b-1 fees applicable to Class A shares. Since fees for Class A shares are
generally higher than those of Class Y shares, the performance for Class Y
shares prior to their inception would have been higher than the performance
shown. Class Y shares are not subject to sales charges and are available for
limited groups of eligible investors, including institutional investors. All
results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/11 for Class Y shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments and
redemption fees.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global Equity Fund
Based on actual returns from September 1, 2009 through February 28, 2010.
- --------------------------------------------------------------------------------
Share Class A B C Y
- --------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/09
- --------------------------------------------------------------------------------
Ending Account $ 1,041.40 $ 1,036.60 $ 1,036.60 $ 1,044.40
Value on 2/28/10
- --------------------------------------------------------------------------------
Expenses Paid $ 6.58 $ 11.11 $ 11.11 $ 4.06
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.30%, 2.20%,
2.20%, and 0.80% for Class A, Class B, Class C, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
14 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) or redemption fees that are charged at the time of the
transaction. Therefore, the table below is useful in comparing ongoing costs
only and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs were included, your
costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global Equity Fund
Based on a hypothetical 5% return before expenses, reflecting the period from
September 1, 2009 through February 28, 2010.
- --------------------------------------------------------------------------------
Share Class A B C Y
- --------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/09
- --------------------------------------------------------------------------------
Ending Account $ 1,018.35 $ 1,013.88 $ 1,013.88 $ 1,020.83
Value on 2/28/10
- --------------------------------------------------------------------------------
Expenses Paid $ 6.51 $ 10.99 $ 10.99 $ 4.01
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.30%, 2.20%,
2.20%, and 0.80% for Class A, Class B, Class C, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 15
Schedule of Investments | 2/28/10 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS -- 93.5%
ENERGY -- 9.0%
Integrated Oil & Gas -- 4.8%
65,293 ConocoPhillips, Inc. $ 3,134,064
70,292 Repsol SA 1,585,391
85,480 Royal Dutch Shell Plc 2,330,137
------------
$ 7,049,592
- --------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 4.2%
34,897 Apache Corp. $ 3,616,725
35,933 Devon Energy Corp. 2,474,346
------------
$ 6,091,071
------------
Total Energy $ 13,140,663
- --------------------------------------------------------------------------------
MATERIALS -- 7.2%
Diversified Chemical -- 1.6%
44,833 Akzo Nobel SA $ 2,281,333
- --------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.9%
82,572 Xstrata Plc* $ 1,298,011
- --------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 1.6%
36,124 Agrium, Inc. $ 2,339,029
- --------------------------------------------------------------------------------
Gold -- 3.1%
758,616 Lihir Gold, Ltd. $ 1,828,288
54,463 Newmont Mining Corp. 2,683,937
------------
$ 4,512,225
------------
Total Materials $ 10,430,598
- --------------------------------------------------------------------------------
CAPITAL GOODS -- 8.5%
Aerospace & Defense -- 5.1%
146,780 Finmeccanica S.p.A. $ 1,898,908
30,523 Thales SA 1,220,290
62,939 United Technologies Corp. 4,320,762
------------
$ 7,439,960
- --------------------------------------------------------------------------------
Electrical Component & Equipment -- 2.0%
26,649 Schneider Electric SA $ 2,848,620
- --------------------------------------------------------------------------------
Industrial Machinery -- 1.4%
21,077 Flowserve Corp. $ 2,109,597
------------
Total Capital Goods $ 12,398,177
- --------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.9%
Consumer Electronics -- 1.9%
79,300 Sony Corp. $ 2,707,367
------------
Total Consumer Durables & Apparel $ 2,707,367
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
MEDIA -- 5.2%
Advertising -- 1.3%
216,637 WPP Group Plc $ 1,989,498
- --------------------------------------------------------------------------------
Cable & Satellite -- 3.9%
144,843 Comcast Corp. $ 2,381,219
98,130 Eutelsat Communications SA 3,259,563
------------
$ 5,640,782
------------
Total Media $ 7,630,280
- --------------------------------------------------------------------------------
RETAILING -- 1.8%
Apparel Retail -- 1.8%
122,301 Gap, Inc. $ 2,629,472
------------
Total Retailing $ 2,629,472
- --------------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 5.0%
Food Retail -- 2.2%
98,800 FamilyMart Co., Ltd.* $ 3,166,349
- --------------------------------------------------------------------------------
Hypermarkets & Supercenters -- 2.8%
76,414 Wal-Mart Stores, Inc.* $ 4,131,705
------------
Total Food & Drug Retailing $ 7,298,054
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.1%
Tobacco -- 4.1%
60,918 Imperial Tobacco Group Plc $ 1,901,033
200,309 Altria Group, Inc. 4,030,215
------------
$ 5,931,248
------------
Total Food, Beverage & Tobacco $ 5,931,248
- --------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 3.2%
Household Products -- 3.2%
73,671 Procter & Gamble Co. $ 4,661,901
------------
Total Household & Personal Products $ 4,661,901
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.2%
Health Care Equipment -- 2.5%
84,749 Medtronic, Inc.* $ 3,678,107
- --------------------------------------------------------------------------------
Health Care Services -- 1.7%
40,259 DaVita, Inc.* $ 2,480,357
------------
Total Health Care Equipment & Services $ 6,158,464
- --------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 6.9%
Pharmaceuticals -- 6.9%
272,423 Pfizer, Inc. $ 4,781,023
14,093 Roche Holdings AG* 2,353,960
41,004 Sanofi-Aventis SA 3,000,631
------------
$ 10,135,614
------------
Total Pharmaceuticals & Biotechnology $ 10,135,614
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 17
Schedule of Investments | 2/28/10 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
BANKS -- 5.8%
Diversified Banks -- 4.8%
27,911 Societe Generale SA $ 1,540,105
86,200 Sumitomo Mitsui Financial Group, Inc.* 2,775,071
99,584 Wells Fargo & Co. 2,722,627
------------
$ 7,037,803
- --------------------------------------------------------------------------------
Regional Banks -- 1.0%
194,344 KeyCorp $ 1,389,560
------------
Total Banks $ 8,427,363
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 9.5%
Asset Management & Custody Banks -- 1.4%
69,946 The Bank of New York Mellon Corp. $ 1,994,860
- --------------------------------------------------------------------------------
Diversified Capital Markets -- 3.5%
56,455 CS Group AG $ 2,513,227
193,712 UBS AG* 2,669,841
------------
$ 5,183,068
- --------------------------------------------------------------------------------
Diversified Finance Services -- 1.0%
35,877 JPMorgan Chase & Co. $ 1,505,758
- --------------------------------------------------------------------------------
Investment Banking & Brokerage -- 3.6%
54,260 Lazard, Ltd. $ 1,949,562
114,876 Morgan Stanley Co. 3,237,206
------------
$ 5,186,768
------------
Total Diversified Financials $ 13,870,454
- --------------------------------------------------------------------------------
INSURANCE -- 1.9%
Multi-Line Insurance -- 1.9%
23,857 Allianz AG $ 2,754,445
------------
Total Insurance $ 2,754,445
- --------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 4.4%
Home Entertainment Software -- 1.7%
232,440 Activision, Inc. $ 2,470,837
- --------------------------------------------------------------------------------
Systems Software -- 2.7%
140,110 Microsoft Corp. $ 4,015,552
------------
Total Software & Services $ 6,486,389
- --------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 8.6%
Communications Equipment -- 2.1%
123,164 Cisco Systems, Inc.* $ 2,996,580
- --------------------------------------------------------------------------------
Computer Hardware -- 2.5%
72,373 Hewlett-Packard Co. $ 3,675,825
- --------------------------------------------------------------------------------
Computer Storage & Peripherals -- 1.8%
65,312 Gemalto NV* $ 2,679,027
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
Office Electronics -- 2.2%
78,600 Canon, Inc.* $ 3,262,366
------------
Total Technology Hardware & Equipment $ 12,613,798
- --------------------------------------------------------------------------------
SEMICONDUCTORS -- 0.6%
111,912 CSR Plc* $ 811,695
------------
Total Semiconductors $ 811,695
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.4%
Wireless Telecommunication Services -- 4.4%
293,000 China Mobile, Ltd. $ 2,892,472
1,632,398 Vodafone Group Plc 3,529,067
------------
$ 6,421,539
------------
Total Telecommunication Services $ 6,421,539
- --------------------------------------------------------------------------------
UTILITIES -- 1.3%
Independent Power Producer & Energy Traders -- 1.3%
385,519 International Power Plc $ 1,904,781
------------
Total Utilities $ 1,904,781
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $122,412,005) $136,412,302
- --------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.0%
ENERGY -- 0.0%
Integrated Oil & Gas -- 0.0%
85,480 Royal Dutch Shell Plc, Expires 3/17/10* $ --
------------
Total Energy $ --
- --------------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $0) $ --
- --------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 93.5%
(Cost $122,412,005)(a)(b) $136,412,302
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 6.5% $ 9,455,773
- --------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $145,868,075
================================================================================
* Non-income producing security.
(a) At February 28, 2010, the net unrealized gain on investments based on cost
for federal income tax purposes of $124,667,091 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $16,823,291
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (5,078,080)
-----------
Net unrealized gain $11,745,211
===========
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 19
Schedule of Investments | 2/28/10 (unaudited) (continued)
(b) Distributions of investments by country of issue, as a percentage of total
investment in securities (excluding temporary cash investments), is as
follows:
United States 52.1%
France 10.7
United Kingdom 9.2
Japan 8.7
Switzerland 6.5
People's Republic of China 2.1
Germany 2.0
Canada 1.7
Netherlands 1.7
Bermuda 1.4
Italy 1.4
Paupa New Guinea 1.3
Spain 1.2
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 28, 2010 aggregated $47,699,829 and $62,853,922,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of February 28, 2010, in
valuing the Fund's assets:
- --------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
- --------------------------------------------------------------------------------
Common Stocks $75,410,826 $61,001,476 $-- $136,412,302
Rights/Warrants -- -- -- --
- --------------------------------------------------------------------------------
Total $75,410,826 $61,001,476 $-- $136,412,302
================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
Statement of Assets and Liabilities | 2/28/10 (unaudited)
ASSETS:
Investment in securities (cost $122,412,005) $136,412,302
Cash 8,509,218
Foreign currencies, at value (cost $3) 3
Receivables --
Investment securities sold 1,911,216
Fund shares sold 68,353
Dividends and foreign taxes withheld 550,079
Due from Pioneer Investment Management, Inc. 49,531
Other 39,241
- ------------------------------------------------------------------------------------
Total assets $147,539,943
- ------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 1,466,067
Fund shares repurchased 61,032
Due to affiliates 50,275
Accrued expenses 94,494
- ------------------------------------------------------------------------------------
Total liabilities $ 1,671,868
- ------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $144,349,568
Undistributed net investment income 289,644
Accumulated net realized loss on investments and foreign currency
transactions (12,784,953)
Net unrealized gain on investments 14,000,297
Net unrealized gain on other assets and liabilities denominated in
foreign currencies 13,519
- ------------------------------------------------------------------------------------
Total net assets $145,868,075
====================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $69,545,458/7,820,318 shares) $ 8.89
Class B (based on $7,188,798/818,674 shares) $ 8.78
Class C (based on $7,059,928/802,975 shares) $ 8.79
Class Y (based on $62,073,891/6,959,486 shares) $ 8.92
MAXIMUM OFFERING PRICE:
Class A ($8.89 [divided by] 94.25%) $ 9.43
====================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 21
Statement of Operations (unaudited)
For the Six Months Ended 2/28/10
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $57,423) $ 1,298,114
Interest 401
Income from securities loaned, net 1,798
- -----------------------------------------------------------------------------------------------------------
Total investment income $ 1,300,313
- -----------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 562,674
Transfer agent fees
Class A 145,467
Class B 32,715
Class C 15,368
Class Y 203
Distribution fees
Class A 90,343
Class B 39,657
Class C 36,369
Shareholder communications expense 36,930
Administrative reimbursements 24,484
Custodian fees 9,639
Registration fees 32,787
Professional fees 27,164
Printing expense 33,569
Fees and expenses of nonaffiliated trustees 3,321
Miscellaneous 6,800
- -----------------------------------------------------------------------------------------------------------
Total expenses $ 1,097,490
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (209,754)
- -----------------------------------------------------------------------------------------------------------
Net expenses $ 887,736
- -----------------------------------------------------------------------------------------------------------
Net investment income $ 412,577
- -----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 8,164,613
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (14,799) $ 8,149,814
- -----------------------------------------------------------------------------------------------------------
Change in net unrealized loss on:
Investments $ (2,201,825)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (12,024) $ (2,213,849)
- -----------------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $ 5,935,965
- -----------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 6,348,542
===========================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
Statements of Changes in Net Assets
For the Six Months Ended 2/28/10 and the Year Ended 8/31/09, respectively
- --------------------------------------------------------------------------------------------------
Six Months
Ended
2/28/10 Year Ended
(unaudited) 8/31/09
- --------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 412,577 $ 548,789
Net realized gain (loss) on investments and foreign currency
transactions 8,149,814 (1,552,317)
Change in net unrealized gain (loss) on investments and foreign
currency transactions (2,213,849) 16,027,110
- --------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 6,348,542 $ 15,023,582
- --------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.03 and $0.17 per share, respectively) $ (203,492) $ (46,039)
Class B ($0.00 and $0.09 per share, respectively) -- (9,859)
Class C ($0.00 and $0.06 per share, respectively) -- (5,821)
Class Y ($0.05 and $0.00 per share, respectively) (372,349) --
- --------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (575,841) $ (61,719)
- --------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 5,099,758 $ 51,200,104
Shares issued in reorganization -- 79,492,220
Reinvestment of distributions 195,468 45,230
Cost of shares repurchased (10,893,034) (5,287,085)
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Fund
share transactions $ (5,597,808) $125,450,469
- --------------------------------------------------------------------------------------------------
Net increase in net assets $ 174,893 $140,412,332
NET ASSETS:
Beginning of period 145,693,182 5,280,850
- --------------------------------------------------------------------------------------------------
End of period $145,868,075 $145,693,182
- --------------------------------------------------------------------------------------------------
Undistributed net investment income $ 289,644 $ 452,908
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 23
Statements of Changes in Net Assets (continued)
- ------------------------------------------------------------------------------------------------
'10 Shares '10 Amount '09 Shares '09 Amount
(unaudited) (unaudited)
- ------------------------------------------------------------------------------------------------
Class A
Shares sold 367,459 $ 3,304,708 214,960 $ 1,835,691
Shares issued in reorganization -- -- 8,186,988 64,513,465
Reinvestment of distributions 20,444 189,717 5,279 36,689
Less shares repurchased (828,255) (7,530,947) (440,090) (3,467,984)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) (440,352) $(4,036,522) 7,967,137 $62,917,861
================================================================================================
Class B
Shares sold 45,578 $ 405,104 41,804 $ 332,016
Shares issued in reorganization -- -- 875,066 6,834,266
Reinvestment of distributions -- -- 769 5,315
Less shares repurchased (171,057) (1,539,298) (109,953) (825,824)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) (125,479) $(1,134,194) 807,686 $ 6,345,773
================================================================================================
Class C
Shares sold 88,005 $ 791,359 73,416 $ 596,583
Shares issued in reorganization -- -- 767,395 6,001,025
Reinvestment of distributions -- -- 465 3,226
Less shares repurchased (100,008) (904,100) (106,036) (811,365)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) (12,003) $ (112,741) 735,240 $ 5,789,469
================================================================================================
Class Y
Shares sold 67,102 $ 598,587 6,744,576 $48,435,814
Shares issued in reorganization -- -- 271,325 2,143,464
Reinvestment of distributions 619 5,751 -- --
Less shares repurchased (100,713) (918,689) (23,423) (181,912)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) (32,992) $ (314,351) 6,992,478 $50,397,366
================================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year
2/28/10 Ended Ended Ended 12/15/05 (a)
(unaudited) 8/31/09 8/31/08 8/31/07 to 8/31/06
- ------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 8.56 $ 10.42 $ 12.53 $ 11.18 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.02 $ 0.07 $ 0.14 $ 0.08 $ 0.07
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.34 (1.76) (1.38) 1.53 1.11
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.36 $ (1.69) $ (1.24) $ 1.61 $ 1.18
Distribution to shareowners:
Net investment income (0.03) (0.17) (0.11) (0.05) --
Net realized gain -- -- (0.76) (0.21) --
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.33 $ (1.86) $ (2.11) $ 1.35 $ 1.18
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.89 $ 8.56 $ 10.42 $ 12.53 $ 11.18
========================================================================================================================
Total return* 4.14% (15.83)% (10.68)% 14.58% 11.80%(b)
Ratio of net expenses to average net assets+ 1.30%** 1.30% 1.31% 1.30% 1.30%**
Ratio of net investment income to average net assets+ 0.43%** 0.69% 1.30% 1.05% 1.42%**
Portfolio turnover rate 66%** 120% 137% 74% 35%(b)
Net assets, end of period (in thousands) $69,545 $70,718 $ 3,060 $ 2,562 $ 832
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for fees
paid indirectly:
Net expenses 1.66%** 2.25% 4.61% 6.11% 11.05%**
Net investment income (loss) 0.07%** (0.26)% (2.00)% (3.76)% (8.33)%**
Ratios with waiver of fees by the Adviser and
reduction for fees paid indirectly:
Net expenses 1.30%** 1.30% 1.30% 1.30% 1.30%**
Net investment income 0.43%** 0.69% 1.31% 1.05% 1.42%**
========================================================================================================================
(a) Class A shares were first publicly offered on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 25
Financial Highlights (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year
2/28/10 Ended Ended Ended 12/15/05 (a)
(unaudited) 8/31/09 8/31/08 8/31/07 to 8/31/06
- ------------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 8.47 $ 10.28 $ 12.37 $ 11.10 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.02) $ (0.02) $ 0.03 $ 0.00(c) $ 0.03
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 0.33 (1.70) (1.36) 1.49 1.07
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.31 $ (1.72) $ (1.33) $ 1.49 $ 1.10
Distribution to shareowners:
Net investment income -- (0.09) -- (0.01) --
Net realized gain -- -- (0.76) (0.21) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.31 $ (1.81) $ (2.09) $ 1.27 $ 1.10
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.78 $ 8.47 $ 10.28 $ 12.37 $11.10
====================================================================================================================================
Total return* 3.66% (16.57)% (11.46)% 13.55% 11.00%(b)
Ratio of net expenses to average net assets+ 2.20%** 2.20% 2.21% 2.20% 2.20%**
Ratio of net investment income (loss) to average net assets+ (0.48)%** (0.01)% 0.41% 0.12% 0.45%**
Portfolio turnover rate 66%** 120% 137% 74% 35%(b)
Net assets, end of period (in thousands) $ 7,189 $ 7,994 $ 1,403 $ 1,200 $ 549
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Net expenses 2.85%** 4.14% 5.37% 6.84% 11.40%**
Net investment income (loss) (1.13)%** (1.95)% (2.75)% (4.52)% (8.75)%**
Ratios with waiver of fees by the Adviser and reduction for
fees paid indirectly:
Net expenses 2.20%** 2.20% 2.20% 2.20% 2.20%**
Net investment income (loss) (0.48)%** (0.01)% 0.42% 0.12% 0.45%**
====================================================================================================================================
(a) Class B shares were first publicly offered on December 15, 2005.
(b) Not annualized.
(c) Amount rounds to less than $0.01 per share.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
- ------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year
2/28/10 Ended Ended Ended 12/15/05 (a)
(unaudited) 8/31/09 8/31/08 8/31/07 to 8/31/06
- ------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 8.48 $ 10.26 $ 12.39 $ 11.10 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.02) $ (0.04) $ 0.03 $ 0.01 $ 0.03
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 0.33 (1.68) (1.36) 1.49 1.07
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.31 $ (1.72) $ (1.33) $ 1.50 $ 1.10
Distribution to shareowners:
Net investment income -- (0.06) (0.04) -- --
Net realized gain -- -- (0.76) (0.21) --
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.31 $ (1.78) $ (2.13) $ 1.29 $ 1.10
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.79 $ 8.48 $ 10.26 $ 12.39 $ 11.10
==============================================================================================================================
Total return* 3.66% (16.58)% (11.47)% 13.65% 11.00%(b)
Ratio of net expenses to average net assets+ 2.20%** 2.20% 2.21% 2.20% 2.20%**
Ratio of net investment income (loss) to average net assets+ (0.47)%** 0.00%(c) 0.35% 0.12% 0.45%**
Portfolio turnover rate 66%** 120% 137% 74% 35%(b)
Net assets, end of period (in thousands) $ 7,060 $ 6,910 $ 818 $ 780 $ 445
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Net expenses 2.47%** 3.76% 5.45% 6.70% 10.98%**
Net investment income (loss) (0.74)%** (1.56)% (2.89)% 4.38% (8.33)%**
Ratios with waiver of fees by the Adviser and reduction for
fees paid indirectly:
Net expenses 2.20%** 2.20% 2.20% 2.20% 2.20%**
Net investment income (loss) (0.47)%** 0.00%(c) 0.36% 0.12% 0.45%**
==============================================================================================================================
(a) Class C shares were first publicly offered on December 15, 2005.
(b) Not annualized.
(c) Amount rounds to less than 0.01%.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 27
Financial Highlights (continued)
- -----------------------------------------------------------------------------------------------
Six Months
Ended
2/28/10 12/31/08 (a)
(unaudited) to 8/31/09
- -----------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 8.59 $ 7.25
- -----------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.04 $ 0.06
Net realized and unrealized gain on investments and foreign
currency transactions 0.34 1.28
- -----------------------------------------------------------------------------------------------
Net increase from investment operations $ 0.38 $ 1.34
Distribution to shareowners:
Net investment income (0.05) --
Net realized gain -- --
- -----------------------------------------------------------------------------------------------
Net decrease in net asset value $ 0.33 $ 1.34
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.92 $ 8.59
===============================================================================================
Total return* 4.44% 18.48%(b)
Ratio of net expenses to average net assets+ 0.80%** 0.80%**
Ratio of net investment income to average net assets+ 0.94%** 2.57%**
Portfolio turnover rate 66%** 120%
Net assets, end of period (in thousands) $62,074 $60,071
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Net expenses 0.94%** 1.10%**
Net investment income 0.80%** 2.27%**
Ratios with waiver of fees by the Adviser and reduction for fees
paid indirectly:
Net expenses 0.80%** 0.80%**
Net investment income 0.94%** 2.57%**
===============================================================================================
(a) Class Y shares were first publicly offered on December 31, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
Notes to Financial Statements | 2/28/10 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Global Equity Fund, formerly Pioneer Global Select Equity Fund (the
Fund), is one of four portfolios comprising Pioneer Series Trust V, a Delaware
statutory trust registered under the Investment Company Act of 1940 as an
open-end management investment company. The Fund is non-diversified. The Fund
commenced operations on December 15, 2005. The Fund's investment objective is to
seek long-term capital growth.
The Fund offers four classes of shares designated as Class A, Class B, Class C
and Class Y shares. Class Y shares were first publicly offered on December 31,
2008. 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 has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y shares. Class B shares
convert to Class A shares approximately eight years after the date of purchase.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates and economic and political
conditions. At times, the Fund's investments may represent industries or
industry sectors that are interrelated or have common risks, making it more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's prospectus contains
unaudited information regarding the Fund's principal risks. Please refer to that
document when considering the Fund's principal risks.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 29
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In
computing the net asset value, securities that have traded on an exchange
are valued using the last sale price on the principal exchange where they
are traded. Securities that have not traded on the date of valuation, or
securities for which sale prices are not available, generally are valued
using 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.
The Fund invests primarily in securities of non-U.S. issuers. The principal
exchanges and markets for such securities have closing times prior to the
close of the NYSE. However, the value of these securities may be influenced
by changes in global markets occurring after the closing times of the local
exchanges and markets up to the time the Fund determines its net asset
value. Consequently, the Board of Trustees of the Fund has determined that
daily adjustments to the valuation of securities of non-U.S. issuers by an
independent service using fair value methods is appropriate for the Fund.
The Fund may also 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 February 28, 2010, there were no securities that were
valued using fair value methods (other than securities that were valued
using prices supplied by independent pricing services). Short-term fixed
income securities with remaining maturities of sixty days or less generally
are valued at amortized cost.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
30 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis.
Dividend and interest income are reported net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years remain subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain on investment transactions,
or as from paid-in capital, depending on the type of book/tax differences
that may exist.
The tax character of current year distributions paid will be determined at
the end of the current taxable year. The tax character of distributions
paid during the year ended August 31, 2009 was as follows:
- --------------------------------------------------------------------------------
2009
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $61,719
- --------------------------------------------------------------------------------
Total $61,719
================================================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2009:
- --------------------------------------------------------------------------------
2009
- --------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 445,713
Capital loss carryforward (18,261,479)
Post-October loss deferred (418,202)
Unrealized appreciation 13,979,774
- --------------------------------------------------------------------------------
Total $ (4,254,194)
================================================================================
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales and tax basis
adjustments on partnerships.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 31
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 $5,433 in underwriting commissions on the
sale of Class A shares during the six months ended February 28, 2010.
D. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates. Net realized gains and losses on foreign currency
transactions, if any, represent, among other things, the net realized gains
and losses on foreign currency contracts, disposition of foreign currencies
and the difference between the amount of income accrued and the U.S.
dollars actually received. Further, the effects of changes in foreign
currency exchange rates on investments are not segregated in the statement
of operations from the effects of changes in market price of those
securities but are included with the net realized and unrealized gain or
loss on investments.
E. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized gains or losses are recorded
in the Fund's financial statements. The Fund records realized gains and
losses at the time a portfolio hedge is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 6).
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B 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 among the classes of shares
based on the number of accounts in each class and the ratable allocation of
related out-of-pocket expenses (see Note 3).
32 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class B, Class C and Class Y shares
can reflect different transfer agent and distribution expense rates.
G. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors. When entering into a securities loan
transaction, the Fund typically receives cash collateral from the borrower
equal to at least the 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.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary of
UniCredit, manages the Fund's portfolio. Management fees are calculated daily at
the annual rate of 0.75% of the Fund's average daily net assets up to $500
million, 0.70% of the next $500 million and 0.65% of the excess over $1 billion.
For the six months ended February 28, 2010, the effective management fee
(excluding waivers and/or assumption of expenses) was equivalent to 0.75% of the
Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund to
the extent required to reduce the Fund's expenses to 1.30%, 2.20%, 2.20%, and
0.80% of the average daily net assets attributable to Class A, Class B, Class C
and Class Y shares, respectively. These expense limitations are in effect
through January 1, 2012 for Class A shares, and through January 1, 2011 for
Class B, Class C and Class Y shares. There can be no assurance that
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 33
PIM will extend the expense limitation agreement for a class of shares beyond
the dates referred to above.
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
$10,618 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 28, 2010.
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 six months ended February 28, 2010, such out-of-pocket expenses by class of
shares were as follows:
- --------------------------------------------------------------------------------
Shareholder Communications:
- --------------------------------------------------------------------------------
Class A $28,402
Class B 3,911
Class C 4,365
Class Y 252
- --------------------------------------------------------------------------------
Total: $36,930
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $37,062 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 28, 2010.
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 $2,595 in distribution fees payable to PFD at February 28, 2010.
34 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
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 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 six months ended February 28, 2010, CDSCs in the amount of
$4,257 were paid to PFD.
5. Expense Offsets Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended February 28, 2010, the Fund's
expenses were not reduced under such arrangements.
6. Forward Foreign Currency Contracts
At February 28, 2010, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average principal of contracts open
during the six months ended February 28, 2010 was 3,829,398. At February 28,
2010, the Fund had no outstanding portfolio hedges or forward currency
settlement contracts.
7. Additional Disclosures about Derivative Instruments and Hedging Activities
The effect of derivative instruments on the Statement of Operations for the six
months ended February 28, 2010 was as follows:
- ----------------------------------------------------------------------------------------------
Derivatives Not
Accounted For As
Hedging Instruments
Under Accounting
Codification Standards Location of Gain or Realized Gain or
(ASC) 815 (formerly (Loss) On Derivatives (Loss) on Derivatives
FASB Statement 133) Recognized in Income Recognized in Income
- ----------------------------------------------------------------------------------------------
Foreign Exchange Contracts Net realized loss on forward foreign $(42,323)
currency contracts and other assets and
liabilities denominated in foreign
currencies
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 35
8. Reorganization Information
On June 12, 2009 ("Closing Date"), Pioneer Europe Select Equity Fund was
reorganized into the Fund. This tax-free reorganization was accomplished by
exchanging the assets and stated liabilities of Pioneer Europe Select Equity
Fund for shares of Pioneer Global Equity Fund. Shareholders holding Class A,
Class B, Class C, and Class Y shares of Pioneer Europe Select Equity Fund
received Class A, Class B, Class C, and Class Y shares, respectively, of Pioneer
Global Equity Fund in the reorganization. The following charts show the details
of the reorganization as of that Closing Date:
- -------------------------------------------------------------------------------------------
Pioneer
Pioneer Europe Select Pioneer
Global Equity Fund Equity Fund Global Equity Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- -------------------------------------------------------------------------------------------
Net Assets
Class A $ 2,331,932 $64,513,465 $ 66,845,397
Class B $ 839,893 $ 6,834,266 $ 7,674,159
Class C $ 769,563 $ 6,001,025 $ 6,770,588
Class Y $51,986,014 $ 2,143,464 $ 54,129,478
- -------------------------------------------------------------------------------------------
Total Net Assets $55,927,402 $79,492,220 $135,419,622
- -------------------------------------------------------------------------------------------
Shares Outstanding
Class A 296,057 3,317,346 8,483,045
Class B 107,557 390,827 982,623
Class C 98,420 347,667 865,815
Class Y 6,581,640 107,135 6,852,965
Shares Issued in
Reorganization
Class A 8,186,988
Class B 875,066
Class C 767,395
Class Y 271,325
- -------------------------------------------------------------------------------------------
Unrealized Accumulated
Appreciation on Loss on
Closing Date Closing Date
- -------------------------------------------------------------------------------------------
Pioneer Europe Select Equity Fund $498,448 $(83,331,962)
9. Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure through April
22, 2010 and has determined that there were no subsequent events requiring
recognition or disclosure in the financial statements.
36 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
Approval of Investment Advisory Agreement (unaudited)
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Global Equity Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment 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. 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 and third parties, the Trustees of the Fund,
including the independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for the
Fund, its research process and its process for trade execution. The Trustees
considered the resources of PIM and the personnel of PIM 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.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 37
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers 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 to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
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 fourth quintile of its Morningstar
category for the one year period ended June 30, 2009 and in the third quintile
of its Morningstar category for the three 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 discussed the Fund's recent underperformance with PIM
and were satisfied with the information presented by PIM with respect to the
Fund's performance.
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 considered that the Fund's management fee for the twelve months
ended June 30, 2009 was in the second 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 first quintile relative to its Strategic Insight
peer group for the comparable period. The Trustees considered the breakpoints in
the management fee schedule and the reduced fee rates above certain asset
levels.
The Trustees also reviewed management fees charged by PIM to its institutional
and other clients. In evaluating the fees associated with PIM's client
38 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
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 concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by
PIM. 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
contractual expense limitation agreed to by PIM with respect to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was 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.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 39
Other Benefits
The Trustees considered the other benefits to PIM 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 PIM 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 PIM by
virtue of its relationship with the Fund and the other Pioneer funds. The
Trustees concluded that the receipt of these benefits was reasonable in the
context of the overall relationship between PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
40 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at pioneerinvestments.com. This information is also available on the Securities
and Exchange Commission's web site at http://www.sec.gov.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 41
This page for your notes.
42 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
This page for your notes.
Pioneer Global Equity Fund | Semiannual Report | 2/28/10 43
This page for your notes.
44 Pioneer Global Equity Fund | Semiannual Report | 2/28/10
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
- --------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
- --------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
- --------------------------------------------------------------------------------
Pioneer High Income
Municipal Fund
- --------------------------------------------------------------------------------
Semiannual Report | February 28, 2010
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A PIMAX
Class C HICMX
Class Y HIMYX
[LOGO]PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Prices and Distributions 8
Performance Update 9
Comparing Ongoing Fund Expenses 12
Schedule of Investments 14
Financial Statements 22
Notes to Financial Statements 29
Approval of Investment Advisory Agreement 35
Trustees, Officers and Service Providers 39
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 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 High Income Municipal Fund | Semiannual Report | 2/28/10
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.
Respectfully,
/s/Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 3
Portfolio Management Discussion | 2/28/10
After nearly two years of distress, high-yield municipal bonds have rallied
strongly, as investors became attracted to the high tax-exempt income and
potential for capital appreciation that these bonds provide. In the following
interview, Timothy Pynchon, the Fund's lead portfolio manager, discusses the
factors that affected the municipal bond market and the Fund's performance over
the six-month period ended February 28, 2010.
Q How did the fund perform during the six-month period ended February 28,
2010?
A Pioneer High Income Municipal Fund's Class A shares produced a total return
of 15.70% at net asset value over the six months ended February 28, 2010,
while the Fund's benchmark, the Barclays Capital (formerly Lehman Brothers)
High Yield Municipal Bond Index, returned 12.89%. Over the same period, the
average return of the 118 funds in Lipper's High Yield Municipal Debt
category was 9.61%.
During the period, investors were rewarded with a relatively high level of
dividend income. As of February 28, 2010, the Fund's Class A shares
generated a 30-day SEC yield of 6.58%. The fund's current yield at net
asset value was 7.39%, which translates into a taxable equivalent yield of
11.37%, based on the maximum Federal income tax rate of 35%. About 21% of
the Fund's investments were subject to the Federal Alternative Minimum Tax.
The Fund held 123 issues in 30 states.
Q What was the investment environment like during the six months ended
February 28, 2010?
A The tax-exempt municipal bond market continued to move beyond the credit
crisis in an environment of improved economic growth. New bond issuance was
strong and investment was robust, as market participants quickly gravitated
toward the compelling tax-exempt yields and potential for capital
appreciation that municipal bonds offered. Concerns about potentially
higher taxes in the wake of an economic recovery also drove investors to
the municipal bond market. Over the six-month period, the investment
backdrop was positive for the Fund.
Q How did you manage the Fund during the six months ended February 28, 2010?
A We did not make any big changes to the Fund's portfolio over the six
months. The Fund's biggest positions were in health care (35.4% of net
assets), transportation (21.6% of net assets) and tobacco bonds (14.2% of
net assets) as of February 28, 2010.
4 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
In 2009, we began taking advantage of the high yields and low prices
offered by bonds that had fallen out of favor with investors in the poor
economic environment. Tobacco and airline bonds were particularly
attractive. Among tobacco bonds, we added Buckeye Ohio Tobacco Settlement
Bonds, Golden State Tobacco Securitization Corporation and Michigan Tobacco
Settlement Finance Authority to the Fund during the period. In the airline
sector, we invested the Fund in Jet Blue, American, Delta and Continental.
We believe that business prospects are good for the airline industry in
general, but we felt that those companies were the strongest. The airlines
we favored had cut costs, taken capacity out of their systems, had access
to the credit markets, and healthy balance sheets. By making those
additions to the portfolio, the Fund was well-positioned to participate in
the high-yield municipal bond rally that took place in the late summer and
early fall of 2009. Since that time, we have continued to invest the Fund
in those sectors.
During the six-month period, we maintained the Fund's emphasis on revenue
bonds, which rely upon revenues from the particular asset the bond was
issued to finance in order to make principal and interest payments to
investors. For example, a bond issued to fund a continuing care retirement
community is backed by the revenue that accrues from users of that
facility. The Fund held no general obligation bonds, the interest and
principal payments of which are guaranteed by the full financial resources
and taxing power of the municipalities that issue them. Also, we did not
invest the Fund in DIRT bonds, the colloquial term for securities that are
secured by land values or unimproved property. In addition, we were very
selective in adding bonds to the portfolio, and so the Fund had a very
manageable default rate.
Q What is your outlook?
A We are positive in our outlook for the high-yield municipal bond market and
for the Fund. We have positioned the Fund's portfolio for an economic
recovery and for potentially higher interest rates, and higher tax rates,
which should drive demand for tax-exempt securities. We believe the new
"Build America Bonds," which are taxable municipal debt instruments
subsidized by the U.S Treasury, are likely to have an indirect benefit for
high-yield tax-exempt securities. Strong new issuance of "Build America
Bonds" should reduce the issuance of tax-exempt bonds, perpetuating a
shortage of supply to the tax-exempt market in general. We believe the
supply/demand imbalance could drive up the prices of high-yield municipal
bonds and should benefit the Fund.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 5
Please refer to the Schedule of Investments on pages 14-21 for a full listing of
Fund securities.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. The Fund may invest in securities of issuers that are
in default or that are in bankruptcy.
A portion of the Fund's income may be subject to state, federal, and/or
alternative minimum tax. Capital gains, if any, are subject to a capital gains
tax. The Fund is not diversified, which means that it can invest a higher
percentage of its assets in any one issuer than a diversified fund. Being
non-diversified may magnify the Fund's losses from adverse events affecting a
particular issuer. By investing primarily in municipal securities, the Fund is
more susceptible to adverse economic, political or regulatory developments than
is a fund that invests more broadly.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise. Investments in the Fund are subject
to possible loss due to the financial failure of issuers of underlying
securities and their inability to meet their debt obligations. At times, the
Fund's investments may represent industries or industry sectors that are
interrelated or have common risks, making it more susceptible to any economic,
political, or regulatory developments or other risks affecting those industries
and sectors.
Past performance is not a guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes.
6 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
Portfolio Summary | 2/28/10
Portfolio Quality
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
AAA 1.9%
Commercial Paper 3.1%
A 3.6%
BBB 18.3%
BB & Lower 73.1%
Maturity Distribution
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
0-1 years 3.1%
1-3 years 5.0%
3-6 years 11.1%
6-8 years 14.2%
8-10 years 15.5%
10+ years 51.1%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of debt holdings)*
1. Clayton County Development Authority, 8.75%, 6/1/29 2.78%
2. Chicago Illinois O'Hare International Airport, 5.5%, 12/1/30 2.50
3. New York City Industrial, 6.9%, 8/1/24 1.99
4. Kirkwood Industrial, 8.25%, 5/15/45 1.98
5. Tobacco Settlement Financing Corp., 5.0%, 6/1/41 1.96
6. Tobacco Securitization Authority Southern California, 5.125%, 6/1/46 1.96
7. Houston Texas Airport Revenue, 6.75%, 7/1/29 1.91
8. Massachusetts State Development Finance Agency, 5.75%, 1/1/42 1.90
9. Golden State Tobacco Security Corp., 5.75%, 6/1/47 1.89
10. Buckeye Ohio Tobacco Settlment, 6.5%, 6/1/47 1.80
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 7
Prices and Distributions | 2/28/10
Net Asset Value per Share
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class 2/28/10 8/31/09
- --------------------------------------------------------------------------------
A $ 7.63 $ 6.84
- --------------------------------------------------------------------------------
C $ 7.62 $ 6.83
- --------------------------------------------------------------------------------
Y $ 7.54 $ 6.80
- --------------------------------------------------------------------------------
Distributions per Share: 9/1/09-2/28/10
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- --------------------------------------------------------------------------------
A $ 0.2770 $ -- $ --
- --------------------------------------------------------------------------------
C $ 0.2433 $ -- $ --
- --------------------------------------------------------------------------------
Y $ 0.2801 $ -- $ --
- --------------------------------------------------------------------------------
Index Definitions
- --------------------------------------------------------------------------------
The Barclays Capital (formerly Lehman Brothers) High Yield Municipal Bond Index
measures the performance of the high-yield municipal bond market. Index returns
are calculated monthly, assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" charts
shown on pages 9-11.
8 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
Performance Update | 2/28/10 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment in Pioneer High Income Municipal Fund at public offering price,
compared to that of the Barclays Capital High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 28, 2010)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
Life-of-Class
(10/17/06) -1.36% -2.70%
1 Year 33.05 27.11
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.28% 0.90%
- -----------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer High Income Barclays Capital High
Municipal Fund Yield Municipal Bond Index
10/06 $ 9,550 $10,000
2/07 $ 9,909 $10,101
2/08 $ 8,948 $ 9,578
2/09 $ 6,836 $10,208
2/10 $ 9,095 $10,150
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 for Class A shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 9
Performance Update | 2/28/10 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer High Income Municipal Fund, compared to that of the
Barclays Capital High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 28, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(10/17/06) -2.31% -2.31%
1 Year 31.86 31.86
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.98% 1.80%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer High Income Barclays Capital High
Municipal Fund Yield Municipal Bond Index
10/06 $10,000 $10,000
2/07 $10,329 $10,101
2/08 $9,219 $9,578
2/09 $6,990 $10,208
2/10 $9,217 $10,150
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitation currently in
effect through 1/1/11 for Class C shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
Performance Update | 2/28/10 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer High Income Municipal Fund, compared to that of the
Barclays Capital High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 28, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(10/17/06) -1.72% -1.72%
1 Year 32.35 32.35
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2009)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.04% 1.04%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer High Income Barclays Capital High
Municipal Fund Yield Municipal Bond Index
10/06 $10,000 $10,000
2/07 $10,374 $10,101
2/08 $9,288 $9,578
2/09 $7,104 $10,208
2/10 $9,403 $10,150
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.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 11
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on actual returns from September 1, 2009 through February 28, 2010.
- --------------------------------------------------------------------------------
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/09
- --------------------------------------------------------------------------------
Ending Account $ 1,157.00 $ 1,152.20 $ 1,151.10
Value on 2/28/10
- --------------------------------------------------------------------------------
Expenses Paid $ 4.81 $ 9.39 $ 3.95
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.76%
and 0.74% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
181/365 (to reflect the half year period).
12 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from September 1, 2009 through February 28, 2010.
- --------------------------------------------------------------------------------
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account Value $ 1,000.00 $ 1,000.00 $ 1,000.00
on 9/1/09
- --------------------------------------------------------------------------------
Ending Account Value $ 1,020.43 $ 1,016.07 $ 1,021.12
on 2/28/10
- --------------------------------------------------------------------------------
Expenses Paid $ 4.51 $ 8.80 $ 3.71
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.76%
and 0.74% for Class A, Class C and Class Y shares, respectively, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the half year period).
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 13
Schedule of Investments | 2/28/10 (unaudited)
- -------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount Rate (c) Ratings Value
- -------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 95.2%
No State -- 0.4%
$ 1,175,000 12.00 NR/NR Non-Profit Preferred Funding, Various
States, Floating Rate Note, 9/15/37 $ 908,357
------------
$ 908,357
- -------------------------------------------------------------------------------------------------
Alabama -- 1.1%
925,000 NR/NR Huntsville-Redstone, 5.5%, 1/1/43 $ 689,615
2,000,000 NR/NR Huntsville-Redstone, 6.875%, 1/1/43 1,820,520
------------
$ 2,510,135
- -------------------------------------------------------------------------------------------------
Arizona -- 1.1%
750,000 NR/NR Pima County Arizona, 8.5%, 7/1/39 $ 788,318
2,000,000 NR/NR Pima County Arizona Development
Authority, 7.0%, 1/1/38 1,773,820
------------
$ 2,562,138
- -------------------------------------------------------------------------------------------------
California -- 10.0%
1,000,000 BBB/NR California Statewide Communities
Development Authority, 7.25%, 11/15/41 $ 1,062,910
2,000,000 NR/NR California Statewide Communities,
7.5%, 6/1/42 2,012,900
334,656 NR/NR California Statewide, 9.0%, 12/1/38 65,760
1,500,000 NR/NR City of Alhambra California,
7.625%, 1/1/40 1,509,765
83,415,000 BB/NR Golden State Tobacco Securitization Co.,
0.0%, 6/1/47 3,148,082
1,500,000 BBB/Baa3 Golden State Tobacco Security Corp.,
5.125%, 6/1/47 1,003,545
5,750,000 BBB/Baa3 Golden State Tobacco Security Corp.,
5.75%, 6/1/47 4,218,948
2,000,000 B-/Caa2 Los Angeles California Revenue,
7.5%, 12/1/24 1,987,500
5,000,000 NR/WR Pittsburg Redevelopment, 0.0%, 8/1/28 1,516,250
9,145,000 NR/WR Pittsburg Redevelopment, 0.0%, 8/1/30 2,365,171
6,500,000 BBB/Baa3 Tobacco Securitization Authority Southern
California, 5.125%, 6/1/46 4,353,440
400,000 C/NR Valley Health Systems California,
6.5%, 5/15/25 219,960
------------
$ 23,464,231
- -------------------------------------------------------------------------------------------------
Colorado -- 3.1%
1,000,000 B-/Caa2 City & County of Denver, 5.75%, 10/1/32 $ 806,180
1,075,000 NR/NR Colorado Educational, 5.625%, 12/1/36 844,595
2,500,000 BB/Ba2 Colorado Health Facilities Authority,
5.75%, 1/1/37 2,113,125
1,000,000 NR/NR Colorado Springs Colorado Urban,
7.0%, 12/1/29 880,730
The accompanying notes are an integral part of these financial statements.
14 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
- -------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount Rate (c) Ratings Value
- -------------------------------------------------------------------------------------------------
Colorado -- (continued)
$ 3,940,000 BBB/NR Denver Health & Hospital,
1.333%, 12/1/33 $ 2,720,570
------------
$ 7,365,200
- -------------------------------------------------------------------------------------------------
Connecticut -- 0.9%
2,000,000 NR/NR Town of Hamden Connecticut,
7.75%, 1/1/43 $ 2,074,220
------------
$ 2,074,220
- -------------------------------------------------------------------------------------------------
Florida -- 5.9%
1,000,000 NR/NR Greater Orlando Aviation Authority,
6.375%, 11/15/26 $ 888,260
3,500,000 NR/NR Greater Orlando Aviation Authority,
6.5%, 11/15/36 3,031,385
1,380,000 NR/NR Hillsborough County Florida Development,
6.75%, 7/1/29 1,276,348
4,200,000 BB/NR Lee County Florida Industrial Development
Authority, 5.375%, 6/15/37 3,149,538
1,965,000 NR/NR Liberty County Florida, 8.25%, 7/1/28 1,684,653
1,000,000 NR/NR Miami Beach Florida Health Facilities,
5.375%, 11/15/28 823,640
1,000,000 NR/Ba2 Miami Beach Florida Health Facilities,
6.75%, 11/15/21 1,005,860
1,890,000 NR/Ba2 Miami Beach Health Facilities Authority,
6.7%, 11/15/19 1,900,244
------------
$ 13,759,928
- -------------------------------------------------------------------------------------------------
Georgia -- 4.9%
6,000,000 CCC+/CAA1 Clayton County Development Authority,
8.75%, 6/1/29 $ 6,196,560
3,500,000 CCC+/CAA1 Clayton County Development Authority,
9.0%, 6/1/35 3,542,175
500,000 NR/NR Fulton County Georgia Water and Sewer
Revenue, 5.0%, 7/1/27 371,900
2,000,000 NR/NR Fulton County Georgia Water and Sewer
Revenue, 5.125%, 7/1/42 1,325,260
------------
$ 11,435,895
- -------------------------------------------------------------------------------------------------
Hawaii -- 1.1%
1,500,000 NR/NR Hawaii State Department Budget,
7.5%, 11/15/15 $ 1,519,875
1,000,000 NR/NR Hawaii State Department Budget,
9.0%, 11/15/44 1,081,210
------------
$ 2,601,085
- -------------------------------------------------------------------------------------------------
Iowa -- 2.0%
2,000,000 NR/NR Iowa Finance Authority Senior Housing,
5.625%, 12/1/45 $ 1,231,880
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 15
Schedule of Investments | 2/28/10 (unaudited) (continued)
- -------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount Rate (c) Ratings Value
- -------------------------------------------------------------------------------------------------
Iowa -- (continued)
$ 3,250,000 BB/NR Iowa Finance Authority, 5.5%, 11/15/37 $ 2,114,353
1,455,000 NR/NR Iowa Financing Authority,
5.0%, 11/15/12 1,355,638
------------
$ 4,701,871
- -------------------------------------------------------------------------------------------------
Illinois -- 7.0%
8,000,000 NR/Caa2 Chicago Illinois O'Hare International
Airport, 5.5%, 12/1/30 $ 5,574,160
5,000,000 NR/NR Illinois Finance Authority,
5.625%, 2/15/37 3,953,550
1,500,000 BB/NR Illinois Finance Authority,
6.25%, 11/15/35 1,300,350
500,000 NR/NR Illinois Finance Authority, 7.0%, 12/1/37 139,900
1,000,000 NR/NR Illinois Finance Authority, 7.0%, 12/1/42 279,800
3,875,000 NR/NR Southwestern Illinois Development
Authority Revenue, 5.625%, 11/1/26 2,740,361
2,500,000 NR/NR Southwestern Illinois Development
Authority Revenue, 6.625%, 6/1/37 2,269,325
------------
$ 16,257,446
- -------------------------------------------------------------------------------------------------
Indiana -- 2.5%
3,500,000 NR/NR City of Crown Point, 8.0%, 11/15/39 $ 3,448,585
715,000 B+/Caa1 City of East Chicago, 5.5%, 9/1/28 560,553
2,015,000 NR/NR St. Joseph County Industrial Educational,
6.0%, 5/15/38 1,790,670
------------
$ 5,799,808
- -------------------------------------------------------------------------------------------------
Massachusetts -- 7.7%
1,750,000 NR/NR Massachusetts Development Finance
Agency, 5.5%, 11/15/22 $ 1,433,635
3,000,000 NR/NR Massachusetts Development Finance
Agency, 5.75%, 11/15/35 2,184,300
1,000,000 NR/NR Massachusetts Development Finance
Agency, 5.75%, 11/15/42 707,400
2,500,000 NR/NR Massachusetts Development Finance
Agency, 7.25%, 6/1/16 2,502,275
500,000 NR/NR Massachusetts Development Finance
Agency, 7.5%, 6/1/29 498,450
1,000,000 NR/NR Massachusetts Development Finance
Agency, 7.875%, 6/1/44 996,630
500,000 BBB/NR Massachusetts Development Finance
Agency, 8.0%, 4/15/39 552,535
3,990,000 NR/WR Massachusetts State Development
Finance Agency, 5.75%, 1/1/42 4,232,472
2,000,000 NR/NR Massachusetts State Development
Finance Agency, 6.75%, 10/25/37 1,734,840
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
- -------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount Rate (c) Ratings Value
- -------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
$ 3,500,000 NR/NR Massachusetts State Health,
6.5%, 1/15/38 $ 3,089,170
------------
$ 17,931,707
- -------------------------------------------------------------------------------------------------
Maine -- 0.4%
1,000,000 NR/B2 Town of Rumford Maine,
6.875%, 10/1/26 $ 820,760
------------
$ 820,760
- -------------------------------------------------------------------------------------------------
Michigan -- 3.1%
160,000 NR/NR Doctor Charles Drew Academy,
5.7%, 11/1/36 $ 98,350
3,000,000 BBB-/NR Flint Michigan International Academy,
5.75%, 10/1/37 2,550,690
1,450,000 NR/NR Michigan Public Educational Facilities
Authority Revenue, 5.875%, 6/1/37 1,087,123
1,000,000 BBB-/NR Michigan Public Educational Facilities
Authority Revenue, 6.5%, 9/1/37 939,310
500,000 BBB-/NR Michigan Public Educational Facilities
Authority, 8.75%, 9/1/39 554,585
2,750,000 NR/NR Michigan State Hospital Finance Authority,
5.5%, 11/15/35 2,116,510
------------
$ 7,346,568
- -------------------------------------------------------------------------------------------------
Minnesota -- 1.0%
1,500,000 NR/NR City of Brooklyn Parks Department,
9.25%, 3/1/39 $ 1,629,075
750,000 NR/B2 City of International Falls Minnesota,
6.85%, 12/1/29 603,893
------------
$ 2,232,968
- -------------------------------------------------------------------------------------------------
Missouri -- 2.1%
4,500,000 NR/NR Kirkwood Industrial, 8.25%, 5/15/45 $ 4,398,300
500,000 NR/Ca St. Louis Missouri Development Authority,
7.2%, 12/15/28 165,095
1,260,000 NR/Ca St. Louis Missouri Industrial Development
Revenue, 7.25%, 12/15/35 415,989
------------
$ 4,979,384
- -------------------------------------------------------------------------------------------------
Montana -- 0.5%
2,215,000 NR/NR Hardin Montana Tax Increment,
0.0%, 9/1/31 $ 1,212,978
------------
$ 1,212,978
- -------------------------------------------------------------------------------------------------
Nebraska -- 0.7%
3,250,000 NR/NR Grand Island Nebraska Solid Waste,
7.0%, 6/1/23 $ 1,635,238
------------
$ 1,635,238
- -------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 17
Schedule of Investments | 2/28/10 (unaudited) (continued)
- -------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount Rate (c) Ratings Value
- -------------------------------------------------------------------------------------------------
New Jersey -- 3.5%
$ 470,000 NR/NR New Jersey Economic Development
Authority, 5.875%, 1/1/37 $ 387,797
3,000,000 B/B3 New Jersey Economic Development
Authority, 6.25%, 9/15/19 2,809,350
8,400,000 BB/NR Tobacco Settlement Financing Corp.,
0.0%, 6/1/41 540,624
6,435,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
5.0%, 6/1/41 4,362,801
------------
$ 8,100,572
- -------------------------------------------------------------------------------------------------
New Mexico -- 0.5%
1,000,000 NR/NR County of Otero New Mexico,
8.25%, 12/1/23 $ 1,011,120
255,000 NR/NR Otero County New Mexico Jail Project
Revenue, 6.0%, 4/1/23 210,084
------------
$ 1,221,204
- -------------------------------------------------------------------------------------------------
New York -- 5.0%
3,000,000 NR/NR Erie County New York, 6.0%, 11/15/36 $ 2,275,710
1,000,000 NR/NR Nassau County Industrial Development,
6.7%, 1/1/43 900,480
3,000,000 B-/Caa3 New York City Industrial, 5.0%, 5/15/20 2,524,080
5,600,000 CCC+/Caa2 New York City Industrial, 6.9%, 8/1/24 4,431,504
2,000,000 B-/Caa3 New York City Transportation Finance,
5.125%, 5/15/30 1,509,180
------------
$ 11,640,954
- -------------------------------------------------------------------------------------------------
Ohio -- 6.6%
4,870,000 BBB/Baa3 Buckeye Ohio Tobacco Settlment,
6.5%, 6/1/47 $ 4,005,185
2,000,000 BBB/Baa3 Buckeye Tobacco Settlement,
5.75%, 6/1/34 1,603,740
1,065,000 NR/NR Tuscarawas County Ohio Hospital,
6.35%, 11/1/37 952,227
55,000,000 NR/NR Buckeye Tobacco Settlement Finance,
0.0%, 6/1/47 2,335,300
1,970,000 BBB/Baa3 Buckeye Tobacco Settlement Financing
Authority, 5.875%, 6/1/47 1,474,565
4,000,000 CCC+/B3 Cleveland Ohio Airport Revenue,
5.375%, 9/15/27 3,103,080
1,510,000 B+/Caa1 Ohio State Pollution Control Revenue,
5.6%, 8/1/32 1,172,394
1,020,000 B+/Caa1 Ohio State Pollution Control Revenue,
5.65%, 3/1/33 795,243
------------
$ 15,441,734
- -------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
- -------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount Rate (c) Ratings Value
- -------------------------------------------------------------------------------------------------
Oklahoma -- 0.0%
$ 100,000 BB/NR Jackson County Oklahoma Memorial
Hospital, 7.3%, 8/1/15 $ 100,061
------------
$ 100,061
- -------------------------------------------------------------------------------------------------
Pennsylvania -- 1.0%
2,900,000 B+/Caa1 Pennsylvania Economic Development
Financing Authority, 6.0%, 6/1/31 $ 2,364,428
------------
$ 2,364,428
- -------------------------------------------------------------------------------------------------
Rhode Island -- 0.9%
2,100,000 NR/NR Central Falls Rhode Island Detention
Facility Corp., 7.25%, 7/15/35 $ 1,799,427
17,200,000 BB/NR Tobacco Settlement, 0.0%, 6/1/52 378,056
------------
$ 2,177,483
- -------------------------------------------------------------------------------------------------
Texas -- 16.2%
1,500,000 9.13 CCC+/Caa2 Dallas-Fort Worth Texas International
Airport, Floating Rate Note, 5/1/29 $ 1,421,430
470,000 CCC+/Caa2 Dallas-Fort Worth Texas International
Airport, 6.0%, 11/1/14 425,627
2,900,000 CCC+/Caa2 Dallas-Fort Worth Texas International
Airport Revenue, 6.375%, 5/1/35 2,052,301
5,600,000 CCC+/NR Dallas-Fort Worth International Airport,
5.5%, 11/1/30 3,612,448
248,873 NR/NR Gulf Coast Waste Disposal Authority Texas
Revenue, 7.0%, 12/1/36 48,903
12,905,000 A/Baa1 Harris County-Houston, 0.0%, 11/15/29 3,229,347
5,000,000 A/Baa1 Harris County-Houston Sports,
0.0%, 11/15/31 1,087,200
2,500,000 NR/NR HFDC of Central Texas, 7.75%, 11/15/44 2,480,200
4,500,000 CCC+/B3 Houston Texas Airport Revenue,
6.75%, 7/1/29 4,248,180
1,740,000 NR/NR Maverick County Texas Public Facilities,
6.25%, 2/1/24 1,489,475
300,000 NR/NR Maverick County Texas Public Facilities,
6.375%, 2/1/29 246,801
4,000,000 NR/NR Tarrant County Cultural Educational
Facilities Finance, 8.25%, 11/15/44 3,896,720
500,000 BBB-/NR Tarrant County Cultural Educational
Facilities Finance, 7.75%, 6/1/39 538,945
1,000,000 BB/NR Texas Midwest Public Facility Corp.,
9.0%, 10/1/30 1,036,190
3,000,000 NR/NR Travis County Health Facilities,
7.1249%, 11/1/40 3,004,020
2,000,000 NR/NR Travis County Health Facilities,
8.125%, 11/15/39 1,959,680
4,000,000 NR/NR Travis County Health Facilities,
8.25%, 11/15/44 3,934,040
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 19
Schedule of Investments | 2/28/10 (unaudited) (continued)
- -------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount Rate (c) Ratings Value
- -------------------------------------------------------------------------------------------------
Texas -- (continued)
$ 3,760,000 NR/NR Willacy County Texas Local Government,
6.875%, 9/1/28 $ 3,270,034
------------
$ 37,981,541
- -------------------------------------------------------------------------------------------------
Utah -- 0.5%
1,400,000 NR/NR Spanish Fork City Utah Charter,
5.7%, 11/15/36 (144A) $ 1,112,146
------------
$ 1,112,146
- -------------------------------------------------------------------------------------------------
Virginia -- 1.8%
53,095,000 BB/NR Tobacco Settlement Financing,
0.0%, 6/1/47 $ 2,137,074
3,000,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
5.0%, 6/1/47 2,050,440
------------
$ 4,187,514
- -------------------------------------------------------------------------------------------------
Washington -- 2.7%
2,500,000 NR/NR Port Seattle Washington Revenue,
6.75%, 7/1/29 $ 2,501,375
1,250,000 NR/NR Washington State Housing,
5.25%, 1/1/17 1,090,738
1,000,000 NR/NR Washington State Housing Finance,
5.625%, 1/1/27 766,350
2,750,000 NR/NR Washington State Housing Finance,
5.625%, 1/1/38 1,958,825
------------
$ 6,317,288
- -------------------------------------------------------------------------------------------------
Wisconsin -- 1.0%
580,000 NR/NR Aztalan Wisconsin Exempt Facility
Revenue, 7.5%, 5/1/18 $ 79,924
1,750,000 BB/NR Wisconsin Health & Educational,
7.625%, 9/15/39 1,806,964
500,000 BB-/NR Wisconsin Health & Educational Facilities
Authority, 7.25%, 9/15/29 510,145
------------
$ 2,397,033
- -------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $221,061,813) $222,641,875
- -------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 95.2%
(Cost $221,061,813) (a)(b) $222,641,875
- -------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 4.8% $ 11,190,866
- -------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $233,832,741
=================================================================================================
NR Security is not rated by either S&P or Moody's.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
February 28, 2010, the value of these securities amounted to $1,112,146
or 0.5% of total net assets.
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
(a) The concentration of investments by type of obligation/market sector is
as follows:
Revenue Bonds:
Health Revenue 35.4%
Special Revenue 14.2
Reserves 3.1
Various Revenues 9.3
Transportation Revenue 21.6
Housing 0.9
Pollution Control Revenue 1.6
Insured 5.6
Power 1.3
Education Revenue 7.0
- --------------------------------------------------------------------------------
100.0%
================================================================================
(b) At February 28, 2010, the net unrealized gain on investments based on
cost for federal income tax purposes of $221,063,329 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 10,314,230
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (8,735,684)
------------
Net unrealized gain $ 1,578,546
============
(c) Debt obligation with a variable interest rate. Rate shown is rate at end
of period.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended February 28, 2010 aggregated $172,637,814 and $21,863,899,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speeds,
credit risk, etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of February 28, 2010, in
valuing the Fund's assets:
- --------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
- --------------------------------------------------------------------------------
Municipal bonds $-- $222,641,875 $-- $222,641,875
- --------------------------------------------------------------------------------
Total $-- $222,641,875 $-- $222,641,875
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 21
Statement of Assets and Liabilities | 2/28/10 (unaudited)
ASSETS:
Investment in securities, at value (cost $221,061,813) $222,641,875
Cash 6,890,120
Receivables --
Fund shares sold 7,924,617
Interest 3,819,201
Other 77,728
- -------------------------------------------------------------------------
Total assets $241,353,541
- -------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 6,326,981
Fund shares repurchased 464,778
Dividends 639,247
Due to affiliates 31,175
Accrued expenses 58,619
- -------------------------------------------------------------------------
Total liabilities $ 7,520,800
- -------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $242,577,324
Distributions in excess of net investment income (24,171)
Accumulated net realized loss on investments (10,300,474)
Net unrealized gain on investments 1,580,062
- -------------------------------------------------------------------------
Total net assets $233,832,741
=========================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $141,079,464/18,483,040 shares) $ 7.63
Class C (based on $78,758,301/10,338,991 shares) $ 7.62
Class Y (based on $13,994,976/1,855,021 shares) $ 7.54
MAXIMUM OFFERING PRICE:
Class A ($7.63 [divided by] 95.5%) $ 7.99
=========================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
Statement of Operations (unaudited)
For the Six Months Ended 2/28/10
INVESTMENT INCOME:
Interest $ 6,256,009
- --------------------------------------------------------------------------------------
EXPENSES:
Management fees $381,155
Transfer agent fees and expenses
Class A 29,552
Class C 12,943
Class Y 841
Distribution fees
Class A 113,050
Class C 266,813
Shareholder communications expense 14,252
Administrative reimbursements 24,620
Custodian fees 4,109
Registration fees 36,137
Professional fees 39,067
Printing expense 21,792
Fees and expenses of nonaffiliated trustees 3,586
Miscellaneous 19,015
- --------------------------------------------------------------------------------------
Total expenses $ 966,932
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (58,574)
- --------------------------------------------------------------------------------------
Net expenses $ 908,358
- --------------------------------------------------------------------------------------
Net investment income $ 5,347,651
- --------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $ (332,083)
- --------------------------------------------------------------------------------------
Change in net unrealized loss on investments $10,337,225
- --------------------------------------------------------------------------------------
Net gain on investments $10,005,142
- --------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $15,352,793
======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 23
Statement of Changes in Net Assets
For the Six Months Ended 2/28/10 and the Year Ended 8/31/09, respectively
- -----------------------------------------------------------------------------------------
Six Months
Ended
2/28/10 Year Ended
(unaudited) 8/31/09
- -----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 5,347,651 $ 3,834,730
Net realized loss on investments (332,083) (7,894,243)
Change in net unrealized gain (loss) on investments 10,337,225 (4,634,404)
- -----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $ 15,352,793 $(8,693,917)
- -----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.28 and $0.56 per share, respectively) $ (3,313,649) $(2,492,219)
Class C ($0.24 and $0.50 per share, respectively) (1,718,127) (1,260,491)
Class Y ($0.28 and $0.55 per share, respectively) (324,972) (75,451)
- -----------------------------------------------------------------------------------------
Total distributions to shareowners $ (5,356,748) $(3,828,161)
- -----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $180,145,535 $34,817,669
Reinvestment of distributions 2,310,919 1,044,222
Cost of shares repurchased (21,567,511) (21,165,715)
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $160,888,943 $14,696,176
- -----------------------------------------------------------------------------------------
Net increase in net assets $170,884,988 $ 2,174,098
NET ASSETS:
Beginning of period 62,947,753 60,773,655
- -----------------------------------------------------------------------------------------
End of period $233,832,741 $62,947,753
- -----------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (24,171) $ (15,074)
- -----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
- -----------------------------------------------------------------------------------------------
'10 Shares '10 Amount '09 Shares '09 Amount
- -----------------------------------------------------------------------------------------------
Class A
Shares sold 14,407,008 $108,158,100 3,413,103 $22,855,150
Reinvestment of distributions 204,112 1,541,290 104,482 684,500
Less shares repurchased (1,729,158) (13,033,368) (2,367,157) (16,081,320)
- -----------------------------------------------------------------------------------------------
Net increase 12,881,962 $ 96,666,022 1,150,428 $ 7,458,330
===============================================================================================
Class C
Shares sold 7,850,771 $ 58,752,820 1,565,435 $10,562,181
Reinvestment of distributions 94,797 714,039 52,234 341,372
Less shares repurchased (875,170) (6,552,480) (758,786) (5,054,887)
- -----------------------------------------------------------------------------------------------
Net increase 7,070,398 $ 52,914,379 858,883 $ 5,848,666
===============================================================================================
Class Y
Shares sold 1,770,742 $ 13,234,615 210,372 $ 1,400,338
Reinvestment of distributions 7,442 55,590 2,808 18,350
Less shares repurchased (264,018) (1,981,663) (4,632) (29,508)
- -----------------------------------------------------------------------------------------------
Net increase 1,514,166 $ 11,308,542 208,548 $ 1,389,180
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 25
Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
Six Months 10/17/06 (a)
Ended Year Year (Commencement
2/28/10 Ended Ended of Operations)
(unaudited) 8/31/09 8/31/08 to 8/31/07
- ---------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 6.84 $ 8.70 $ 9.72 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.28 $ 0.56 $ 0.54 $ 0.44
Net realized and unrealized gain (loss) on investments 0.79 (1.86) (1.01) (0.29)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 1.07 $ (1.30) $ (0.47) $ 0.15
Distributions to shareowners:
Net investment income (0.28) (0.56) (0.55) (0.43)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.79 $ (1.86) $ (1.02) $ (0.28)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.63 $ 6.84 $ 8.70 $ 9.72
===========================================================================================================================
Total return* 15.70% (14.41)% (4.95)% 1.45%***
Ratio of net expenses to average net assets+ 0.90%** 0.90% 0.90% 0.90%**
Ratio of net investment income to average net assets+ 7.31%** 8.32% 5.92% 5.31%**
Portfolio turnover rate 29% 50% 59% 130%***
Net assets, end of period (in thousands) $141,086 $ 38,312 $ 38,717 $ 16,637
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly
Net expenses 1.03%** 1.28% 1.21% 1.77%**
Net investment income 7.18%** 7.95% 5.61% 4.44%**
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 0.90%** 0.90% 0.90% 0.90%**
Net investment income 7.31%** 8.32% 5.92% 5.31%**
===========================================================================================================================
(a) Class A shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
- ---------------------------------------------------------------------------------------------------------------------------
Six Months 10/17/06 (a)
Ended Year Year (Commencement
2/28/2010 Ended Ended of Operations)
(unaudited) 8/31/09 8/31/08 to 8/31/07
- ---------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 6.83 $ 8.68 $ 9.71 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.24 $ 0.50 $ 0.46 $ 0.36
Net realized and unrealized gain (loss) on investments 0.79 (1.85) (1.03) (0.30)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 1.03 $ (1.35) $ (0.57) $ 0.06
Distributions to shareowners:
Net investment income (0.24) (0.50) (0.46) (0.35)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.79 $ (1.85) $ (1.03) $ (0.29)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.62 $ 6.83 $ 8.68 $ 9.71
===========================================================================================================================
Total return* 15.22% (15.17)% (5.94)% 0.56%***
Ratio of net expenses to average net assets+ 1.76%** 1.80% 1.80% 1.80%**
Ratio of net investment income to average net assets+ 6.44%** 7.44% 5.11% 4.35%**
Portfolio turnover rate 29% 50% 59% 130%***
Net assets, end of period (in thousands) $ 78,758 $ 22,319 $ 20,915 $ 6,445
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly
Net expenses 1.76%** 1.98% 1.95% 2.72%**
Net investment income 6.44%** 7.26% 4.96% 3.43%**
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 1.76%** 1.80% 1.80% 1.80%**
Net investment income 6.44%** 7.44% 5.11% 4.35%**
===========================================================================================================================
(a) Class C shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 27
Financial Highlights (continued)
- ---------------------------------------------------------------------------------------------------------------------------
Six Months 10/17/06 (a)
Ended Year Year (Commencement
2/28/10 Ended Ended of Operations)
(unaudited) 8/31/09 8/31/08 to 8/31/07
Class Y
Net asset value, beginning of period $ 6.80 $ 8.63 $ 9.69 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.28 $ 0.55 $ 0.53 $ 0.42
Net realized and unrealized gain (loss) on investments 0.74 (1.83) (1.05) (0.30)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 1.02 $ (1.28) $ (0.52) $ 0.12
Distributions to shareowners:
Net investment income (0.28) (0.55) (0.54) (0.43)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.74 $ (1.83) $ (1.06) $ (0.31)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.54 $ 6.80 $ 8.63 $ 9.69
===========================================================================================================================
Total return* 15.11% (14.30)% (5.45)% 1.12%***
Ratio of net expenses to average net assets+ 0.74%** 0.99% 1.00% 1.23%**
Ratio of net investment income to average net assets+ 7.44%** 8.23% 5.80% 4.70%**
Portfolio turnover rate 29% 50% 59% 130%***
Net assets, end of period (in thousands) $ 13,995 $ 2,317 $ 1,142 $ 1,080
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly
Net expenses 0.74%** 1.04% 1.00% 2.11%**
Net investment income 7.44%** 8.18% 5.80% 3.82%**
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 0.74%** 0.99% 0.99% 1.23%**
Net investment income 7.44%** 8.23% 5.81% 4.70%**
===========================================================================================================================
(a) Class Y shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
*** Not annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
Notes to Financial Statements | 2/28/10 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer High Income Municipal Fund (the Fund) is one of four portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as an open-end management
investment company. The Fund is non-diversified. The Fund commenced operations
on October 17, 2006. The investment objective of the Fund is to maximize total
return through a combination of income that is exempt from regular federal
income tax and capital appreciation.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. The Fund's prospectuses contain unaudited information
regarding the fund's principal risks. Please refer to those documents when
considering the Fund's principal risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses, and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 29
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. Fixed
income securities with remaining maturity of more than sixty days are
valued at prices supplied by independent pricing services, which consider
such factors as market prices, market events, quotations from one or more
brokers, Treasury spreads, yields, maturities and ratings. Valuations may
be supplemented by dealers and other sources, as required.
Securities for which independent pricing services are unable to supply
prices or 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.
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 February 28, 2010, there were no securities that were
valued using fair value methods (other than securities valued using prices
supplied by independent pricing services). Short-term fixed income
securities with remaining maturities of sixty days or less generally are
valued at amortized cost.
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis with
a corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income, exempt interest income, and net realized capital
gains, if any, to its shareowners. Therefore, no federal tax provision is
required. Tax returns for the prior two fiscal years remain subject to
examination by tax authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
30 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
shown in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain on investment transactions,
or as from paid-in capital, depending on the type of book/tax differences
that may exist.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
paid during the year ended August 31, 2009 was as follows:
- --------------------------------------------------------------------------------
2009
- --------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $3,827,173
Ordinary income 988
- --------------------------------------------------------------------------------
Total $3,828,161
================================================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2009:
- --------------------------------------------------------------------------------
2009
- --------------------------------------------------------------------------------
Distributable earnings:
Undistributed tax exempt income $ 239,192
Capital loss carryforward (4,365,502)
Current year post October loss deferred (5,602,889)
Current year dividend payable (252,750)
Unrealized depreciation (8,758,679)
- --------------------------------------------------------------------------------
Total $ (18,740,628)
================================================================================
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 $175,962 in underwriting commissions on
the sale of Class A shares during the six months ended February 28, 2010.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes of
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 31
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
The Fund declares, as daily dividends, substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, and Class Y shares can
reflect different transfer agent and distribution expense rates.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary of
UniCredit, manages the Fund's portfolio. Management fees are calculated daily at
the annual rate of 0.50% of the Fund's average daily net assets up to $500
million; 0.475% of the next $500 million; and 0.45% of the excess over $1
billion. For the six months ended February 28, 2010, the effective management
fee (excluding waivers and/or assumption of expenses) was equivalent to 0.50% of
the Fund's average net assets.
PIM has contractually agreed to limit ordinary operating expenses (excluding
taxes, commissions, interest and extraordinary expenses) of the Fund to the
extent required to reduce the Fund's expenses to 0.90% and 1.80% of the average
daily net assets attributable to Class A shares and Class C shares,
respectively. The Class A limitation is in effect through January 1, 2012 and
the Class C limitation is in effect through January 1, 2011. There can be no
assurance that PIM will extend the expense limitation agreement for a class of
shares beyond the date referred to above.
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
$11,390 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 28, 2010.
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.
32 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
For the six months ended February 28, 2010, such out of pocket expenses by class
of shares were as follows:
- --------------------------------------------------------------------------------
Shareholder Communications
- --------------------------------------------------------------------------------
Class A $ 8,510
Class C 4,417
Class Y 1,325
- --------------------------------------------------------------------------------
Total $14,252
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $10,563 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 28, 2010.
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 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 C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $9,222 in distribution fees payable to
PFD at February 28, 2010.
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 on or after
April 1, 2009). 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 six months
ended February 28, 2010, CDSCs in the amount of $25,816 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended February 28, 2010, the Fund's
expenses were not reduced under such arrangements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 33
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 six months ended February 28, 2010, 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 April
22, 2010 and has determined that there were no subsequent events requiring
recognition or disclosure in the financial statements.
34 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
Approval of Investment Advisory Agreement (unaudited)
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer High Income Municipal Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment 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. 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 and third parties, the Trustees of the Fund,
including the independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for the
Fund, its research process and its process for trade execution. The Trustees
considered the resources of PIM and the personnel of PIM 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.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 35
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers 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 to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
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 fifth quintile of its Morningstar
category for the one 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
discussed the reasons for the Fund's underperformance with PIM in view of the
Fund's investment approach and the market conditions present during the relevant
period. The Trustees agreed that they would continue to monitor the performance
of the Fund closely.
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 considered that the Fund's management fee for the twelve months
ended June 30, 2009 was in the second 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 third quintile relative to its Strategic Insight
peer group for the comparable period. The Trustees considered the breakpoints in
the management fee schedule and the reduced fee rates above certain asset
levels.
The Trustees also reviewed management fees charged by PIM to its institutional
and other clients. In evaluating the fees associated with PIM's client
36 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
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 concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by
PIM. 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
contractual expense limitation agreed to by PIM with respect to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was 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.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 37
Other Benefits
The Trustees considered the other benefits to PIM 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
considered the intangible benefits to PIM by virtue of its relationship with the
Fund and the other Pioneer funds. The Trustees concluded that the receipt of
these benefits was reasonable in the context of the overall relationship between
PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
38 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at pioneerinvestments.com. This information is also available on the Securities
and Exchange Commission's web site at http://www.sec.gov.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 39
This page for your notes.
40 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
This page for your notes.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 41
This page for your notes.
42 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
This page for your notes.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10 43
This page for your notes.
44 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/10
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.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust V
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date April 29, 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 April 29, 2010
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date April 29, 2010
* Print the name and title of each signing officer under his or her signature.