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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08657
Pioneer Equity Income Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 2009 through April 30, 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 Equity
Income Fund
- --------------------------------------------------------------------------------
Semiannual Report | April 30, 2010
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A PEQIX
Class B PBEQX
Class C PCEQX
Class R PQIRX
Class Y PYEQX
Class Z PEZQX
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Prices and Distributions 8
Performance Update 9
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 25
Notes to Financial Statements 35
Approval of Investment Advisory Agreement 42
Trustees, Officers and Service Providers 46
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 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 Equity Income Fund | Semiannual Report | 4/30/10
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.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 3
Portfolio Management Discussion | 4/30/10
In the following interview, John Carey, Executive Vice President and Head of
the U.S. Core Value Department at Pioneer Investments, discusses the investment
environment during the six-month period ended April 30, 2010, and the Fund's
performance. Mr. Carey is responsible for the day-to-day management of Pioneer
Equity Income Fund.
Q Please discuss the investment environment for the fund during the six months
ended April 30, 2010.
A For the most part, the stock market continued its recovery over the six-
month period. There was one fairly sharp "correction" between the middle of
January and the middle of February, but overall it was a period of strong
performance for stocks. Unlike the "low-quality" rally earlier in 2009, the
market after October 31, 2009, was also more balanced, and "higher-quality"
stocks, too, did well, which worked in favor of the Pioneer Equity Income
Fund's portfolio.
Late in the period, though, serious concerns emerged about financial problems
in some of the European countries, most particularly Greece, and the possible
repercussions for the rest of the global economy. As we write, the market has
largely retraced its course since last fall, and market pundits are again
sounding gloomy. With the problems in Europe, people are also focusing anew
on our own Federal and state budget deficits here in the United States, and
on our still-high unemployment. From a "glass half full" outlook, many
investors have once more gone to a "glass half empty" outlook.
Despite that setback for the market -- which, we should emphasize, began in
earnest immediately after the end of the reporting period covered in this
letter -- we remain generally optimistic. Certainly the so-called "sovereign
debt" worries are legitimate, but we think that the powerful forces of
economic recovery should be able to overcome those obstacles. As we talk with
the managements of the companies in which we have invested the Fund's assets,
we are impressed with the plans for growth that so many of the managements
have, as well as with the sound financial condition of most of their
companies. Dividends are growing again, and mergers and acquisitions are
stimulating interest in the market almost on a daily basis. With many
investors still not "back in the market" after the severe market setback of
2008, we are also nowhere near an "overbought" condition. Indeed, if some of
those investors restore an allocation to stocks over the next couple of
years, they could provide considerable support for stock prices. Right now,
though, we are passing through a storm, even if it does, to us, look like a
potentially attractive buying opportunity.
4 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
Q How did the Fund perform during the six-month period ended April 30, 2010?
A Pioneer Equity Income Fund Class A shares returned 16.38% at net asset value
over the six months ended April 30, 2010, compared with a return of 17.77%
for the Fund's benchmark, the Russell 1000 Value Index (the Russell Index).
Over the same period, the average return of the 302 mutual funds in Lipper's
Equity Income category was 13.89%.
Q What sector allocations or individual securities added or detracted most from
the performance of the Fund over the six months ended April 30, 2010?
A Contributing positively to performance were the Fund's underweight in the
lagging energy sector and overweights in the performance-leading materials
and industrials sectors. On the other hand, the Fund was somewhat underweight
the best-performing consumer discretionary sector, and within that sector we
had less-than-benchmark exposure to some of the retailing, automotive, and
other stocks with especially strong performance. Likewise in the industrial
sector, the Fund did not own either General Electric or Boeing, and they both
showed good results over the six-month period. The overall effect of the
Fund's sector weights and stock selections was a modest underperformance of
the benchmark Russell Index.
Q The Fund typically has a high regard for dividends. The recession saw many
companies cutting their dividends or failing to raise them. Has the rally in
the market and the global economic recovery brought improvement in the
dividend picture?
A Yes, thank goodness, companies have been more generous with dividend payments
since the economy turned positive. We are both seeing dividend increases from
portfolio holdings and finding numerous, attractive, dividend-paying stocks
in the marketplace. There is concern among investors over likely increases in
the maximum Federal tax rate on dividends starting in 2011, but we shall face
that issue when we have to. For now, companies have been reporting much
better earnings in the recovering economy, and many of them are passing along
a portion of those earnings to their shareholders.
Q What stocks did you add to or remove from the Fund's portfolio over the six
months ended April 30, 2010?
A During the period, we added nine positions to the Fund's portfolio and
liquidated seven. New additions included Helmerich and Payne, sophisticated
contract driller of oil and gas wells in North and South America, with
special expertise in the land rigs needed to develop new gas reserves in the
United States; Lockheed Martin and Northrup Grumman, prominent defense and
aerospace companies that we found selling at quite reasonable prices because
of what appeared to be misplaced investor anxiety over the
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 5
Federal defense budget; Sara Lee, a diversified, worldwide food and consumer
products company that appears finally to be achieving greater efficiencies
and profitability; and Applied Materials, an out-of-favor but, we think,
formidable supplier of semiconductor-manufacturing equipment. Also new to the
portfolio were three utilities, Wisconsin Energy, DPL, and National Fuel Gas;
and AT&T, a name the Fund has owned in the past.
Sold, for a variety of reasons, but generally because we thought either that
the stocks had reached fair value or that there were more appealing
alternatives, were: Royal Dutch Shell, Caterpillar, Parker Hannifin,
McGraw-Hill, Coca-Cola, Kraft Foods, and FirstEnergy.
Q What is your outlook for the rest of 2010, and how might that outlook
influence your investment approach?
A It is too early to tell how the European financial crisis will be resolved
and what long-term effects it may have on global markets. We think, again,
that the world economy is resilient enough to absorb the stresses resulting
from that crisis, but we are of course watching the situation closely. To the
extent that stocks sell off in response to news events related to the
problems with European sovereign debt and other "macro" issues (North Korea?
Iran? Icelandic volcanoes?) rather than fundamental, earnings-related issues,
we would be inclined to see buying opportunities, not reasons to sell. Of
course the so-called macro events can weigh on companies in the near term and
even affect earnings. It has been our observation over many years, however,
that well-managed companies can usually find "ways to cope," strategies for
success even in trying times. Always it has been our intention to invest the
assets of the Fund in companies with good managements -- managements that are
astute, honest, forward-looking, adaptable, and shareholder oriented. That
will be our goal during the months ahead, and we hope that it will stand the
Fund in good stead.
Thank you as always for your support.
Please refer to the Schedule of Investments on pages 17-24 for a full listing
of Fund securities.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
Past performance is no guarantee of future results, and there is no guarantee
that the market forecast discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes.
6 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
Portfolio Summary | 4/30/10
Portfolio Diversification
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(As a percentage of total investment portfolio)
[The following data was represented as a pie chart in the printed material]
U.S. Common Stocks 92.3%
Temporary Cash Investments 7.1%
Depositary Receipts for International Stocks 0.6%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[The following data was represented as a pie chart in the printed material]
Financials 16.1%
Utilities 14.6%
Industrials 14.4%
Consumer Staples 13.9%
Consumer Discretionary 9.8%
Materials 9.0%
Health Care 7.3%
Energy 7.0%
Information Technology 4.4%
Telecommunication Services 3.5%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Questar Corp. 3.55%
2. PACCAR, Inc. 3.19
3. Johnson Controls, Inc. 3.11
4. Valspar Corp. 3.01
5. Gorman-Rupp Co. 2.95
6. Chubb Corp. 2.32
7. Colgate-Palmolive Co. 2.30
8. Compass Minerals International, Inc. 2.17
9. U.S. Bancorp 2.15
10. EQT Corp. 2.14
* 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.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 7
Prices and Distributions | 4/30/10
Net Asset Value per Share
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class 4/30/10 10/31/09
- --------------------------------------------------------------------------------
A $ 23.33 $ 20.24
- --------------------------------------------------------------------------------
B $ 23.18 $ 20.10
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C $ 23.09 $ 20.01
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R $ 23.55 $ 20.43
- --------------------------------------------------------------------------------
Y $ 23.49 $ 20.37
- --------------------------------------------------------------------------------
Z $ 23.37 $ 20.27
- --------------------------------------------------------------------------------
Distributions per Share: 11/1/09-4/30/10
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- --------------------------------------------------------------------------------
A $ 0.2140 $ -- $ --
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B $ 0.0999 $ -- $ --
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C $ 0.1144 $ -- $ --
- --------------------------------------------------------------------------------
R $ 0.1899 $ -- $ --
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Y $ 0.2668 $ -- $ --
- --------------------------------------------------------------------------------
Z $ 0.2582 $ -- $ --
- --------------------------------------------------------------------------------
8 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
Performance Update | 4/30/10 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund at public offering price, compared
to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2010)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
10 Years 3.55% 2.94%
5 Years 2.06 0.86
1 Year 34.02 26.35
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.23% 1.23%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/00 9,425 10,000
4/02 10,198 10,227
4/04 10,520 11,233
4/06 13,939 15,139
4/08 15,631 16,282
4/10 13,364 14,083
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 9
Performance Update | 4/30/10 Class B Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 2.66% 2.66%
5 Years 1.16 1.16
1 Year 32.77 28.77
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
2.20% 2.20%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/00 10,000 10,000
4/02 10,643 10,227
4/04 10,800 11,233
4/06 14,060 15,139
4/08 15,499 16,282
4/10 13,006 14,083
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus.
Note: Shares purchased prior to December 1, 2004, remain subject to the CDSC in
effect at the time you purchased those shares. For performance information for
shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
10 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
Performance Update | 4/30/10 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 2.72% 2.72%
5 Years 1.27 1.27
1 Year 33.02 33.02
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
2.04% 2.04%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/00 10,000 10,000
4/02 10,629 10,227
4/04 10,788 11,233
4/06 14,065 15,139
4/08 15,534 16,282
4/10 13,075 14,083
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not reflect
the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. "If Held"
results represent the percent change in net asset value per share. Returns would
have been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 11
Performance Update | 4/30/10 Class R Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 3.28% 3.28%
5 Years 1.88 1.88
1 Year 33.77 33.77
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.44% 1.44%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/00 10,000 10,000
4/02 10,707 10,227
4/04 10,983 11,233
4/06 14,511 15,139
4/08 16,212 16,282
4/10 13,805 14,083
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance of Class R shares for the period prior to the commencement of
operations of Class R shares on April 1, 2003, is based on the performance of
Class A shares, reduced to reflect the higher distribution and service fees of
Class R shares. For the period after April 1, 2003, the actual performance of
Class R shares is reflected. Class R shares are not subject to sales charges and
are available for limited groups of eligible investors, including institutional
investors. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
12 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
Performance Update | 4/30/10 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 4.00% 4.00%
5 Years 2.49 2.49
1 Year 34.69 34.69
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
0.75% 0.75%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/00 10,000 10,000
4/02 10,898 10,227
4/04 11,352 11,233
4/06 15,169 15,139
4/08 17,139 16,282
4/10 14,795 14,083
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 13
Performance Update | 4/30/10 Class Z Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2010)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years 3.59% 3.59%
5 Years 2.15 2.15
1 Year 34.65 34.65
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2010)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
0.95% 0.85%
- --------------------------------------------------------------------------------
[The following data was represented as a mountain chart in the printed material]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/00 10,000 10,000
4/02 10,815 10,227
4/04 11,156 11,233
4/06 14,781 15,139
4/08 16,515 16,282
4/10 14,236 14,083
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for periods prior to the inception of Class Z shares on July
6, 2007, reflects the NAV performance of the Fund's Class A shares. The
performance does not reflect differences in expenses, including the Rule 12b-1
fees applicable to Class A shares. Since fees for Class A shares are generally
higher than those of Class Z shares, the performance for Class Z shares prior to
their inception on July 6, 2007, would have been higher than the performance
shown. Class Z shares are not subject to sales charges and are available for
limited groups of eligible investors. All results are historical and assume the
reinvestment of dividends and capital gains. Other share classes are available
for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through March 1, 2012, for Class Z shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
14 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on actual returns from November 1, 2009 through April 30, 2010.
- ---------------------------------------------------------------------------------------------------------------------------
Share Class A B C R Y Z
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 11/1/09
- ---------------------------------------------------------------------------------------------------------------------------
Ending Account Value $ 1,163.80 $ 1,158.50 $ 1,159.90 $ 1,162.60 $ 1,167.00 $ 1,166.40
(after expenses)
on 4/30/10
- ---------------------------------------------------------------------------------------------------------------------------
Expenses Paid $ 6.28 $ 11.61 $ 10.55 $ 7.67 $ 3.81 $ 4.24
During Period*
- ---------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.17%, 2.17%,
1.97%, 1.43%, 0.71%, and 0.79%, for Class A, Class B, Class C, Class R,
Class Y and Class Z shares, respectively, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year
period).
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from November 1, 2009 through April 30, 2010.
- ---------------------------------------------------------------------------------------------------------------------------
Share Class A B C R Y Z
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 11/1/09
- ---------------------------------------------------------------------------------------------------------------------------
Ending Account Value $ 1,018.99 $ 1,014.03 $ 1,015.03 $ 1,017.70 $ 1,021.27 $ 1,020.88
(after expenses)
on 4/30/10
- ---------------------------------------------------------------------------------------------------------------------------
Expenses Paid $ 5.86 $ 10.84 $ 9.84 $ 7.15 $ 3.56 $ 3.96
During Period*
- ---------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.17%, 2.17%,
1.97%, 1.43%, 0.71%, and 0.79%, for Class A, Class B, Class C, Class R,
Class Y and Class Z shares, respectively, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year
period).
16 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
Schedule of Investments | 4/30/10 (unaudited)
- --------------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------------
COMMON STOCKS -- 99.9%
ENERGY -- 7.0%
Integrated Oil & Gas -- 5.3%
145,200 Chevron Corp. $ 11,825,088
207,560 ConocoPhillips 12,285,476
120,000 Exxon Mobil Corp. 8,142,000
541,600 Marathon Oil Corp. 17,412,440
--------------
$ 49,665,004
- -------------------------------------------------------------------------------------
Oil & Gas Drilling -- 0.4%
100,000 Helmerich & Payne, Inc. $ 4,062,000
- -------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.3%
520,000 Spectra Energy Corp. $ 12,136,800
--------------
Total Energy $ 65,863,804
- -------------------------------------------------------------------------------------
MATERIALS -- 9.0%
Diversified Chemical -- 1.4%
341,400 E.I. du Pont de Nemours and Co. $ 13,601,376
- -------------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.2%
270,000 Compass Minerals International, Inc. $ 20,333,700
- -------------------------------------------------------------------------------------
Paper Packaging -- 0.7%
200,000 Sonoco Products Co. $ 6,626,000
- -------------------------------------------------------------------------------------
Specialty Chemicals -- 3.0%
900,000 Valspar Corp. $ 28,188,000
- -------------------------------------------------------------------------------------
Steel -- 1.7%
157,448 Carpenter Technology Corp. $ 6,182,983
210,000 Nucor Corp. 9,517,200
--------------
$ 15,700,183
--------------
Total Materials $ 84,449,259
- -------------------------------------------------------------------------------------
CAPITAL GOODS -- 13.6%
Aerospace & Defense -- 1.6%
92,100 Lockheed Martin Corp. $ 7,818,368
107,200 Northrop Grumman Corp. 7,271,376
--------------
$ 15,089,744
- -------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 3.9%
110,000 Deere & Co. $ 6,580,200
641,905 PACCAR, Inc. 29,861,421
--------------
$ 36,441,621
- -------------------------------------------------------------------------------------
Electrical Component & Equipment -- 1.7%
300,000 Emerson Electric Co. (b) $ 15,669,000
- -------------------------------------------------------------------------------------
Industrial Machinery -- 6.4%
988,195 Gorman-Rupp Co.+(b) $ 27,560,759
253,700 Illinois Tool Works, Inc. 12,964,070
200,000 Snap-On, Inc. 9,636,000
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 17
Schedule of Investments | 4/30/10 (unaudited) (continued)
- -----------------------------------------------------------------------------
Shares Value
- -----------------------------------------------------------------------------
Industrial Machinery -- (continued)
295,000 The Timken Co. $ 10,378,100
--------------
$ 60,538,929
--------------
Total Capital Goods $ 127,739,294
- ----------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.8%
Office Services & Supplies -- 0.8%
240,000 Mine Safety Appliances Co. (b) $ 7,053,600
--------------
Total Commercial Services & Supplies $ 7,053,600
- ----------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 3.1%
Auto Parts & Equipment -- 3.1%
866,800 Johnson Controls, Inc. $ 29,115,812
--------------
Total Automobiles & Components $ 29,115,812
- ----------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.9%
Apparel, Accessories & Luxury Goods -- 1.9%
200,000 VF Corp. (b) $ 17,284,000
--------------
Total Consumer Durables & Apparel $ 17,284,000
- ----------------------------------------------------------------------------
CONSUMER SERVICES -- 1.7%
Leisure Facilities -- 1.2%
745,017 Cedar Fair, L.P. (b) $ 10,765,496
- ----------------------------------------------------------------------------
Restaurants -- 0.5%
69,000 McDonald's Corp. $ 4,870,710
--------------
Total Consumer Services $ 15,636,206
- ----------------------------------------------------------------------------
MEDIA -- 0.7%
Publishing -- 0.7%
200,000 Reed Elsevier Plc (A.D.R.) (b) $ 6,320,000
--------------
Total Media $ 6,320,000
- ----------------------------------------------------------------------------
RETAILING -- 2.4%
Distributors -- 1.3%
280,000 Genuine Parts Co. $ 11,984,000
- ----------------------------------------------------------------------------
Home Improvement Retail -- 1.1%
400,000 Lowe's Companies, Inc. $ 10,848,000
--------------
Total Retailing $ 22,832,000
- ----------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 1.0%
Food Distributors -- 1.0%
300,000 Sysco Corp. $ 9,462,000
--------------
Total Food & Drug Retailing $ 9,462,000
- ----------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 8.3%
Packaged Foods & Meats -- 8.3%
165,000 General Mills, Inc. $ 11,744,700
422,550 H.J. Heinz Co., Inc. 19,804,919
373,000 Hershey Foods Corp. 17,534,730
253,000 Kellogg Co. 13,899,820
The accompanying notes are an integral part of these financial statements.
18 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
- --------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------
Packaged Foods & Meats -- (continued)
350,000 Sara Lee Corp. $ 4,977,000
150,000 The J.M. Smucker Co. 9,160,500
--------------
$ 77,121,669
--------------
Total Food, Beverage & Tobacco $ 77,121,669
- -------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 4.6%
Household Products -- 4.6%
188,800 Clorox Co. $ 12,215,360
256,000 Colgate-Palmolive Co. 21,529,600
150,000 Procter & Gamble Co. 9,324,000
--------------
$ 43,068,960
--------------
Total Household & Personal Products $ 43,068,960
- -------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.6%
Health Care Equipment -- 1.6%
320,000 Baxter International, Inc. $ 15,110,400
--------------
Total Health Care Equipment & Services $ 15,110,400
- -------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 5.7%
Pharmaceuticals -- 5.7%
306,600 Abbott Laboratories, Inc. $ 15,685,656
539,500 Bristol-Myers Squibb Co. 13,643,955
280,000 Eli Lilly & Co. 9,791,600
409,700 Merck & Co., Inc. 14,355,888
--------------
$ 53,477,099
--------------
Total Pharmaceuticals & Biotechnology $ 53,477,099
- -------------------------------------------------------------------------
BANKS -- 4.4%
Diversified Banks -- 3.0%
750,000 U.S. Bancorp $ 20,077,500
237,500 Wells Fargo & Co. 7,863,625
--------------
$ 27,941,125
- -------------------------------------------------------------------------
Regional Banks -- 1.4%
450,000 SunTrust Banks, Inc. (b) $ 13,320,000
--------------
Total Banks $ 41,261,125
- -------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.0%
Asset Management & Custody Banks -- 3.1%
150,000 Northern Trust Corp. $ 8,247,000
230,000 T. Rowe Price Associates, Inc. (b) 13,227,300
252,000 The Bank of New York Mellon Corp. 7,844,760
--------------
$ 29,319,060
- -------------------------------------------------------------------------
Diversified Financial Services -- 0.9%
200,000 JPMorgan Chase & Co. $ 8,516,000
--------------
Total Diversified Financials $ 37,835,060
- -------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 19
Schedule of Investments | 4/30/10 (unaudited) (continued)
- -----------------------------------------------------------------------------------
Shares Value
- -----------------------------------------------------------------------------------
INSURANCE -- 5.4%
Life & Health Insurance -- 1.2%
228,800 Aflac, Inc. $ 11,659,648
- ----------------------------------------------------------------------------------
Property & Casualty Insurance -- 4.2%
410,200 Chubb Corp. $ 21,687,274
255,000 Cincinnati Financial Corp. (b) 7,242,000
200,000 The Travelers Co., Inc. 10,148,000
--------------
$ 39,077,274
--------------
Total Insurance $ 50,736,922
- ----------------------------------------------------------------------------------
REAL ESTATE -- 2.2%
Office Real Estate Investment Trusts -- 0.8%
100,000 Alexandria Real Estate Equities, Inc. (b) $ 7,081,000
- ----------------------------------------------------------------------------------
Retail Real Estate Investment Trusts -- 0.5%
123,300 Regency Centers Corp. (b) $ 5,061,465
- ----------------------------------------------------------------------------------
Specialized Real Estate Investment Trusts -- 0.9%
250,000 Nationwide Health Properties, Inc. $ 8,755,000
--------------
Total Real Estate $ 20,897,465
- ----------------------------------------------------------------------------------
SEMICONDUCTORS -- 4.4%
Semiconductor Equipment -- 0.4%
300,000 Applied Materials, Inc. $ 4,134,000
- ----------------------------------------------------------------------------------
Semiconductors -- 4.0%
410,300 Analog Devices, Inc. $ 12,280,278
440,000 Intel Corp. 10,045,200
500,000 Microchip Technology, Inc. (b) 14,605,000
--------------
$ 36,930,478
--------------
Total Semiconductors $ 41,064,478
- ----------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 3.5%
Integrated Telecommunication Services -- 3.5%
300,000 AT&T Corp. $ 7,818,000
437,000 Century Telephone Enterprises, Inc. 14,906,070
336,584 Verizon Communications, Inc. 9,723,912
--------------
$ 32,447,982
--------------
Total Telecommunication Services $ 32,447,982
- ----------------------------------------------------------------------------------
UTILITIES -- 14.6%
Electric Utilities -- 3.0%
152,500 DPL, Inc. $ 4,297,450
513,800 Duke Energy Corp. 8,621,564
145,900 PPL Corp. 3,612,484
340,000 Southern Co. 11,750,400
--------------
$ 28,281,898
- ----------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
- -------------------------------------------------------------------------------
Shares Value
- -------------------------------------------------------------------------------
Gas Utilities -- 8.1%
392,100 AGL Resources, Inc. $ 15,491,871
460,000 EQT Corp. (b) 20,005,400
130,000 National Fuel Gas Co. 6,762,600
693,200 Questar Corp. 33,238,940
--------------
$ 75,498,811
- -------------------------------------------------------------------------------
Multi-Utilities -- 3.5%
530,000 NSTAR (b) $ 19,398,000
284,600 Public Service Enterprise Group, Inc. 9,144,198
82,800 Wisconsin Energy Corp. 4,347,828
--------------
$ 32,890,026
--------------
Total Utilities $ 136,670,735
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $679,204,254) $ 935,447,870
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Principal
Amount
- -------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 7.7%
SECURITIES LENDING COLLATERAL -- 7.7% (c)
Certificates of Deposit:
$ 1,703,228 Bank of Nova Scotia, 0.2%, 6/1/10 $ 1,703,228
1,884,102 Barclays, 0.30%, 7/23/10 1,884,102
1,884,115 BBVA NY, 0.265%, 6/1/10 1,884,115
573,012 BNP Paribas, 0.70%, 6/4/10 573,012
2,072,512 CBA Financial, 0.27%, 1/3/11 2,072,512
1,884,102 Deutschebank, 0.30%, 7/19/10 1,884,102
1,884,102 DnB NOR Bank ASA NY, 0.19%, 5/19/10 1,884,102
1,884,136 Rabobank Nederland NY, 0.19%, 7/6/10 1,884,136
1,884,102 Royal Bank of Canada, 0.26%, 1/21/11 1,884,102
1,884,102 Svenska NY, 0.265%, 7/19/10 1,884,102
-----------
$17,537,513
- -------------------------------------------------------------------------------
Commercial Paper:
753,641 American Honda Finance, 0.28%, 4/5/11 $ 753,641
2,145,444 Bank of America, 0.85%, 5/12/10 2,145,444
249,296 Caterpillar Financial Services, 0.34%, 8/20/10 249,296
941,857 CBAPP, 0.20%, 6/7/10 941,857
753,565 Ciesco, 0.19%, 5/20/10 753,565
1,883,193 CLIPPR, 0.28%, 7/2/10 1,883,193
1,705,401 CME, Inc., 0.90%, 8/6/10 1,705,401
1,883,933 FASCO, 0.19%, 5/18/10 1,883,933
205,344 GE Capital Corp., 0.31%, 10/6/10 205,344
203,951 GE Capital Corp., 0.35%, 10/21/10 203,951
565,470 GE Capital Corp., 0.43%, 8/20/10 565,470
941,926 GE, 0.30%, 1/26/11 941,926
1,507,260 HNDAF, 0.17%, 5/4/10 1,507,260
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 21
Schedule of Investments | 4/30/10 (unaudited) (continued)
- -------------------------------------------------------------------------------
Principal
Amount Value
- -------------------------------------------------------------------------------
Commercial Paper -- (continued):
$ 2,260,897 INDFG, 0.20%, 5/3/10 $ 2,260,897
188,407 INDFG, 0.21%, 5/4/10 188,407
210,108 John Deere Capital Corp., 0.33%, 7/16/10 210,108
1,594,149 JPMorgan Chase & Co., 0.57%, 9/24/10 1,594,149
1,130,317 Kithaw, 0.20%, 5/24/10 1,130,317
772,204 Kithaw, 0.16%, 5/5/10 772,204
753,178 NABPP, 0.28%, 7/19/10 753,178
753,603 Old LLC, 0.18%, 5/11/10 753,603
753,633 Ranger, 0.18%, 5/3/10 753,633
2,136,228 Santander, 0.30%, 7/23/10 2,136,228
1,883,134 SOCNAM, 0.28%, 7/6/10 1,883,134
565,216 SRCPP, 0.19%, 5/6/10 565,216
1,318,233 SRCPP, 0.26%, 7/7/11 1,318,233
366,183 STRAIT, 0.18%, 5/7/10 366,183
753,507 STRAIT, 0.20%, 6/2/10 753,507
942,006 TB LLC, 0.19%, 5/10/10 942,006
941,816 TB LLC, 0.23%, 6/9/10 941,816
1,884,102 Toyota Motor Credit Corp., 0.23%, 1/10/11 1,884,102
288,665 US Bancorp, 0.30%, 5/28/10 288,665
403,787 US Bancorp, 0.65%, 5/6/10 403,787
188,491 US Bancorp, 0.66%, 6/4/10 188,491
1,882,796 Varfun, 0.29%, 7/26/10 1,882,796
1,130,543 Wachovia, 0.36%, 3/22/11 1,130,543
531,041 Wal-Mart Stores, Inc., 0.22%, 7/1/10 531,041
753,464 WFC, 0.33%, 12/2/10 753,464
1,883,761 WSTPAC, 0.25%, 5/27/10 1,883,761
---------------
$ 40,009,750
- -------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
2,826,152 Barclays, 0.18%, 5/3/10 $ 2,826,152
5,783,024 Deutsche Bank, 0.19%, 5/3/10 5,783,024
5,652,305 RBS Securities, Inc., 0.2%, 5/3/10 5,652,305
$ 14,261,481
---------------
Total Securities Lending Collateral $ 71,808,744
- -------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $71,808,744) $ 71,808,744
- -------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 107.6%
(Cost $751,012,998) (a) $1,007,256,614
- ------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (7.6)% $ (70,863,280)
- -------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 936,393,334
===============================================================================
(A.D.R.) American Depositary Receipt
+ Investment held by the Fund representing 5% or more of the
outstanding voting stock of such company.
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
(a) At April 30, 2010, the net unrealized gain on investments based on
cost for federal income tax purposes of $739,273,327 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 289,993,202
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (22,009,915)
-------------
Net unrealized gain $ 267,983,287
=============
(b) At April 30, 2010, the following securities were out on loan:
- -----------------------------------------------------------------------
Shares Description Value
- -----------------------------------------------------------------------
98,300 Alexandria Real Estate Equities, Inc. $ 6,960,623
374,400 Cedar Fair, L.P. 5,410,080
15,600 Cincinnati Financial Corp. 443,040
83,700 Emerson Electric Co. 4,371,651
20,000 EQT Corp. 869,800
567,632 Gorman-Rupp Co.+ 15,831,256
495,000 Microchip Technology 14,458,950
600 Mine Safety Appliances Co. 17,634
141,200 NSTAR 5,167,920
118,600 Reed Elsevier Plc (A.D.R.) 3,747,760
44,500 Regency Centers Corp. 1,826,725
71,200 SunTrust Banks, Inc. 2,107,520
110,000 T. Rowe Price Associates, Inc. 6,326,100
5,700 VF Corp. 492,594
- ----------------------------------------------------------------------
Total $68,031,653
======================================================================
(c) Securities lending collateral is managed by Credit Suisse AG, New
York Branch.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended April 30, 2010 aggregated $68,039,557 and $116,742,553,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 23
Schedule of Investments | 4/30/10 (unaudited) (continued)
The following is a summary of the inputs used as of April 30, 2010, in
valuing the Fund's assets:
- -----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
- -----------------------------------------------------------------------------------------------
Common stocks $ 935,447,870 $ -- $-- $ 935,447,870
Temporary cash investments -- 71,808,744 -- 71,808,744
- -----------------------------------------------------------------------------------------------
Total $ 935,447,870 $71,808,744 $-- $1,007,256,614
===============================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
Statement of Assets and Liabilities | 4/30/10 (unaudited)
ASSETS:
Investment in securities of unaffiliated issuers, at fair value
(including securities loaned of $68,031,653) (cost $743,106,518) $ 979,695,855
Investment in securities of affiliated issuers, at fair value
(cost $7,906,480) 27,560,759
- ---------------------------------------------------------------------------------------
Total investment in securities, at fair value (cost $751,012,998) $1,007,256,614
Receivables --
Investment securities sold 565,973
Fund shares sold 779,083
Dividends 1,767,478
Other 88,308
- ---------------------------------------------------------------------------------------
Total assets $1,010,457,456
=======================================================================================
LIABILITIES:
Payables --
Fund shares repurchased $ 816,017
Upon return of securities loaned 71,808,744
Due to bank 1,227,376
Due to affiliates 142,653
Accrued expenses 69,332
- ---------------------------------------------------------------------------------------
Total liabilities $ 74,064,122
=======================================================================================
NET ASSETS:
Paid-in capital $ 900,707,406
Undistributed net investment income 12,599,867
Accumulated net realized loss on investments (233,157,555)
Net unrealized gain on investments 256,243,616
- ---------------------------------------------------------------------------------------
Total net assets $ 936,393,334
=======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $622,311,462/26,671,120 shares) $ 23.33
Class B (based on $39,022,680/1,683,701 shares) $ 23.18
Class C (based on $69,553,533/3,012,583 shares) $ 23.09
Class R (based on $71,616,180/3,041,368 shares) $ 23.55
Class Y (based on $133,488,364/5,682,493 shares) $ 23.49
Class Z (based on $401,115/17,167 shares) $ 23.37
MAXIMUM OFFERING PRICE:
Class A ($23.33 [divided by] 94.25%) $ 24.75
=======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 25
Statement of Operations (unaudited)
For the Six Months Ended 4/30/10
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $52,920)
(including income from affiliated issuers of $207,521) $14,305,883
Interest 48
Income from securities loaned, net 51,294
- -------------------------------------------------------------------------------------------
Total investment income $ 14,357,225
===========================================================================================
EXPENSES:
Management fees $ 2,674,733
Transfer agent fees and expenses
Class A 418,290
Class B 80,856
Class C 52,301
Class R 4,451
Class Y 5,677
Class Z 155
Distribution fees
Class A 736,618
Class B 204,806
Class C 343,097
Class R 175,489
Shareholder communications expense 483,330
Administrative reimbursements 133,020
Custodian fees 10,310
Registration fees 43,673
Professional fees 42,518
Printing expense 25,591
Fees and expenses of nonaffiliated trustees 15,800
Miscellaneous 57,286
- -------------------------------------------------------------------------------------------
Total expenses $ 5,508,001
- -------------------------------------------------------------------------------------------
Net expenses $ 5,508,001
- -------------------------------------------------------------------------------------------
Net investment income $ 8,849,224
===========================================================================================
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $ 1,376,939
- -------------------------------------------------------------------------------------------
Change in net unrealized gain on investments $125,920,685
- -------------------------------------------------------------------------------------------
Net gain on investments $127,297,624
===========================================================================================
Net increase in net assets resulting from operations $136,146,848
===========================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
Statements of Changes in Net Assets
For the Six Months Ended 4/30/10 and the Year Ended 10/31/09, respectively
- --------------------------------------------------------------------------------------------
Six Months
Ended
4/30/10 Year Ended
(unaudited) 10/30/09
- --------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 8,849,224 $ 22,663,794
Net realized gain (loss) on investments 1,376,939 (190,219,889)
Change in net unrealized gain on investments 125,920,685 145,825,966
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $136,146,848 $(21,730,129)
============================================================================================
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.21 and $0.50 per share, respectively) $ (5,786,898) $(14,723,941)
Class B ($0.10 and $0.32 per share, respectively) (190,144) (859,684)
Class C ($0.11 and $0.34 per share, respectively) (363,350) (1,360,199)
Class R ($0.19 and $0.44 per share, respectively) (608,495) (1,438,614)
Class Y ($0.27 and $0.59 per share, respectively) (1,488,125) (1,903,303)
Class Z ($0.26 and $0.57 per share, respectively) (3,944) (5,589)
- --------------------------------------------------------------------------------------------
Total distributions to shareowners $ (8,440,956) $(20,291,330)
- --------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 70,535,508 $256,184,922
Reinvestment of distributions 6,994,959 17,273,103
Cost of shares repurchased (126,235,155) (262,044,803)
- --------------------------------------------------------------------------------------------
Net decrease (increase) in net assets resulting from
Fund share transactions $(48,704,688) $ 11,413,222
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 79,001,204 $(30,608,237)
NET ASSETS:
Beginning of period 857,392,130 888,000,367
- --------------------------------------------------------------------------------------------
End of period $936,393,334 $857,392,130
- --------------------------------------------------------------------------------------------
Undistributed net investment income $ 12,599,867 $ 12,191,599
- --------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 27
Statements of Changes in Net Assets (continued)
- ------------------------------------------------------------------------------------------------------
'10 Shares '10 Amount '09 Shares '09 Amount
(unaudited) (unaudited)
- ------------------------------------------------------------------------------------------------------
Class A
Shares sold 1,861,062 $ 40,544,046 6,831,723 $126,912,557
Reinvestment of distributions 234,639 5,187,569 699,159 13,048,277
Less shares repurchased (3,415,163) (74,453,541) (9,581,788) (177,386,543)
- ------------------------------------------------------------------------------------------------------
Net decrease (1,319,462) $(28,721,926) (2,050,906) $(37,425,709)
======================================================================================================
Class B
Shares sold 36,408 $ 786,041 255,365 $ 4,685,331
Reinvestment of distributions 7,361 161,223 37,812 700,802
Less shares repurchased (497,191) (10,785,513) (1,302,936) (23,863,770)
- ------------------------------------------------------------------------------------------------------
Net decrease (453,422) $ (9,838,249) (1,009,759) $(18,477,637)
======================================================================================================
Class C
Shares sold 170,461 $ 3,716,852 745,551 $ 13,807,279
Reinvestment of distributions 11,087 242,234 48,186 888,701
Less shares repurchased (602,637) (13,011,276) (1,555,650) (28,240,579)
- ------------------------------------------------------------------------------------------------------
Net decrease (421,089) $ (9,052,190) (761,913) $(13,544,599)
======================================================================================================
Class R
Shares sold 218,969 $ 4,833,400 1,077,124 $ 20,017,160
Reinvestment of distributions 26,372 588,173 74,273 1,398,389
Less shares repurchased (577,475) (12,704,335) (787,987) (14,921,512)
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) (332,134) $ (7,282,762) 363,410 $ 6,494,037
======================================================================================================
Class Y
Shares sold 929,932 $ 20,494,095 4,875,243 $ 90,507,277
Reinvestment of distributions 36,512 813,238 65,783 1,233,862
Less shares repurchased (690,263) (15,238,992) (896,241) (17,519,830)
- ------------------------------------------------------------------------------------------------------
Net increase 276,181 $ 6,068,341 4,044,785 $ 74,221,309
======================================================================================================
Class Z
Shares sold 7,413 $ 161,074 13,823 $ 255,318
Reinvestment of distributions 113 2,522 167 3,072
Less shares repurchased (1,849) (41,498) (6,044) (112,569)
- ------------------------------------------------------------------------------------------------------
Net increase 5,677 $ 122,098 7,946 $ 145,821
======================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
Financial Highlights
- --------------------------------------------------------------------------------------
Six Months
Ended Year
4/30/10 Ended
(unaudited) 10/31/09
- --------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 20.24 $ 21.28
- --------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.24 $ 0.58
Net realized and unrealized gain (loss) on investments 3.06 (1.12)
- --------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.30 $ (0.54)
Distributions to shareowners:
Net investment income (0.21) (0.50)
Net realized gain -- --
Tax return of capital -- --
- --------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.09 $ (1.04)
- --------------------------------------------------------------------------------------
Net asset value, end of period $ 23.33 $ 20.24
======================================================================================
Total return* 16.38% (2.30)%
Ratio of net expenses to average net assets+ 1.17%** 1.23%
Ratio of net investment income to average net assets+ 2.05%** 2.98%
Portfolio turnover rate 15%** 28%
Net assets, end of period (in thousands) $622,311 $566,439
Ratios with reduction for fees paid indirectly:
Net expenses 1.17%** 1.23%
Net investment income 2.05%** 2.98%
======================================================================================
- ---------------------------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
10/31/08 10/31/07 10/31/06 10/31/05
- ---------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 33.10 $ 33.53 $ 29.23 $ 26.91
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.75 $ 0.69 $ 0.68 $ 0.61
Net realized and unrealized gain (loss) on investments (10.03) 2.50 5.36 2.31
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (9.28) $ 3.19 $ 6.04 $ 2.92
Distributions to shareowners:
Net investment income (0.67) (0.73) (0.66) (0.60)
Net realized gain (1.81) (2.89) (1.08) --
Tax return of capital (0.06) -- -- --
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (11.82) $ (0.43) $ 4.30 $ 2.32
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.28 $ 33.10 $ 33.53 $ 29.23
===============================================================================================================
Total return* (29.99)% 10.22% 21.61% 10.87%
Ratio of net expenses to average net assets+ 1.11% 1.03% 1.04% 1.06%
Ratio of net investment income to average net assets+ 2.67% 2.27% 2.27% 2.11%
Portfolio turnover rate 19% 14% 32% 14%
Net assets, end of period (in thousands) $639,388 $1,063,910 $840,640 $668,556
Ratios with reduction for fees paid indirectly:
Net expenses 1.10% 1.02% 1.03% 1.06%
Net investment income 2.68% 2.28% 2.28% 2.11%
===============================================================================================================
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 29
Financial Highlights (continued)
- ----------------------------------------------------------------------------------
Six Months
Ended Year
4/30/10 Ended
(unaudited) 10/31/09
- ----------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 20.10 $ 21.14
- ----------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.20 $ 0.51
Net realized and unrealized gain (loss) on investments 2.98 (1.23)
- ----------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.18 $ (0.72)
Distributions to shareowners:
Net investment income (0.10) (0.32)
Net realized gain -- --
Tax return of capital -- --
- ----------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.08 $ (1.04)
- ----------------------------------------------------------------------------------
Net asset value, end of period $ 23.18 $ 20.10
==================================================================================
Total return* 15.85 % (3.26)%
Ratio of net expenses to average net assets+ 2.17%** 2.20%
Ratio of net investment income to average net assets+ 1.09%** 2.08%
Portfolio turnover rate 15%** 28%
Net assets, end of period (in thousands) $39,023 $42,950
Ratios with reduction for fees paid indirectly:
Net expenses 2.17%** 2.20%
Net investment income 1.09%** 2.08%
==================================================================================
- --------------------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
10/31/08 10/31/07 10/31/06 10/31/05
- --------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 32.88 $ 33.32 $ 29.05 $ 26.75
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.57 $ 0.51 $ 0.47 $ 0.38
Net realized and unrealized gain (loss) on investments (10.02) 2.38 5.26 2.26
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (9.45) $ 2.89 $ 5.73 $ 2.64
Distributions to shareowners:
Net investment income (0.44) (0.44) (0.38) (0.34)
Net realized gain (1.81) (2.89) (1.08) --
Tax return of capital (0.04) -- -- --
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(11.74) $ (0.44) $ 4.27 $ 2.30
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.14 $ 32.88 $ 33.32 $ 29.05
========================================================================================================
Total return* (30.58)% 9.30% 20.55% 9.89%
Ratio of net expenses to average net assets+ 1.96% 1.90% 1.91% 1.93%
Ratio of net investment income to average net assets+ 1.83% 1.42% 1.44% 1.24%
Portfolio turnover rate 19% 14% 32% 14%
Net assets, end of period (in thousands) $66,530 $134,618 $155,733 $157,889
Ratios with reduction for fees paid indirectly:
Net expenses 1.96% 1.89% 1.90% 1.93%
Net investment income 1.83% 1.43% 1.45% 1.24%
========================================================================================================
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
- ----------------------------------------------------------------------------------
Six Months
Ended Year
4/30/10 Ended
(unaudited) 10/31/09
- ----------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 20.01 $ 21.04
- ----------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.18 $ 0.47
Net realized and unrealized gain (loss) on investments 3.01 (1.16)
- ----------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.19 $ (0.69)
Distributions to shareowners:
Net investment income (0.11) (0.34)
Net realized gain -- --
Tax return of capital -- --
- ----------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.08 $ (1.03)
- ----------------------------------------------------------------------------------
Net asset value, end of period $ 23.09 $ 20.01
==================================================================================
Total return* 15.99% (3.11)%
Ratio of net expenses to average net assets+ 1.97%** 2.04%
Ratio of net investment income to average net assets+ 1.27%** 2.21%
Portfolio turnover rate 15%** 28%
Net assets, end of period (in thousands) $69,554 $68,719
Ratios with reduction for fees paid indirectly:
Net expenses 1.97%** 2.04%
Net investment income 1.27%** 2.21%
==================================================================================
- --------------------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
10/31/08 10/31/07 10/31/06 10/31/05
- --------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 32.75 $ 33.20 $ 28.96 $ 26.68
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.55 $ 0.46 $ 0.45 $ 0.38
Net realized and unrealized gain (loss) on investments (9.94) 2.44 5.29 2.28
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (9.39) $ 2.90 $ 5.74 $ 2.66
Distributions to shareowners:
Net investment income (0.47) (0.46) (0.42) (0.38)
Net realized gain (1.81) (2.89) (1.08) --
Tax return of capital (0.04) -- -- --
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(11.71) $ (0.45) $ 4.24 $ 2.28
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.04 $ 32.75 $ 33.20 $ 28.96
========================================================================================================
Total return* (30.52)% 9.37% 20.66% 9.98%
Ratio of net expenses to average net assets+ 1.87% 1.82% 1.83% 1.86%
Ratio of net investment income to average net assets+ 1.92% 1.48% 1.49% 1.31%
Portfolio turnover rate 19% 14% 32% 14%
Net assets, end of period (in thousands) $88,291 $157,553 $139,915 $121,479
Ratios with reduction for fees paid indirectly:
Net expenses 1.87% 1.81% 1.82% 1.86%
Net investment income 1.92% 1.49% 1.50% 1.31%
========================================================================================================
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 31
Financial Highlights (continued)
- ----------------------------------------------------------------------------------
Six Months
Ended Year
4/30/10 Ended
(unaudited) 10/31/09
- ----------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 20.43 $ 21.45
- ----------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.23 $ 0.49
Net realized and unrealized gain (loss) on investments 3.08 (1.07)
- ----------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.31 $ (0.58)
Distributions to shareowners:
Net investment income (0.19) (0.44)
Net realized gain -- --
Tax return of capital -- --
- ----------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.12 $ (1.02)
- ----------------------------------------------------------------------------------
Net asset value, end of period $ 23.55 $ 20.43
==================================================================================
Total return* 16.26% (2.50)%
Ratio of net expenses to average net assets+ 1.43%** 1.44%
Ratio of net investment income to average net assets+ 1.80%** 2.71%
Portfolio turnover rate 15%** 28%
Net assets, end of period (in thousands) $71,616 $68,904
Ratios with reduction for fees paid indirectly:
Net expenses 1.43%** 1.44%
Net investment income 1.80%** 2.71%
==================================================================================
- --------------------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
10/31/08 10/31/07 10/31/06 10/31/05
- --------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 33.34 $ 33.73 $ 29.39 $ 27.08
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.68 $ 0.54 $ 0.51 $ 0.39
Net realized and unrealized gain (loss) on investments (10.09) 2.63 5.51 2.48
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (9.41) $ 3.17 $ 6.02 $ 2.87
Distributions to shareowners:
Net investment income (0.62) (0.67) (0.60) (0.56)
Net realized gain (1.81) (2.89) (1.08) --
Tax return of capital (0.05) -- -- --
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(11.89) $ (0.39) $ 4.34 $ 2.31
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.45 $ 33.34 $ 33.73 $ 29.39
========================================================================================================
Total return* (30.14)% 10.10% 21.41% 10.64%
Ratio of net expenses to average net assets+ 1.33% 1.20% 1.23% 1.26%
Ratio of net investment income to average net assets+ 2.44% 2.07% 2.00% 1.86%
Portfolio turnover rate 19% 14% 32% 14%
Net assets, end of period (in thousands) $64,559 $67,239 $26,140 $10,213
Ratios with reduction for fees paid indirectly:
Net expenses 1.33% 1.19% 1.22% 1.26%
Net investment income 2.44% 2.08% 2.01% 1.86%
========================================================================================================
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
- ----------------------------------------------------------------------------------
Six Months
Ended Year
4/30/10 Ended
(unaudited) 10/31/09
- ----------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 20.37 $ 21.41
- ----------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.26 $ 0.42
Net realized and unrealized gain (loss) on investments 3.13 (0.87)
- ----------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.39 $ (0.45)
Distributions to shareowners:
Net investment income (0.27) (0.59)
Net realized gain -- --
Tax return of capital -- --
- ----------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.12 $ (1.04)
- ----------------------------------------------------------------------------------
Net asset value, end of period $ 23.49 $ 20.37
==================================================================================
Total return* 16.70% (1.85)%
Ratio of net expenses to average net assets+ 0.71%** 0.75%
Ratio of net investment income to average net assets+ 2.49%** 3.10%
Portfolio turnover rate 15%** 28%
Net assets, end of period (in thousands) $133,488 $110,148
Ratios with reduction for fees paid indirectly:
Net expenses 0.71%** 0.75%
Net investment income 2.49%** 3.10%
==================================================================================
- --------------------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
10/31/08 10/31/07 10/31/06 10/31/05
- --------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 33.28 $ 33.68 $ 29.35 $ 27.02
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.67 $ 0.91 $ 0.73 $ 0.63
Net realized and unrealized gain (loss) on investments (9.89) 2.42 5.45 2.41
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (9.22) $ 3.33 $ 6.18 $ 3.04
Distributions to shareowners:
Net investment income (0.77) (0.84) (0.77) (0.71)
Net realized gain (1.81) (2.89) (1.08) --
Tax return of capital (0.07) -- -- --
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(11.87) $ (0.40) $ 4.33 $ 2.33
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.41 $ 33.28 $ 33.68 $ 29.35
========================================================================================================
Total return* (29.72)% 10.66% 22.10% 11.31%
Ratio of net expenses to average net assets+ 0.72% 0.66% 0.65% 0.66%
Ratio of net investment income to average net assets+ 3.09% 2.66% 2.61% 2.51%
Portfolio turnover rate 19% 14% 32% 14%
Net assets, end of period (in thousands) $29,157 $11,471 $12,956 $ 6,611
Ratios with reduction for fees paid indirectly:
Net expenses 0.72% 0.66% 0.65% 0.66%
Net investment income 3.09% 2.66% 2.61% 2.51%
========================================================================================================
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 33
Financial Highlights (continued)
- -----------------------------------------------------------------------------------------------------------
Six Months Year Year
Ended Ended Ended 7/6/07 (a)
4/30/10 10/31/09 10/31/08 to 10/31/07
- -----------------------------------------------------------------------------------------------------------
Class Z
Net asset value, beginning of period $ 20.27 $ 21.30 $ 33.12 $ 34.18
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.17 $ 0.45 $ 0.80 $ 0.24
Net realized and unrealized gain (loss) on investments 3.19 (0.91) (9.98) (1.08)
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.36 $ (0.46) $ (9.18) $ (0.84)
Distributions to shareowners:
Net investment income (0.26) (0.57) (0.76) (0.22)
Net realized gain -- -- (1.81) --
Tax return of capital -- -- (0.07) --
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.10 $ (1.03) $(11.82) $ (1.06)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 23.37 $ 20.27 $ 21.30 $ 33.12
===========================================================================================================
Total return* 16.64% (1.88)% (29.75)% (2.46)%(b)
Ratio of net expenses to average net assets+ 0.79%** 0.79% 0.76% 0.67%**
Ratio of net investment income to average net assets+ 2.40%** 3.24% 3.03% 2.26%**
Portfolio turnover rate 15%** 28% 19% 14%(b)
Net assets, end of period (in thousands) $ 401 $ 233 $ 75 $ 97
Ratios with reduction for fees paid indirectly:
Net expenses 0.79%** 0.95% 0.76% 0.67%**
Net investment income 2.40%** 3.08% 3.03% 2.26%**
===========================================================================================================
(a) Class Z shares were first publicly offered on July 6, 2007.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
Notes to Financial Statements | 4/30/10 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Equity Income Fund (the Fund) is a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is current
income and long-term growth of capital from a portfolio consisting primarily of
income producing equity securities of U.S. corporations.
The Fund offers five classes of shares designated as Class A, Class C, Class R,
Class Y and Class Z shares. Class R shares commenced operations on April 1,
2003. Class Z shares were first publicly offered on July 6, 2007. 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 or Class Z shares. Class B
shares convert to Class A shares approximately eight years after the date of
purchase.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political or regulatory developments or other risks affecting those
industries or sectors. The Fund's prospectus contains unaudited information
regarding the Fund's principal risks. Please refer to this document 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
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 35
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities that have traded on an exchange are 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 April 30, 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, 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.
36 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
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
share-owners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years remain subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
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 October 31, 2009 was as follows:
- ---------------------------------------------
2009
- ---------------------------------------------
Distributions paid from:
Ordinary income $20,291,330
Long-term capital gain --
- ---------------------------------------------
Total $20,291,330
=============================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2009:
- ---------------------------------------------------
2009
- ---------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 451,928
Capital loss carryforward (234,534,494)
Unrealized appreciation 142,062,602
- ---------------------------------------------------
Total $ (92,019,964)
===================================================
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax basis adjustments on partnerships.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 37
(UniCredit), earned approximately $30,130 in underwriting commissions on the
sale of Class A shares during the six months ended April 30, 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, Class B, Class C and Class R shares of the Fund,
respectively (see Note 4). Class Y and Class Z shares do not pay distribution
fees. 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).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class B, Class C, Class R, Class Y
and Class Z shares can reflect different transfer agent and distribution
expense rates.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian or a subcustodian of the Fund. The Fund's
investment adviser, Pioneer Investment Management, Inc. (PIM), is responsible
for determining that the value of the collateral remains at least equal to
the repurchase price.
F. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors. When entering into a securities loan transaction,
the Fund typically receives cash collateral from the borrower equal to at
least the 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
38 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
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
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.60% of
the Fund's average daily net assets up to $10 billion and 0.575% of the excess
over $10 billion. For the year ended April 30, 2010, the effective management
fee (excluding waivers and/or assumption of expenses) was equivalent to 0.60% of
the Fund's average daily net assets.
Pioneer has contractually agreed to limit ordinary operating expenses to the
extent required to reduce Class Z expenses to 0.85% of the average daily net
assets attributable to Class Z shares. This expense limitation is in effect
through March 1, 2012. There can be no assurance that PIM will extend the
expense limitation agreement beyond the date referred to above.
In addition, under the management and 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
$16,419 in management fees, administrative costs and certain other
reimbursements payable to PIM at April 30, 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.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 39
For the six months ended April 30, 2010, such out-of-pocket expenses by class
of shares were as follows:
- ---------------------------------------------
Shareholder Communications:
- ---------------------------------------------
Class A $314,968
Class B 20,006
Class C 48,072
Class R 85,020
Class Y 15,219
Class Z 45
- ---------------------------------------------
Total $483,330
=============================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $116,731 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at April 30, 2010.
4. Distribution and Service Plans
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B, Class C and
Class R shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average
daily net assets attributable to Class A shares as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of
the average daily net assets attributable to Class B and Class C shares. The fee
for Class B and Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class C
shares. Pursuant to the Plan, the Fund further pays PFD 0.50% of the average
daily net assets attributable to Class R shares for distribution services.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $9,503 in distribution fees payable to PFD at April 30, 2010.
The Fund also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Fund a
service fee of up to 0.25% of the Fund's average daily net assets attributable
to Class R shares held by such plans in reimbursement for actual expenditures.
In addition, redemptions of each class of shares (except Class R, Class Y and
Class Z shares) may be subject to a contingent deferred sales charge (CDSC). A
CDSC of 1.00% may be imposed on redemptions of certain net asset value purchases
of Class A shares within 18 months of purchase (within 12 months for purchases
made on or after April 1, 2009). Class B shares redeemed within five years of
purchase are subject to a CDSC at declining rates beginning at 4.00%, based on
the lower of cost or market value of shares being redeemed.
40 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
Redemptions of Class C shares within one year of purchase are subject to a CDSC
of 1.00%, based on the lower of cost or market value of shares being redeemed.
Shares purchased as part of an exchange remain subject to any CDSC that applied
to the original purchase of those shares. There is no CDSC for Class R, Class Y
or Class Z shares. Proceeds from the CDSCs are paid to PFD. For the six months
ended April 30, 2010, CDSCs in the amount of $30,614 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended April 30, 2010, the Fund's expenses
were not reduced under such arrangements.
6. Line Of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a $165 million committed, unsecured revolving line of
credit facility. Borrowings are used solely for temporary or emergency purposes.
The Fund may borrow up to the lesser of the amount available under the facility
or the limits set for borrowing by the Fund's prospectus and the 1940 Act.
Interest on borrowings is payable at the higher of the London Interbank Offered
Rate (LIBOR) on the borrowing date plus 1.25% on an annualized basis or the
Federal Funds Rate on the borrowing date plus 1.25% on an annualized basis. The
Funds pay an annual commitment fee for this facility. The commitment fee is
allocated among participating Funds based on an allocation schedule set forth in
the credit agreement. For the six months ended April 30, 2010, the Fund had no
borrowings under this agreement.
7. Affiliated Companies
The Fund's investments in certain companies may exceed 5% of the outstanding
voting stock of those companies. Such companies are deemed affiliates of the
Fund for financial reporting purposes. The following summarizes transactions
with affiliates of the Fund for the six months ended April 30, 2010:
- -------------------------------------------------------------------------------------------------------
Beginning Corporate Ending
Balance Purchases Actions Balance Dividend
Affiliates (shares) (shares) (shares) (shares) Income Value
- -------------------------------------------------------------------------------------------------------
Gorman-Rupp Co. 988,195 -- -- 988,195 $207,521 $27,560,759
8. Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure and has
determined that there were no subsequent events requiring recognition or
disclosure in the financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 41
Approval of Investment Advisory Agreement (unaudited)
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Equity Income 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.
42 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
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 fifth quintile of its Morningstar
category for the one year period ended June 30, 2009, in the third quintile of
its Morningstar category for the three and ten year periods ended June 30, 2009
and in the second quintile of its Morningstar category for the five year period
ended June 30, 2009. (In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Fund's shareowners. Thus,
highest relative performance would be first quintile and lowest relative
expenses would also be first quintile.) The Trustees discussed the reasons for
the Fund's recent underperformance with PIM in view of the Fund's investment
approach and the market conditions present during the relevant periods, 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 second quintile relative to its
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 43
Strategic Insight peer group for the comparable period. The Trustees considered
the breakpoint in the management fee schedule and the reduced fee rate on
assets over $10 billion.
The Trustees also reviewed management fees charged by PIM to its institutional
and other clients. In evaluating the fees associated with PIM's client
accounts, the Trustees took into account the respective demands, resources and
complexity associated with the Fund and client accounts. The Trustees noted
that in some instances the fee rates for those clients were lower than the
management fee for the Fund and considered that, under the investment advisory
agreement with the Fund, PIM performs additional services for the Fund that it
does not provide to those other clients or services that are broader in scope,
including oversight of the Fund's other service providers and activities
related to compliance and the extensive regulatory and tax regimes to which the
Fund is subject.
The Trustees 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.
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
44 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
level of services was maintained notwithstanding a significant decline in PIM's
fee revenues from the Funds. Accordingly, the Trustees concluded that economies
of scale, if any, were being appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits to 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 Equity Income Fund | Semiannual Report | 4/30/10 45
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.
46 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
This page for your notes.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 47
This page for your notes.
48 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
This page for your notes.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 49
This page for your notes.
50 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
This page for your notes.
Pioneer Equity Income Fund | Semiannual Report | 4/30/10 51
This page for your notes.
52 Pioneer Equity Income Fund | Semiannual Report | 4/30/10
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.
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 Equity Income Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date June 28, 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 June 28, 2010
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date June 28, 2010
* Print the name and title of each signing officer under his or her signature.