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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21823
Pioneer Series Trust V
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
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: August 31
Date of reporting period: September 1, 2010 through February 28, 2011
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer Disciplined
Growth Fund
--------------------------------------------------------------------------------
Semiannual Report | February 28, 2011
--------------------------------------------------------------------------------
Ticker Symbols:
Class A SRSGX
Class C PRGCX
Class Y PRGYX
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Prices and Distributions 8
Performance Update 9
Comparing Ongoing Fund Expenses 12
Schedule of Investments 14
Financial Statements 21
Notes to Financial Statements 28
Approval of Investment Advisory Agreement 34
Trustees, Officers and Service Providers 38
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 1
President's Letter
Dear Shareowner,
In 2010, the U.S. economy moved forward on a slow path to recovery. But with
the memory of a deep recession still lingering, businesses and consumers
remained cautious about both investing and spending. While business
fundamentals showed signs of improvement, there was still a reluctance to hire,
and high unemployment remained a problem throughout the year. Wary investors,
concerned about risk, gravitated towards cash and bonds for most of 2010, until
better economic news in the final few months of the year caused a slight shift
in investor sentiment back towards stocks, thus lifting equity returns.
Pioneer remains generally optimistic about the prospects for economic recovery.
The recovery process may occur more slowly than many would like, and may be
accompanied by short-term market swings. But our investment professionals are
finding good opportunities to invest in both equities and bonds.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. The strategy has generally performed well for many
investors. For instance, bond markets certainly rewarded investors for most of
2010, while equity markets barely budged, even though equity valuations were
inexpensive relative to bonds and compared with historic levels -- conditions
which represented potentially good value for long-term investors. Ultimately,
many of those long-term investors were rewarded when the equity markets finally
rallied over the last few months of 2010.
Pioneer has not changed the basic 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. Our experienced professionals devote themselves to the careful research
needed to identify investment opportunities in markets around the world.
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
2 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
your individual needs. There is no single best strategy that works for every
investor.
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 Disciplined Growth Fund | Semiannual Report | 2/28/11 3
Portfolio Management Discussion | 2/28/11
In the following interview, Paul Cloonan, head of equity research, U.S., Ashesh
("Ace") Savla, vice president and senior quantitative research analyst, and
Diego Franzin, head of quantitative research and management, discuss the market
environment and other factors that affected Pioneer Disciplined Growth Fund's
performance over the six months ended February 28, 2011. Mr. Cloonan, Mr. Savla
and Mr. Franzin are responsible for the day-to-day management of the Fund.
Q How would you characterize the investment environment for growth stocks
during the six-month period ended February 28, 2011, and what was the
reason behind their outperformance of value stocks?
A The three best-performing sectors over the six-month period were energy,
information technology, and industrials; the latter two sectors represent a
much larger weight in the growth-stock universe than in the value-stock
universe. The sectors have been benefiting more from the rebound in the
global economy and increased capital spending than other sectors such as
health care, consumer staples and telecommunication services.
Q How did the Fund perform over the six months ended February 28, 2011?
A Pioneer Disciplined Growth Fund Class A shares returned 30.80% at net asset
value over the six months ended February 28, 2011, while the Fund's
benchmark, the Russell 1000 Growth Index, returned 31.04%. Over the same
period, the average return of the 866 mutual funds in Lipper's Large Cap
Growth Funds category was 29.84%.
Q The Fund performed in line with the benchmark Russell 1000 Growth Index (the
Russell Index) over the six-month period ended February 28, 2011, finishing
just 0.24% behind the Russell Index return. Could you highlight some of the
factors behind the Fund's performance relative to the benchmark?
A Strong stock selection in almost all sectors really kept the Fund in line
with the benchmark over the six-month period. Sector allocations detracted
from the Fund's performance to some extent.
Stock selection in information technology was clearly the most significant
driver of the Fund's performance over the six-month period. Qualcomm and
Oracle were among the Fund's best performers and biggest drivers of
performance. In addition, the Fund had large positions in Apple and Google
that added to overall returns. The Fund did not have exposure to Cisco, a
large name in the Russell Index that performed poorly over the period,
which also helped benchmark-relative performance.
4 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
In materials, Freeport-McMoRan Copper & Gold was one of the better
contributors to the Fund's performance due to the continued solid outlook
for copper and gold prices.
Q What sector allocations or portfolio holdings disappointed during the
six-month period ended February 28, 2011?
A The Fund's holdings and industry weightings within the consumer discretionary
sector detracted from performance during the six-month period. We initiated
some Fund positions in the autos group, which has weakened recently; and in
consumer services, positions in McDonald's and Target underperformed the
Russell Index over the six-month period. We continue to hold both positions
in the Fund's portfolio, however, as we feel both companies have excellent
franchises and strong management teams, while their stocks have traded at
attractive valuations.
In consumer staples, the Fund's position in Wal-Mart Stores lagged the
benchmark due to the company's sluggish sales performance. We continue to
hold Wal-Mart in the Fund's portfolio due to the company's strong
competitive position, and because management has been embarking on new
initiatives to improve sales growth.
Q What is your outlook for 2011?
A We remain optimistic about the prospects for U.S. equities. Valuations are
attractive, and we believe that the economy will continue to grow,
supported by accommodative monetary policy and improving employment trends.
In addition, corporate balance sheets and cash flow are strong, which may
lead to increased merger-and-acquisition activity, share repurchases and
dividend increases. We believe that large-cap stocks are more attractively
valued than small-cap stocks, and so the relative returns of large-cap
stocks may improve. While we are generally optimistic, there are risks to
the outlook for equities. The fiscal deficits in Europe remain a concern,
with potentially negative implications for global growth and the financial
markets. In addition, some countries are raising interest rates in response
to rising inflation. So far, inflation data in the U.S. has been benign,
but any significant uptick in U.S. inflation would be a concern for the
markets.
Please refer to the Schedule of Investments on pages 14-20 for a full listing
of Fund securities.
Small- and mid-sized companies may offer the potential for higher returns, but
are also subject to greater short-term price fluctuations than larger, more
established companies. The Fund invests in a limited number of securities and,
as a result, the Fund's performance may be more volatile than the performance
of other funds holding more securities. At times, the Fund's investments may
represent industries or industry sectors that are interrelated or have common
risks,
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 5
making it more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors.
These risks may increase share price volatility.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
6 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
Portfolio Summary | 2/28/11
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 94.2%
Temporary Cash Investments 2.9%
Depositary Receipts 1.9%
Exchange Traded Fund 1.0%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Information Technology 31.3%
Consumer Discretionary 14.4%
Industrials 13.4%
Energy 11.9%
Health Care 9.9%
Consumer Staples 9.1%
Materials 4.7%
Financials 4.6%
Telecommunication Services 0.7%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Apple, Inc. 4.98%
2. Microsoft Corp. 3.82
3. Google, Inc. 3.73
4. Oracle Corp. 3.72
5. Philip Morris International 3.56
6. Qualcomm, Inc. 3.20
7. United Technologies Corp. 3.08
8. McDonald's Corp. 2.81
9. Exxon Mobil Corp. 2.81
10. Freeport-McMoRan Copper & Gold, Inc. (Class B) 2.80
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
securities listed.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 7
Prices and Distributions | 2/28/11
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/11 8/31/10
--------------------------------------------------------------------------------
A $ 10.40 $ 8.82
--------------------------------------------------------------------------------
C $ 10.24 $ 8.71
--------------------------------------------------------------------------------
Y $ 10.46 $ 8.86
--------------------------------------------------------------------------------
Distributions per Share: 9/1/10-2/28/11
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ 0.0286 $ 0.7041 $ 0.3003
--------------------------------------------------------------------------------
C $ -- $ 0.7041 $ 0.3003
--------------------------------------------------------------------------------
Y $ 0.0555 $ 0.7041 $ 0.3003
--------------------------------------------------------------------------------
The Russell 1000 Growth Index measures the performance of large-cap U.S. growth
stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. It is not possible
to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 9-11.
8 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
Performance Update | 2/28/11 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Disciplined Growth Fund at public offering price,
compared to that of the Russell 1000 Growth Index.
Average Annual Total Returns
(As of February 28, 2011)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
Life-of-Class
(12/15/05) 5.43% 4.24%
5 Years 5.70 4.46
1 Year 26.50 19.18
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.66% 1.25%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MTN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Russell
Disciplined 1000
Growth Growth
Fund Index
---- -----
12/05 9425 10000
2/06 9587 10159
2/07 10762 10977
2/08 10981 11022
2/09 6640 6609
2/10 10001 10191
2/11 12651 12733
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2012, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 9
Performance Update | 2/28/11 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Disciplined Growth Fund, compared to that of the
Russell 1000 Growth Index.
Average Annual Total Returns
(As of February 28, 2011)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(7/16/08) 6.97% 6.97%
1 Year 25.36 25.36
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.36% 2.15%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MTN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Russell
Disciplined 1000
Growth Growth
Fund Index
---- -----
7/08 10000 10000
2/09 6356 6074
2/10 9490 9366
2/11 11896 11702
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2012, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
Performance Update | 2/28/11 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer Disciplined Growth Fund, compared to that of the
Russell 1000 Growth Index.
Average Annual Total Returns
(As of February 28, 2011)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(12/15/05) 5.14% 5.14%
5 Years 5.40 5.40
1 Year 27.07 27.07
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.15% 0.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MTN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Russell
Disciplined 1000
Growth Growth
Fund Index
---- -----
12/05 $5,000,000 $5,000,000
2/06 $5,086,646 $5,079,695
2/07 $5,674,977 $5,488,733
2/08 $5,718,356 $5,510,762
2/09 $3,445,565 $3,304,641
2/10 $5,207,773 $5,095,422
2/11 $6,617,593 $6,366,379
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class Y shares for the period prior to the inception
of Class Y shares on July 31, 2008, is based on the net asset value performance
of the Fund's Class A shares, which has not been restated to reflect any
differences in expenses, including Rule 12b-1 fees applicable to Class A
shares. Since fees for Class A shares generally are higher than those of Class
Y shares, the performance of Class Y shares prior to their inception would have
been higher than the performance shown.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results
are historical and assume the reinvestment of dividends and capital gains.
Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2012, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 11
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Disciplined Growth Fund
Based on actual returns from September 1, 2010 through February 28, 2011.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/10
--------------------------------------------------------------------------------
Ending Account Value $ 1,308.00 $ 1,302.50 $ 1,312.30
(after expenses) on 2/28/11
--------------------------------------------------------------------------------
Expenses Paid $ 7.22 $ 12.34 $ 5.22
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. These combined totals were 1.26%, 2.16%, and
0.91% for Class A, Class C, and Class Y shares, respectively. These combined
ratios were multiplied by the average account value over the period, and
then multiplied by 181/365 (to reflect the one-half year period) to
calculate the Expenses Paid During Period in the table above.
12 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Disciplined Growth Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2010 through February 28, 2011.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/10
--------------------------------------------------------------------------------
Ending Account Value $ 1,018.54 $ 1,014.08 $ 1,020.28
(after expenses) on 2/28/11
--------------------------------------------------------------------------------
Expenses Paid $ 6.31 $ 10.79 $ 4.56
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. These combined totals were 1.26%, 2.16%, and
0.91% for Class A, Class C, and Class Y shares, respectively. These combined
ratios were multiplied by the average account value over the period, and
then multiplied by 181/365 (to reflect the one-half year period) to
calculate the Expenses Paid During Period in the table above.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 13
Schedule of Investments | 2/28/11 (unaudited)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS -- 97.5%
ENERGY -- 11.8%
Coal & Consumable Fuels -- 0.5%
3,200 Peabody Energy Corp. $ 209,568
--------------------------------------------------------------------------------
Integrated Oil & Gas -- 3.3%
2,200 Chevron Corp. $ 228,250
13,200 Exxon Mobil Corp. 1,128,996
-----------
$ 1,357,246
--------------------------------------------------------------------------------
Oil & Gas Drilling -- 1.7%
23,800 Nabors Industries, Inc.* $ 677,586
--------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 3.0%
17,100 Cameron International Corp.* $ 1,011,123
2,800 National-Oilwell Varco, Inc. 222,796
-----------
$ 1,233,919
--------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 2.7%
6,900 Apache Corp. $ 859,878
2,200 Pioneer Natural Resources Co.* 225,148
-----------
$ 1,085,026
--------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.6%
10,300 Tesoro Petroleum Corp.* $ 244,934
-----------
Total Energy $ 4,808,279
--------------------------------------------------------------------------------
MATERIALS -- 4.6%
Diversified Metals & Mining -- 2.8%
21,300 Freeport-McMoRan Copper & Gold, Inc. (Class B) $ 1,127,835
--------------------------------------------------------------------------------
Industrial Gases -- 1.8%
8,100 Air Products & Chemicals, Inc. $ 745,200
-----------
Total Materials $ 1,873,035
--------------------------------------------------------------------------------
CAPITAL GOODS -- 11.1%
Aerospace & Defense -- 3.0%
14,819 United Technologies Corp. $ 1,237,979
--------------------------------------------------------------------------------
Construction & Engineering -- 1.2%
14,645 KBR, Inc. $ 480,356
--------------------------------------------------------------------------------
Industrial Conglomerates -- 4.7%
11,600 3M Co. $ 1,069,868
32,200 Textron, Inc. (b) 872,298
-----------
$ 1,942,166
--------------------------------------------------------------------------------
Industrial Machinery -- 2.2%
9,400 Crane Co. $ 444,056
5,500 SPX Corp. 438,680
-----------
$ 882,736
-----------
Total Capital Goods $ 4,543,237
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
TRANSPORTATION -- 2.1%
Railroads -- 2.1%
9,000 Union Pacific Corp. $ 858,690
-----------
Total Transportation $ 858,690
--------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 1.5%
Auto Parts & Equipment -- 0.8%
1,500 BorgWarner, Inc.* $ 116,415
1,000 Lear Corp.* 105,800
1,900 Magna International, Inc. 93,784
-----------
$ 315,999
--------------------------------------------------------------------------------
Automobile Manufacturers -- 0.7%
20,500 Ford Motor Corp.* $ 308,525
-----------
Total Automobiles & Components $ 624,524
--------------------------------------------------------------------------------
CONSUMER SERVICES -- 4.6%
Restaurants -- 4.6%
14,937 McDonald's Corp. $ 1,130,432
23,000 Starbucks Corp. 758,540
-----------
$ 1,888,972
-----------
Total Consumer Services $ 1,888,972
--------------------------------------------------------------------------------
MEDIA -- 1.9%
Cable & Satellite -- 1.9%
30,100 Comcast Corp. $ 775,376
-----------
Total Media $ 775,376
--------------------------------------------------------------------------------
RETAILING -- 6.1%
Department Stores -- 1.3%
21,800 Macy's, Inc. $ 521,020
--------------------------------------------------------------------------------
General Merchandise Stores -- 2.9%
8,000 Family Dollar Stores, Inc. $ 400,640
15,400 Target Corp. 809,270
-----------
$ 1,209,910
--------------------------------------------------------------------------------
Internet Retail -- 1.9%
4,400 Amazon.com, Inc.* $ 762,476
-----------
Total Retailing $ 2,493,406
--------------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 2.0%
Hypermarkets & Supercenters -- 2.0%
15,974 Wal-Mart Stores, Inc. $ 830,329
-----------
Total Food & Drug Retailing $ 830,329
--------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 6.9%
Distillers & Vintners -- 1.8%
36,400 Constellation Brands, Inc.* $ 739,648
--------------------------------------------------------------------------------
Packaged Foods & Meats -- 1.6%
12,716 Hershey Foods Corp. $ 665,301
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 15
Schedule of Investments | 2/28/11 (unaudited) (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Tobacco -- 3.5%
22,800 Philip Morris International $ 1,431,384
-----------
Total Food, Beverage & Tobacco $ 2,836,333
--------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.0%
Health Care Distributors -- 1.6%
15,300 Cardinal Health, Inc. $ 637,092
--------------------------------------------------------------------------------
Health Care Services -- 1.5%
9,600 Medco Health Solutions, Inc.* $ 591,744
--------------------------------------------------------------------------------
Managed Health Care -- 1.9%
18,628 United Healthcare Group, Inc. $ 793,180
-----------
Total Health Care Equipment & Services $ 2,022,016
--------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 4.8%
Biotechnology -- 3.4%
9,886 Alexion Pharmaceuticals, Inc.* $ 951,824
8,174 Amgen, Inc.* 419,571
-----------
$ 1,371,395
--------------------------------------------------------------------------------
Pharmaceuticals -- 1.4%
22,500 Bristol-Myers Squibb Co. $ 580,725
-----------
Total Pharmaceuticals & Biotechnology $ 1,952,120
--------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.2%
Asset Management & Custody Banks -- 2.2%
7,300 Franklin Resources, Inc. $ 917,026
-----------
Total Diversified Financials $ 917,026
--------------------------------------------------------------------------------
INSURANCE -- 1.3%
Property & Casualty Insurance -- 1.3%
8,200 ACE, Ltd. $ 518,650
-----------
Total Insurance $ 518,650
--------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 14.1%
Application Software -- 2.0%
11,725 Citrix Systems, Inc.* $ 822,626
--------------------------------------------------------------------------------
Internet Software & Services -- 3.7%
2,445 Google, Inc.* $ 1,499,763
--------------------------------------------------------------------------------
Systems Software -- 8.4%
57,821 Microsoft Corp. $ 1,536,882
45,454 Oracle Corp. 1,495,437
7,200 Rovi Corp.* 399,024
-----------
$ 3,431,343
-----------
Total Software & Services $ 5,753,732
--------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 12.8%
Communications Equipment -- 3.2%
21,600 Qualcomm, Inc. $ 1,286,928
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
----------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------
Computer Hardware -- 6.4%
5,666 Apple, Inc.* $ 2,001,288
39,700 Dell, Inc.* 628,451
-----------
$ 2,629,739
----------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 1.6%
20,000 Flir Systems, Inc. $ 646,000
----------------------------------------------------------------------------------
Office Electronics -- 1.6%
59,700 Xerox Corp. $ 641,775
-----------
Total Technology Hardware & Equipment $ 5,204,442
----------------------------------------------------------------------------------
SEMICONDUCTORS -- 4.0%
Semiconductor Equipment -- 2.0%
18,500 ASM Lithography Holdings NV (A.D.R.) $ 806,600
----------------------------------------------------------------------------------
Semiconductors -- 2.0%
45,200 Marvell Technology Group, Ltd.* $ 826,256
-----------
Total Semiconductors $ 1,632,856
----------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.7%
Integrated Telecommunication Services -- 0.7%
7,600 Verizon Communications, Inc. $ 280,592
-----------
Total Telecommunication Services $ 280,592
----------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $31,269,124) $39,813,615
----------------------------------------------------------------------------------
EXCHANGE TRADED FUND -- 1.0%
6,600 iShares Dow Jones U.S. Real Estate Index Fund (b) $ 399,828
----------------------------------------------------------------------------------
TOTAL EXCHANGE TRADED FUND
(Cost $357,713) $ 399,828
----------------------------------------------------------------------------------
----------------------------------------------------------------------------------
Principal
Amount
----------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 3.0%
Securities Lending Collateral -- 3.0% (c)
Certificates of Deposit:
$28,633 Banco Santander NY, 0.49%, 3/14/11 $ 28,633
35,791 Bank of Nova Scotia, 0.33%, 9/29/11 35,791
28,637 BBVA Group NY, 0.37%, 3/8/11 28,637
25,054 BBVA Group NY, 0.86%, 7/26/11 25,054
7,158 BBVA Group NY, 0.45%, 3/14/11 7,158
35,791 BNP Paribas Bank NY, 0.34%, 5/9/11 35,791
35,791 Canadian Imperial Bank of Commerce NY, 0.25%, 4/27/11 35,791
35,791 DnB NOR Bank ASA NY, 0.25%, 3/7/11 35,791
17,895 National Australia Bank NY, 0.32%, 10/19/11 17,895
35,791 Nordea NY, 0.3%, 4/13/11 35,791
35,791 RaboBank Netherland NV NY, 0.33%, 8/8/11 35,791
35,791 Royal Bank of Canada NY, 0.4%, 12/2/11 35,791
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 17
Schedule of Investments | 2/28/11 (unaudited) (continued)
--------------------------------------------------------------------------------
Principal
Amount Value
--------------------------------------------------------------------------------
Certificates of Deposit -- (continued):
$35,791 Skandinav Enskilda Bank NY, 0.38%, 6/7/11 $ 35,791
35,791 Svenska NY, 0.28%, 5/12/11 35,791
35,791 Westpac Banking Corp. NY, 0.4%, 12/6/11 35,791
---------
$ 465,287
--------------------------------------------------------------------------------
Commercial Paper:
14,317 American Honda Finance, 0.35%, 1/11/12 $ 14,317
14,351 American Honda Finance, 1.05%, 6/20/11 14,351
13,135 Australia & New Zealand Banking Group, 0.91%, 8/4/11 13,135
36,416 Caterpillar Financial Services Corp., 1.05%, 6/24/11 36,416
18,383 FAIRPP, 0.27%, 3/7/11 18,383
35,793 Federal Home Loan Bank, 0.33%, 6/1/11 35,793
3,578 General Electric Capital Corp., 0.38%, 6/6/11 3,578
17,899 General Electric Capital Corp., 0.39%, 4/28/11 17,899
28,619 HSBC, 0.25%, 5/11/11 28,619
17,195 JPMorgan Chase & Co., 0.43%, 12/21/11 17,195
12,555 JPMorgan Chase & Co., 1.05%, 6/13/11 12,555
35,789 OLDLLC, 0.27%, 3/11/11 35,789
17,888 SOCNAM, 0.37%, 4/14/11 17,888
17,884 SOCNAM, 0.37%, 5/3/11 17,884
35,791 Toyota Motor Credit Corp., 0.4%, 9/8/11 35,791
21,467 VARFUN, 0.27%, 4/20/11 21,467
21,475 Wachovia, 0.40%, 3/22/11 21,475
14,324 Wachovia, 0.43%, 10/15/11 14,324
---------
$ 376,859
--------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
50,956 Barclays Capital Plc, 0.18%, 3/1/11 $ 50,956
71,583 Deutsche Bank Securities, Inc., 0.17%, 3/1/11 71,583
71,583 HSBC Bank USA NA, 0.18%, 3/1/11 71,583
71,583 RBS Securities, Inc., 0.18%, 3/1/11 71,583
---------
$ 265,705
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------
Money Market Mutual Funds:
53,687 Dreyfus Preferred Money Market Fund $ 53,687
53,687 Fidelity Prime Money Market Fund 53,687
-----------
$ 107,374
-----------
Total Securities Lending Collateral $ 1,215,225
--------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $1,215,225) $ 1,215,225
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 101.5%
(Cost $32,842,062)(a) $41,428,668
--------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (1.5)% $ (609,367)
--------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $40,819,301
================================================================================
(A.D.R.) American Depositary Receipt
* Non-income producing security.
(a) At February 28, 2011, the net unrealized gain on investments based on
cost for federal income tax purposes of $32,849,525 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $8,849,928
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (270,785)
----------
Net unrealized gain $8,579,143
==========
(b) At February 28, 2011, the following securities were out on loan:
--------------------------------------------------------------------------------
Shares Security Value
--------------------------------------------------------------------------------
30,000 Textron, Inc. $ 812,700
6,300 iShares Dow Jones U.S. Real Estate Index Fund 381,654
--------------------------------------------------------------------------------
Total $1,194,354
================================================================================
(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 February 28, 2011 aggregated $19,543,168 and $18,351,459,
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 Disciplined Growth Fund | Semiannual Report | 2/28/11 19
Schedule of Investments | 2/28/11 (unaudited) (continued)
The following is a summary of the inputs used as of February 28, 2011, in
valuing the Fund's assets:
----------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------
Common Stocks $39,813,615 $ -- $-- $39,813,615
Exchange Traded Fund 399,828 -- -- 399,828
Temporary Cash Investments -- 1,107,851 -- 1,107,851
Money Market Mutual Funds 107,374 -- -- 107,374
----------------------------------------------------------------------------------------
Total $40,320,817 $1,107,851 $-- $41,428,668
========================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
Statement of Assets and Liabilities | 2/28/11 (unaudited)
ASSETS:
Investment in securities (including securities loaned of
$1,194,354) (cost $32,842,062) $41,428,668
Cash 663,663
Receivables --
Fund shares sold 64,561
Dividends 61,754
Other 23,049
--------------------------------------------------------------------------------
Total assets $42,241,695
--------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 171,991
Upon return of securities loaned 1,215,225
Due to affiliates 3,710
Accrued expenses 31,468
--------------------------------------------------------------------------------
Total liabilities $ 1,422,394
--------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $29,854,762
Undistributed net investment income 29,297
Accumulated net realized gain on investments 2,348,636
Net unrealized gain on investments 8,586,606
--------------------------------------------------------------------------------
Total net assets $40,819,301
================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $4,792,382/460,606 shares) $ 10.40
Class C (based on $869,967/84,917 shares) $ 10.24
Class Y (based on $35,156,952/3,362,611 shares) $ 10.46
MAXIMUM OFFERING PRICE:
Class A ($10.40 [divided by] 94.25%) $ 11.03
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 21
Statement of Operations (unaudited)
For the Six Months Ended 2/28/11
INVESTMENT INCOME:
Dividends $253,480
Income from securities loaned, net 391
----------------------------------------------------------------------------------------------
Total investment income $ 253,871
----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $119,035
Transfer agent fees
Class A 1,624
Class C 642
Class Y 320
Distribution fees
Class A 3,331
Class C 2,226
Shareholder communications expense 1,324
Administrative reimbursements 5,832
Custodian fees 4,022
Registration fees 29,321
Professional fees 20,059
Printing expense 4,114
Fees and expenses of nonaffiliated trustees 3,671
Miscellaneous 2,073
----------------------------------------------------------------------------------------------
Total expenses $ 197,594
Less fees waived and expenses reimbursed by Pioneer Investment
Management, Inc. (24,724)
----------------------------------------------------------------------------------------------
Net expenses $ 172,870
----------------------------------------------------------------------------------------------
Net investment income $ 81,001
----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $2,464,819
----------------------------------------------------------------------------------------------
Change in net unrealized gain on investments $6,989,152
----------------------------------------------------------------------------------------------
Net gain on investments $9,453,971
----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $9,534,972
==============================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
Statements of Changes in Net Assets
For the Six Months Ended 2/28/11 and the Year Ended 8/31/10, respectively
------------------------------------------------------------------------------------------
Six Months
Ended
2/28/11 Year Ended
(unaudited) 8/31/10
------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 81,001 $ 219,352
Net realized gain on investments 2,464,819 3,970,790
Change in net unrealized gain on investments 6,989,152 (2,313,496)
------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 9,534,972 $ 1,876,646
------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.03 and $0.03 per share, respectively) $ (7,817) $ (2,401)
Class Y ($0.06 and $0.04 per share, respectively) (190,573) (145,392)
Net realized gain:
Class A ($1.00 and $0.22 per share, respectively) (235,344) (18,710)
Class C ($1.00 and $0.22 per share, respectively) (38,263) (6,699)
Class Y ($1.00 and $0.22 per share, respectively) (3,283,056) (719,567)
------------------------------------------------------------------------------------------
Total distributions to shareowners $(3,755,053) $ (892,769)
------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 7,215,201 $ 5,148,984
Reinvestment of distributions 204,227 8,461
Cost of shares repurchased (3,386,163) (4,230,421)
------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 4,033,265 $ 927,024
------------------------------------------------------------------------------------------
Net increase in net assets $ 9,813,184 $ 1,910,901
NET ASSETS:
Beginning of period 31,006,117 29,095,216
------------------------------------------------------------------------------------------
End of period $40,819,301 $31,006,117
------------------------------------------------------------------------------------------
Undistributed net investment income $ 29,297 $ 146,686
==========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 23
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------
'11 Shares '11 Amount '10 Shares '10 Amount
(unaudited) (unaudited)
------------------------------------------------------------------------------------------
Class A
Shares sold 439,444 $4,426,544 63,227 $ 580,772
Reinvestment of
distributions 2,502 7,817 814 7,432
Less shares repurchased (90,482) (921,146) (32,509) (312,703)
------------------------------------------------------------------------------------------
Net increase 351,464 $3,513,215 31,532 $ 275,501
==========================================================================================
Class C
Shares sold 51,229 $ 511,097 10,745 $ 98,136
Reinvestment of
distributions -- -- 114 1,029
Less shares repurchased (3,114) (29,945) (3,919) (35,694)
------------------------------------------------------------------------------------------
Net increase 48,115 $ 481,152 6,940 $ 63,471
==========================================================================================
Class Y
Shares sold 248,704 $2,470,890 492,149 $4,470,076
Reinvestment of
distributions 322 3,080 -- --
Less shares repurchased (240,497) (2,435,072) (405,802) (3,882,024)
------------------------------------------------------------------------------------------
Net increase 8,529 $ 38,898 86,347 $ 588,052
==========================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
Financial Highlights
Six Months
ended 12/15/05 (a)
2/28/11 Year Ended Year Ended Year Ended Year Ended to
(unaudited) 8/31/10 8/31/09 8/31/08 8/31/07 8/31/06
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 8.82 $ 8.59 $ 9.98 $ 12.25 $ 10.18 $ 10.00
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ (0.01) $ 0.03 $ 0.02 $ 0.02 $ 0.01 $ 0.02
Net realized and unrealized gain (loss)
on investments 2.62 0.45 (1.39) (1.12) 2.09 0.16
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ 2.61 $ 0.48 $ (1.37) $ (1.10) $ 2.10 $ 0.18
Distributions to shareowners:
Net investment income (0.03) (0.03) (0.02) -- (0.03) --
Net realized gain (1.00) (0.22) -- (1.17) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.58 $ 0.23 $ (1.39) $ (2.27) $ 2.07 $ 0.18
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.40 $ 8.82 $ 8.59 $ 9.98 $ 12.25 $ 10.18
====================================================================================================================================
Total return* 30.80% 5.48% (13.64)% (10.03)% 20.69% 1.80%(b)
Ratio of net expenses to average net assets 1.25%** 1.25% 1.25% 1.25% 1.25% 1.25%**
Ratio of net investment income to average
net assets 0.21%** 0.39% 0.39% 0.22% 0.09% 0.30%**
Portfolio turnover rate 104%** 104% 106% 92% 95% 73%(b)
Net assets, end of period (in thousands) $ 4,792 $ 962 $ 667 $ 551 $ 613 $ 509
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for
fees paid indirectly:
Net expenses 1.53%** 1.66% 10.79% 16.35% 13.49% 21.63%**
Net investment loss (0.07)%** (0.02)% (9.15)% (14.88)% (12.15)% (20.08)%**
====================================================================================================================================
(a) The Fund commenced operations on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and 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.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 25
Financial Highlights (continued)
Six Months
ended 7/17/08 (a)
2/28/11 Year Ended Year Ended to
(unaudited) 8/31/10 8/31/09 8/31/08
------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 8.71 $ 8.54 $ 9.97 $ 9.74
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment
operations:
Net investment loss $ (0.05) $ (0.05) $ (0.03) $ (0.00)(c)
Net realized and unrealized gain (loss) on
investments 2.58 0.44 ( 1.40) 0.23
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
investment operations $ 2.53 $ 0.39 $ (1.43) $ 0.23
Distributions to shareowners:
Net realized gain (1.00) (0.22) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.53 $ 0.17 $ (1.43) $ 0.23
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.24 $ 8.71 $ 8.54 $ 9.97
====================================================================================================================================
Total return* 30.25% 4.49% (14.34)% 2.36%(b)
Ratio of net expenses to average net assets 2.15%** 2.11% 2.15% 1.83%* *
Ratio of net investment loss to average net
assets (0.70)%** (0.48)% ( 0.52)% (0.05)%**
Portfolio turnover rate 104%** 104% 106% 92%(b)
Net assets, end of period (in thousands) $ 870 $ 320 $ 255 $ 256
Ratios with no waiver of fees and
assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 2.36%** 2.36% 11.44% 30.50%* *
Net investment loss (0.91)%** (0.73)% (9.82)% (28.72)%**
====================================================================================================================================
(a) Class C shares were first publicly offered on July 17, 2008.
(b) Not annualized.
(c) Amount rounds to less than $0.01 per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and 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.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
------------------------------------------------------------------------------------------------------------------------------------
Six Months
ended 7/31/08 (a)
2/28/11 Year Ended Year Ended to
(unaudited) 8/31/10 8/31/09 8/31/08
------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 8.86 $ 8.62 $ 9.98 $ 9.87
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment
operations:
Net investment income $ 0.03 $ 0.07 $ 0.03 $ 0.01
Net realized and unrealized gain (loss) on
investments 2.63 0.43 (1.37) 0.10
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from
investment operations $ 2.66 $ 0.50 $ (1.34) $ 0.11
Distributions to shareowners:
Net investment income (0.06) (0.04) (0.02) --
Net realized gain (1.00) (0.22) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.60 $ 0.24 $ (1.36) $ 0.11
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.46 $ 8.86 $ 8.62 $ 9.98
====================================================================================================================================
Total return* 31.23% 5.78% (13.34)% 1.11%(b)
Ratio of net expenses to average net assets 0.90%** 0.90% 0.90% 0.90%**
Ratio of net investment income to average
net assets 0.48%** 0.72% 0.88% 1.60%**
Portfolio turnover rate 104%** 104% 106% 92%(b)
Net assets, end of period (in thousands) $35,157 $29,723 $ 28,173 $ 253
Ratios with no waiver of fees and
assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 1.02%** 1.15% 1.70% 20.69%**
Net investment income (loss) 0.35%** 0.47% 0.07% (18.19)%**
====================================================================================================================================
(a) Class Y shares were first publicly offered on July 31, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 27
Notes to Financial Statements | 2/28/11 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Disciplined Growth Fund, formerly Pioneer Research Growth Fund (the
Fund), is one of four portfolios comprising Pioneer Series Trust V, a Delaware
statutory trust. The Fund is registered under the Investment Company Act of
1940 as a diversified, open-end management investment company. The Fund was
organized on October 12, 2005, and commenced operations on December 15, 2005.
The Fund's investment objective is to seek long-term capital growth.
The Fund offers three classes of shares designated as Class A, Class C and
Class Y shares. Class C shares were first publicly offered on July 17, 2008.
Class Y shares were first publicly offered on July 31, 2008. Each class of
shares represents an interest in the same portfolio of investments of the Fund
and has identical rights (based on relative net asset values) to assets and
liquidation proceeds. Share classes can bear different rates of class-specific
fees and expenses such as transfer agent and distribution fees. Differences in
class-specific fees and expenses will result in differences in net investment
income and, therefore, the payment of different dividends from net investment
income earned by each class. The Amended and Restated Declaration of Trust of
the Fund gives the Board the flexibility to specify either per-share voting or
dollar-weighted voting when submitting matters for shareholder approval. Under
per-share voting, each share of a class of the Fund is entitled to one vote.
Under dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y shares.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making the Fund more susceptible to
any economic, political, or regulatory developments or other risks affecting
those industries and sectors. The Fund's prospectus contains unaudited
information regarding the Fund's principal risks. Please refer to that document
when considering the Fund's principal risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts
28 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
of income, expenses and gain or loss on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities that have traded on an exchange are valued at
the last sale price on the principal exchange where they are traded.
Securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued at the mean between
the last bid and asked prices. Securities for which market prices and/or
quotations are not readily available or are considered to be unreliable are
valued using fair value methods pursuant to procedures adopted by the Board
of Trustees.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times.
The Fund may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset value.
Thus, the valuation of the Fund's securities may differ from exchange prices.
At February 28, 2011, there were no securities that were valued using fair
value methods (other than securities that were valued using prices supplied
by independent pricing services). Inputs used when applying fair value
methods to value a security may include credit ratings, the financial
condition of the company, current market conditions and comparable
securities. Short-term fixed income securities with remaining maturities of
sixty days or less generally are valued at amortized cost. Money market
mutual funds are valued at net asset value.
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in the
exercise of reasonable diligence. Interest income is recorded on the accrual
basis. Dividend and interest income are reported net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 29
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years are subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
The tax character of current year distributions payable will be determined at
the end of the current taxable year. The tax character of distributions paid
during the year ended August 31, 2010 was as follows:
-----------------------------------------------------------------------------
2010
-----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $884,001
Long-term capital gain 8,768
-----------------------------------------------------------------------------
Total $892,769
=============================================================================
The following shows the components of distributable earnings on a federal
income tax-basis at August 31, 2010:
-----------------------------------------------------------------------------
2010
-----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $2,636,857
Undistributed long-term gain 957,772
Unrealized appreciation 1,589,991
-----------------------------------------------------------------------------
Total $5,184,620
=============================================================================
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales and the tax-basis
adjustments on partnerships.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $1,327 in underwriting commissions on the sale of Class A shares
during the six months ended February 28, 2011.
30 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning of
the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, and Class Y shares can
reflect different transfer agent and distribution expense rates.
E. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors. When entering into a securities loan transaction,
the Fund typically receives cash collateral from the borrower equal to at
least the value of the securities loaned, which is invested in temporary
investments. Credit Suisse AG, New York Branch, as the Fund's securities
lending agent, manages the Fund's securities lending collateral. The income
earned on the investment of collateral is shared with the borrower and the
lending agent in payment of any rebate due to the borrower with respect to
the securities loan, and in compensation for the lending agent's services to
the Fund. The Fund also continues to receive payments in lieu of dividends or
interest on the securities loaned. Gain or loss on the value of the loaned
securities that may occur during the term of the loan will be for the account
of the Fund. The amount of the collateral is required to be adjusted daily to
reflect any price fluctuation in the value of the loaned securities. If the
required market value of the collateral is less than the value of the loaned
securities, the borrower is required to deliver additional collateral for the
account of the Fund prior to the close of business on that day. The Fund has
the right, under the lending agreement, to terminate the loan and recover the
securities from the borrower with prior notice. The Fund is required to
return the cash collateral to the borrower and could suffer a loss if the
value of the collateral, as invested, has declined.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 31
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary
of UniCredit, manages the Fund's portfolio. Management fees are calculated
daily at the annual rate of 0.65% of the Fund's average daily net assets up to
$1 billion, 0.60% of the next $4 billion and 0.55% on assets over $5 billion.
For the six months ended February 28, 2011, the effective management fee
(excluding waivers and/or assumption of expenses) was equivalent to 0.65% of
the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund
to the extent required to reduce Fund expenses to 1.25%, 2.15%, and 0.90% of
the average daily net assets attributable to Class A, Class C, and Class Y
shares, respectively. Expenses waived during the six months ended February 28,
2011 are reflected on the Statement of Operations. These expense limitations
are in effect through January 1, 2012. There can be no assurance that PIM will
extend the expense limitation agreement for a class of shares beyond the date
referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$2,051 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 28, 2011.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the six months ended February 28, 2011, such out-of-pocket expenses by
class of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $1,291
Class C 20
Class Y 13
--------------------------------------------------------------------------------
Total $1,324
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $1,493 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 28, 2011.
32 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets
attributable to Class A shares as compensation for personal services and/or
account maintenance services or distribution services with regard to Class A
shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $166 in distribution fees payable to PFD
at February 28, 2011.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase (within 12 months for purchases made on or after
April 1, 2009). Redemptions of Class C shares within one year of purchase are
subject to a CDSC of 1.00%, based on the lower of cost or market value of
shares being redeemed. Shares purchased as part of an exchange remain subject
to any CDSC that applied to the original purchase of those shares. There is no
CDSC for Class Y shares. Proceeds from the CDSCs are paid to PFD. For the six
months ended February 28, 2011, CDSCs in the amount of $5 were paid to PFD.
5. 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 Disciplined Growth Fund | Semiannual Report | 2/28/11 33
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Disciplined Growth Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether
to renew the investment advisory agreement for the Fund.
The contract review process began in March 2010 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the
process. In July 2010, 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 July 2010 and
September 2010. After reviewing and discussing the materials, the Trustees
submitted a request for additional information to PIM, 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, 2010 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 16, 2010, 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. In
addition, the Trustees considered the arrangements put in place to retain key
investment and other personnel. The Trustees also considered the substantial
34 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
attention and high priority given by PIM's senior management to the Pioneer
fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers 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 third quintile of its Morningstar
category for the one year period ended June 30, 2010, and in the second
quintile of its Morningstar category for the three year period ended June 30,
2010. (In all quintile rankings referred to throughout this disclosure, first
quintile is most favorable to the Fund's shareowners. Thus, highest relative
performance would be first quintile and lowest relative expenses would also be
first quintile.) The Trustees concluded that the investment performance of the
Fund was satisfactory.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund
in comparison to the management fees of its peer group of funds as classified
by Morningstar and the expense ratios of a peer group of funds selected on the
basis of criteria determined by the Independent Trustees for this purpose using
data provided by Strategic Insight Mutual Trust Research and Consulting, LLC
(Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2010 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 the breakpoints in the management fee schedule and
the reduced fee rates above certain asset levels. The Trustees considered that
the Fund's expense ratio for the twelve months ended June 30, 2010 was in the
second quintile relative to its Strategic Insight peer group for the comparable
period.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 35
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 and the
contractual expense limitation agreed to by PIM with respect to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with funds and fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify and that, among other factors that may be relevant, are the following:
fee levels, expense subsidization, investment by PIM in research and analytical
capabilities and PIM's commitment and resource allocation to the Funds. The
Trustees noted that profitability also may be an indicator of the availability
of any economies of scale, although profitability may vary for other reasons
particularly, for example during the recent difficult periods for financial
markets, as the level of services was maintained notwithstanding a significant
decline in PIM's fee revenues from the Funds. Accordingly, the Trustees
concluded that economies of scale, if any, were being appropriately shared with
the Fund.
36 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with
the Fund. The Trustees considered the character and amount of fees paid by the
Fund, other than under the investment advisory agreement, for services provided
by PIM and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. The Trustees
also considered the benefits to the Fund and to PIM and its affiliates from the
use of "soft" commission dollars generated by the Fund to pay for research and
brokerage services. The Trustees considered the intangible benefits to PIM by
virtue of its relationship with the Fund and the other Pioneer funds. The
Trustees concluded that the receipt of these benefits was reasonable in the
context of the overall relationship between PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 37
Trustees, Officers and Service Providers
Trustees
John F. Cogan, Jr., Chairman
David R. Bock
Mary K. Bush
Benjamin M. Friedman
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Officers
John F. Cogan, Jr., President
Daniel K. Kingsbury, Executive Vice President
Mark E. Bradley, Treasurer
Christopher J. Kelley, Secretary
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at http://www.sec.gov.
38 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
This page for your notes.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 39
This page for your notes.
40 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
This page for your notes.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 41
This page for your notes.
42 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
This page for your notes.
Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11 43
This page for your notes.
44 Pioneer Disciplined Growth Fund | Semiannual Report | 2/28/11
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
Pioneer Disciplined
Value Fund
--------------------------------------------------------------------------------
Semiannual Report | February 28, 2011
--------------------------------------------------------------------------------
Ticker Symbols:
Class A SERSX
Class C PRVCX
Class Y PRUYX
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 6
Prices and Distributions 7
Performance Update 8
Comparing Ongoing Fund Expenses 11
Schedule of Investments 13
Financial Statements 20
Notes to Financial Statements 27
Approval of Investment Advisory Agreement 33
Trustees, Officers and Service Providers 37
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 1
President's Letter
Dear Shareowner,
In 2010, the U.S. economy moved forward on a slow path to recovery. But with
the memory of a deep recession still lingering, businesses and consumers
remained cautious about both investing and spending. While business
fundamentals showed signs of improvement, there was still a reluctance to hire,
and high unemployment remained a problem throughout the year. Wary investors,
concerned about risk, gravitated towards cash and bonds for most of 2010, until
better economic news in the final few months of the year caused a slight shift
in investor sentiment back towards stocks, thus lifting equity returns.
Pioneer remains generally optimistic about the prospects for economic recovery.
The recovery process may occur more slowly than many would like, and may be
accompanied by short-term market swings. But our investment professionals are
finding good opportunities to invest in both equities and bonds.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. The strategy has generally performed well for many
investors. For instance, bond markets certainly rewarded investors for most of
2010, while equity markets barely budged, even though equity valuations were
inexpensive relative to bonds and compared with historic levels -- conditions
which represented potentially good value for long-term investors. Ultimately,
many of those long-term investors were rewarded when the equity markets finally
rallied over the last few months of 2010.
Pioneer has not changed the basic 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. Our experienced professionals devote themselves to the careful research
needed to identify investment opportunities in markets around the world.
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
2 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
your individual needs. There is no single best strategy that works for every
investor.
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 Disciplined Value Fund | Semiannual Report | 2/28/11 3
Portfolio Management Discussion | 2/28/11
In the following interview, Paul Cloonan, head of equity research, U.S., Ashesh
("Ace") Savla, vice president and senior quantitative research analyst, and
Diego Franzin, head of quantitative research and management, discuss the market
environment and other factors that affected Pioneer Disciplined Value Fund's
performance over the six months ended February 28, 2011. Mr. Cloonan, Mr. Savla
and Mr. Franzin are responsible for the day-to-day management of the Fund.
Q While value stocks fared quite well over the six months ended February 28,
2011, growth stocks outperformed during the period. What was the main
reason behind value stocks' underperformance of growth stocks?
A The three best-performing sectors over the six-month period were energy,
information technology, and industrials; the latter two sectors represent a
much larger weight in the growth-stock universe than in the value-stock
universe. The sectors have been benefiting more from the rebound in the
global economy and increased capital spending than other sectors such as
health care, consumer staples and telecommunication services.
Q How did the Fund perform over the six months ended February 28, 2011?
A Pioneer Disciplined Value Fund Class A shares returned 23.45% at net asset
value over the six months ended February 28, 2011, while the Fund's
benchmark, the Russell 1000 Value Index, returned 26.30%. Over the same
period, the average return of the 511 mutual funds in Lipper's Large Cap
Value Funds category was 26.81%.
Q Despite a strong overall return, the Fund underperformed the Russell 1000
Value Index (the Russell Index) over the six-month period ended February
28, 2011. Could you highlight some of the factors and investment decisions
behind the Fund's underperformance?
A The Fund's portfolio was more weighted to large-cap stocks than the Russell
Index during the six-month period. The positioning hindered benchmark-
relative performance as small-cap names continued to rally.
As for sector allocations and stock selection, health care was the Fund's
predominant underperforming sector, as positions in Bristol-Myers Squibb,
Amgen, and Merck all detracted from Fund performance. In information
technology, Marvell Semiconductor was a big underperformer during the
period, as business conditions remained more sluggish than expected in the
company's storage and communications businesses. We ultimately sold the
Fund's position in Marvell. In utilities, PPL was the largest detractor
from
4 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
the Fund's relative performance in the sector, as the company announced a
major acquisition. We continue to have a favorable view of the acquisition,
however, and we retained the Fund's position in PPL.
Q What portfolio holdings contributed most to the Fund's performance during the
six-month period ended February 28, 2011?
A In financials, the Fund's position in TD Ameritrade performed well, as the
rebound in the equity market drove more trading activity. In consumer
discretionary (media), CBS performed well, benefiting from a strong rebound
in television advertising revenues.
Q What is your outlook for 2011?
A We remain optimistic about the prospects for U.S. equities. Valuations are
attractive, and we believe that the economy will continue to grow,
supported by accommodative monetary policy and improving employment trends.
In addition, corporate balance sheets and cash flow are strong, which may
lead to increased merger-and-acquisition activity, share repurchases and
dividend increases. We believe that large-cap stocks are more attractively
valued than small-cap stocks, and so the relative returns of large-cap
stocks may improve. While we are generally optimistic, there are risks to
the outlook for equities. The fiscal deficits in Europe remain a concern,
with potentially negative implications for global growth and the financial
markets. In addition, some countries are raising interest rates in response
to rising inflation. So far, inflation data in the U.S. has been benign,
but any significant uptick in U.S. inflation would be a concern for the
markets.
Please refer to the Schedule of Investments on pages 13-19 for a full listing
of Fund securities.
Small- and mid-sized companies may offer the potential for higher returns but
are also subject to greater short-term price fluctuations than larger, more
established companies. The Fund invests in a limited number of securities, and,
as a result, the Fund's performance may be more volatile than the performance
of other funds holding more securities. At times, the Fund's investments may
represent industries or industry sectors that are interrelated or have common
risks, making it more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors.
These risks may increase share price volatility.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 5
Portfolio Summary | 2/28/11
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 91.5%
Temporary Cash Investments 5.2%
Exchange Traded Index Fund 3.3%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 28.2%
Energy 13.7%
Health Care 12.0%
Consumer Staples 9.4%
Industrials 9.1%
Consumer Discretionary 8.2%
Utilities 6.2%
Information Technology 5.0%
Telecommunication Services 4.9%
Materials 3.3%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. JPMorgan Chase & Co. 4.04%
2. Procter & Gamble Co. 3.80
3. iShares Dow Jones U.S. Real Estate Index Fund 3.51
4. Verizon Communications, Inc. 3.10
5. Apache Corp. 2.83
6. Chevron Corp. 2.67
7. Bristol Myers Squibb Co. 2.30
8. Union Pacific Corp. 2.27
9. Amgen, Inc. 2.26
10. United Healthcare Group, Inc. 2.25
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
securities listed.
6 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
Prices and Distributions | 2/28/11
Net Asset Value per Share
--------------------------------------------------------------------------------
Class 2/28/11 8/31/10
A $8.86 $7.95
--------------------------------------------------------------------------------
C $8.91 $7.96
--------------------------------------------------------------------------------
Y $8.98 $8.05
--------------------------------------------------------------------------------
Distributions per Share: 9/1/10-2/28/11
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
A $0.0718 $0.6013 $0.1880
--------------------------------------------------------------------------------
C $0.0048 $0.6013 $0.1880
--------------------------------------------------------------------------------
Y $0.0973 $0.6013 $0.1880
--------------------------------------------------------------------------------
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. It is not possible
to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 8-10.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 7
Performance Update | 2/28/11 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Disciplined Value Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of February 28, 2011)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
Life-of-Class
(12/15/05) 3.14% 1.98%
5 Years 2.39 1.19
1 Year 17.53 10.77
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.76% 1.25%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Russell
Disciplined 1000
Value Fund Value Index
12/05 9425 10000
2/06 9781 10452
2/07 11164 12188
2/08 10780 11224
2/09 6500 5909
2/10 9520 9248
2/11 11190 11297
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2012, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation 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.
8 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
Performance Update | 2/28/11 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Disciplined Value Fund, compared to that of the
Russell 1000 Value Index.
Average Annual Total Returns
(As of February 28, 2011)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(7/16/08) 3.66% 3.66%
1 Year 16.56 16.56
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.40% 2.15%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Russell
Disciplined 1000
Value Fund Value Index
7/08 10000 10000
2/09 6408 5623
2/10 9297 8800
2/11 10837 10750
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2012, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 9
Performance Update | 2/28/11 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer Disciplined Value Fund, compared to that of the
Russell 1000 Value Index.
Average Annual Total Returns
(As of February 28, 2011)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(12/15/05) 2.84% 2.84%
5 Years 2.10 2.10
1 Year 17.90 17.90
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.22% 0.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Russell
Disciplined 1000
Value Fund Value Index
12/31/2005 $5,000,000 $5,000,000
2/28/2006 $5,186,869 $5,225,895
2/28/2007 $5,883,751 $6,093,933
2/29/2008 $5,610,826 $5,611,884
2/28/2009 $3,372,768 $2,954,584
2/28/2010 $4,957,021 $4,623,823
2/28/2011 $5,844,259 $5,648,632
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class Y shares for the period prior to the inception
of Class Y shares on July 31, 2008, is based on the net asset value performance
of the Fund's Class A shares, which has not been restated to reflect any
differences in expenses, including Rule 12b-1 fees applicable to Class A
shares. Since fees for Class A shares generally are higher than those of Class
Y shares, the performance of Class Y shares prior to their inception would have
been higher than the performance shown.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results
are historical and assume the reinvestment of dividends and capital gains.
Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2012, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Disciplined Value Fund
Based on actual returns from September 1, 2010, through February 28, 2011.
Actual
Share Class A C Y
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 9/1/10
--------------------------------------------------------------------------------
Ending Account Value $1,234.50 $1,230.10 $1,237.60
(after expenses) on 2/28/11
--------------------------------------------------------------------------------
Expenses Paid $6.93 $11.45 $4.99
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.07%,
and 0.90% for Class A, Class C, and Class Y shares, respectively, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 11
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Disciplined Value Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from September 1, 2010, through February 28, 2011.
Hypothetical
Share Class A C Y
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 9/1/10
--------------------------------------------------------------------------------
Ending Account Value $1,018.60 $1,014.53 $1,020.33
(after expenses) on 2/28/11
--------------------------------------------------------------------------------
Expenses Paid $6.26 $10.34 $4.51
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.07%,
and 0.90% for Class A, Class C, and Class Y shares, respectively, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
12 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
Schedule of Investments | 2/28/11 (unaudited)
Shares Value
COMMON STOCKS -- 95.7%
ENERGY -- 13.6%
Coal & Consumable Fuels -- 0.5%
2,800 Peabody Energy Corp. $ 183,372
--------------------------------------------------------------------------
Integrated Oil & Gas -- 2.7%
9,200 Chevron Corp. $ 954,500
--------------------------------------------------------------------------
Oil & Gas Drilling -- 1.8%
22,300 Nabors Industries, Inc.* $ 634,881
--------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.8%
3,600 National-Oilwell Varco, Inc. $ 286,452
--------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 5.4%
8,100 Apache Corp. $ 1,009,422
8,269 Devon Energy Corp. 756,117
1,900 Pioneer Natural Resources Co.* 194,446
-----------
$ 1,959,985
--------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.6%
9,000 Tesoro Petroleum Corp.* $ 214,020
--------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.8%
35,200 El Paso Corp. $ 654,720
-----------
Total Energy $ 4,887,930
--------------------------------------------------------------------------
MATERIALS -- 3.2%
Diversified Metals & Mining -- 1.6%
11,200 Freeport-McMoRan Copper & Gold, Inc. (Class B) $ 593,040
--------------------------------------------------------------------------
Paper Packaging -- 1.6%
19,800 Packaging Corp. of America $ 570,042
-----------
Total Materials $ 1,163,082
--------------------------------------------------------------------------
CAPITAL GOODS -- 6.8%
Aerospace & Defense -- 2.0%
8,704 United Technologies Corp. $ 727,132
--------------------------------------------------------------------------
Construction & Engineering -- 1.1%
11,800 KBR Inc. $ 387,040
--------------------------------------------------------------------------
Industrial Conglomerates -- 3.7%
7,700 3M Co. $ 710,171
23,000 Textron, Inc. (b) 623,070
$ 1,333,241
-----------
Total Capital Goods $ 2,447,413
--------------------------------------------------------------------------
TRANSPORTATION -- 2.2%
Railroads -- 2.2%
8,500 Union Pacific Corp. $ 810,985
-----------
Total Transportation $ 810,985
--------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 13
Schedule of Investments | 2/28/11 (unaudited) (continued)
Shares Value
CONSUMER SERVICES -- 1.4%
Restaurants -- 1.4%
6,512 McDonald's Corp. $ 492,828
-----------
Total Consumer Services $ 492,828
------------------------------------------------------------------
MEDIA -- 5.3%
Broadcasting -- 2.1%
31,900 CBS Corp. (Class B) $ 761,134
------------------------------------------------------------------
Cable & Satellite -- 1.3%
17,600 Comcast Corp. $ 453,376
------------------------------------------------------------------
Movies & Entertainment -- 1.9%
15,500 Viacom, Inc. (Class B) $ 692,230
-----------
Total Media $ 1,906,740
------------------------------------------------------------------
RETAILING -- 1.5%
Department Stores -- 1.5%
22,300 Macy's, Inc. $ 532,970
-----------
Total Retailing $ 532,970
------------------------------------------------------------------
FOOD & DRUG RETAILING -- 1.6%
Hypermarkets & Supercenters -- 1.6%
11,200 Wal-Mart Stores, Inc. $ 582,176
-----------
Total Food & Drug Retailing $ 582,176
------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.0%
Distillers & Vintners -- 2.0%
35,600 Constellation Brands, Inc.* $ 723,392
------------------------------------------------------------------
Tobacco -- 2.0%
11,400 Philip Morris International, Inc. $ 715,692
-----------
Total Food, Beverage & Tobacco $ 1,439,084
------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 3.8%
Household Products -- 3.8%
21,500 Procter & Gamble Co.* $ 1,355,575
-----------
Total Household & Personal Products $ 1,355,575
------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.0%
Health Care Distributors -- 1.8%
15,400 Cardinal Health, Inc. $ 641,256
------------------------------------------------------------------
Managed Health Care -- 2.2%
18,902 United Healthcare Group, Inc. $ 804,847
-----------
Total Health Care Equipment & Services $ 1,446,103
------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 7.9%
Biotechnology -- 2.3%
15,700 Amgen, Inc.* $ 805,881
------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
Shares Value
Pharmaceuticals -- 5.6%
31,800 Bristol-Myers Squibb Co. $ 820,758
12,700 Hospira, Inc.* 671,195
16,400 Merck & Co., Inc. 534,148
-----------
$ 2,026,101
-----------
Total Pharmaceuticals & Biotechnology $ 2,831,982
-----------------------------------------------------------------
BANKS -- 5.6%
Diversified Banks -- 1.5%
14,000 Comerica, Inc. $ 544,600
-----------------------------------------------------------------
Regional Banks -- 4.1%
79,300 KeyCorp $ 724,802
12,200 PNC Bank Corp. 752,740
-----------
$ 1,477,542
-----------
Total Banks $ 2,022,142
-----------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 11.3%
Asset Management & Custody Banks -- 3.4%
4,549 Franklin Resources, Inc. $ 571,445
14,600 State Street Corp. 652,912
-----------
$ 1,224,357
-----------------------------------------------------------------
Diversified Financial Services -- 4.0%
30,900 JPMorgan Chase & Co. $ 1,442,721
-----------------------------------------------------------------
Investment Banking & Brokerage -- 3.9%
24,300 Morgan Stanley Co. $ 721,224
32,200 TD Ameritrade Holding Corp 701,960
-----------
$ 1,423,184
-----------
Total Diversified Financials $ 4,090,262
-----------------------------------------------------------------
INSURANCE -- 7.5%
Life & Health Insurance -- 4.2%
12,700 Aflac, Inc. $ 747,522
11,600 Prudential Financial, Inc. 763,628
-----------
$ 1,511,150
-----------------------------------------------------------------
Property & Casualty Insurance -- 3.3%
10,500 ACE, Ltd. $ 664,125
16,600 Allstate Corp. 527,548
-----------
$ 1,191,673
-----------
Total Insurance $ 2,702,823
-----------------------------------------------------------------
SOFTWARE & SERVICES -- 2.0%
Systems Software -- 2.0%
26,985 Microsoft Corp. $ 717,261
-----------
Total Software & Services $ 717,261
-----------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 15
Schedule of Investments | 2/28/11 (unaudited) (continued)
Shares Value
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.6%
Office Electronics -- 1.6%
53,100 Xerox Corp. $ 570,825
-----------
Total Technology Hardware & Equipment $ 570,825
-----------------------------------------------------------------------------
SEMICONDUCTORS -- 1.4%
27,100 Marvell Technology Group, Ltd.* $ 495,388
-----------
Total Semiconductors $ 495,388
-----------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.9%
Integrated Telecommunication Services -- 4.9%
16,000 CenturyLink, Inc. (b) $ 658,880
29,954 Verizon Communications, Inc. 1,105,902
-----------
$ 1,764,782
-----------
Total Telecommunication Services $ 1,764,782
-----------------------------------------------------------------------------
UTILITIES -- 6.1%
Electric Utilities -- 4.3%
22,300 American Electric Power Co., Inc.* $ 797,894
29,400 PPL Corp. 747,642
-----------
$ 1,545,536
-----------------------------------------------------------------------------
Multi-Utilities -- 1.8%
23,500 Ameren Corp. $ 657,061
-----------
Total Utilities $ 2,202,597
-----------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $29,579,575) $34,462,948
-----------------------------------------------------------------------------
EXCHANGE TRADED FUND -- 3.4%
REAL ESTATE -- 3.4%
Diversified Real Estate Investment Trust -- 3.4%
20,700 iShares Dow Jones U.S. Real Estate Index Fund (b) $ 1,254,006
-----------------------------------------------------------------------------
TOTAL EXCHANGE TRADED FUND
(Cost $1,025,344) $ 1,254,006
-----------------------------------------------------------------------------
Principal
Amount ($)
-----------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 5.4%
Securities Lending Collateral -- 5.4% (c)
Certificates of Deposit:
46,338 Banco Santander NY, 0.49%, 3/14/11 $ 46,338
57,923 Bank of Nova Scotia, 0.33%, 9/29/11 57,923
46,338 BBVA Group NY, 0.37%, 3/8/11 46,338
40,546 BBVA Group NY, 0.86%, 7/26/11 40,546
11,585 BBVA Group NY, 0.45%, 3/14/11 11,585
57,923 BNP Paribas Bank NY, 0.34%, 5/9/11 57,923
57,923 Canadian Imperial Bank of Commerce NY, 0.25%, 4/27/11 57,923
The accompanying notes are an integral part of these financial statements.
16 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
Principal
Amount ($) Value
Certificates of Deposit -- (continued)
57,923 DnB NOR Bank ASA NY, 0.25%, 3/7/11 $ 57,923
28,960 National Australia Bank NY, 0.32%, 10/19/11 28,960
57,923 Nordea NY, 0.3%, 4/13/11 57,923
57,923 RoboBank Netherland NV NY, 0.33%, 8/8/11 57,923
57,923 Royal Bank of Canada NY, 0.4%, 12/2/11 57,923
57,923 Skandinav Enskilda Bank NY, 0.38%, 6/7/11 57,923
57,923 Svenska NY, 0.28%, 5/12/11 57,923
57,923 Westpac Banking Corp. NY, 0.4%, 12/6/11 57,923
-----------
$ 752,997
--------------------------------------------------------------------------------
Commercial Paper:
23,169 American Honda Finance, 0.35%, 1/11/12 $ 23,169
23,225 American Honda Finance, 1.05%, 6/20/11 23,225
21,256 Australia & New Zealand Banking Group, 0.91%, 8/4/11 21,256
58,933 Caterpillar Financial Services Corp., 1.05%, 6/24/11 58,933
29,750 FAIRPP, 0.27%, 3/7/11 29,750
57,926 Federal Home Loan Bank, 0.33%, 6/1/11 57,926
5,791 General Electric Capital Corp., 0.38%, 6/6/11 5,791
28,966 General Electric Capital Corp., 0.39%, 4/28/11 28,966
46,315 HSBC, 0.25%, 5/11/11 46,315
27,828 JPMorgan Chase & Co., 0.43%, 12/21/11 27,828
20,318 JPMorgan Chase & Co., 1.05%, 6/13/11 20,318
57,918 OLDLLC, 0.27%, 3/11/11 57,918
28,948 SOCNAM, 0.37%, 4/14/11 28,948
28,943 SOCNAM, 0.37%, 5/3/11 28,943
57,923 Toyota Motor Credit Corp., 0.4%, 9/8/11 57,923
34,741 VARFUN, 0.27%, 4/20/11 34,741
34,754 Wachovia, 0.40%, 3/22/11 34,754
23,181 Wachovia, 0.43%, 10/15/11 23,181
-----------
$ 609,885
--------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
82,464 Barclays Capital Plc, 0.18%, 3/1/11 $ 82,464
115,846 Deutsche Bank Securities, Inc., 0.17%, 3/1/11 115,846
115,846 HSBC Bank USA NA, 0.18%, 3/1/11 115,846
115,846 RBS Securities, Inc., 0.18%, 3/1/11 115,846
-----------
$ 430,002
--------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------
Shares Money Market Mutual Funds:
86,882 Dreyfus Preferred Money Market Fund $ 86,882
86,884 Fidelity Prime Money Market Fund 86,884
-----------
$ 173,766
--------------------------------------------------------------------------------
Total Securities Lending Collateral $ 1,966,650
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 17
Schedule of Investments | 2/28/11 (unaudited) (continued)
Shares Value
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $1,966,650) $ 1,966,650
--------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 104.5%
(Cost $32,571,569) (a) $37,683,604
--------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (4.5)% $(1,636,953)
--------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $36,046,651
================================================================================
* Non-income producing security.
(a) At February 28, 2011, the net unrealized gain on investments based on
cost for federal income tax purposes of $32,595,156 was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $ 5,404,454
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (316,006)
-----------
Net unrealized loss $ 5,088,448
===========
(b) At February 28, 2011, the following securities were out on loan:
Shares Security Value
14,000 CenturyLink, Inc. $ 576,520
5,400 Textron, Inc. 146,286
20,400 iShares Dow Jones U.S. Real Estate Index Fund 1,235,832
-------------------------------------------------------------------------
Total $ 1,958,638
=========================================================================
(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 February 28, 2011 aggregated $13,572,722 and $14,253,593,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 -- significant unobservable inputs (including the Fund's own assumptions
in determining fair value of investments)
The accompanying notes are an integral part of these financial statements.
18 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
The following is a summary of the inputs used as of February 28, 2011, in
valuing the Fund's assets:
Level 1 Level 2 Level 3 Total
Common Stocks $34,462,948 $ -- $-- $34,462,948
Exchange Traded Fund 1,254,006 -- -- 1,254,006
Temporary Cash Investments -- 1,792,884 -- 1,792,884
Money Market Mutual Fund 173,766 -- -- 173,766
----------------------------------------------------------------------------------------
Total $35,890,720 $1,792,884 $-- $37,683,604
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 19
Statement of Assets and Liabilities | 2/28/11 (unaudited)
ASSETS:
Investment in securities, at value (including securities loaned of
$1,958,638) (cost $32,571,569) $37,683,604
Cash 306,477
Receivables --
Fund shares sold 12,156
Dividends 43,502
Due from Pioneer Investment Management, Inc. 6,497
Other 22,824
----------------------------------------------------------------------------------
Total assets $38,075,060
----------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased 26,363
Upon return of securities loaned 1,966,650
Due to affiliates 2,450
Accrued expenses 32,946
----------------------------------------------------------------------------------
Total liabilities $ 2,028,409
----------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital 29,626,370
Undistributed net investment income 50,994
Accumulated net realized gain on investments 1,257,252
Net unrealized gain on investments 5,112,035
----------------------------------------------------------------------------------
Total net assets $36,046,651
----------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $1,337,599/150,984 shares) $ 8.86
Class C (based on $723,865/81,267 shares) $ 8.91
Class Y (based on $33,985,187/3,783,972 shares) $ 8.98
MAXIMUM OFFERING PRICE:
Class A ($8.86 [divided by] 94.25%) $ 9.40
==================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
Statement of Operations (unaudited)
For the Six Months Ended 2/28/11
INVESTMENT INCOME:
Dividends $390,904
Income from securities loaned, net 1,107
-------------------------------------------------------------------------------------
Total investment income $ 392,011
-------------------------------------------------------------------------------------
EXPENSES:
Management fees $111,143
Transfer agent fees
Class A 1,048
Class C 463
Class Y 219
Distribution fees
Class A 1,350
Class C 2,873
Shareholder communication expense 556
Administrative reimbursements 5,451
Custodian fees 3,634
Registration fees 30,313
Professional fees 20,093
Printing expense 4,324
Fees and expenses of nonaffiliated trustees 3,512
Miscellaneous 1,899
-------------------------------------------------------------------------------------
Total expenses $ 186,878
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (27,730)
-------------------------------------------------------------------------------------
Net expenses $ 159,148
-------------------------------------------------------------------------------------
Net investment income $ 232,863
-------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $1,327,934
-------------------------------------------------------------------------------------
Change in net unrealized gain on investments $5,539,540
-------------------------------------------------------------------------------------
Net gain on investments $6,867,474
-------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $7,100,337
=====================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 21
Statement of Changes in Net Assets
For the Six Months Ended 2/28/11 and Year Ended 8/31/10, respectively
Six Months
Ended
2/28/11 Year Ended
(unaudited) 8/31/10
FROM OPERATIONS:
Net investment income $ 232,863 $ 307,857
Net realized gain on investments 1,327,934 3,680,466
Change in net unrealized gain (loss) on investments 5,539,540 (3,822,388)
------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 7,100,337 $ 165,935
------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.07 and $0.07 per share, respectively) $ (9,441) $ (5,373)
Class C ($0.01 and $0.02 per share, respectively) (323) (960)
Class Y ($0.10 and $0.07 per share, respectively) (376,968) (201,918)
Net realized gain:
Class A ($0.79 and $0.35 per share, respectively) (92,143) (24,123)
Class C ($0.79 and $0.35 per share, respectively) (48,851) (13,699)
Class Y ($0.79 and $0.35 per share, respectively) (2,899,846) (985,985)
------------------------------------------------------------------------------------------
Total distributions to shareowners $(3,427,572) $(1,232,058)
------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 4,021,585 $ 9,221,222
Reinvestment of distributions 84,132 10,920
Cost of shares repurchased (2,412,279) (1,313,764)
------------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund share
transactions $ 1,693,438 $ 7,918,378
------------------------------------------------------------------------------------------
Net increase in net assets $ 5,366,203 $ 6,852,255
NET ASSETS:
Beginning of period 30,680,448 23,828,193
------------------------------------------------------------------------------------------
End of period $36,046,651 $30,680,448
------------------------------------------------------------------------------------------
Undistributed net investment income $ 50,994 $ 204,863
==========================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
'11 Shares '11 Amount '10 Shares '10 Amount
(unaudited) (unaudited)
Class A
Shares sold 51,857 $ 447,806 73,867 $ 630,164
Reinvestment of distributions 6,955 56,097 757 6,351
Less shares repurchased (20,142) (174,408) (26,560) (217,975)
------------------------------------------------------------------------------------------
Net increase 38,670 $ 329,495 48,064 $ 418,540
==========================================================================================
Class C
Shares sold 22,579 $ 195,481 39,021 $ 338,140
Reinvestment of distributions 3,489 28,035 542 4,569
Less shares repurchased (5,321) (45,172) (11,299) (95,545)
------------------------------------------------------------------------------------------
Net increase 20,747 $ 178,344 28,264 $ 247,164
==========================================================================================
Class Y
Shares sold 394,401 $3,378,298 968,797 $8,252,918
Less shares repurchased (250,258) (2,192,699) (115,886) (1,000,244)
------------------------------------------------------------------------------------------
Net increase 144,143 $1,185,599 852,911 $7,252,674
==========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 23
Financial Highlights
Six Months
Ended
2/28/11 Year Ended Year Ended
(unaudited) 8/31/10 8/31/09
Class A
Net asset value, beginning of period $ 7.95 $ 8.19 $ 9.60
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.03 $ 0.06 $ 0.09
Net realized and unrealized gain (loss) on investments 1.74 0.12 (1.39)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 1.77 $ 0.18 $ (1.30)
Distributions to shareowners:
Net investment income (0.07) (0.07) (0.11)
Net realized gain (0.79) (0.35) --
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.91 $ (0.24) $ (1.41)
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.86 $ 7.95 $ 8.19
==========================================================================================================================
Total return* 23.45%** 1.98% (13.34)%
Ratio of net expenses to average net assets 1.25%** 1.25% 1.25%
Ratio of net investment income to average net assets 1.03%** 0.78% 1.34%
Portfolio turnover rate 83%** 112% 114%
Net assets, end of period (in thousands) $ 1,338 $ 892 $ 526
Ratios with no waiver of fees and assumption of expenses by the Adviser:
Net expenses 1.60%** 1.76% 13.37%
Net investment income (loss) 0.68%** 0.27% (10.78)%
==========================================================================================================================
Year Ended Year Ended 12/15/05 (a)
8/31/08 8/31/07 to 8/31/06
Class A
Net asset value, beginning of period $ 11.99 $ 10.69 $ 10.00
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.11 $ 0.12 $ 0.09
Net realized and unrealized gain (loss) on investments (1.62) 1.58 0.60
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ (1.51) $ 1.70 $ 0.69
Distributions to shareowners:
Net investment income (0.11) (0.12) --
Net realized gain (0.77) (0.28) --
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.39) $ 1.30 $ 0.69
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.60 $ 11.99 $ 10.69
==========================================================================================================================
Total return* (13.34)% 16.24% 6.90%(b)
Ratio of net expenses to average net assets 1.25% 1.25% 1.25%**
Ratio of net investment income to average net assets 1.07% 1.01% 1.21%**
Portfolio turnover rate 116% 88% 66%(b)
Net assets, end of period (in thousands) $ 520 $ 600 $ 535
Ratios with no waiver of fees and assumption of expenses by the Adviser:
Net expenses 16.02% 13.35% 19.33%**
Net investment income (loss) (13.70)% (11.09)% (16.87)%**
==========================================================================================================================
(a) The Fund commenced operations on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
Six Months
Ended
2/28/11 Year Ended Year Ended 7/17/08(a)
(unaudited) 8/31/10 8/31/09 to 8/31/08
Class C
Net asset value, beginning of period $ 7.96 $ 8.23 $ 9.61 $ 9.34
------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $(0.01) $(0.02) $ 0.03 $ 0.01
Net realized and unrealized gain (loss)
on investments 1.75 0.12 (1.39) 0.26
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from investment operations $ 1.74 $ 0.10 $ (1.36) $ 0.27
Distributions to shareowners:
Net investment income 0.00(c) (0.02) (0.02) --
Net realized gain (0.79) (0.35) -- --
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.95 $(0.27) $ (1.38) $ 0.27
------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.91 $ 7.96 $ 8.23 $ 9.61
==================================================================================================================
Total return* 23.01%** 1.07% (14.10)% 2.89%(b)
Ratio of net expenses to average net assets 2.07%** 2.15% 1.99% 2.15%**
Ratio of net investment income (loss) to average
net assets 0.20%** (0.12)% 0.59% 0.40%**
Portfolio turnover rate 83%** 112% 114% 116%(b)
Net assets, end of period (in thousands) $ 724 $ 482 $ 265 $ 257
Ratios with no waiver of fees and assumption
of expenses by the Adviser:
Net expenses 2.23%** 2.40% 13.76% 25.47%**
Net investment income (loss) 0.04%** (0.37)% (11.18)% (22.92)%**
==================================================================================================================
(a) Class C shares were first publicly offered on July 17, 2008.
(b) Not annualized.
(c) Amount rounds to less than $0.01 per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and 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.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 25
Financial Highlights (continued)
Six Months
Ended
2/28/11 Year Ended Year Ended 7/31/08(a)
(unaudited) 8/31/10 8/31/09 to 8/31/08
Class Y
Net asset value, beginning of period $ 8.05 $ 8.27 $ 9.62 $ 9.57
---------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.06 $ 0.09 $ 0.06 $ 0.02
Net realized and unrealized gain (loss)
on investments 1.76 0.11 (1.34) 0.03
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from investment operations $ 1.82 $ 0.20 $ (1.28) $ 0.05
Distributions to shareowners:
Net investment income (0.10) (0.07) (0.07) --
Net realized gain (0.79) (0.35) -- --
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.93 $ (0.22) $ (1.35) $ 0.05
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.98 $ 8.05 $ 8.27 $ 9.62
=====================================================================================================================
Total return* 23.76%** 2.26% (13.22)% 0.52%(b)
Ratio of net expenses to average net assets 0.90%** 0.90% 0.90% 0.90%**
Ratio of net investment income to average
net assets 1.39%** 1.14% 1.41% 2.37%**
Portfolio turnover rate 83%** 112% 114% 116%(b)
Net assets, end of period (in thousands) $33,985 $29,306 $23,037 $ 251
Ratios with no waiver of fees and assumption
of expenses by the Adviser:
Net expenses 1.06%** 1.22% 1.88% 10.11%**
Net investment income (loss) 1.24%** 0.82% 0.43% (6.84)%**
=====================================================================================================================
(a) Class Y shares were first publicly offered on July 31, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
Notes to Financial Statements | 2/28/11 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Disciplined Value Fund, formerly Pioneer Research Value Fund (the
Fund), is one of four portfolios comprising Pioneer Series Trust V, a Delaware
statutory trust. The Fund is registered under the Investment Company Act of
1940 as a diversified, open-end management investment company. The Fund was
organized on October 12, 2005, and commenced operations on December 15, 2005.
Pioneer Investment Management Inc. (PIM), the Fund's investment advisor, paid
all organizational costs of the Fund. The Fund's investment objective is
long-term capital growth.
The Fund offers three classes of shares designated as Class A, Class C and
Class Y shares. Class C shares were first publicly offered on July 17, 2008.
Class Y shares were first publicly offered on July 31, 2008. Each class of
shares represents an interest in the same portfolio of investments of the Fund
and has identical rights (based on relative net asset values) to assets and
liquidation proceeds. Share classes can bear different rates of class-specific
fees and expenses such as transfer agent and distribution fees. Differences in
class-specific fees and expenses will result in differences in net investment
income and, therefore, the payment of different dividends from net investment
income earned by each class. The Amended and Restated Declaration of Trust of
the Fund gives the Board the flexibility to specify either per-share voting or
dollar-weighted voting when submitting matters for shareholder approval. Under
per-share voting, each share of a class of the Fund is entitled to one vote.
Under dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y shares.
Small and mid-sized companies may offer the potential for higher returns, but
are also subject to greater short-term price fluctuations than larger, more
established companies. The Fund's prospectus contains information regarding the
Fund's principal risks. Please refer to that 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
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
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 27
of income, expenses and gain or loss on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities that have traded on an exchange are valued at
the last sale price on the principal exchange where they are traded.
Securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued at the mean between
the last bid and asked prices. Securities for which market prices and/or
quotations are not readily available or are considered to be unreliable are
valued using fair value methods pursuant to procedures adopted by the Board
of Trustees.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times.
The Fund may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset value.
Thus, the valuation of the Fund's securities may differ from exchange prices.
At February 28, 2011, there were no securities that were valued using fair
value methods (other than securities that were valued using prices supplied
by independent pricing services). Inputs used when applying fair value
methods to value a security may include credit ratings, the financial
condition of the company, current market conditions and comparable
securities. Short-term fixed income securities with remaining maturities of
sixty days or less generally are valued at amortized cost. Money market
mutual funds are valued at net asset value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in the
exercise of reasonable diligence. Interest income is recorded on the accrual
basis. Dividend and interest income are reported net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
28 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years are subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
The tax character of current distributions payable will be determined at the
end of the current taxable year. The tax character of distributions paid
during the year ended August 31, 2010 was as follows:
2010
Distributions paid from:
Ordinary income $1,232,058
----------------------------------------------------------------------------
Total $1,232,058
============================================================================
The following shows the components of distributable earnings on a federal
income tax-basis at August 31, 2010:
2010
Distributable earnings:
Undistributed ordinary income $2,517,292
Undistributed long-term gain 681,316
Unrealized depreciation (451,092)
----------------------------------------------------------------------------
Total $2,747,516
============================================================================
The difference between book-basis and tax-basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales and the tax basis
adjustments on partnerships.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $704 in underwriting commissions on the sale of Class A shares during
the six months ended February 28, 2011.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 29
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning of
the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
are paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services, are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, and Class Y shares can
reflect different transfer agent and distribution expense rates.
E. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors. When entering into a securities loan transaction,
the Fund typically receives cash collateral from the borrower equal to at
least the value of the securities loaned, which is invested in temporary
investments. Credit Suisse AG, New York Branch, as the Fund's securities
lending agent, manages the Fund's securities lending collateral. The income
earned on the investment of collateral is shared with the borrower and the
lending agent in payment of any rebate due to the borrower with respect to
the securities loan, and in compensation for the lending agent's services to
the Fund. The Fund also continues to receive payments in lieu of dividends or
interest on the securities loaned. Gain or loss on the value of the loaned
securities that may occur during the term of the loan will be for the account
of the Fund. The amount of the collateral is required to be adjusted daily to
reflect any price fluctuation in the value of the loaned securities. If the
required market value of the collateral is less than the value of the loaned
securities, the borrower is required to deliver additional collateral for the
account of the Fund prior to the close of business on that day. The Fund has
the right, under the lending agreement, to terminate the loan and recover the
securities from the borrower with prior notice. The Fund is required to
return the cash collateral to the borrower and could suffer a loss if the
value of the collateral, as invested, has declined.
30 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.65% of
the Fund's average daily net assets up to $1 billion, 0.60% of the next $4
billion and 0.55% on assets over $5 billion. For the six months ended February
28, 2011, the effective management fee (excluding waivers and/or assumption of
expenses) was equivalent to 0.65% of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund
to the extent required to reduce Fund expenses to 1.25%, 2.15%, and 0.90% of
the average daily net assets attributable to Class A, Class C, and Class Y
shares, respectively. These expense limitations are in effect through January
1, 2012 for all classes. There can be no assurance that PIM will extend the
expense limitation agreement for a class of shares beyond the date referred to
above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$2,120 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 28, 2011.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the six months ended February 28, 2011, such out-of-pocket expenses by
class of shares were as follows:
Shareholder Communications:
Class A $518
Class C 25
Class Y 13
-------------------------------------------------------------------------------
Total $556
===============================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $244 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 28, 2011.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 31
4. Distribution Plan
The Fund has adopted a distribution plan (The Plan) pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A and Class C
shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the
average daily net assets attributable to Class C shares. The fee for Class C
shares consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class C shares. Included in "Due to
affiliates" reflected on the Statement of Assets and Liabilities is $86 in
distribution fees payable to PFD at February 28, 2011.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase (within 12 months for purchases made on or after
April 1, 2009). Redemptions of Class C shares within one year of purchase are
subject to a CDSC of 1.00%, based on the lower of cost or market value of
shares being redeemed. Shares purchased as part of an exchange remain subject
to any CDSC that applied to the original purchase of those shares. There is no
CDSC for Class Y shares. Proceeds from the CDSCs are paid to PFD. For the six
months ended February 28, 2011, CDSCs in the amount of $13 were paid to PFD.
5. 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.
32 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Disciplined Value Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether
to renew the investment advisory agreement for the Fund.
The contract review process began in March 2010 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the
process. In July 2010, 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 July 2010 and
September 2010. After reviewing and discussing the materials, the Trustees
submitted a request for additional information to PIM, 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, 2010 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 16, 2010, 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. In
addition, the Trustees considered the arrangements put in place to retain key
investment and other personnel. The Trustees also considered the substantial
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 33
attention and high priority given by PIM's senior management to the Pioneer
fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory
agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
performance of its peer group of funds as classified by Morningstar, Inc.
(Morningstar), an independent provider of investment company data, and with the
performance of the Fund's benchmark index. The Trustees considered that the
Fund's annualized total return was in the fourth quintile of its Morningstar
category for the one year period ended June 30, 2010, and in the second
quintile of its Morningstar category for the three year period ended June 30,
2010. (In all quintile rankings referred to throughout this disclosure, first
quintile is most favorable to the Fund's shareowners. Thus, highest relative
performance would be first quintile and lowest relative expenses would also be
first quintile.) The Trustees discussed the Fund's recent underperformance with
PIM and were satisfied with the information presented by PIM with respect to
the Fund's performance.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund
in comparison to the management fees of its peer group of funds as classified
by Morningstar and the expense ratios of a peer group of funds selected on the
basis of criteria determined by the Independent Trustees for this purpose using
data provided by Strategic Insight Mutual Trust Research and Consulting, LLC
(Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2010 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 the breakpoints in the management fee schedule and
the reduced fee rates above certain asset levels. The Trustees considered that
the Fund's expense ratio for the twelve months ended June 30, 2010 was in the
second quintile relative to its Strategic Insight peer group for the comparable
period.
34 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
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 and the
contractual expense limitation agreed to by PIM with respect to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with funds and fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify and that, among other factors that may be relevant, are the following:
fee levels, expense subsidization, investment by PIM in research and analytical
capabilities and PIM's commitment and resource allocation to the Funds. The
Trustees noted that profitability also may be an indicator of the availability
of any economies of scale, although profitability may vary for other reasons
particularly, for example during the recent difficult periods for financial
markets, as the level of services was maintained notwithstanding a significant
decline in PIM's fee revenues from the Funds. Accordingly, the Trustees
concluded that economies of scale, if any, were being appropriately shared with
the Fund.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 35
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.
36 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
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 Christopher J. Kelley, Secretary
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at http://www.sec.gov.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 37
This page for your notes.
38 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
This page for your notes.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 39
This page for your notes.
40 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
This page for your notes.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 41
This page for your notes.
42 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
This page for your notes.
Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11 43
This page for your notes.
44 Pioneer Disciplined Value Fund | Semiannual Report | 2/28/11
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
Pioneer Global
Equity Fund
--------------------------------------------------------------------------------
Semiannual Report | February 28, 2011
--------------------------------------------------------------------------------
Ticker Symbols:
Class A GLOSX
Class B GBSLX
Class C GCSLX
Class Y PGSYX
[LOGO]PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 25
Notes to Financial Statements 33
Approval of Investment Advisory Agreement 42
Trustees, Officers and Service Providers 46
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 1
President's Letter
Dear Shareowner,
In 2010, the U.S. economy moved forward on a slow path to recovery. But with
the memory of a deep recession still lingering, businesses and consumers
remained cautious about both investing and spending. While business
fundamentals showed signs of improvement, there was still a reluctance to hire,
and high unemployment remained a problem throughout the year. Wary investors,
concerned about risk, gravitated towards cash and bonds for most of 2010, until
better economic news in the final few months of the year caused a slight shift
in investor sentiment back towards stocks, thus lifting equity returns.
Pioneer remains generally optimistic about the prospects for economic recovery.
The recovery process may occur more slowly than many would like, and may be
accompanied by short-term market swings. But our investment professionals are
finding good opportunities to invest in both equities and bonds.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. The strategy has generally performed well for many
investors. For instance, bond markets certainly rewarded investors for most of
2010, while equity markets barely budged, even though equity valuations were
inexpensive relative to bonds and compared with historic levels -- conditions
which represented potentially good value for long-term investors. Ultimately,
many of those long-term investors were rewarded when the equity markets finally
rallied over the last few months of 2010.
Pioneer has not changed the basic 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. Our experienced professionals devote themselves to the careful research
needed to identify investment opportunities in markets around the world.
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
2 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
your individual needs. There is no single best strategy that works for every
investor.
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 Global Equity Fund | Semiannual Report | 2/28/11 3
Portfolio Management Discussion | 2/28/11
In the following interview, Marco Pirondini, head of equities, U.S., at Pioneer
and portfolio manager of Pioneer Global Equity Fund, discusses the factors that
influenced the Fund's performance during the six-month period ended February
28, 2011.
Q How did the Fund perform over the six-month period ended February 28, 2011?
A In a period when global equity markets reacted very favorably to the U.S.
Federal Reserve's (the Fed's) moves to shore up the economic recovery, the
Fund's Class A shares returned 22.28% at net asset value over the six
months ended February 28, 2011, while the Fund's benchmark, the Morgan
Stanley Capital International (MSCI) World Index(1), returned 26.32%. Over
the same period, the average return of the 66 mutual funds in Lipper's
Global Large Cap Value Funds category was 23.49%.
Q How would you characterize the global equity markets over the six-month
period ended February 28, 2011?
A The six months ended February 28, 2011, represented a period of very strong
performance. The rally was ignited at the end of August 2010 by the Fed's
announcement of a second round of quantitative easing (QE2). The positive
impact that market watchers felt QE2 would have on liquidity and asset
prices then started to push stock prices up. The rally began in early
September 2010, and continued after the Fed actually began to execute the
QE2 strategy in November.
For the six-month period, all asset classes and most stocks participated in
the rally, almost regardless of their quality. The Fed's move triggered a
rebound even in some of the more distressed asset classes and regions,
including peripheral countries in Europe that have endured serious debt and
financial difficulties. Emerging market countries drove returns until
November, when worries about potential inflation pressures in developing
countries, including China, caused investors there to pull back. Developed
markets took up the rally, however, and posted positive returns through the
remainder of the six-month period ended February 28, 2011.
In addition, the recent rebound in global economic data -- and very
importantly, a long-awaited decline in U.S. unemployment figures -- helped
to boost market psychology during the six-month period.
Q How would you describe the Fund's overall investment approach?
A We examine mid- and large-capitalization stocks worldwide, including those in
emerging markets. From there, we build a diversified portfolio.
4 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
In selecting securities for the Fund, we look for "growth at a reasonable
price," so there is a strong value component to our analysis. We seek to
invest the Fund in companies that are not only benefiting from operating
efficiencies, as reflected in factors including increased market share and
revenues, but also those that employ their capital efficiently. In
particular, we emphasize strong free cash flow, because that provides
companies with the flexibility to make share buybacks, reinvest in their
businesses, make acquisitions and raise dividends. We also look for stocks
with attractive dividend yields, as well as those trading at
lower-than-market valuations.
Finally, we attempt to assess not only the potential price gains for each
stock, but also the potential for a decline in price if circumstances
become unfavorable. We prefer to buy stocks with the highest potential
upside relative to their downside.
Q What factors most helped and hurt the Fund's performance over the six-month
period ended February 28, 2011?
A During the period, the Fund benefited from its largely pro-cyclical stance,
which included underweights to sectors such as utilities and consumer
staples, which are less cyclical and less economically sensitive. (Cyclical
stocks tend to be the most economically sensitive, as they generally
perform more strongly during the early growth phase of the economic cycle
in a particular country or region.) The Fund's pro-cyclical stance
contributed to returns during the period, as the less-cyclical market
sectors underperformed in a rally that was mainly driven by investor
expectations for improving economic prospects, based on QE2.
Within the cyclical sectors, the Fund's holdings in financials and
industrials helped performance. In particular, positions in the industrial
companies Schneider Industries and Bucyrus International (recently acquired
by Caterpillar) were strong contributors to performance. Additionally, the
Fund's holdings in the technology sector generally performed strongly,
especially positions in Gemalto and ASML. A Fund overweight to
semiconductors also contributed to returns during the period.
The largest detractor from the Fund's performance during the six-month
period came from holdings in health care, especially in major
pharmaceutical companies that did not fully participate in the market
rally. Examples of underperforming major pharmaceutical Fund holdings were
Merck and Bristol-Myers Squibb. However, we believe that valuations in the
pharmaceutical area are extremely attractive, and the Fund continues to
hold positions in several major firms.
The Fund was also somewhat penalized by its holdings in Asian financial
companies, which underperformed during the period based on market
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 5
watchers' inflation concerns in the region. By the end of the period,
however, the inflation worries had begun to recede, and we look for a
rebound in those stocks.
The Fund's relative performance also was hurt by avoiding certain companies
in the benchmark that outperformed our expectations during the period. In
most cases, our analysis of the balance sheets of those companies had led
us to believe that their long-term prospects were generally unfavorable,
but the Fund not owning them over the six-month period ended February 28,
2011, had a negative effect on performance.
Q What is your outlook and how is it reflected in the Fund's positioning?
A Our overall outlook remains substantially positive. Developed country
monetary policy continues to be extremely stimulative, and we expect
economic growth to pick up as the world gradually emerges from recession.
Following six months of substantial gains for stocks, however, we expect
investors to be more selective -- and the market rally to be more subdued
-- going forward, because risks which could threaten the recovery have
increased.
What will follow from the political unrest in the Middle East and the
series of natural disasters in Japan, which occurred just after period end,
is difficult to forecast at this point. But it is clear that these events
have generated a very strong awareness of risks within the energy sector
(and a consequent spike in the price of oil). The disruptions have stalled
the market rally -- at least temporarily -- as higher energy prices
represent a de-facto tax on most countries, especially those in the
consuming developed world.
In addition, though the recent tragic events in Japan have negatively
affected the Fund's holdings there, we think that the Japanese people will
mount an effective response. Events in Japan will almost certainly hinder
global growth in the first half of 2011, but we also think that Japanese
government stimulus programs will help to accelerate growth in the second
half of the year, as the focus turns to reconstruction in northern Japan.
We have been increasing the Fund's exposure to Japan because we think that
shares of a number of outstanding Japanese firms can now be purchased at
very attractive prices. We also have been increasing the Fund's overall
exposure to Asia, where valuations are similar to those in the West, but
where we see much stronger growth prospects going forward.
(1) The MSCI information may only be used for your internal use, may not be
reproduced or re-disseminated in any form and may not be used as a basis for
or a component of any financial instruments or products or indices. None of
the MSCI information is intended to constitute investment advice or a
recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis
should not be taken as an indication or guarantee of any future performance
analysis, forecast or prediction. The MSCI information is provided on an "as
is" basis and the user of this information assumes the entire risk of any
use made of this information. MSCI, each of its affiliates and each other
person involved in or related to compiling, computing or creating any MSCI
information
6 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
(collectively, the "MSCI Parties") expressly disclaims all warranties
(including, without limitation, any warranties of originality, accuracy,
completeness, timeliness, non-infringement, merchantability and fitness for
a particular purpose) with respect to this information. Without limiting any
of the foregoing, in no event shall any MSCI Party have any liability for
any direct, indirect, special, incidental, punitive, consequential
(including, without limitation, lost profits) or any other damages.
Note to shareowners: Effective September 1, 2010, day-to-day management of the
Fund's portfolio is the responsibility of Marco Pirondini. From 2004 until
2010, Mr. Pirondini was Global Chief Investment Officer of Pioneer Investments,
overseeing equity, fixed-income, balanced, and quantitative portfolio
management, and quantitative and fundamental research divisions. Mr. Pirondini,
Head of Equities, U.S., joined a predecessor organization to Pioneer in 1991.
Prior to September 1, 2010, day-to-day management of the Fund's portfolio was
the responsibility of Mr. Piergaetano Iaccarino.
Please refer to the Schedule of Investments on pages 16-24 for a full listing
of fund securities.
Investing in foreign and/or emerging markets securities involves certain risks,
including risks relating to interest rates, currency exchange rates, economic
and political conditions. Investments in mid-sized companies may offer the
potential for higher returns, but are also subject to greater short-term price
fluctuations than larger, more established companies. The Fund is
non-diversified and invests in a limited number of securities and, as a result,
the Fund's performance may be more volatile than the performance of funds
holding more securities. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making it more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors.
These risks may increase share price volatility.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 7
Portfolio Summary | 2/28/11
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 25.2%
Information Technology 14.7%
Energy 12.2%
Industrials 10.1%
Consumer Discretionary 9.2%
Health Care 8.2%
Consumer Staples 8.0%
Materials 7.8%
Telecommunication Services 3.0%
Utilities 1.6%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United States 39.5%
United Kingdom 12.1%
Japan 8.9%
Canada 5.3%
People's Republic of China 4.8%
Australia 4.0%
Hong Kong 3.5%
Netherlands 3.1%
France 3.0%
Germany 2.9%
Indonesia 2.4%
Russia 2.2%
Singapore 1.6%
Switzerland 1.5%
Brazil 1.0%
Mexico 1.0%
Other (individually less than 1%) 3.2%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. HSBC Holding Plc 2.93%
--------------------------------------------------------------------------------
2. JPMorgan Chase & Co. 2.72
--------------------------------------------------------------------------------
3. Imperial Tobacco Group Plc 2.70
--------------------------------------------------------------------------------
4. BP Amoco Plc 2.39
--------------------------------------------------------------------------------
5. Merck & Co., Inc. 2.29
--------------------------------------------------------------------------------
6. United Technologies Corp. 2.25
--------------------------------------------------------------------------------
7. Lukoil Holding (A.D.R.) 2.21
--------------------------------------------------------------------------------
8. Allianz AG 2.15
--------------------------------------------------------------------------------
9. Hewlett-Packard Co. 2.11
--------------------------------------------------------------------------------
10. GlaxoSmithKline Plc 2.10
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
8 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
Prices and Distributions | 2/28/11
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/11 8/31/10
--------------------------------------------------------------------------------
A $ 10.26 $ 8.44
--------------------------------------------------------------------------------
B $ 10.10 $ 8.30
--------------------------------------------------------------------------------
C $ 10.12 $ 8.31
--------------------------------------------------------------------------------
Y $ 10.30 $ 8.49
--------------------------------------------------------------------------------
Distributions per Share: 9/1/10-2/28/11
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ 0.0580 $ -- $ --
--------------------------------------------------------------------------------
B $ -- $ -- $ --
--------------------------------------------------------------------------------
C $ -- $ -- $ --
--------------------------------------------------------------------------------
Y $ 0.1065 $ -- $ --
--------------------------------------------------------------------------------
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. It is not possible to
invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 10-13.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 9
Performance Update | 2/28/11 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Equity Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) World
Index.
Average Annual Total Returns
(As of February 28, 2011)
-------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
-------------------------------------------------------------------------
Life-of-Class
(12/15/05) 2.96% 1.80%
5 Years 2.22 1.01
1 Year 16.09 9.44
-------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
-------------------------------------------------------------------------
Gross Net
-------------------------------------------------------------------------
1.71% 1.30%
-------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI
Equity Fund World Index
12/05 9,425 10,000
2/06 9,840 10,437
2/07 11,516 12,152
2/08 11,861 12,147
2/09 6,400 6,467
2/10 9,461 10,035
2/11 10,983 12,274
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 for Class A shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
Performance Update | 2/28/11 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Equity Fund, compared to that of the Morgan
Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of February 28, 2011)
------------------------------------------------------------------
If If
Period Held Redeemed
------------------------------------------------------------------
Life-of-Class
(12/15/05) 2.03% 2.03%
5 Years 1.30 1.30
1 Year 15.03 11.03
------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
------------------------------------------------------------------
Gross Net
------------------------------------------------------------------
2.93% 2.20%
------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI
Equity Fund World Index
12/05 10,000 10,000
2/06 10,420 10,437
2/07 12,087 12,152
2/08 12,334 12,147
2/09 6,591 6,467
2/10 9,661 10,035
2/11 11,114 12,274
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 for Class B shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 11
Performance Update | 2/28/11 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Equity Fund, compared to that of the Morgan
Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of February 28, 2011)
------------------------------------------------------------------
If If
Period Held Redeemed
------------------------------------------------------------------
Life-of-Class
(12/15/05) 2.06% 2.06%
5 Years 1.33 1.33
1 Year 15.13 15.13
------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
------------------------------------------------------------------
Gross Net
------------------------------------------------------------------
2.54% 2.20%
------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI
Equity Fund World Index
12/05 10,000 10,000
2/06 10,420 10,437
2/07 12,077 12,152
2/08 12,334 12,147
2/09 6,599 6,467
2/10 9,667 10,035
2/11 11,130 12,274
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 for Class C shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
Performance Update | 2/28/11 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer Global Equity Fund, compared to that of the Morgan
Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of February 28, 2011)
------------------------------------------------------------------
If If
Period Held Redeemed
------------------------------------------------------------------
Life-of-Class
(12/15/05) 2.60% 2.60%
5 Years 1.85 1.85
1 Year 16.72 16.72
------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
------------------------------------------------------------------
Gross Net
------------------------------------------------------------------
0.96% 0.80%
------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global MSCI
Equity Fund World Index
12/05 5,000,000 5,000,000
2/06 5,220,220 5,218,657
2/07 6,070,690 6,075,782
2/08 6,171,891 6,073,670
2/09 3,293,997 3,233,397
2/10 4,900,826 5,017,608
2/11 5,720,211 6,136,952
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for periods prior to the inception of the Fund's Class Y
shares on December 31, 2008 reflects the NAV performance of the Fund's Class A
shares. The performance does not reflect differences in expenses, including the
Rule 12b-1 fees applicable to Class A shares. Since fees for Class A shares are
generally higher than those of Class Y shares, the performance for Class Y
shares prior to their inception would have been higher than the performance
shown. Class Y shares are not subject to sales charges and are available for
limited groups of eligible investors, including institutional investors. All
results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 for Class Y shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments and
redemption fees.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global Equity Fund
Based on actual returns from September 1, 2010 through February 28, 2011.
----------------------------------------------------------------------------------
Share Class A B C Y
----------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 9/1/10
----------------------------------------------------------------------------------
Ending Account $1,222.80 $1,216.90 $1,217.80 $1,226.30
Value on 2/28/11
----------------------------------------------------------------------------------
Expenses Paid $7.27 $12.20 $12.21 $4.53
During Period*
----------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. These combined totals were 1.32%, 2.22%,
2.22%, and 0.82% for Class A, Class B, Class C, and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period, and then multiplied by 181/365 (to reflect the
one-half year period) to calculate the Expenses Paid During Period in the
table above.
14 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) or redemption fees that are charged at the time of the
transaction. Therefore, the table below is useful in comparing ongoing costs
only and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs were included, your
costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global Equity Fund
Based on a hypothetical 5% return before expenses, reflecting the period from
September 1, 2010 through February 28, 2011.
----------------------------------------------------------------------------------
Share Class A B C Y
----------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 9/1/10
----------------------------------------------------------------------------------
Ending Account $1,018.25 $1,013.79 $1,013.79 $1,020.73
Value on 2/28/11
----------------------------------------------------------------------------------
Expenses Paid $6.61 $11.08 $11.08 $4.11
During Period*
----------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying funds. These combined totals were 1.32%, 2.22%,
2.22%, and 0.82% for Class A, Class B, Class C, and Class Y shares,
respectively. These combined ratios were multiplied by the average account
value over the period, and then multiplied by 181/365 (to reflect the
one-half year period) to calculate the Expenses Paid During Period in the
table above.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 15
Schedule of Investments | 2/28/11 (unaudited)
-------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------
COMMON STOCKS -- 95.6%
ENERGY -- 11.8%
Coal & Consumable Fuels -- 0.5%
146,627 Paladin Energy, Ltd.* $ 747,394
-------------------------------------------------------------------------
Integrated Oil & Gas -- 9.0%
440,645 BP Amoco Plc $ 3,553,187
13,862 Chevron Corp. 1,438,183
24,400 ConocoPhillips 1,900,028
46,300 Lukoil Holding, Ltd. (A.D.R.)* 3,296,097
1,182,000 PetroChina Co., Ltd.* 1,612,073
20,000 Petroleo Brasileiro SA (A.D.R.)* 796,600
21,000 Total SA 1,288,648
------------
$ 13,884,816
-------------------------------------------------------------------------
Oil & Gas Drilling -- 1.4%
37,700 Ensco Plc (A.D.R.) $ 2,114,970
-------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.9%
200 Inpex Corp.* $ 1,407,242
------------
Total Energy $ 18,154,422
-------------------------------------------------------------------------
MATERIALS -- 7.5%
Construction Materials -- 0.5%
475,500 PT Indocement Tunggal Prakarsa Tbk $ 777,444
-------------------------------------------------------------------------
Diversified Metals & Mining -- 2.7%
53,000 BHP Billiton, Ltd. $ 2,505,074
13,400 Rio Tinto, Ltd.* 1,170,076
22,436 Xstrata Plc 510,858
------------
$ 4,186,008
-------------------------------------------------------------------------
Forest Products -- 2.0%
139,400 Sino-Forest Corp.* $ 3,115,637
-------------------------------------------------------------------------
Gold -- 0.8%
20,600 Anglogold Ashanti, Ltd. (A.D.R.)* (b) $ 1,006,104
76,200 Centamin Egypt, Ltd.* 147,288
------------
$ 1,153,392
-------------------------------------------------------------------------
Specialty Chemicals -- 1.5%
38,400 Nitto Denko Corp.* $ 2,322,594
------------
Total Materials $ 11,555,075
-------------------------------------------------------------------------
CAPITAL GOODS -- 9.1%
Aerospace & Defense -- 2.2%
40,027 United Technologies Corp. $ 3,343,856
-------------------------------------------------------------------------
Construction & Engineering -- 1.1%
585,000 China Railways Construction Corp.* $ 656,977
5,200 Fluor Corp. 367,952
22,500 KBR, Inc. 738,000
------------
$ 1,762,929
-------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
----------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 1.0%
1,153,033 Industrea, Ltd.* $ 1,572,315
----------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.4%
57,900 Fushi Copperweld, Inc.* (b) $ 563,367
----------------------------------------------------------------------------------
Industrial Conglomerates -- 2.6%
17,200 3M Co. $ 1,586,356
71,700 Philips Electronics NV 2,340,472
------------
$ 3,926,828
----------------------------------------------------------------------------------
Industrial Machinery -- 0.8%
15,300 SPX Corp. $ 1,220,328
----------------------------------------------------------------------------------
Trading Companies & Distributors -- 1.0%
153,200 Itochu Corp.* $ 1,592,231
------------
Total Capital Goods $ 13,981,854
----------------------------------------------------------------------------------
TRANSPORTATION -- 0.7%
Highways & Railtrack -- 0.7%
2,142,900 GZI Transportation, Ltd.* $ 1,136,898
------------
Total Transportation $ 1,136,898
----------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 3.0%
Auto Parts & Equipment -- 1.1%
235,400 China XD Plastics Co.*(b) $ 1,676,048
----------------------------------------------------------------------------------
Automobile Manufacturers -- 1.9%
15,800 Daimlerchrysler AG*(b) $ 1,113,044
46,400 Ford Motor Corp.* 698,320
26,700 Honda Motor Co., Ltd. (A.D.R.)*(b) 1,166,523
------------
$ 2,977,887
------------
Total Automobiles & Components $ 4,653,935
----------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.1%
Apparel, Accessories & Luxury Goods -- 0.4%
1,432,000 China Dongxiang Group Co., Ltd. $ 544,931
----------------------------------------------------------------------------------
Homebuilding -- 0.7%
117,835 Gafisa SA* $ 722,884
11,200 Hajime Construction Co., Ltd.* 374,894
------------
$ 1,097,778
------------
Total Consumer Durables & Apparel $ 1,642,709
----------------------------------------------------------------------------------
MEDIA -- 3.3%
Advertising -- 1.7%
194,429 WPP Group Plc $ 2,676,412
----------------------------------------------------------------------------------
Cable & Satellite -- 1.1%
35,900 Comcast Corp. $ 924,784
29,300 SES SA (A.D.R.)* 754,412
------------
$ 1,679,196
----------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 17
Schedule of Investments | 2/28/11 (unaudited) (continued)
---------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------
Publishing -- 0.5%
246,700 Singapore Press Holdings, Ltd. $ 753,259
------------
Total Media $ 5,108,867
---------------------------------------------------------------------
RETAILING -- 1.5%
Automotive Retail -- 1.1%
20,000 USS Co., Ltd.* $ 1,620,134
---------------------------------------------------------------------
General Merchandise Stores -- 0.4%
12,600 Target Corp. $ 662,130
------------
Total Retailing $ 2,282,264
---------------------------------------------------------------------
FOOD & DRUG RETAILING -- 2.6%
Drug Retail -- 0.8%
29,300 Shoppers Drug Mart Corp.* $ 1,244,575
---------------------------------------------------------------------
Hypermarkets & Supercenters -- 1.8%
53,312 Wal-Mart Stores, Inc. $ 2,771,158
------------
Total Food & Drug Retailing $ 4,015,733
---------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 3.6%
Agricultural Products -- 0.2%
574,000 Chaoda Modern Agriculture, Ltd. (b) $ 370,618
---------------------------------------------------------------------
Distillers & Vintners -- 0.8%
59,700 Constellation Brands, Inc.* $ 1,213,104
---------------------------------------------------------------------
Tobacco -- 2.6%
125,100 Imperial Tobacco Group Plc $ 4,022,307
------------
Total Food, Beverage & Tobacco $ 5,606,029
---------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 1.4%
Household Products -- 1.4%
35,300 Procter & Gamble Co.* $ 2,225,665
------------
Total Household & Personal Products $ 2,225,665
---------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.0%
Health Care Equipment -- 1.0%
15,300 Covidien, Ltd. $ 787,185
20,249 Medtronic, Inc.* 808,340
------------
$ 1,595,525
------------
Total Health Care Equipment & Services $ 1,595,525
---------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 6.9%
Pharmaceuticals -- 6.9%
162,500 GlaxoSmithKline Plc $ 3,125,727
25,360 Johnson & Johnson 1,558,118
104,900 Merck & Co., Inc. 3,416,593
30,000 Novartis International AG 1,685,322
11,557 Sanofi-Aventis SA 797,915
------------
$ 10,583,675
------------
Total Pharmaceuticals & Biotechnology $ 10,583,675
---------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------
BANKS -- 13.6%
Diversified Banks -- 12.6%
151,400 Bangkok Bank Plc $ 797,496
1,225,600 Bank Mandiri 807,305
3,054,000 Bank Negara Indonesia Persero Tbk PT* 1,231,435
6,000,000 Bank Pembangunan Daerah Jawa* 777,660
1,679,785 China Construction Bank 1,473,545
396,300 HSBC Holding Plc 4,364,382
3,938,605 Industrial and Commercial Bank of China* 3,033,797
22,371 National Bank of Canada (b) 1,724,088
43,600 Sumitomo Mitsui Financial Group, Inc.* 1,651,312
20,750 Toronto-Dominion Bank*(b) 1,736,092
52,000 United Overseas Bank 740,036
34,952 Wells Fargo & Co. 1,127,552
------------
$ 19,464,700
------------------------------------------------------------------------
Regional Banks -- 1.0%
24,100 PNC Bank Corp. $ 1,486,970
------------
Total Banks $ 20,951,670
------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.5%
Asset Management & Custody Banks -- 0.4%
4,800 Franklin Resources, Inc. $ 602,976
------------------------------------------------------------------------
Diversified Financial Services -- 3.4%
241,100 Citigroup, Inc.* $ 1,128,348
86,600 JPMorgan Chase & Co. 4,043,354
------------
$ 5,171,702
------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.5%
27,000 Morgan Stanley Co. $ 801,360
------------------------------------------------------------------------
Multi-Sector Holding -- 1.2%
2,363,300 First Pacific Co.* $ 1,880,997
------------
Total Diversified Financials $ 8,457,035
------------------------------------------------------------------------
INSURANCE -- 3.7%
Multi-Line Insurance -- 2.1%
22,204 Allianz AG $ 3,200,120
------------------------------------------------------------------------
Property & Casualty Insurance -- 1.6%
40,400 The Traveler Companies, Inc. $ 2,421,172
------------
Total Insurance $ 5,621,292
------------------------------------------------------------------------
REAL ESTATE -- 0.6%
Real Estate Development -- 0.6%
608,000 Wheelock Properties (Singapore), Ltd.* $ 876,290
------------
Total Real Estate $ 876,290
------------------------------------------------------------------------
SOFTWARE & SERVICES -- 3.6%
Home Entertainment Software -- 1.0%
75,700 Capcom Co., Ltd.* $ 1,463,710
------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 19
Schedule of Investments | 2/28/11 (unaudited) (continued)
----------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------
Systems Software -- 2.6%
100,219 Microsoft Corp. $ 2,663,821
42,200 Oracle Corp. 1,388,380
------------
$ 4,052,201
------------
Total Software & Services $ 5,515,911
----------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 8.8%
Communications Equipment -- 0.8%
50,000 Nokia Corp. (A.D.R.) (b) $ 431,500
13,216 Qualcomm, Inc. 787,409
------------
$ 1,218,909
----------------------------------------------------------------------------
Computer Hardware -- 4.6%
7,585 Apple, Inc.* $ 2,679,098
82,358 Dell, Inc.* 1,303,727
72,100 Hewlett-Packard Co. 3,145,723
------------
$ 7,128,548
----------------------------------------------------------------------------
Computer Storage & Peripherals -- 1.5%
46,734 Gemalto NV* $ 2,323,243
----------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.4%
90,600 Hon Hai Precision Industry Co., Ltd. (G.D.R.)* $ 669,469
----------------------------------------------------------------------------
Office Electronics -- 0.5%
63,200 Xerox Corp. $ 679,400
----------------------------------------------------------------------------
Technology Distributors -- 1.0%
18,900 Arrow Electronics, Inc.* $ 740,880
37,300 Ingram Micro, Inc.* 743,389
------------
$ 1,484,269
------------
Total Technology Hardware & Equipment $ 13,503,838
----------------------------------------------------------------------------
SEMICONDUCTORS -- 1.9%
Semiconductor Equipment -- 1.5%
52,500 ASM Lithography Holding NV* $ 2,277,818
----------------------------------------------------------------------------
Semiconductors -- 0.4%
36,500 Marvell Technology Group, Ltd.* $ 667,220
------------
Total Semiconductors $ 2,945,038
----------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.9%
Integrated Telecommunication Services -- 1.0%
32,900 Nippon Telegraph & Telephone Corp.* $ 1,610,238
----------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.9%
510,300 America Movil SA de CV $ 1,464,421
76,300 China Mobile, Ltd. 719,915
8,300 Millicom International Cellular SA* 727,080
------------
$ 2,911,416
------------
Total Telecommunication Services $ 4,521,654
----------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
---------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------
UTILITIES -- 1.5%
Electric Utilities -- 0.5%
17,800 Exelon Corp. $ 743,328
---------------------------------------------------------------------------------------
Water Utilities -- 1.0%
1,972,200 Guangdong Investment, Ltd. $ 1,002,653
1,712,000 Manila Water Co, Inc.* 632,998
------------
$ 1,635,651
------------
Total Utilities $ 2,378,979
---------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $132,834,294) $147,314,358
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
Principal
Amount ($)
---------------------------------------------------------------------------------------
CORPORATE BONDS -- 0.0%
BANKS -- 0.0%
Diversified Banks -- 0.0%
18,000 NBP Capital Trust III, 7.375%, 10/29/49 $ 15,750
---------------------------------------------------------------------------------------
Total Banks $ 15,750
---------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $14,585) $ 15,750
---------------------------------------------------------------------------------------
Shares
---------------------------------------------------------------------------------------
EXCHANGE TRADED FUND -- 1.0%
35,200 SPDR Russell/Nomura $ 1,590,336
---------------------------------------------------------------------------------------
TOTAL EXCHANGE TRADED FUND
(Cost $1,464,032) $ 1,590,336
---------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 6.2%
Securities Lending Collateral -- 6.2% (c)
Certificates of Deposit:
223,949 Banco Santander NY, 0.49%, 3/14/11 $ 223,949
279,936 Bank of Nova Scotia, 0.33%, 9/29/11 279,936
223,949 BBVA Group NY, 0.37%, 3/8/11 223,949
195,955 BBVA Group NY, 0.86%, 7/26/11 195,955
55,987 BBVA Group NY, 0.45%, 3/14/11 55,987
279,936 BNP Paribas Bank NY, 0.34%, 5/9/11 279,936
279,936 Canadian Imperial Bank of Commerce NY, 0.25%, 4/27/11 279,936
279,936 DnB NOR Bank ASA NY, 0.25%, 3/7/11 279,936
139,961 National Australia Bank NY, 0.32%, 10/19/11 139,961
279,936 Nordea NY, 0.3%, 4/13/11 279,936
279,936 RaboBank Netherland NV NY, 0.33%, 8/8/11 279,936
279,936 Royal Bank of Canada NY, 0.4%, 12/2/11 279,936
279,936 Skandinav Enskilda Bank NY, 0.38%, 6/7/11 279,936
279,936 Svenska NY, 0.28%, 5/12/11 279,936
279,936 Westpac Banking Corp. NY, 0.4%, 12/6/11 279,936
------------
$ 3,639,161
---------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 21
Schedule of Investments | 2/28/11 (unaudited) (continued)
---------------------------------------------------------------------------------------
Principal
Amount ($)
---------------------------------------------------------------------------------------
Commercial Paper:
111,974 American Honda Finance, 0.35%, 1/11/12 $ 111,974
112,242 American Honda Finance, 1.05%, 6/20/11 112,242
102,729 Australia & New Zealand Banking Group, 0.91%, 8/4/11 102,729
284,819 Caterpillar Financial Services Corp., 1.05%, 6/24/11 284,819
143,780 FAIRPP, 0.27%, 3/7/11 143,780
279,951 Federal Home Loan Bank, 0.33%, 6/1/11 279,951
27,987 General Electric Capital Corp., 0.38%, 6/6/11 27,987
139,992 General Electric Capital Corp., 0.39%, 4/28/11 139,992
223,838 HSBC, 0.25%, 5/11/11 223,838
134,491 JPMorgan Chase & Co., 0.43%, 12/21/11 134,491
98,196 JPMorgan Chase & Co., 1.05%, 6/13/11 98,196
279,915 OLDLLC, 0.27%, 3/11/11 279,915
139,906 SOCNAM, 0.37%, 4/14/11 139,906
139,877 SOCNAM, 0.37%, 5/3/11 139,877
279,936 Toyota Motor Credit Corp., 0.4%, 9/8/11 279,936
167,899 VARFUN, 0.27%, 4/20/11 167,899
167,962 Wachovia, 0.40%, 3/22/11 167,962
112,032 Wachovia, 0.43%, 10/15/11 112,032
------------
$ 2,947,526
---------------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
398,539 Barclays Capital Plc, 0.18%, 3/1/11 $ 398,539
559,872 Deutsche Bank Securities, Inc., 0.17%, 3/1/11 559,872
559,872 HSBC Bank USA NA, 0.18%, 3/1/11 559,872
559,872 RBS Securities, Inc., 0.18%, 3/1/11 559,872
------------
$ 2,078,155
---------------------------------------------------------------------------------------
Shares
Money Market Mutual Funds:
419,904 Dreyfus Preferred Money Market Fund $ 419,904
419,904 Fidelity Prime Money Market Fund 419,904
------------
$ 839,808
------------
Total Securities Lending Collateral $ 9,504,650
---------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $9,504,650) $ 9,504,650
---------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 102.8%
(Cost $143,817,561) (a)(d) $158,425,094
---------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (2.8)% $ (4,350,626)
---------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $154,074,468
=======================================================================================
(A.D.R.) American Depositary Receipt
(G.D.R.) Global Depositary Receipt
* Non-income producing security.
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
(a) At February 28, 2011, the net unrealized gain on investments based on
cost for federal income tax purposes of $145,148,973 was as follows:
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $17,213,176
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (3,937,055)
-----------
Net unrealized gain $13,276,121
===========
(b) At February 28, 2011, the following security was out on loan:
--------------------------------------------------------------------------------
Shares Security Value
--------------------------------------------------------------------------------
20,000 Anglogold Ashanti, Ltd. (A.D.R.)* $ 976,800
234,000 Chaoda Modern Agriculture, Ltd. 152,100
232,300 China XD Plastics Co.* 1,653,976
15,000 Daimlerchrysler AG* 1,056,750
57,300 Fushi Copperweld, Inc.* 557,529
26,400 Honda Motor Co., Ltd. (A.D.R.)* 1,153,416
21,000 National Bank of Canada 1,618,470
49,500 Nokia Corp. (A.D.R.) 427,185
19,000 Toronto-Dominion Bank* 1,589,730
--------------------------------------------------------------------------------
Total $9,185,956
================================================================================
(c) Securities lending collateral is managed by Credit Suisse AG, New York
Branch.
(d) Distributions of investments by country of issue, as a percentage of
total investment in securities (excluding temporary cash investments),
is as follows:
United States 39.5%
United Kingdom 12.1%
Japan 8.9%
Canada 5.3%
People's Republic of China 4.8%
Australia 4.0%
Hong Kong 3.5%
Netherlands 3.1%
France 3.0%
Germany 2.9%
Indonesia 2.4%
Russia 2.2%
Singapore 1.6%
Switzerland 1.5%
Brazil 1.0%
Mexico 1.0%
Other (individually less than 1%) 3.2%
-----
100.0%
=====
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 23
Schedule of Investments | 2/28/11 (unaudited) (continued)
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended February 28, 2011 aggregated $175,923,200 and
$178,156,910, respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below. Highest
priority is given to Level 1 inputs and lowest priority is given to Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of February 28, 2011, in
valuing the Fund's assets:
--------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------
Common Stocks $74,600,192 $72,714,166 $ -- $147,314,358
Corporate Bonds -- 15,750 -- 15,750
Exchange Traded Fund 1,590,336 -- -- 1,590,336
Temporary Cash Investments -- 8,664,842 -- 8,664,842
Money Market Mutual Funds 839,808 -- -- 839,808
--------------------------------------------------------------------------------------
Total $77,030,336 $81,394,758 $ -- $158,425,094
--------------------------------------------------------------------------------------
Other Financial Instruments* $ -- $ (5,894) $ -- $ (5,894)
======================================================================================
* Other financial instruments include foreign exchange contracts.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
Statement of Assets and Liabilities | 2/28/11 (unaudited)
ASSETS:
Investment in securities (including securities loaned of $9,185,956)
(cost $143,817,561) $158,425,094
Cash 2,778,194
Foreign currencies, at value (cost $385,121) 381,513
Receivables --
Investment securities sold 1,982,711
Fund shares sold 57,648
Dividends, interest and foreign taxes withheld 391,103
Due from Pioneer Investment Management, Inc. 14,005
Other 36,475
---------------------------------------------------------------------------------------
Total assets $164,066,743
---------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 143,197
Fund shares repurchased 135,735
Upon return of securities loaned 9,504,650
Forward foreign currency settlement contracts, net 5,894
Due to affiliates 49,050
Accrued expenses 153,749
---------------------------------------------------------------------------------------
Total liabilities $ 9,992,275
---------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $196,978,482
Undistributed net investment income 466,942
Accumulated net realized loss on investments and foreign currency
transactions (57,977,033)
Net unrealized gain on investments 14,607,533
Net unrealized loss on other assets and liabilities denominated in
foreign currencies (1,456)
---------------------------------------------------------------------------------------
Total net assets $154,074,468
=======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $72,447,928/7,058,392 shares) $ 10.26
Class B (based on $5,664,361/560,689 shares) $ 10.10
Class C (based on $7,663,084/757,537 shares) $ 10.12
Class Y (based on $68,299,095/6,634,032 shares) $ 10.30
MAXIMUM OFFERING PRICE:
Class A ($10.26 [divided by] 94.25% ) $ 10.89
=======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 25
Statement of Operations (unaudited)
For the Six Months Ended 2/28/11
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $49,805) $ 1,237,181
Interest 11,401
Income from securities loaned, net 71,789
--------------------------------------------------------------------------------------------------------
Total investment income $ 1,320,371
--------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 552,249
Transfer agent fees
Class A 123,698
Class B 21,625
Class C 13,005
Class Y 153
Distribution fees
Class A 86,527
Class B 29,141
Class C 35,449
Shareholder communications expense 48,283
Administrative reimbursements 23,473
Custodian fees 30,542
Registration fees 38,379
Professional fees 24,036
Printing expense 8,483
Fees and expenses of nonaffiliated trustees 4,781
Miscellaneous 13,790
--------------------------------------------------------------------------------------------------------
Total expenses $ 1,053,614
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (201,068)
--------------------------------------------------------------------------------------------------------
Net expenses $ 852,546
--------------------------------------------------------------------------------------------------------
Net investment income $ 467,825
--------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $15,595,248
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (493,606) $15,101,642
--------------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $13,484,112
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (8,835) $13,475,277
--------------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $28,576,919
--------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $29,044,744
========================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
Statements of Changes in Net Assets
For the Six Months Ended 2/28/11 and the Year Ended 8/31/10, respectively
-------------------------------------------------------------------------------------------------
Six Months
Ended
2/28/11 Year Ended
(unaudited) 8/31/10
-------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 467,825 $ 1,402,150
Net realized gain on investments and foreign currency
transactions 15,101,642 12,022,435
Change in net unrealized gain (loss) on investments and foreign
currency transactions 13,475,277 (15,096,865)
-------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $ 29,044,744 $ (1,672,280)
-------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.06 and $0.03 per share, respectively) $ (415,946) $ (203,491)
Class B ($0.00 and $0.00 per share, respectively) -- --
Class C ($0.00 and $0.00 per share, respectively) -- --
Class Y ($0.11 and $0.05 per share, respectively) (711,220) (372,349)
-------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (1,127,166) $ (575,840)
-------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 5,787,668 $ 10,121,527
Reinvestment of distributions 411,192 195,488
Cost of shares repurchased (11,904,766) (21,899,281)
-------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from Fund
share transactions $ (5,705,906) $(11,582,266)
-------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 22,211,672 $(13,830,386)
NET ASSETS:
Beginning of period 131,862,796 145,693,182
-------------------------------------------------------------------------------------------------
End of period $154,074,468 $131,862,796
=================================================================================================
Undistributed net investment income $ 466,942 $ 1,126,283
=================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 27
Statements of Changes in Net Assets (continued)
--------------------------------------------------------------------------------------------
'11 Shares '11 Amount '10 Shares '10 Amount
(unaudited) (unaudited)
--------------------------------------------------------------------------------------------
Class A
Shares sold 430,604 $ 4,198,142 615,218 $ 6,093,640
Reinvestment of distributions 40,573 398,433 20,447 189,737
Less shares repurchased (691,893) (6,735,080) (1,617,227) (14,587,783)
--------------------------------------------------------------------------------------------
Net decrease (220,716) $(2,138,505) (981,562) $(8,304,406)
============================================================================================
Class B
Shares sold 16,419 $ 157,619 55,616 $ 549,379
Reinvestment of distributions -- -- -- --
Less shares repurchased (128,946) (1,231,763) (326,553) (2,926,878)
--------------------------------------------------------------------------------------------
Net decrease (112,527) $(1,074,144) (270,937) $(2,377,499)
============================================================================================
Class C
Shares sold 92,415 $ 890,724 123,259 $ 1,162,452
Reinvestment of distributions -- -- -- --
Less shares repurchased (71,043) (690,314) (202,072) (1,796,016)
--------------------------------------------------------------------------------------------
Net increase (decrease) 21,372 $ 200,410 (78,813) $ (633,564)
============================================================================================
Class Y
Shares sold 57,077 $ 541,183 208,730 $ 2,316,056
Reinvestment of distributions 1,295 12,759 619 5,751
Less shares repurchased (337,302) (3,247,609) (288,865) (2,588,604)
--------------------------------------------------------------------------------------------
Net decrease (278,930) $(2,693,667) (79,516) $ (266,797)
============================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
Financial Highlights
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
2/28/11 Year Ended Year Ended Year Ended Year Ended 12/15/05 (a)
(unaudited) 8/31/10 8/31/09 8/31/08 8/31/07 to 8/31/06
-----------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 8.44 $ 8.56 $ 10.42 $ 12.53 $11.18 $ 10.00
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.03 $ 0.08 $ 0.07 $ 0.14 $ 0.08 $ 0.07
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 1.85 (0.17) (1.76) (1.38) 1.53 1.11
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.88 $ (0.09) $ (1.69) $ (1.24) $ 1.61 $ 1.18
Distribution to shareowners:
Net investment income (0.06) (0.03) (0.17) (0.11) (0.05) --
Net realized gain -- -- -- (0.76) (0.21) --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.82 $ (0.12) $ (1.86) $ (2.11) $ 1.35 $ 1.18
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.26 $ 8.44 $ 8.56 $ 10.42 $12.53 $ 11.18
===================================================================================================================================
Total return* 22.28% (1.13)% (15.83)% (10.68)% 14.58% 11.80%(b
Ratio of net expenses to average net assets+ 1.30%** 1.30% 1.30% 1.31% 1.30% 1.30%**
Ratio of net investment income to average net assets+ 0.49%** 0.82% 0.69% 1.30% 1.05% 1.42%**
Portfolio turnover rate 248%** 114% 120% 137% 74% 35%(b)
Net assets, end of period (in thousands) $72,448 $61,466 $70,718 $ 3,060 $2,562 $ 832
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for fees
paid indirectly:
Net expenses 1.66%** 1.71% 2.25% 4.61% 6.11% 11.05%**
Net investment income (loss) 0.13%** 0.41% (0.26)% (2.00)% (3.76)% (8.33)%**
Ratios with waiver of fees by the Adviser and
reduction for fees paid indirectly:
Net expenses 1.30%** 1.30% 1.30% 1.30% 1.30% 1.30%**
Net investment income 0.49%** 0.82% 0.69% 1.31% 1.05% 1.42%**
===================================================================================================================================
(a) Class A shares were first publicly offered on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 29
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
2/28/11 Year Ended Year Ended Year Ended Year Ended 12/15/05 (a)
(unaudited) 8/31/10 8/31/09 8/31/08 8/31/07 to 8/31/06
-----------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 8.30 $ 8.47 $ 10.28 $12.37 $11.10 $10.00
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $(0.01) $ 0.00(c) $ (0.02) $ 0.03 $ 0.00(c) $ 0.03
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 1.81 (0.17) (1.70) (1.36) 1.49 1.07
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.80 $(0.17) $ (1.72) $(1.33) $ 1.49 $ 1.10
Distribution to shareowners:
Net investment income -- -- (0.09) -- (0.01) --
Net realized gain -- -- -- (0.76) (0.21) --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.80 $(0.17) $ (1.81) $(2.09) $ 1.27 $ 1.10
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.10 $ 8.30 $ 8.47 $10.28 $12.37 $11.10
===================================================================================================================================
Total return* 21.69% (2.01)% (16.57)% (11.46)% 13.55% 11.00%(b)
Ratio of net expenses to average net assets+ 2.20%** 2.20% 2.20% 2.21% 2.20% 2.20%**
Ratio of net investment income (loss) to average
net assets+ (0.41)%** 0.11% (0.01)% 0.41% 0.12% 0.45%**
Portfolio turnover rate 248%** 114% 120% 137% 74% 35%(b)
Net assets, end of period (in thousands) $5,664 $5,587 $ 7,994 $1,403 $1,200 $ 549
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for fees
paid indirectly:
Net expenses 2.85%** 2.93% 4.14% 5.37% 6.84% 11.40%**
Net investment income (loss) (1.06)%** 0.84% (1.95)% (2.75)% (4.52)% (8.75)%**
Ratios with waiver of fees by the Adviser and
reduction for fees paid indirectly:
Net expenses 2.20%** 2.20% 2.20% 2.20% 2.20% 2.20%**
Net investment income (loss) (0.41)%** 0.11% (0.01)% 0.42% 0.12% 0.45%**
===================================================================================================================================
(a) Class B shares were first publicly offered on December 15, 2005.
(b) Not annualized.
(c) Amount rounds to less than $0.01 per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
2/28/11 Year Ended Year Ended Year Ended Year Ended 12/15/05 (a)
(unaudited) 8/31/10 8/31/09 8/31/08 8/31/07 to 8/31/06
------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 8.31 $ 8.48 $ 10.26 $ 12.39 $11.10 $10.00
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $(0.02) $ 0.00(d) $ (0.04) $ 0.03 $ 0.01 $ 0.03
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 1.83 (0.17) (1.68) (1.36) 1.49 1.07
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.81 $(0.17) $ (1.72) $ (1.33) $ 1.50 $ 1.10
Distribution to shareowners:
Net investment income -- -- (0.06) (0.04) -- --
Net realized gain -- -- -- (0.76) (0.21) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.81 $(0.17) $ (1.78) $ (2.13) $ 1.29 $ 1.10
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.12 $ 8.31 $ 8.48 $ 10.26 $12.39 $11.10
====================================================================================================================================
Total return* 21.78% (2.00)% (16.58)% (11.47)% 13.65% 11.00%(b)
Ratio of net expenses to average net assets+ 2.20%** 2.20% 2.20% 2.21% 2.20% 2.20%**
Ratio of net investment income (loss) to average
net assets+ (0.41)%** (0.07)% 0.00%(c) 0.35% 0.12% 0.45%**
Portfolio turnover rate 248%** 114% 120% 137% 74% 35%(b)
Net assets, end of period (in thousands) $7,663 $6,118 $ 6,910 $ 818 $ 780 $ 445
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for fees
paid indirectly:
Net expenses 2.51%** 2.54% 3.76% 5.45% 6.70% 10.98%**
Net investment income (loss) (0.72)%** (0.41)% (1.56)% (2.89)% 4.38% (8.33)%**
Ratios with waiver of fees by the Adviser and
reduction for fees paid indirectly:
Net expenses 2.20%** 2.20% 2.20% 2.20% 2.20% 2.20%**
Net investment income (loss) (0.41%)** 0.07% 0.00%(c) 0.36% 0.12% 0.45%**
====================================================================================================================================
(a) Class C shares were first publicly offered on December 15, 2005.
(b) Not annualized.
(c) Amount rounds to less than 0.01%.
(d) Amount rounds to less than $0.01 per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 31
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------
Six Months
Ended Year
2/28/11 Ended 12/31/08 (a)
(unaudited) 8/31/10 to 8/31/09
----------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 8.49 $ 8.59 $ 7.25
----------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.05 $ 0.12 $ 0.06
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 1.86 (0.17) 1.28
----------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.91 $ (0.05) $ 1.34
Distribution to shareowners:
Net investment income (0.11) (0.05) --
Net realized gain -- -- --
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.81 $ (0.10) $ 1.34
----------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.30 $ 8.49 $ 8.59
====================================================================================================
Total return* 22.63% (0.59)% 18.48%(b)
Ratio of net expenses to average net assets+ 0.80%** 0.80% 0.80%**
Ratio of net investment income to average net assets+ 0.99%** 1.33% 2.57%**
Portfolio turnover rate 248%** 114% 120%
Net assets, end of period (in thousands) $68,299 $58,692 $60,071
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for fees
paid indirectly:
Net expenses 0.95%** 0.96% 1.10%**
Net investment income 0.84%** 1.17% 2.27%**
Ratios with waiver of fees by the Adviser and reduction
for fees paid indirectly:
Net expenses 0.80%** 0.80% 0.80%**
Net investment income 0.99%** 1.33% 2.57%**
====================================================================================================
(a) Class Y shares were first publicly offered on December 31, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, 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 Global Equity Fund | Semiannual Report | 2/28/11
Notes to Financial Statements | 2/28/11 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Global Equity Fund, formerly Pioneer Global Select Equity Fund (the
Fund), is one of four portfolios comprising Pioneer Series Trust V, a Delaware
statutory trust. The Fund is registered under the Investment Company Act of
1940 as an open-end management investment company. The Fund commenced
operations on December 15, 2005. The Fund's investment objective is to seek
long-term capital growth.
The Fund offers four classes of shares designated as Class A, Class B, Class C
and Class Y shares. Class Y shares were first publicly offered on December 31,
2008. Effective as of the close of business on December 31, 2009, Class B
shares are no longer offered to new or existing shareholders, except that
dividends and/or capital gain distributions may continue to be reinvested in
Class B shares, and shareholders may exchange their Class B shares for Class B
shares of other Pioneer funds, as permitted by existing exchange privileges.
Each class of shares represents an interest in the same portfolio of
investments of the Fund and has identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of
different dividends from net investment income earned by each class. The
Amended and Restated Declaration of Trust of the Fund gives the Board the
flexibility to specify either per-share voting or dollar-weighted voting when
submitting matters for shareholder approval. Under per-share voting, each share
of a class of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares. Class B shares convert to Class A shares
approximately eight years after the date of purchase.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates and economic and political
conditions. At times, the Fund's investments may represent industries or
industry sectors that are interrelated or have common risks, making the Fund
more susceptible to any economic, political, or regulatory developments or
other risks affecting those industries and sectors. The Fund's prospectus
contains unaudited information regarding the Fund's principal risks. Please
refer to that document when considering the Fund's principal risks.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 33
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities that have traded on an exchange are valued
using the last sale price on the principal exchange where they are traded.
Securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices. Securities for which market prices
and/or quotations are not readily available or are considered to be
unreliable are valued using fair value methods pursuant to procedures
adopted by the Board of Trustees.
The Fund invests primarily in securities of non-U.S. issuers. The principal
exchanges and markets for such securities have closing times prior to the
close of the NYSE. However, the value of these securities may be influenced
by changes in global markets occurring after the closing times of the local
exchanges and markets up to the time the Fund determines its net asset
value. Consequently, the Board of Trustees of the Fund has determined that
daily adjustments to the valuation of securities of non-U.S. issuers by an
independent pricing service that supplies an appropriate fair value factor
is appropriate for the Fund.
The Fund may also use fair value methods if it is determined that a
significant event has occurred after the close of the exchange or market on
which the security trades and prior to the determination of the Fund's net
asset value. Thus, the valuation of the Fund's securities may differ from
exchange prices.
At February 28, 2011, there were no securities that were valued using fair
value methods (other than securities that were valued using prices supplied
by independent pricing services). Inputs used when applying fair value
methods to value a security may include credit ratings, the financial
condition of the company, current market conditions and comparable
securities.
34 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
Short-term fixed income securities with remaining maturities of sixty days
or less generally are valued at amortized cost. Money market mutual funds
are valued at net asset value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis. Dividend and
interest income are reported net of unrecoverable foreign taxes withheld at
the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years remain subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain on investment transactions,
or as from paid-in capital, depending on the type of book/tax differences
that may exist.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
paid during the year ended August 31, 2010 was as follows:
--------------------------------------------------------------------------------
2010
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $575,840
--------------------------------------------------------------------------------
Total $575,840
================================================================================
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 35
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2010:
--------------------------------------------------------------------------------
2010
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,126,283
Capital loss carryforward (71,747,263)
Unrealized depreciation (200,612)
--------------------------------------------------------------------------------
Total $(70,821,592)
================================================================================
The difference between book-basis and tax-basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales and tax basis
adjustments on partnerships.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $3,570 in underwriting commissions on the sale of Class A shares
during the six months ended February 28, 2011.
D. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates. Net realized gains and losses on foreign currency
transactions, if any, represent, among other things, the net realized gains
and losses on foreign currency contracts, disposition of foreign currencies
and the difference between the amount of income accrued and the U.S. dollars
actually received. Further, the effects of changes in foreign currency
exchange rates on investments are not segregated in the statement of
operations from the effects of changes in market price of those securities
but are included with the net realized and unrealized gain or loss on
investments.
E. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized gains or losses are recorded in
the Fund's financial statements. The Fund records realized gains and losses
at the time a portfolio hedge is offset by entry into a closing transaction
or extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (see Note 6).
36 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively (see Note 4). Class Y shares do not pay distribution fees.
Shareowners of each class participate in all expenses and fees paid to the
transfer agent, Pioneer Investment Management Shareholder Services, Inc.
(PIMSS), for its services, which are allocated among the classes of shares
based on the number of accounts in each class and the ratable allocation of
related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class B, Class C and Class Y shares
can reflect different transfer agent and distribution expense rates.
G. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors. When entering into a securities loan
transaction, the Fund typically receives cash collateral from the borrower
equal to at least the value of the securities loaned, which is invested in
temporary investments. Credit Suisse AG, New York Branch, as the Fund's
securities lending agent, manages the Fund's securities lending collateral.
The income earned on the investment of collateral is shared with the
borrower and the lending agent in payment of any rebate due to the borrower
with respect to the securities loan, and in compensation for the lending
agent's services to the Fund. The Fund also continues to receive payments in
lieu of dividends or interest on the securities loaned. Gain or loss on the
value of the loaned securities that may occur during the term of the loan
will be for the account of the Fund. The amount of the collateral is
required to be adjusted daily to reflect any price fluctuation in the value
of the loaned securities. If the required market value of the collateral is
less than the value of the loaned securities, the borrower is required to
deliver additional collateral for the account of the Fund prior to the close
of business on that day. The Fund has the right, under the lending
agreement, to terminate the loan and recover the securities from the
borrower with prior notice. The Fund is required to return the cash
collateral to the borrower and could suffer a loss if the value of the
collateral, as invested, has declined.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 37
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary
of UniCredit, manages the Fund's portfolio. Management fees are calculated
daily at the annual rate of 0.75% of the Fund's average daily net assets up to
$500 million, 0.70% of the next $500 million and 0.65% on assets over $1
billion. For the six months ended February 28, 2011, the effective management
fee (excluding waivers and/or assumption of expenses) was equivalent to 0.75%
of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund
to the extent required to reduce the Fund's expenses to 1.30%, 2.20%, 2.20%,
and 0.80% of the average daily net assets attributable to Class A, Class B,
Class C and Class Y shares, respectively. Expenses waived during the six months
ended February 28, 2011 are reflected on the Statement of Operations. These
expense limitations are in effect through January 1, 2012 for each class of
shares. There can be no assurance that PIM will extend the expense limitation
agreement for a class of shares beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$10,341 in management fees, administrative costs and certain other
reimbursements payable to PIM at February 28, 2011.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the six months ended February 28, 2011, such out-of-pocket expenses by
class of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $35,934
Class B 4,771
Class C 6,899
Class Y 679
--------------------------------------------------------------------------------
Total: $48,283
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $36,144 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 28, 2011.
38 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B and Class C
shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the
average daily net assets attributable to Class B and Class C shares. The fee
for Class B and Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class
C shares. Included in "Due to affiliates" reflected on the Statement of Assets
and Liabilities is $2,565 in distribution fees payable to PFD at February 28,
2011.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase (within 12 months for purchases made on or after
April 1, 2009). Class B shares that are redeemed within five years of purchase
are subject to a CDSC at declining rates beginning at 4.00%, based on the lower
of cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%, based on the lower
of cost or market value of shares being redeemed. Shares purchased as part of
an exchange remain subject to any CDSC that applied to the original purchase of
those shares. There is no CDSC for Class Y shares. Proceeds from the CDSCs are
paid to PFD. For the six months ended February 28, 2011, CDSCs in the amount of
$2,220 were paid to PFD.
5. Expense Offsets Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended February 28, 2011, the Fund's
expenses were not reduced under such arrangements.
6. Forward Foreign Currency Contracts
At February 28, 2011, the Fund had entered into various forward foreign
currency contracts that obligate the Fund to deliver or take delivery of
currencies at specified future maturity dates. Alternatively, prior to the
settlement date of a forward foreign currency contract, the Fund may close out
such contract by entering into an offsetting contract. The average value of
contracts open during the six months ended February 28, 2011 was $634,196,748.
Open portfolio hedges at February 28, 2011 were as follows:
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 39
---------------------------------------------------------------------------------------------------
Net Net
Contracts In Settlement Unrealized
Currency to deliver Exchange For Date Value Gain
---------------------------------------------------------------------------------------------------
EUR 2,000,000 $ 2,617,148 3/31/11 $ 2,758,058 $ 140,910
(European Euro)
EUR (2,000,000) $(2,628,808) 3/31/11 $(2,758,698) $(129,890)
(European Euro)
JPY (400,000,000) $(4,883,170) 3/31/11 $(4,890,800) $ (7,630)
(Japanese Yen)
JPY 400,000,000 $ 4,900,141 3/31/11 $ 4,890,800 $ (9,341)
(Japanese Yen) ---------
$ 5,951
The Fund's gross forward currency settlement contracts receivable and payable
were $143,197 and $143,140, respectively, resulting in a net receivable of $57.
7. Additional Disclosures about Derivative Instruments and Hedging Activities
Values of derivative instruments as of February 28, 2011 were as follows:
-----------------------------------------------------------------------------------------
Derivatives Not Accounted Asset Derivatives 2011 Liabilities Derivatives 2011
for as Hedging ------------------------ -------------------------------
Instruments Under
Accounting Standards Balance Balance
Codification (ASC) 815 Sheet Sheet
(formerly FASB Statement 133) Location Value Location Value
-----------------------------------------------------------------------------------------
Foreign Exchange Contracts Receivables $ -- Payables* $5,894
-----------------------------------------------------------------------------------------
Total $ -- $5,894
-----------------------------------------------------------------------------------------
* Foreign Exchange Contracts are shown as a net payable on the Statement of
Assets and Liabilities.
The effect of derivative instruments on the Statement of Operations for the six
months ended February 28, 2011 was as follows:
-------------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Change in
Hedging Instruments Realized Gain Unrealized
Under Accounting or (Loss) on Gain or (Loss)
Standards Codification Location of Gain or (Loss) Derivatives on Derivatives
(ASC) 815 (formerly FASB On Derivatives Recognized Recognized Recognized
Statement 133) in Income in Income in Income
-------------------------------------------------------------------------------------------------
Foreign Exchange Contracts Net realized loss on forward $(175,115)
foreign currency contracts and
other assets and liabilities
denominated in foreign currencies
Foreign Exchange Contracts Change in unrealized loss on $(5,894)
forward foreign currency contracts
and other assets and liabilities
denominated in foreign currencies
40 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
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 Global Equity Fund | Semiannual Report | 2/28/11 41
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Global Equity Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether
to renew the investment advisory agreement for the Fund.
The contract review process began in March 2010 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the
process. In July 2010, 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 July 2010 and
September 2010. After reviewing and discussing the materials, the Trustees
submitted a request for additional information to PIM, 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, 2010 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 16, 2010, 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. In
addition, the Trustees considered the arrangements put in place to retain key
investment and other personnel. The Trustees also considered the substantial
42 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
attention and high priority given by PIM's senior management to the Pioneer
fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers 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, 2010, and in the fourth
quintile of its Morningstar category for the three year period ended June 30,
2010. (In all quintile rankings referred to throughout this disclosure, first
quintile is most favorable to the Fund's shareowners. Thus, highest relative
performance would be first quintile and lowest relative expenses would also be
first quintile.) The Trustees discussed the reasons for the Fund's
underperformance with PIM in view of the Fund's investment approach and the
market conditions present during the relevant periods. The Trustees agreed that
they would continue to monitor the performance of the Fund closely.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund
in comparison to the management fees of its peer group of funds as classified
by Morningstar and the expense ratios of a peer group of funds selected on the
basis of criteria determined by the Independent Trustees for this purpose using
data provided by Strategic Insight Mutual Trust Research and Consulting, LLC
(Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2010 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 the breakpoints in the management fee schedule and
the reduced fee rates above certain asset levels. The Trustees considered that
the Fund's expense ratio for the twelve months ended June 30, 2010 was
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 43
in the first quintile relative to its Strategic Insight peer group for the
comparable period.
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 and the
contractual expense limitation agreed to by PIM with respect to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with funds and fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify and that, among other factors that may be relevant, are the following:
fee levels, expense subsidization, investment by PIM in research and analytical
capabilities and PIM's commitment and resource allocation to the Funds. The
Trustees noted that profitability also may be an indicator of the availability
of any economies of scale, although profitability may vary for other reasons
particularly, for example during the recent difficult periods for financial
markets, as
44 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
the level of services was maintained notwithstanding a significant decline in
PIM's fee revenues from the Funds. Accordingly, the Trustees concluded that
economies of scale, if any, were being appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits to 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 Global Equity Fund | Semiannual Report | 2/28/11 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 Christopher J. Kelley, Secretary
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at http://www.sec.gov.
46 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
This page for your notes.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 47
This page for your notes.
48 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
This page for your notes.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 49
This page for your notes.
50 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
This page for your notes.
Pioneer Global Equity Fund | Semiannual Report | 2/28/11 51
This page for your notes.
52 Pioneer Global Equity Fund | Semiannual Report | 2/28/11
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.
[LOGO]PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2011 Pioneer Investments 19129-05-0411
Pioneer High Income
Municipal Fund
--------------------------------------------------------------------------------
Semiannual Report | February 28, 2011
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PIMAX
Class C HICMX
Class Y HIMYX
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 25
Notes to Financial Statements 32
Approval of Investment Advisory Agreement 38
Trustees, Officers and Service Providers 42
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 1
President's Letter
Dear Shareowner,
In 2010, the U.S. economy moved forward on a slow path to recovery. But with
the memory of a deep recession still lingering, businesses and consumers
remained cautious about both investing and spending. While business
fundamentals showed signs of improvement, there was still a reluctance to hire,
and high unemployment remained a problem throughout the year. Wary investors,
concerned about risk, gravitated towards cash and bonds for most of 2010, until
better economic news in the final few months of the year caused a slight shift
in investor sentiment back towards stocks, thus lifting equity returns.
Pioneer remains generally optimistic about the prospects for economic recovery.
The recovery process may occur more slowly than many would like, and may be
accompanied by short-term market swings. But our investment professionals are
finding good opportunities to invest in both equities and bonds.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. The strategy has generally performed well for many
investors. For instance, bond markets certainly rewarded investors for most of
2010, while equity markets barely budged, even though equity valuations were
inexpensive relative to bonds and compared with historic levels -- conditions
which represented potentially good value for long-term investors. Ultimately,
many of those long-term investors were rewarded when the equity markets finally
rallied over the last few months of 2010.
Pioneer has not changed the basic 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. Our experienced professionals devote themselves to the careful research
needed to identify investment opportunities in markets around the world.
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
2 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
your individual needs. There is no single best strategy that works for every
investor.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
www.pioneerinvestments.com. We greatly appreciate your trust in us and we thank
you for investing with Pioneer.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 3
Portfolio Management Discussion | 2/28/11
Concerns about the financial health of American cities and towns undermined the
performance of municipal bonds during the six months ended February 28, 2011,
although market sentiment appeared to improve toward the end of the period. In
the following interview, Timothy Pynchon, vice president at Pioneer and lead
portfolio manager of Pioneer High Income Municipal Fund, discusses the factors
that affected the municipal bond market and the Fund's performance over the
six-month period. Mr. Pynchon is responsible for the day-to-day management of
the Fund and is supported by David Eurkus, vice president at Pioneer.
Q How did the Fund perform during the six-month period ended February 28, 2011?
A Pioneer High Income Municipal Fund Class A shares returned -4.48% at net
asset value during the six months ended February 28, 2011, while the Fund's
benchmark, the Barclays Capital High Yield Municipal Bond Index (the
Barclays Index), returned -3.23%. Over the same period, the average return
of the 126 mutual funds in Lipper's High Yield Municipal Debt Funds
category was -5.45%. As of February 28, 2011, the Fund's Class A shares
provided a 30-day SEC yield of 7.30%. As of February 28, 2011, 24.37% of
the Fund's investments were subject to the federal Alternative Minimum Tax,
and the Fund held investments in 179 bond issues from 30 states.
Q What was the investment environment like for high-yield municipal bond
investments during the six months ended February 28, 2011?
A The period began with positive results through October 2010, continuing the
favorable trend that had driven good performance by high-yield municipal
investments for most of 2010. Market sentiment abruptly shifted to the
negative in November, however, following the well-publicized remarks by one
financial analyst warning of the possibility of widespread bankruptcies by
municipalities. While we did not share that view, the remarks nevertheless
cast a shadow over the municipal market, including high-yield issues,
especially in November and December of 2010 when investor money flowed out
of the municipal bond market. That said, the high-yield market did rebound
in early 2011 on the heels of some better news, including an announced tax
deal between Congress and President Obama that extended the Bush-era tax
rates, which were set to expire on December 31, 2010.
Throughout the six-month period, our view was that the negative sentiment
that hindered the market's overall performance was not justified. We
4 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
believed that while budget shortfalls existed for many state and municipal
governments, the chances of widespread defaults and bankruptcies were very
small. We believed tougher government austerity programs were more likely
and that state and local governments had many ways to raise revenues or
reduce expenditures to avoid defaulting on their debt obligations.
Moreover, there are significant legal impediments to bankruptcy filings.
States, for example, do not have the authority to file for bankruptcy.
Q What were your investment strategies for the Fund during the six months ended
February 28, 2011, and how did they affect the Fund's performance?
A We maintained a consistent posture in the Fund's portfolio, completely
avoiding general obligation bonds, which are financed by municipal tax
revenue and are more directly exposed to the general financial problems of
state and local governments. Instead, we focused the Fund's assets
exclusively on revenue bonds, which rely on revenues from specific funding
sources. In particular, we emphasized investments in four sectors that
produce their own fees and revenues: airlines and airports; continuing care
retirement communities (CCRCs); industrial development bonds for corporate
projects; and bonds backed by court settlements from tobacco liability
cases. As of February 28, 2011, approximately 25% of the Fund's assets were
invested airline and airport bonds; about 25% of assets were invested in
CCRC bonds; about 10% to 11% were in bonds backed by corporate revenues;
and 12% of assets were invested in bonds backed by revenues from tobacco
court settlement bonds. We believed that all of those securities had the
potential to perform well in 2011, given our view that the economic rebound
was likely to continue, thus supporting the funding sources of the revenue
bonds in which we had invested the Fund's assets. Our investment discipline
relies heavily on independent fundamental analysis. We analyze both the
credit-worthiness of each bond issuer and the reliability and
sustainability of each revenue stream before we invest in a security.
The Fund's return trailed that of the benchmark Barclays Index over the
six-month period primarily because of investments in tobacco bonds, which
are not part of the benchmark and which underperformed over the period. In
general, we apply a buy-and-hold strategy when investing the Fund's assets,
buying securities for the longer term after we have subjected them to
intense analysis. We invest the Fund in more volatile tobacco bonds,
however, to give us the opportunity to move the Fund in and out of the
sector as conditions change and as we see opportunities either to increase
the positions at attractive valuations or to reduce the positions after
periods of stronger performance. While the Fund underperformed its
benchmark during the six-month period, the focus on revenue bonds rather
than general obligation securities helped the Fund outperform its Lipper
peer group.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 5
As of February 28, 2011, the Fund held no investments in general obligation
bonds.
Q What is your investment outlook?
A We think that the securities in which we have invested the Fund have the
potential to perform well in 2011, especially given our belief that the
economy will continue to strengthen and that the Federal Reserve's monetary
policy will keep short-term interest rates at low levels to accommodate
further growth. We also believe that there is value in the municipal bond
market, as the tax-advantaged yields of municipal securities compare very
favorably with yields offered by the taxable bond sectors. Moreover, we
think that revenue bonds offer a unique opportunity to take advantage of
the recent sell-off in the municipal market, as many solid bonds are
selling at discounted prices while continuing to provide predictable,
healthy income. We may have to wait for retail investors to recognize once
again the values in the high-yield municipal market, but we believe that
those investors are likely to return to the market as the economy continues
to strengthen, as the worst-case scenarios for municipals fail to
materialize, and as high-yield bonds maintain their generous income
streams.
Please refer to the Schedule of Investments on pages 15-24 for a full listing
of Fund securities.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. The Fund may invest in securities of issuers that
are in default or that are in bankruptcy.
A portion of the Fund's income may be subject to state, federal, and/or
alternative minimum tax. Capital gains, if any, are subject to a capital gains
tax. The Fund is not diversified, which means that it can invest a higher
percentage of its assets in any one issuer than a diversified fund. Being
non-diversified may magnify the Fund's losses from adverse events affecting a
particular issuer. By investing primarily in municipal securities, the Fund is
more susceptible to adverse economic, political or regulatory developments than
is a fund that invests more broadly.
When interest rates rise, the prices of fixed-income securities in the Fund
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise. Investments in the
Fund are subject to possible loss due to the financial failure of issuers of
underlying securities and their inability to meet their debt obligations. At
times, the Fund's investments may represent industries or industry sectors that
are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
6 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
Past performance is not a guarantee of future results, and there is no
guarantee that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 7
Portfolio Summary | 2/28/11
Portfolio Quality
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
AAA 0.7%
AA 0.7%
A 3.0%
BBB 14.1%
BB & Lower 81.0%
Commercial Paper 0.5%
Bond ratings are ordered highest to lowest in portfolio. Based on Standard &
Poor's measures, AAA (highest possible rating) through BBB are considered
investment grade; BB or lower ratings are considered non-investment grade. Cash
equivalents and some bonds may not be rated.
Maturity Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
<1 Year 1.3%
1-3 Years 1.0%
3-6 Years 10.5%
6-8 Years 12.4%
8-10 Years 14.1%
10+ Years 60.7%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of debt holdings)*
1. Chicago Illinois O'Hare International Airport, 5.5%, 12/1/30 3.97%
2. Michigan Tobacco Settlement Finance, 6.0%, 6/1/48 3.96
3. Tobacco Settlement Financing Corp., 5.0%, 6/1/47 3.88
4. Pennsylvania Economic Development Financing Authority, 6.0%, 6/1/31 2.80
5. Greater Orlando Aviation Authority, 6.5%, 11/15/36 2.32
6. Illinois Finance Authority, 8.125%, 2/15/40 2.29
7. Illinois Finance Authority, 8.25%, 5/15/45 2.28
8. New York City Industrial Development Agency, 5.25%, 12/1/32 2.20
9. Dallas-Fort Worth International Airport, 5.5%, 11/1/30 2.11
10. Buckeye Ohio Tobacco Settlement, 6.5%, 6/1/47 1.93
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
8 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
Prices and Distributions | 2/28/11
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 2/28/11 8/31/10
--------------------------------------------------------------------------------
A $ 7.36 $ 7.97
--------------------------------------------------------------------------------
C $ 7.37 $ 7.96
--------------------------------------------------------------------------------
Y $ 7.29 $ 7.88
--------------------------------------------------------------------------------
Distributions per Share: 9/1/10-2/28/11
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ 0.2580 $ -- $ --
--------------------------------------------------------------------------------
C $ 0.2286 $ -- $ --
--------------------------------------------------------------------------------
Y $ 0.2649 $ -- $ --
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Barclays Capital High Yield Municipal Bond Index measures the performance
of the high-yield municipal bond market. Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. You cannot invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts shown on pages 10-12.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 9
Performance Update | 2/28/11 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment in Pioneer High Income Municipal Fund at public offering price,
compared to that of the Barclays Capital High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 28, 2011)
------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
------------------------------------------------------------------------------
Life-of-Class
(10/17/06) -0.31% -1.35%
1 Year 3.32 -1.34
------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
------------------------------------------------------------------------------
Gross Net
------------------------------------------------------------------------------
0.95% 0.90%
------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MTN/LINE CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Barclays Capital
High Income High Yield
Municipal Fund Municipal Bond Index
-------------- --------------------
10/06 9550 10000
2/07 9909 10270
2/08 8948 9569
2/09 6836 7805
2/10 9095 9878
2/11 9397 10337
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/12 for Class A shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
Performance Update | 2/28/11 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer High Income Municipal Fund, compared to that of the
Barclays Capital High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 28, 2011)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) -1.17% -1.17%
1 Year 2.77 2.77
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.69% 1.69%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MTN/LINE CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Barclays Capital
High Income High Yield
Municipal Fund Municipal Bond Index
-------------- --------------------
10/06 10000 10000
2/07 10329 10270
2/08 9219 9569
2/09 6990 7805
2/10 9217 9878
2/11 9471 10337
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitation currently in
effect through 1/1/12 for Class C shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 11
Performance Update | 2/28/11 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer High Income Municipal Fund, compared to that of the
Barclays Capital High Yield Municipal Bond Index.
Average Annual Total Returns
(As of February 28, 2011)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) -0.48% -0.48%
1 Year 3.81 3.81
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2010)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.67% 0.67%
--------------------------------------------------------------------------------
Value of $5 Million Investment
Pioneer Barclays Capital
High Income High Yield
Municipal Fund Municipal Bond Index
-------------- --------------------
10/06 5000000 5000000
2/07 5187054 5135163
2/08 4644234 4784639
2/09 3552200 3902577
2/10 4701409 4939057
2/11 4880716 5168354
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.
12 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on actual returns from September 1, 2010 through February 28, 2011.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/10
--------------------------------------------------------------------------------
Ending Account Value $ 955.20 $ 954.00 $ 958.10
(after expenses) on 2/28/11
--------------------------------------------------------------------------------
Expenses Paid $ 4.27 $ 7.95 $ 3.30
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.88%, 1.64% and
0.68% for Class A, Class C and Class Y shares, respectively, multiplied by
the average account value over the period, multiplied by 181/365 (to reflect
the one-half year period).
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 13
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from September 1, 2010 through February 28, 2011.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 9/1/10
--------------------------------------------------------------------------------
Ending Account Value $ 1,020.43 $ 1,016.66 $ 1,021.42
(after expenses) on 2/28/11
--------------------------------------------------------------------------------
Expenses Paid $ 4.41 $ 8.20 $ 3.41
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.88%, 1.64% and
0.68% for Class A, Class C and Class Y shares, respectively, multiplied by
the average account value over the period, multiplied by 181/365 (to reflect
the one-half year period).
14 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
Schedule of Investments | 2/28/11 (unaudited)
-------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (c) Ratings Value
-------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.8%
Various States -- 0.1%
1,175,000 12.00 NR/NR Non-Profit Preferred Funding Various
States, Floating Rate Note, 9/15/37 $ 717,020
-------------------------------------------------------------------------------------------------
Alabama -- 2.0%
6,275,000 B/B2 Alabama Industrial Development Authority,
6.45%, 12/1/23 $ 5,914,501
2,000,000 NR/NR Huntsville-Redstone VLG Alabama,
6.875%, 1/1/43 1,681,720
1,000,000 B-/Caa2 Jefferson County Alabama Public Building,
5.125%, 4/1/19 820,020
985,000 B-/Caa2 Jefferson County Public Building Authority,
5.125%, 4/1/17 809,936
3,000,000 B-/Caa2 Jefferson County Public Building Authority,
5.125%, 4/1/18 2,463,510
2,000,000 B-/Caa2 Jefferson County Public Building Authority,
5.125%, 4/1/21 1,637,040
------------
$ 13,326,727
-------------------------------------------------------------------------------------------------
Arizona -- 1.0%
2,000,000 NR/NR Pima County Arizona Development
Authority, 7.0%, 1/1/38 $ 1,772,180
750,000 NR/NR Pima County Arizona, 8.5%, 7/1/39 772,838
4,000,000 NR/NR San Luis Facility Development Corp.,
8.375%, 5/1/27 3,915,560
------------
$ 6,460,578
-------------------------------------------------------------------------------------------------
California -- 4.6%
334,656 NR/NR California Statewide, 9.0%, 12/1/38 $ 19,243
1,000,000 BBB/NR California Statewide Communities
Development Authority, 7.25%, 11/15/41 1,043,760
2,000,000 NR/NR California Statewide Communities,
7.5%, 6/1/42 2,013,080
2,500,000 NR/NR City of Alhambra California,
7.625%, 1/1/40 2,526,300
4,810,000 A-/NR Compton Community Redevelopment
Agency, 6.0%, 8/1/42 4,281,333
15,000,000 BBB-/Baa3 Foothill-Eastern Transportation,
0.0%, 1/15/33 2,478,450
10,000,000 BBB-/Baa3 Foothill-Eastern Transportation,
0.0%, 1/15/36 1,320,500
83,415,000 B/NR Golden State Tobacco Securitization Co.,
0.0%, 6/1/47 1,793,423
2,000,000 B-/Caa2 Los Angeles California REG, 7.5%,
12/1/24 2,004,040
10,000,000 AA+/Aa3 Oceanside Unified School, 0.0%, 8/1/40 1,287,200
10,020,000 AA+/Aa3 Oceanside Unified School, 0.0%, 8/1/41 1,206,909
28,055,000 AA+/Aa3 Oceanside Unified School, 0.0%, 8/1/49 1,831,430
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 15
Schedule of Investments | 2/28/11 (unaudited) (continued)
------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (c) Ratings Value
------------------------------------------------------------------------------------------------
California -- (continued)
5,000,000 A+/WR Pittsburg Redevelopment, 0.0%, 8/1/28 $ 1,369,850
9,145,000 A+/WR Pittsburg Redevelopment, 0.0%, 8/1/30 2,119,445
2,900,000 A+/WR Pittsburg Redevelopment Agency,
0.0%, 8/1/25 1,030,631
47,875,000 AA-/Aa3 Westside Union School District,
0.0%, 8/1/50 3,070,224
8,090,000 A/Aa2 Yuba Community College District,
0.0%, 8/1/42 828,659
------------
$ 30,224,477
------------------------------------------------------------------------------------------------
Colorado -- 2.7%
1,055,000 NR/NR Colorado Educational, 5.625%, 12/1/36 $ 787,737
2,000,000 BB/Ba2 Colorado Health Facilities Authority,
5.75%, 1/1/37 1,637,740
3,900,000 BBB/NR Denver Health, 1.333%, 12/1/33 2,537,496
10,000,000 NR/NR Kremmling Memorial Hospital District,
7.125%, 12/1/45 9,199,000
3,500,000 NR/NR Three Springs Metropolitan District,
7.75%, 12/1/39 3,266,375
------------
$ 17,428,348
------------------------------------------------------------------------------------------------
Florida -- 7.0%
15,000,000 BBB/A2 County of Miami-Dade Florida,
0.0%, 10/1/30 $ 3,859,800
17,470,000 A+/A2 County of Miami-Dade Florida,
0.0%, 10/1/40 2,095,177
950,000 NR/NR Florida Housing Finance Corp.,
6.75%, 2/15/12 949,269
4,300,000 NR/NR Florida Housing Finance Corp.,
7.25%, 8/15/27 4,171,602
4,050,000 BB+/NR Florida Keys College Campus Foundation,
Inc., 7.0%, 11/1/42 3,842,964
1,000,000 NR/NR Greater Orlando Aviation Authority,
6.375%, 11/15/26 939,960
15,965,000 NR/NR Greater Orlando Aviation Authority,
6.5%, 11/15/36 14,820,310
2,380,000 NR/NR Hillsborough County Florida Industrial
Development, 6.75%, 7/1/29 2,118,962
2,910,000 NR/NR Hillsborough County, 6.5%, 7/1/29 2,550,208
1,465,000 NR/NR Hillsborough County Industrial,
6.7%, 7/1/21 1,429,488
4,200,000 BB/NR Lee County Florida Industrial Development
Authority, 5.375%, 6/15/37 3,139,038
1,920,000 NR/NR Liberty County Florida, 8.25%, 7/1/28 1,884,672
4,700,000 NR/NR Palm Beach County Health Facilities
Authority, 5.875%, 11/15/37 4,151,510
------------
$ 45,952,960
------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
-------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (c) Ratings Value
-------------------------------------------------------------------------------------------------
Georgia -- 2.9%
6,000,000 CCC+/NR Clayton County Development,
8.75%, 6/1/29 $ 6,736,020
4,500,000 CCC+/NR Clayton County Development Authority,
9.0%, 6/1/35 4,808,655
3,150,000 NR/NR Fulton County Georgia Water and Sewer
Revenue, 5.0%, 7/1/27 2,124,455
8,500,000 NR/NR Fulton County Georgia Water and Sewer
Revenue, 5.125%, 7/1/42 5,076,795
------------
$ 18,745,925
-------------------------------------------------------------------------------------------------
Hawaii -- 0.4%
1,500,000 NR/NR Hawaii State Department Budget,
7.5%, 11/15/15 $ 1,515,105
1,000,000 NR/NR Hawaii State Department Budget,
9.0%, 11/15/44 1,102,580
------------
$ 2,617,685
-------------------------------------------------------------------------------------------------
Iowa -- 1.3%
4,495,000 NR/NR Iowa Finance Authority Senior Housing,
5.625%, 12/1/45 $ 2,653,668
1,455,000 NR/NR Iowa Finance Authority, 5.0%, 11/15/12 1,381,755
4,250,000 BB/NR Iowa Finance Authority, 5.5%, 11/15/37 2,640,440
3,000,000 BBB/Baa3 Iowa Tobacco Settlement Authority,
5.375%, 6/1/38 2,123,700
------------
$ 8,799,563
-------------------------------------------------------------------------------------------------
Illinois -- 17.9%
33,500,000 NR/Caa2 Chicago Illinois O'Hare International
Airport, 5.5%, 12/1/30 $ 25,411,090
3,500,000 BB/B1 County of Cook Illinois, 6.5%, 10/15/40 3,537,065
1,690,000 NR/NR Illinois Finance Authority, 5.5%, 5/15/37 1,251,073
5,000,000 NR/NR Illinois Finance Authority,
5.625%, 2/15/37 3,814,750
4,500,000 BB/NR Illinois Finance Authority,
6.25%, 11/15/35 3,646,395
3,000,000 BB-/B1 Illinois Finance Authority,
6.5%, 10/15/40 3,031,770
1,625,000 NR/NR Illinois Finance Authority, 7.0%, 5/15/18 1,576,591
5,085,000 NR/NR Illinois Finance Authority,
7.625%, 5/15/25 4,843,310
1,400,000 NR/NR Illinois Finance Authority,
7.75%, 5/15/30 1,322,566
1,265,000 NR/NR Illinois Finance Authority, 8.0%, 2/15/30 1,212,730
5,545,000 NR/NR Illinois Finance Authority, 8.0%, 5/15/40 5,235,035
10,740,000 NR/NR Illinois Finance Authority, 8.0%, 5/15/46 10,117,080
15,570,000 NR/NR Illinois Finance Authority,
8.125%, 2/15/40 14,658,529
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 17
Schedule of Investments | 2/28/11 (unaudited) (continued)
----------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (c) Ratings Value
----------------------------------------------------------------------------------------------
Illinois -- (continued)
4,500,000 BB/NR Illinois Finance Authority,
8.125%, 5/15/40 $ 4,299,390
12,925,000 NR/NR Illinois Finance Authority,
8.25%, 2/15/46 12,249,410
15,135,000 BB/NR Illinois Finance Authority,
8.25%, 5/15/45 14,566,372
3,360,000 NR/NR Southwestern Illinois Development
Authority Revenue, 5.625%, 11/1/26 2,267,933
2,500,000 NR/NR Southwestern Illinois Development
Authority Revenue, 6.625%, 6/1/37 2,161,875
1,000,000 NR/NR Upper Illinois River Valley Development
Authority, 7.25%, 11/15/40 892,590
1,200,000 NR/NR Upper Illinois River Valley Development
Authority, 7.375%, 11/15/45 1,074,612
------------
$117,170,166
----------------------------------------------------------------------------------------------
Indiana -- 1.1%
3,500,000 NR/NR City of Crown Point, 8.0%, 11/15/39 $ 3,308,690
715,000 B/Caa2 City of East Chicago, 5.5%, 9/1/28 588,938
1,500,000 BBB-/NR Hammond Local Public Improvement,
6.75%, 8/15/35 1,470,075
2,015,000 NR/NR St. Joseph County Industrial Education,
6.0%, 5/15/38 1,713,153
------------
$ 7,080,856
----------------------------------------------------------------------------------------------
Louisiana -- 0.8%
5,210,000 BBB-/Ba2 Louisiana Local Government
Environmental Facilities & Communities,
6.5%, 11/1/35 $ 5,302,894
----------------------------------------------------------------------------------------------
Massachusetts -- 2.2%
1,000,000 NR/NR Massachusetts Development Finance
Agency, 5.75%, 11/15/42 $ 539,900
2,500,000 NR/NR Massachusetts Development Finance
Agency, 7.25%, 6/1/16 2,504,550
500,000 NR/NR Massachusetts Development Finance
Agency, 7.5%, 6/1/29 486,430
2,000,000 NR/NR Massachusetts Development Finance
Agency, 7.875%, 6/1/44 1,963,360
500,000 BBB/NR Massachusetts Development Finance
Agency, 8.0%, 4/15/39 536,600
1,750,000 NR/NR Massachusetts Development,
5.5%, 11/15/22 1,102,325
3,000,000 NR/NR Massachusetts Development,
5.75%, 11/15/35 1,709,700
880,000 NR/NR Massachusetts Development,
7.625%, 10/15/37 831,028
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
-------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (c) Ratings Value
-------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
2,000,000 NR/NR Massachusetts State Development
Finance Agency, 6.75%, 10/25/37 $ 1,703,780
3,500,000 NR/NR Massachusetts State Health,
6.5%, 1/15/38 2,844,835
------------
$ 14,222,508
-------------------------------------------------------------------------------------------------
Maine -- 0.9%
6,250,000 NR/B2 Town of Rumford Maine,
6.875%, 10/1/26 $ 6,095,188
-------------------------------------------------------------------------------------------------
Michigan -- 7.3%
160,000 NR/NR Doctor Charles Drew Academy,
5.7%, 11/1/36 $ 98,074
3,000,000 BBB-/NR Flint Michigan International Academy,
5.75%, 10/1/37 2,372,790
4,315,000 NR/NR Michigan Finance Authority,
8.5%, 10/1/45 4,559,056
500,000 BBB-/NR Michigan Public Educational Facilities
Authority, 8.75%, 9/1/39 537,425
350,000 BB+/NR Michigan Public Educational Facilities,
7.25%, 4/1/20 357,312
2,020,000 BB+/NR Michigan Public Educational Facilities,
8.0%, 4/1/40 2,031,393
2,750,000 NR/NR Michigan State Hospital Finance Authority,
5.5%, 11/15/35 2,142,828
7,135,000 A/A2 Michigan Strategic Fund, 6.75%, 3/1/40 6,942,284
3,175,000 NR/NR Michigan Strategic Fund, 7.25%, 1/1/39 3,104,071
37,285,000 BBB/NR Michigan Tobacco Settlement Finance,
6.0%, 6/1/48 25,346,343
------------
$ 47,491,576
-------------------------------------------------------------------------------------------------
Minnesota -- 0.6%
1,500,000 NR/NR City of Brooklyn Park, 9.25%, 3/1/39 $ 1,623,945
2,260,000 NR/B2 City of International Falls Minnesota,
6.85%, 12/1/29 2,192,494
------------
$ 3,816,439
-------------------------------------------------------------------------------------------------
Missouri -- 1.4%
2,000,000 B+/Ba City of Manchester Missouri,
6.875%, 11/1/39 $ 1,942,540
2,000,000 BB/NR Community Memorial Hospital District,
6.68%, 12/1/34 1,967,000
4,500,000 NR/NR Kirkwood Industrial, 8.25%, 5/15/45 4,530,735
500,000 NR/Ca St. Louis Missouri Development Authority,
7.2%, 12/15/28 256,705
1,260,000 NR/Ca St. Louis Missouri Industrial Development
Revenue, 7.25%, 12/15/35 645,070
------------
$ 9,342,050
-------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 19
Schedule of Investments | 2/28/11 (unaudited) (continued)
----------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (c) Ratings Value
----------------------------------------------------------------------------------------------
Nebraska -- 0.1%
3,250,000 NR/NR Grand Island Nebraska Solid Waste,
7.0%, 6/1/23 $ 899,958
----------------------------------------------------------------------------------------------
New Jersey -- 4.8%
5,035,000 B/B3 New Jersey Economic Development
Authority Special Facility Revenue,
7.0%, 11/15/30 $ 5,036,007
3,960,000 B/B3 New Jersey Economic Development
Authority, 6.25%, 9/15/19 3,815,420
6,080,000 B/B3 New Jersey Economic Development
Authority, 6.25%, 9/15/29 5,669,722
8,990,000 B/B3 New Jersey Economic Development
Authority, 6.4%, 9/15/23 8,616,286
6,000,000 NR/NR New Jersey Economic Development
Authority, 6.625%, 1/1/37 5,222,220
8,400,000 B/NR Tobacco Settlement Financing Corp.,
0.0%, 6/1/41 357,000
4,125,000 BB+/Baa3 Tobacco Settlement Financing Corp.,
4.75%, 6/1/34 2,510,021
20,000 BB-/Baa3 Tobacco Settlement Financing Corp.,
5.0%, 6/1/41 11,971
------------
$ 31,238,647
----------------------------------------------------------------------------------------------
New Mexico -- 0.2%
1,000,000 NR/NR County of Otero New Mexico, 8.25%,
12/1/23 $ 991,180
----------------------------------------------------------------------------------------------
New York -- 8.5%
285,000 NR/NR Dutchess County Industrial Development,
7.25%, 3/1/19 $ 278,345
965,000 NR/NR Dutchess County New York Industrial
Development, 7.5%, 3/1/29 912,350
1,365,000 NR/NR Dutchess County New York Industrial
Development, 7.5%, 3/1/29 1,290,526
1,795,000 NR/NR Erie County Industrial Development
Agency, 9.25%, 10/1/30 1,923,181
8,000,000 NR/NR Erie County Industrial Development
Agency, 9.25%, 10/1/30 8,571,280
10,000,000 NR/NR Erie County Industrial Development
Agency, 9.25%, 10/1/30 10,714,100
5,750,000 NR/NR Erie County New York, 6.0%, 11/15/36 4,416,748
3,000,000 NR/NR Nassau County Industrial Development,
6.7%, 1/1/43 2,657,940
17,750,000 BB-/B1 New York City Industrial Development
Agency, 5.25%, 12/1/32 14,062,260
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
----------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (c) Ratings Value
----------------------------------------------------------------------------------------------
New York -- (continued)
8,600,000 CCC+/Caa2 New York City Industrial, 6.9%, 8/1/24 $ 7,610,140
3,650,000 B-/Caa3 New York City Transportation Finance,
5.125%, 5/15/30 2,931,279
------------
$ 55,368,149
----------------------------------------------------------------------------------------------
Ohio -- 6.0%
16,995,000 BB-/Baa3 Buckeye Ohio Tobacco Settlement,
6.5%, 6/1/47 $ 12,356,045
55,000,000 NR/NR Buckeye Tobacco Settlement Financing
Authority, 0.0%, 6/1/47 1,072,500
15,140,000 BB-/Baa3 Buckeye Tobacco Settlement Financing
Authority, 5.875%, 6/1/47 10,040,545
5,000,000 CCC+/B3 Cleveland Ohio Airport Revenue,
5.375%, 9/15/27 4,164,100
6,015,000 CCC+/B3 Cleveland Ohio Airport, 5.7%, 12/1/19 5,495,785
3,000,000 BBB+/Baa1 County of Butler Ohio, 5.75%, 11/1/40 2,606,940
1,510,000 B/Caa2 Ohio State Pollution Control Revenue,
5.6%, 8/1/32 1,200,948
1,020,000 B/Caa2 Ohio State Pollution Control Revenue,
5.65%, 3/1/33 827,516
1,250,000 B+/Ba3 State of Ohio, 5.75%, 4/1/35 1,122,613
1,065,000 NR/NR Tuscarawas County Ohio Hospital,
6.35%, 11/1/37 585,324
------------
$ 39,472,316
----------------------------------------------------------------------------------------------
Oklahoma -- 0.0%
85,000 BB/NR Jackson County Oklahoma Memorial
Hospital, 7.3%, 8/1/15 $ 85,014
----------------------------------------------------------------------------------------------
Pennsylvania -- 4.4%
2,005,000 CCC+/Caa3 Pennsylvania Economic Development,
7.5%, 5//1/20 $ 1,953,652
9,075,000 CCC+/Caa3 Pennsylvania Economic Development,
8.0%, 5/1/29 9,095,510
20,800,000 B/Caa2 Pennsylvania Economic Development
Financing Authority, 6.0%, 6/1/31 17,949,984
------------
$ 28,999,146
----------------------------------------------------------------------------------------------
Puerto Rico -- 0.1%
16,625,000 AA-/Aa2 Puerto Rico Sales Tax Financing Corp.,
0.0%, 8/1/56 $ 718,699
----------------------------------------------------------------------------------------------
Rhode Island -- 0.3%
2,100,000 NR/NR Central Falls Rhode Island Detention
Facility Corp., 7.25%, 7/15/35 $ 1,688,085
17,200,000 B/NR Tobacco Settlement, 0.0%, 6/1/52 378,400
------------
$ 2,066,485
----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 21
Schedule of Investments | 2/28/11 (unaudited) (continued)
---------------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (c) Ratings Value
---------------------------------------------------------------------------------------------------
Texas -- 12.9%
4,000,000 CCC+/NR Alliance Airport Authority Texas,
5.25%, 12/1/29 $ 2,831,600
1,305,000 CCC-/Ca Brazos River Authority Texas,
5.75%, 5/1/36 1,213,650
1,000,000 CCC+/B3 City of Houston Texas, 6.125%, 7/15/27 916,590
18,435,000 CCC+/NR Dallas-Fort Worth International Airport,
5.5%, 11/1/30 13,507,325
6,400,000 9.13 CCC+/Caa2 Dallas-Fort Worth Tex International Airport,
Floating Rate Note, 5/1/29 6,533,120
4,205,000 CCC+/Caa2 Dallas-Fort Worth Texas International
Airport Revenue, 6.375%, 5/1/35 3,297,183
248,873 NR/NR Gulf Coast Waste Disposal Authority Texas
Revenue, 7.0%, 12/1/36 14,310
5,030,000 BBB/Baa1 Harris County-Houston Sports Authority,
0.0%, 11/15/25 1,523,386
12,000,000 BBB/Baa1 Harris County-Houston Sports Authority,
0.0%, 11/15/28 2,848,800
9,685,000 BBB/Baa1 Harris County-Houston Sports Authority,
0.0%, 11/15/31 1,784,364
7,335,000 BBB/Baa1 Harris County-Houston Sports Authority,
0.0%, 11/15/32 1,194,651
5,000,000 BBB/Baa1 Harris County-Houston Sports,
0.0%, 11/15/31 921,200
5,000,000 BBB/Baa1 Harris County-Houston, 0.0%, 11/15/27 1,243,750
13,090,000 BBB/Baa1 Harris County-Houston, 0.0%, 11/15/29 2,804,140
6,825,000 NR/NR HFDC of Central Texas, 7.75%, 11/15/44 6,261,323
4,500,000 CCC+/B3 Houston Texas Airport Revenue,
6.75%, 7/1/29 4,380,615
3,120,000 CCC+/B3 Houston Texas Airport, 6.125%, 7/15/27 2,881,757
2,640,000 NR/NR Kinney County Public Facilities Corp.,
7.0%, 11/1/25 2,518,613
2,610,000 B+/B1 Port of Bay City Authority, 6.5%, 5/1/26 2,608,434
2,000,000 BB/Ba Tarrant County Cultural Education,
7.5%, 11/15/16 1,978,720
1,775,000 BB/NR Tarrant County Cultural Education,
8.0%, 11/15/28 1,695,675
2,250,000 NR/NR Tarrant County Cultural Education,
8.0%, 11/15/29 2,166,188
2,000,000 NR/NR Tarrant County Cultural Education,
8.125%, 11/15/39 1,911,820
8,000,000 NR/NR Tarrant County Cultural Education,
8.125%, 11/15/44 7,590,640
5,000,000 NR/NR Tarrant County Cultural Education,
8.25%, 11/15/44 4,749,750
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
--------------------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (c) Ratings Value
--------------------------------------------------------------------------------------------
Texas -- (continued)
4,000,000 NR/NR Tarrant County Cultural Education,
8.25%, 11/15/44 $ 3,877,840
1,000,000 CC/NR Texas Midwest Public Facility Corp.,
9.0%, 10/1/30 927,070
------------
$ 84,182,514
--------------------------------------------------------------------------------------------
Utah -- 0.2%
1,400,000 NR/NR Spanish Fork City Utah Charter, 5.7%,
11/15/36 (144A) $ 1,027,026
--------------------------------------------------------------------------------------------
Virginia -- 3.9%
53,095,000 B+/NR Tobacco Settlement Financing Corp.,
0.0%, 6/1/47 $ 937,127
42,740,000 BB-/Baa3 Tobacco Settlement Financing Corp.,
5.0%, 6/1/47 24,802,022
------------
$ 25,739,149
--------------------------------------------------------------------------------------------
Washington -- 2.2%
1,250,000 NR/NR Washington State Housing Finance,
5.25%, 1/1/17 $ 1,015,800
11,500,000 NR/NR Washington State Housing Finance,
5.625%, 1/1/27 7,779,520
9,250,000 NR/NR Washington State Housing Finance,
5.625%, 1/1/38 5,610,125
------------
$ 14,405,445
--------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $666,201,246) $639,988,688
--------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES
(Cost $666,201,246) (a)(b) $639,988,688
--------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES $ 14,496,922
--------------------------------------------------------------------------------------------
TOTAL NET ASSETS $654,485,610
============================================================================================
NR Not rated by either S&P or Moody's.
WR Security rating withdrawn by either S&P or Moody's.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
February 28, 2011, the value of these securities amounted to $1,027,026
or 0.2% of total net assets.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 23
Schedule of Investments | 2/28/11 (unaudited) (continued)
(a) At February 28, 2011, the net unrealized loss on investments based on
cost for federal income tax purposes of $664,880,276 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 10,660,198
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (35,551,786)
------------
Net unrealized loss $(24,891,588)
============
(b) The concentration of investments by type of obligation/market sector is
as follows:
Revenue Bonds:
Health Revenue 32.1%
Transportation 25.2
Special Revenues 12.7
Various Revenues 12.5
Pollution Control Revenue 5.9
Insured 5.4
Education 3.3
Housing 2.4
Reserves 0.5
--------------------------------------------------------------------------------
100.0%
================================================================================
(c) Debt obligation with a variable interest rate. Rate shown is rate at end
of period.
(d) Security is in default and is non-income producing.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended February 28, 2011 aggregated $403,295,856 and
$293,146,040, respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds,
credit risk, etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of February 28, 2011, in
valuing the Fund's assets:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Municipal Bonds $-- $639,988,688 $-- $639,988,688
--------------------------------------------------------------------------------
Total $-- $639,988,688 $-- $639,988,688
================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
Statement of Assets and Liabilities | 2/28/11 (unaudited)
ASSETS:
Investment in securities, at value (cost $666,201,247) $639,988,689
Receivables --
Investment securities sold 40,000
Fund shares sold 6,425,929
Interest 12,465,723
Other 62,952
--------------------------------------------------------------------------------
Total assets $658,983,293
--------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 2,613,753
Dividends 994,660
Due to bank 728,669
Due to affiliates 95,989
Accrued expenses 64,612
--------------------------------------------------------------------------------
Total liabilities $ 4,497,683
--------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $694,298,227
Undistributed net investment income 1,144,957
Accumulated net realized loss on investments (14,745,016)
Net unrealized loss on investments (26,212,558)
--------------------------------------------------------------------------------
Total net assets $654,485,610
================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $333,221,231/45,247,668 shares) $ 7.36
Class C (based on $211,925,619/28,768,920 shares) $ 7.37
Class Y (based on $109,338,760/15,007,341 shares) $ 7.29
MAXIMUM OFFERING PRICE:
Class A ($7.36 [divided by] 95.5%) $ 7.71
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 25
Statement of Operations (unaudited)
For the Six Months Ended 2/28/11
INVESTMENT INCOME:
Interest $24,811,811
----------------------------------------------------------------------------------------
Total investment income $ 24,811,811
----------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,560,963
Transfer agent fees and expenses
Class A 47,563
Class C 27,494
Class Y 3,745
Distribution fees
Class A 411,538
Class C 1,035,998
Shareholder communications expense 119,019
Administrative fees 100,695
Custodian fees 12,065
Registration fees 46,212
Professional fees 38,865
Printing expense 20,611
Fees and expenses of nonaffiliated trustees 10,576
Miscellaneous 36,640
----------------------------------------------------------------------------------------
Total expenses $ 3,471,984
----------------------------------------------------------------------------------------
Net expenses $ 3,471,984
----------------------------------------------------------------------------------------
Net investment income $ 21,339,827
----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments: $ (3,670,450)
----------------------------------------------------------------------------------------
Change in net unrealized loss on investments: $(48,331,021)
----------------------------------------------------------------------------------------
Net loss on investments $(52,001,471)
----------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(30,661,644)
========================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
Statement of Changes in Net Assets
For the Six Months Ended 2/28/11 and the Year Ended 8/31/10, respectively
Six Months
Ended
2/28/11 Year Ended
(unaudited) 8/31/10
FROM OPERATIONS:
Net investment income $ 21,339,827 $ 18,909,673
Net realized loss on investments (3,670,450) (1,003,788)
Change in net unrealized gain (loss) on investments (48,331,021) 30,875,626
-----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $(30,661,644) $ 48,781,511
-----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.26 and $0.55 per share, respectively) $(11,129,206) $(11,064,401)
Class C ($0.23 and $0.48 per share, respectively) (6,217,786) (5,630,158)
Class Y ($0.26 and $0.56 per share, respectively) (3,333,732) (1,816,573)
-----------------------------------------------------------------------------------------
Total distributions to shareowners $(20,680,724) $(18,511,132)
-----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $349,568,266 $563,773,504
Reinvestment of distributions 15,862,115 8,094,759
Cost of shares repurchased (232,752,115) (91,936,683)
-----------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund
share transactions $132,678,266 $479,931,580
-----------------------------------------------------------------------------------------
Net increase in net assets $ 81,335,898 $510,201,959
NET ASSETS:
Beginning of period 573,149,712 62,947,753
-----------------------------------------------------------------------------------------
End of period $654,485,610 $573,149,712
-----------------------------------------------------------------------------------------
Undistributed net investment income $ 1,144,957 $ 485,854
-----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 27
Statement of Changes in Net Assets (continued)
'11 Shares '11 Amount '10 Shares '10 Amount
(unaudited) (unaudited)
Class A
Shares sold 25,808,908 $196,852,045 41,790,571 $319,790,605
Reinvestment of distributions 1,181,921 9,036,333 677,973 5,187,450
Less shares repurchased (20,801,279) (157,529,118) (9,011,504) (69,015,829)
--------------------------------------------------------------------------------------------------------
Net increase 6,189,550 $ 48,359,260 33,457,040 $255,962,226
========================================================================================================
Class C
Shares sold 9,729,932 $ 75,379,090 21,421,703 $163,353,586
Reinvestment of distributions 600,266 4,588,154 301,759 2,304,141
Less shares repurchased (4,685,355) (35,176,035) (1,867,978) (14,192,664)
--------------------------------------------------------------------------------------------------------
Net increase 5,644,843 $ 44,791,209 19,855,484 $151,465,063
========================================================================================================
Class Y
Shares sold 10,246,438 $ 77,337,131 10,597,255 $ 80,629,313
Reinvestment of distributions 295,679 2,237,628 79,439 603,168
Less shares repurchased (5,402,145) (40,046,962) (1,150,180) (8,728,190)
--------------------------------------------------------------------------------------------------------
Net increase 5,139,972 $ 39,527,797 9,526,514 $ 72,504,291
========================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
Financial Highlights
Six Months 10/17/06 (a)
Ended Year Year Year (Commencement
2/28/11 Ended Ended Ended of Operations)
(unaudited) 8/31/10 8/31/09 8/31/08 to 8/31/07
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 7.97 $ 6.84 $ 8.70 $ 9.72 $ 10.00
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment
operations:
Net investment income $ 0.26 $ 0.55 $ 0.56 $ 0.54 $ 0.44
Net realized and unrealized gain (loss)
on investments (0.61) 1.12 (1.86) (1.01) (0.29)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from investment operations $ (0.35) $ 1.67 $ (1.30) $ (0.47) $ 0.15
Distributions to shareowners:
Net investment income (0.26) (0.55) (0.56) (0.55) (0.43)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.61) $ 1.12 $ (1.86) $ (1.02) $ (0.28)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.36 $ 7.97 $ 6.84 $ 8.70 $ 9.72
====================================================================================================================================
Total return* (4.48)% 25.15% (14.41)% (4.95)% 1.45%***
Ratio of net expenses to average net assets+ 0.88%** 0.90% 0.90% 0.90% 0.90%**
Ratio of net investment income to average net assets+ 6.97%** 7.08% 8.32% 5.92% 5.31%**
Portfolio turnover rate 93%** 15% 50% 59% 130%***
Net assets, end of period (in thousands) $333,221 $311,573 $38,312 $38,717 $16,637
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no
reduction for fees paid indirectly:
Net expenses 0.88%** 0.95% 1.28% 1.21% 1.77%**
Net investment income 6.97%** 7.03% 7.95% 5.61% 4.44%**
Ratios with waiver of fees and assumption of expenses
by the Adviser and reduction for fees paid indirectly:
Net expenses 0.88%** 0.90% 0.90% 0.90% 0.90%**
Net investment income 6.97%** 7.08% 8.32% 5.92% 5.31%**
====================================================================================================================================
(a) Class A shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and 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.
*** Not annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 29
Financial Highlights (continued)
Six Months 10/17/06 (a)
Ended Year Year Year (Commencement
2/28/11 Ended Ended Ended of Operations)
(unaudited) 8/31/10 8/31/09 8/31/08 to 8/31/07
------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 7.96 $ 6.83 $ 8.68 $ 9.71 $ 10.00
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.24 $ 0.49 $ 0.50 $ 0.46 $ 0.36
Net realized and unrealized gain (loss) on investments (0.60) 1.12 (1.85) (1.03) (0.30)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ (0.36) $ 1.61 $ (1.35) $ (0.57) $ 0.06
Distributions to shareowners:
Net investment income (0.23) (0.48) (0.50) (0.46) (0.35)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.59) $ 1.13 $ (1.85) $ (1.03) $ (0.29)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.37 $ 7.96 $ 6.83 $ 8.68 $ 9.71
====================================================================================================================================
Total return* (4.60)% 24.11% (15.17)% (5.94)% 0.56%***
Ratio of net expenses to average net assets+ 1.64%** 1.69% 1.80% 1.80% 1.80%**
Ratio of net investment income to average net assets+ 6.23%** 6.31% 7.44% 5.11% 4.35%**
Portfolio turnover rate 93%** 15% 50% 59% 130%***
Net assets, end of period (in thousands) $211,926 $184,068 $ 22,319 $ 20,915 $ 6,445
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Net expenses 1.64%** 1.69% 1.98% 1.95% 2.72%**
Net investment income 6.23%** 6.31% 7.26% 4.96% 3.43%**
Ratios with waiver of fees and assumption of expenses
by the Adviser and reduction for fees paid indirectly:
Net expenses 1.64%** 1.69% 1.80% 1.80% 1.80%**
Net investment income 6.23%** 6.31% 7.44% 5.11% 4.35%**
====================================================================================================================================
(a) Class C shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and 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.
*** Not annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
30 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
Six Months 10/17/06 (a)
Ended Year Year Year (Commencement
2/28/11 Ended Ended Ended of Operations)
(unaudited) 8/31/10 8/31/09 8/31/08 to 8/31/07
------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 7.88 $ 6.80 $ 8.63 $ 9.69 $ 10.00
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.27 $ 0.57 $ 0.55 $ 0.53 $ 0.42
Net realized and unrealized gain (loss) on
investments (0.60) 1.08 (1.83) (1.05) (0.30)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ (0.33) $ 1.65 $ (1.28) $ (0.52) $ 0.12
Distributions to shareowners:
Net investment income (0.26) (0.56) (0.55) (0.54) (0.43)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.59) $ 1.09 $ (1.83) $ (1.06) $ (0.31)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.29 $ 7.88 $ 6.80 $ 8.63 $ 9.69
====================================================================================================================================
Total return* (4.19)% 24.73% (14.30)% (5.45)% 1.12%***
Ratio of net expenses to average net assets+ 0.68%** 0.67% 0.99% 1.00% 1.23%**
Ratio of net investment income to average net assets+ 7.21%** 7.32% 8.23% 5.80% 4.70%**
Portfolio turnover rate 93%** 15% 50% 59% 130%***
Net assets, end of period (in thousands) $109,339 $77,757 $ 2,317 $ 1,142 $ 1,080
Ratios with no waiver of fees and assumption of expenses
by the Adviser and no reduction for fees paid indirectly:
Net expenses 0.68%** 0.67% 1.04% 1.00% 2.11%**
Net investment income 7.21%** 7.32% 8.18% 5.80% 3.82%**
Ratios with waiver of fees and assumption of expenses
by the Adviser and reduction for fees paid indirectly:
Net expenses 0.68%** 0.67% 0.99% 0.99% 1.23%**
Net investment income 7.21%** 7.32% 8.23% 5.81% 4.70%**
====================================================================================================================================
(a) Class Y shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
*** Not annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 31
Notes to Financial Statements | 2/28/11 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer High Income Municipal Fund (the Fund) is one of four portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as an open-end management
investment company. The Fund is non-diversified. The Fund commenced operations
on October 17, 2006. The investment objective of the Fund is to maximize total
return through a combination of income that is exempt from regular federal
income tax and capital appreciation.
The Fund offers three classes of shares designated as Class A, Class C and
Class Y shares. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has identical rights (based on
relative net asset values) to assets and liquidation proceeds. Share classes
can bear different rates of class-specific fees and expenses such as transfer
agent and distribution fees. Differences in class-specific fees and expenses
will result in differences in net investment income and, therefore, the payment
of different dividends from net investment income earned by each class. The
Amended and Restated Declaration of Trust of the Fund gives the Board the
flexibility to specify either per share voting or dollar-weighted voting when
submitting matters for shareholder approval. Under per share voting, each share
of a class of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making the Fund more susceptible to
any economic, political, or regulatory developments or other risks affecting
those industries and sectors. The Fund's prospectus contains unaudited
information regarding the Fund's principal risks. Please refer to that document
when considering the Fund's principal risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses, and gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
32 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Fixed income
securities with remaining maturity of more than sixty days are valued at
prices supplied by independent pricing services, which consider such factors
as market prices, market events, quotations from one or more brokers,
Treasury spreads, yields, maturities and ratings. Valuations may be
supplemented by dealers and other sources, as required.
Securities for which independent pricing services are unable to supply prices
or for which market prices and/or quotations are not readily available or are
considered to be unreliable are valued using fair value methods pursuant to
procedures adopted by the Board of Trustees.
The Fund may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset value.
Thus, the valuation of the Fund's securities may differ from exchange prices.
At February 28, 2011 there were no securities that were valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services). Inputs used when applying fair value methods
to value a security may include credit ratings, the financial condition of
the company, current market conditions and comparable securities. Short-term
fixed income securities with remaining maturities of sixty days or less
generally are valued at amortized cost. Money market mutual funds are valued
at net asset value.
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis with a
corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income, exempt interest income, and net realized capital
gains, if any, to its shareowners. Therefore, no federal income tax provision
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 33
is required. Tax years for the prior three fiscal years remain subject to
examination by tax authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
The tax character of current year distributions payable will be determined at
the end of the current taxable year. The tax character of distributions paid
during the year ended August 31, 2010 was as follows:
--------------------------------------------------------------------------------
2010
--------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $18,450,635
Ordinary income 60,497
--------------------------------------------------------------------------------
Total $18,511,132
================================================================================
The following shows the components of distributable earnings on a federal
income tax-basis at August 31, 2010:
--------------------------------------------------------------------------------
2010
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed tax exempt income $ 1,916,454
Capital loss carryforward (10,374,270)
Current year post October loss deferred (700,296)
Current year dividend payable (2,751,570)
Unrealized appreciation 23,439,433
--------------------------------------------------------------------------------
Total $ 11,529,751
================================================================================
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax-basis adjustments on partnerships, the interest on
defaulted bonds and the tax treatment of premium and amortization.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $148,523 in underwriting commissions on the sale of Class A shares
during the six months ended February 28, 2011.
34 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning of
the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
The Fund declares, as daily dividends, substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily dividends.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, and Class Y shares can
reflect different transfer agent and distribution expense rates.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary
of UniCredit, manages the Fund's portfolio. Management fees are calculated
daily at the annual rate of 0.50% of the Fund's average daily net assets up to
$500 million; 0.475% of the next $500 million; and 0.45% of the excess over $1
billion. For the six months ended February 28, 2011, the effective management
fee (excluding waivers and/or assumption of expenses) was equivalent to 0.49%
of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses (excluding
taxes, commissions, interest and extraordinary expenses) of the Fund to the
extent required to reduce the Fund's expenses to 0.90% and 1.80% of the average
daily net assets attributable to Class A shares and Class C shares,
respectively. These expense limitations are in effect through January 1, 2012
for Class A and Class C shares. There can be no assurance that PIM will extend
the expense limitation agreement for a class of shares beyond the date referred
to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 35
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $30,283 in management fees, administrative costs and certain
other reimbursements payable to PIM at February 28, 2011.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the six months ended February 28, 2011, such out-of-pocket expenses by
class of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications
--------------------------------------------------------------------------------
Class A $ 42,847
Class C 34,202
Class Y 41,970
--------------------------------------------------------------------------------
Total $119,019
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $41,580 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at February 28, 2011.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets
attributable to Class A shares as compensation for personal services and/or
account maintenance services or distribution services with regard to Class A
shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $24,126 in distribution fees payable to
PFD at February 28, 2011.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase (within 12 months for purchases made on or after
April 1, 2009). Redemptions of Class C shares within one year of purchase are
subject to a CDSC of 1.00%, based on the lower of cost or market value of
shares being redeemed. Shares purchased as part of an exchange remain subject
to any CDSC that applied to the original purchase of those
36 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
shares. There is no CDSC for Class Y shares. Proceeds from the CDSCs are paid
to PFD. For the six months ended February 28, 2011, CDSCs in the amount of
$308,799 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned
on cash held by PIMSS. For the six months ended February 28, 2011, 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 February 28, 2011, the average daily amount of
borrowings outstanding during the period was $3,721,442. The related weighted
average annualized interest rate for the period was 1.54%, and the total
interest expense on such borrowings was $42,401. As of February 28, 2011, there
were no borrowings outstanding.
7. 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 High Income Municipal Fund | Semiannual Report | 2/28/11 37
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer High Income Municipal Fund (the Fund) pursuant to an investment
advisory agreement between PIM and the Fund. In order for PIM to remain the
investment adviser of the Fund, the Trustees of the Fund must determine
annually whether to renew the investment advisory agreement for the Fund.
The contract review process began in March 2010 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the
process. In July 2010, 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 July 2010 and
September 2010. After reviewing and discussing the materials, the Trustees
submitted a request for additional information to PIM, 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, 2010 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 16, 2010, 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. In
addition, the Trustees considered the arrangements put in place to retain key
38 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
investment and other personnel. The Trustees also considered the substantial
attention and high priority given by PIM's senior management to the Pioneer
fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers 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 first quintile of its Morningstar
category for the one year period ended June 30, 2010, and in the fourth
quintile of its Morningstar category for the three year period ended June 30,
2010. (In all quintile rankings referred to throughout this disclosure, first
quintile is most favorable to the Fund's shareowners. Thus, highest relative
performance would be first quintile and lowest relative expenses would also be
first quintile.) The Trustees concluded that the investment performance of the
Fund was satisfactory.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund
in comparison to the management fees of its peer group of funds as classified
by Morningstar and the expense ratios of a peer group of funds selected on the
basis of criteria determined by the Independent Trustees for this purpose using
data provided by Strategic Insight Mutual Trust Research and Consulting, LLC
(Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2010 was in the third quintile relative to the management fees
paid by other funds in its Morningstar peer group for the comparable period.
The Trustees also considered the breakpoints in the management fee schedule and
the reduced fee rates above certain asset levels. The Trustees considered that
the Fund's expense ratio for the twelve months ended June 30, 2010 was in
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 39
the fourth quintile relative to its Strategic Insight peer group for the
comparable period. The Trustees noted that the Fund's expense ratio was less
than one basis point higher than the median expense ratio of the Fund's peer
group.
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.
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 recent difficult periods for financial
markets, as the level of services was maintained notwithstanding a significant
decline in PIM's fee revenues from the Funds. Accordingly, the Trustees
concluded that economies of scale, if any, were being appropriately shared with
the Fund.
40 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with
the Fund. The Trustees considered the character and amount of fees paid by the
Fund, other than under the investment advisory agreement, for services provided
by PIM and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. The Trustees
considered the intangible benefits to PIM by virtue of its relationship with
the Fund and the other Pioneer funds. The Trustees concluded that the receipt
of these benefits was reasonable in the context of the overall relationship
between PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 41
Trustees, Officers and Service Providers
Trustees
John F. Cogan, Jr., Chairman
David R. Bock
Mary K. Bush
Benjamin M. Friedman
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Officers
John F. Cogan, Jr., President
Daniel K. Kingsbury, Executive Vice President
Mark E. Bradley, Treasurer
Christopher J. Kelley, Secretary
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at http://www.sec.gov.
42 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
This page for your notes.
Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11 43
This page for your notes.
44 Pioneer High Income Municipal Fund | Semiannual Report | 2/28/11
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
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.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust V
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date April 29, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date April 29, 2011
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date April 29, 2011
* Print the name and title of each signing officer under his or her signature.