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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08657
Pioneer Equity Income Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 2010 through April 30, 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 Equity
Income Fund
--------------------------------------------------------------------------------
Semiannual Report | April 30, 2011
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PEQIX
Class B PBEQX
Class C PCEQX
Class R PQIRX
Class Y PYEQX
Class Z PEZQX
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 26
Notes to Financial Statements 36
Approval of Investment Advisory Agreement 43
Trustees, Officers and Service Providers 47
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 1
President's Letter
Dear Shareowner,
The U.S. economy is moving forward on a slow path to recovery. We believe the
theme for the economy in 2011 may be modest but positive growth. The private
sector is showing signs of slow but steady improvement, led by higher capital
investment, solid exports, improved consumption, and gradually rising demand
for consumer auto loans and commercial loans. At the same time, the risks to a
steady recovery remain substantial, including the continued delays in the
housing sector's recovery, rising oil prices, and the fiscal drag of U.S.
federal and state budget cuts. We are concerned about the long-term risk of
inflation in an environment of accommodative Fed policy, continued low nominal
and "real" interest rates and rising commodity prices.
The recovery process may occur more slowly than many would like, and will
almost certainly be accompanied by short-term market swings. But our investment
professionals are finding good opportunities to invest. Through the first
quarter of 2011, although bonds remained popular with investors, we believed
there was value in the equity market. In both equity and bond markets, we are
finding good opportunities to invest using the same disciplined approach we
have used at Pioneer since 1928, which is to focus on identifying undervalued
individual securities with the greatest potential for success, carefully
weighing risk against reward. Our teams of investment professionals continually
monitor and analyze the relative valuations of different sectors and securities
globally to help build portfolios that we believe can help you achieve your
investment goals.
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, even though equity valuations seemed quite reasonable and were
inexpensive relative to bonds and compared with historic levels -- conditions
which represented potentially good value for long-term investors.
Our advice, as always, is to work closely with a trusted financial advisor to
discuss your goals and work together to develop an investment strategy that
meets your individual needs. There is no single best strategy that works for
every investor.
2 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
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 shareowner report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 3
Portfolio Management Discussion | 4/30/11
In the following interview, John Carey, Executive Vice President and Head of
the U.S. Core Value Department at Pioneer Investments, discusses the investment
environment during the six-month period ended April 30, 2011, and Pioneer
Equity Income Fund's performance. Mr. Carey is responsible for the day-to-day
management of Pioneer Equity Income Fund.
Q How did the Fund perform over the six months ended April 30, 2011?
A Over the six months ended April 30, 2011, Pioneer Equity Income Fund Class A
shares returned 17.84% at net asset value, while the Fund's benchmark, the
Russell 1000 Value Index (the Russell Index), returned 17.29%. Over the
same period, the average return of the 287 mutual funds in Lipper's Equity
Income Funds category was 15.56%.
Q How would you describe the markets for equities over the six months ended
April 30, 2011, particularly for the types of equities deemed appropriate
for the Fund?
A It was a generally very strong period for stocks. Supported by earnings
increases and improved economic conditions, stock prices trended higher
throughout the six-month period. There were setbacks -- from an earthquake
and tsunami in Japan, leading to parts shortages in the technology and
automotive industries, and political upheaval in the Middle East,
contributing to a spike in oil prices; but on the whole investors managed
to look through the near-term difficulties and focus on a longer-term
picture of encouraging business conditions. Though the economic expansion
continued to be slow and unemployment remained high during the period, the
direction of most economic indicators was positive and business as well as
consumer sentiment improved. As capacity utilization in particular
increased, businesses undertook more capital spending and also looked to
make acquisitions. Strong cash flows led to higher dividend payments, and
we also saw larger share-repurchase activity.
One concern must certainly be cost increases, both of raw materials and
labor. Opinion on whether there is inflation risk continues to be mixed,
but unquestionably there are beginning to be pressures on corporate profit
margins from the higher costs. There also persist some bigger issues about
which investors are understandably concerned, principally the instability
of the European monetary system and the high federal budget deficit in the
United States. Truly, in investing, the coast is never clear, the sailing
is never smooth, the stage is never shadowless.
4 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
Q The Fund's Class A shares showed a strong return over the six months ended
April 30, 2011, outpacing the return for the Fund's benchmark, the Russell
Index. What were the main reasons for that?
A Our sector allocations were the main contributors to the Fund's positive
relative performance. The Fund was significantly underweight the below-
average-performing financials sector, and overweight the above-average-
performing industrials and materials sectors. Except in health care, where
the Fund's stock holdings performed more poorly than average for the
sector, our stock selections for the most part were also positive
contributors to relative performance. Among the Fund's notably successful
stocks during the period were: Marathon Oil, which announced a major
restructuring; Gorman-Rupp, which has seen a good uptick in its waste-water
pump business with all of the floods and heavy rains of these past months;
and Helmerich & Payne, whose land drilling rigs have been much in demand by
oil and gas exploration and development firms during this period of high
energy prices.
As noted above, some the Fund's holdings in health care underperformed the
overall sector during the six-month period. Within health care, one notable
underperformer held in the Fund's portfolio was Abbott Laboratories. In its
nutritional division, the company had a costly recall in its infant-formula
business, and within its pharmaceutical operations Abbott saw some slowing
in the rate of growth for its important arthritis drug, Humira.
Q Could you please discuss any changes you have made to the Fund's portfolio
during the six months ended April 30, 2011.
A We added ten positions to the Fund's portfolio and liquidated nine during the
six-month period. Ecolab, a supplier of industrial and commercial cleaning
chemicals, is a beneficiary of higher plant utilization. Campbell Soup, the
food-processing company, is under way with another strategic review. The
company has always been quite profitable; what has been needed is a sound
plan for growth. Becton Dickinson is a leading, worldwide supplier of
hospital supplies and medical devices, well positioned to address demand
for better-quality health care. Likewise, Smith & Nephew is prominent as a
producer of orthopedic implants and surgical supplies. PNC Financial
Services appears to be one of the stronger regional banks to emerge from
the subprime meltdown of 2007-09. Linear Technology, which makes integrated
circuits, is yet another example of the dividend-paying stocks now
available in the information technology sector. Finally, we re-arranged the
Fund's investments in utilities, buying American Electric Power, Ameren,
Consolidated Edison, and American Water Works, while selling Duke Energy
and Wisconsin Energy. The overall effect of the changes to the portfolio in
that sector was a slight enhancement of income.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 5
We also sold, generally at meaningful profits, Carpenter Technology, Nucor,
Illinois Toolworks, PACCAR, Walgreen, JPMorgan Chase, and T. Rowe Price
Group. In most cases, the stocks had reached our target prices and we
thought there were more reasonable values elsewhere.
Q The Fund typically places an important emphasis on dividend-paying stocks.
Would you say that dividends have returned to their pre-financial crisis
levels, or is there still room for improvement in dividend payments?
A While there has been a sharp increase in the number of companies raising
their dividends over the past two years, we believe that we shall see many
more dividend increases over the next couple of years as the economy
continues to grow. In the financials sector, where the dividend cuts were
among the most significant during the time of crisis, we are starting to
see more generous payments; and particularly in that sector we believe that
there is much potential for further dividend enhancement. In fact, in a
recent press release, Standard & Poor's said that there could even be a
second round of dividend increases by the financials later this year or
early next year. The extension of the favorable federal tax treatment for
qualified dividends through this year and next may also tend to incline
companies towards raising dividends.
Q What is your outlook for the remainder of 2011?
A Though we remain constructive on the economy, some investors have become more
cautious in recent months and have adopted a more "defensive" posture. That
repositioning is apparent in the better relative performance of late of
some of the sectors traditionally regarded as more conservative from the
point of view of valuation, and more resilient in regard to earnings and
cash-flow stability, including health care, utilities, and consumer
staples. At the same time, there has been some "correction" in the prices
of stocks judged to be more economically sensitive or cyclically exposed.
Fortunately, the Pioneer Equity Income Fund's portfolio is always
diversified, and so we have a mix of companies, including some with more
"steady Eddie" characteristics and others with businesses that do rise and
fall to an extent with the general level of industrial activity and
consumer spending. What unites all of the Fund's holdings, however, is the
emphasis on dividend payments, and that usually means that the companies,
even if cyclical, have enough predictability in their operations that their
managements can plan ahead financially and pay attention to the needs of
their shareholders for long-term returns. In the months ahead, we shall
most likely make occasional changes in the Fund's portfolio, but rather
than introducing the changes because of some overarching, macroeconomic
view, we shall instead be buying or selling stocks on the basis of our
individual-company analysis. That has been our long-standing practice.
Thank you as always for your support.
6 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
Please refer to the Schedule of Investments on pages 18-25 for a full listing
of Fund securities.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
Past performance is no guarantee of future results, and there is no guarantee
that the market forecast discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 7
Portfolio Summary | 4/30/11
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 92.4%
Temporary Cash Investments 6.1%
International Common Stocks 0.9%
Depositary Receipts for International Stocks 0.6%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 14.9%
Energy 12.8%
Industrials 11.6%
Consumer Staples 11.5%
Utilities 11.2%
Health Care 9.2%
Consumer Discretionary 9.0%
Materials 8.6%
Information Technology 7.5%
Telecommunication Services 3.7%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Gorman-Rupp Co. 3.68%
--------------------------------------------------------------------------------
2. Johnson Controls, Inc. 3.21
--------------------------------------------------------------------------------
3. Valspar Corp. 3.19
--------------------------------------------------------------------------------
4. H.J. Heinz Co., Inc. 2.69
--------------------------------------------------------------------------------
5. Marathon Oil Corp. 2.64
--------------------------------------------------------------------------------
6. Chubb Corp. 2.41
--------------------------------------------------------------------------------
7. Compass Minerals International, Inc. 2.38
--------------------------------------------------------------------------------
8. NSTAR 2.21
--------------------------------------------------------------------------------
9. EQT Corp. 2.18
--------------------------------------------------------------------------------
10. Hershey Foods Corp. 1.94
--------------------------------------------------------------------------------
* 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 Equity Income Fund | Semiannual Report | 4/30/11
Prices and Distributions | 4/30/11
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 4/30/11 10/31/10
--------------------------------------------------------------------------------
A $ 27.97 $ 23.92
--------------------------------------------------------------------------------
B $ 27.79 $ 23.77
--------------------------------------------------------------------------------
C $ 27.67 $ 23.66
--------------------------------------------------------------------------------
R $ 28.23 $ 24.14
--------------------------------------------------------------------------------
Y $ 28.17 $ 24.09
--------------------------------------------------------------------------------
Z $ 28.00 $ 23.95
--------------------------------------------------------------------------------
Distributions per Share: 11/1/10-4/30/11
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ 0.2025 $ -- $ --
--------------------------------------------------------------------------------
B $ 0.0713 $ -- $ --
--------------------------------------------------------------------------------
C $ 0.1070 $ -- $ --
--------------------------------------------------------------------------------
R $ 0.1766 $ -- $ --
--------------------------------------------------------------------------------
Y $ 0.2596 $ -- $ --
--------------------------------------------------------------------------------
Z $ 0.2570 $ -- $ --
--------------------------------------------------------------------------------
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 10-15.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 9
Performance Update | 4/30/11 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2011)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
10 Years 4.29% 3.68%
5 Years 3.16 1.95
1 Year 21.86 14.87
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.19% 1.19%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
----------- -----------
4/01 9424 10000
8984 9609
4/03 7485 8359
9268 10554
4/05 10631 12024
12280 14225
4/07 14890 16806
13771 15299
4/09 8785 9300
11774 13232
4/11 14348 15249
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
Performance Update | 4/30/11 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2011)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 3.38% 3.38%
5 Years 2.22 2.22
1 Year 20.66 16.66
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.17% 2.17%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
----------- -----------
4/01 10000 10000
9459 9609
4/03 7818 8359
9599 10554
4/05 10913 12024
12496 14225
4/07 15021 16806
13775 15299
4/09 8706 9300
11559 13232
4/11 13947 15249
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied
to withdrawals was shortened to 5 years. The maximum CDSC for Class B shares is
4% and declines over five years. For more complete information, please see the
prospectus. Note: Shares purchased prior to December 1, 2004, remain subject to
the CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 11
Performance Update | 4/30/11 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2011)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 3.47% 3.47%
5 Years 2.37 2.37
1 Year 20.94 20.94
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.96% 1.96%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
----------- -----------
4/01 10000 10000
9450 9609
4/03 7810 8359
9591 10554
4/05 10914 12024
12506 14225
4/07 15047 16806
13812 15299
4/09 8740 9300
11625 13232
4/11 14060 15249
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not
reflect the 1% front-end sales charge in effect prior to February 1, 2004. If
you paid a 1% sales charge, your returns would be lower than those shown above.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
Performance Update | 4/30/11 Class R Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2011)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 4.04% 4.04%
5 Years 2.95 2.95
1 Year 21.54 21.54
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.44% 1.44%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
----------- -----------
4/01 10000 10000
9486 9609
4/03 7864 8359
9730 10554
4/05 11146 12024
12856 14225
4/07 15557 16806
14363 15299
4/09 9143 9300
12231 13232
4/11 14866 15249
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 R shares for the period prior to the
commencement of operations of Class R shares on April 1, 2003, is based on the
performance of Class A shares, reduced to reflect the higher distribution and
service fees of Class R shares. For the period beginning on April 1, 2003, the
actual performance of Class R shares is reflected. Class R shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 13
Performance Update | 4/30/11 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 Million
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2011)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 4.76% 4.76%
5 Years 3.61 3.61
1 Year 22.42 22.42
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.72% 0.72%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Equity Russell 1000
Income Fund Value Index
----------- -----------
4/01 5000000 5000000
4787247 4804620
4/03 4009161 4179460
4987105 5277169
4/05 5746100 6012011
6663576 7112508
4/07 8112130 8403091
7529297 7649279
4/09 4825551 4650178
6499385 6616160
4/11 7956788 7624257
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.
14 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
Performance Update | 4/30/11 Class Z Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2011)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 4.38% 4.38%
5 Years 3.33 3.33
1 Year 22.31 22.31
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.81% 0.81%
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
----------- -----------
4/01 10000 10000
9534 9609
4/03 7943 8359
9835 10554
4/05 11281 12024
13031 14225
4/07 15720 16806
14559 15299
4/09 9320 9300
12550 13232
4/11 15350 15249
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 Class Z shares for periods prior to the inception of
Class Z shares on July 6, 2007, reflects the NAV performance of the Fund's
Class A shares. The performance does not reflect differences in expenses,
including the Rule 12b-1 fees applicable to Class A shares. Since fees for
Class A shares are generally higher than those of Class Z shares, the
performance for Class Z shares prior to their inception on July 6, 2007, would
have been higher than the performance shown. Class Z shares are not subject to
sales charges and are available for limited groups of eligible investors. All
results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through March 1, 2012, for Class Z shares. There can be no assurance
that Pioneer will extend the expense limitations beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on actual returns from November 1, 2010 through April 30, 2011.
---------------------------------------------------------------------------------------------------------------------------
Share Class A B C R Y Z
---------------------------------------------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 11/1/10
---------------------------------------------------------------------------------------------------------------------------
Ending Account Value $ 1,178.40 $ 1,172.40 $ 1,174.30 $ 1,177.30 $ 1,180.90 $ 1,180.60
(after expenses)
on 4/30/11
---------------------------------------------------------------------------------------------------------------------------
Expenses Paid $ 6.27 $ 11.47 $ 10.30 $ 7.61 $ 4.11 $ 4.22
During Period*
---------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.16%, 2.13%,
1.91%, 1.41%, 0.76%, and 0.78% for Class A, Class B, Class C, Class R, Class
Y and Class Z shares, respectively, multiplied by the average account value
over the period, multiplied by 181/365 (to reflect the one-half year
period).
16 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
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 Equity Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from November 1, 2010 through April 30, 2011.
---------------------------------------------------------------------------------------------------------------------------
Share Class A B C R Y Z
---------------------------------------------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 11/1/10
---------------------------------------------------------------------------------------------------------------------------
Ending Account Value $ 1,019.04 $ 1,014.23 $ 1,015.32 $ 1,017.80 $ 1,021.03 $ 1,020.93
(after expenses)
on 4/30/11
---------------------------------------------------------------------------------------------------------------------------
Expenses Paid $ 5.81 $ 10.64 $ 9.54 $ 7.05 $ 3.81 $ 3.91
During Period*
---------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.16%, 2.13%,
1.91%, 1.41%, 0.76%, and 0.78% for Class A, Class B, Class C, Class R, Class
Y and Class Z shares, respectively, multiplied by the average account value
over the period, multiplied by 181/365 (to reflect the one-half year
period).
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 17
Schedule of Investments | 4/30/11 (unaudited)
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
COMMON STOCKS -- 99.5%
ENERGY -- 12.8%
Integrated Oil & Gas -- 7.8%
176,400 Chevron Corp. $ 19,305,216
201,160 ConocoPhillips 15,877,559
524,800 Marathon Oil Corp. 28,360,192
471,700 QEP Resources, Inc. 20,155,741
--------------
$ 83,698,708
-------------------------------------------------------------------------------------
Oil & Gas Drilling -- 1.5%
242,300 Helmerich & Payne, Inc. (b) $ 16,074,182
-------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 2.2%
445,800 EQT Corp. (b) $ 23,453,538
-------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.3%
496,100 Spectra Energy Corp. $ 14,406,744
--------------
Total Energy $ 137,633,172
-------------------------------------------------------------------------------------
MATERIALS -- 8.6%
Diversified Chemical -- 1.7%
330,800 E.I. du Pont de Nemours and Co. $ 18,786,132
-------------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.4%
261,600 Compass Minerals International, Inc. $ 25,534,776
-------------------------------------------------------------------------------------
Paper Packaging -- 0.6%
193,800 Sonoco Products Co. (b) $ 6,697,728
-------------------------------------------------------------------------------------
Specialty Chemicals -- 3.9%
145,400 Ecolab, Inc. $ 7,671,304
872,100 Valspar Corp. (b) 34,282,251
--------------
$ 41,953,555
--------------
Total Materials $ 92,972,191
-------------------------------------------------------------------------------------
CAPITAL GOODS -- 9.6%
Aerospace & Defense -- 1.0%
54,200 Lockheed Martin Corp. $ 4,295,350
103,900 Northrop Grumman Corp.* 6,609,079
--------------
$ 10,904,429
-------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 1.0%
290,700 Trinity Industries, Inc. (b) $ 10,523,340
-------------------------------------------------------------------------------------
Electrical Components & Equipment -- 1.6%
290,700 Emerson Electric Co. $ 17,662,932
-------------------------------------------------------------------------------------
Industrial Machinery -- 6.0%
977,075 Gorman-Rupp Co.+(b) $ 39,522,684
193,800 Snap-On, Inc. 11,971,026
237,400 The Timken Co. 13,386,986
--------------
$ 64,880,696
--------------
Total Capital Goods $ 103,971,397
-------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
----------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.8%
Office Services & Supplies -- 0.8%
218,000 Mine Safety Appliances Co. (b) $ 8,650,240
--------------
Total Commercial Services & Supplies $ 8,650,240
----------------------------------------------------------------------------
TRANSPORTATION -- 1.1%
Railroads -- 1.1%
80,500 CSX Corp. $ 6,334,545
77,900 Norfolk Southern Corp. 5,817,572
--------------
$ 12,152,117
--------------
Total Transportation $ 12,152,117
----------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 3.2%
Auto Parts & Equipment -- 3.2%
840,000 Johnson Controls, Inc. $ 34,440,000
--------------
Total Automobiles & Components $ 34,440,000
----------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.5%
Apparel, Accessories & Luxury Goods -- 1.5%
164,700 VF Corp. (b) $ 16,562,232
--------------
Total Consumer Durables & Apparel $ 16,562,232
----------------------------------------------------------------------------
CONSUMER SERVICES -- 1.3%
Leisure Facilities -- 1.3%
721,917 Cedar Fair LP (b) $ 13,716,423
--------------
Total Consumer Services $ 13,716,423
----------------------------------------------------------------------------
MEDIA -- 0.6%
Publishing -- 0.6%
193,800 Reed Elsevier Plc (A.D.R.) (b) $ 6,891,528
--------------
Total Media $ 6,891,528
----------------------------------------------------------------------------
RETAILING -- 2.3%
Distributors -- 1.4%
271,300 Genuine Parts Co. (b) $ 14,568,810
----------------------------------------------------------------------------
Home Improvement Retail -- 0.9%
387,600 Lowe's Companies, Inc. $ 10,174,500
--------------
Total Retailing $ 24,743,310
----------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 0.8%
Food Distributors -- 0.8%
290,700 Sysco Corp. $ 8,404,137
--------------
Total Food & Drug Retailing $ 8,404,137
----------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 8.3%
Packaged Foods & Meats -- 8.3%
150,000 Campbell Soup Co. (b) $ 5,038,500
319,800 General Mills, Inc. 12,337,884
564,550 H.J. Heinz Co., Inc. 28,921,897
361,400 Hershey Foods Corp. (b) 20,856,394
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 19
Schedule of Investments | 4/30/11 (unaudited) (continued)
-------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------
Packaged Foods & Meats -- (continued)
833,000 Sara Lee Corp. $ 15,993,600
80,400 The J.M. Smucker Co. 6,035,628
--------------
$ 89,183,903
--------------
Total Food, Beverage & Tobacco $ 89,183,903
-------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.4%
Household Products -- 2.4%
178,100 Clorox Co. (b) $ 12,406,446
160,757 Colgate-Palmolive Co. 13,559,853
--------------
$ 25,966,299
--------------
Total Household & Personal Products $ 25,966,299
-------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.3%
Health Care Equipment -- 3.3%
239,800 Baxter International, Inc. $ 13,644,620
145,400 Becton, Dickinson & Co. 12,495,676
905,000 Smith & Nephew Plc 9,943,376
--------------
$ 36,083,672
--------------
Total Health Care Equipment & Services $ 36,083,672
-------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 5.8%
Pharmaceuticals -- 5.8%
297,100 Abbott Laboratories, Inc. $ 15,461,084
522,800 Bristol-Myers Squibb Co. 14,690,680
252,400 Eli Lilly & Co. 9,341,324
361,405 Merck & Co., Inc. 12,992,510
484,500 Pfizer, Inc. 10,155,120
--------------
$ 62,640,718
--------------
Total Pharmaceuticals & Biotechnology $ 62,640,718
-------------------------------------------------------------------------
BANKS -- 5.2%
Diversified Banks -- 2.6%
726,800 U.S. Bancorp $ 18,765,976
310,100 Wells Fargo & Co. 9,027,011
--------------
$ 27,792,987
-------------------------------------------------------------------------
Regional Banks -- 2.2%
176,000 PNC Bank Corp. $ 10,971,840
436,100 SunTrust Banks, Inc. 12,293,659
--------------
$ 23,265,499
-------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.4%
242,300 New York Community Bancorp, Inc. (b) $ 4,022,180
--------------
Total Banks $ 55,080,666
-------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.5%
Asset Management & Custody Banks -- 1.6%
164,700 Northern Trust Corp. $ 8,233,353
324,200 The Bank of New York Mellon Corp. 9,388,832
--------------
$ 17,622,185
-------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
----------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------
Consumer Finance -- 0.9%
193,800 American Express Co. $ 9,511,704
--------------
Total Diversified Financials $ 27,133,889
----------------------------------------------------------------------------------
INSURANCE -- 5.5%
Life & Health Insurance -- 1.2%
221,700 Aflac, Inc. $ 12,457,323
----------------------------------------------------------------------------------
Property & Casualty Insurance -- 4.3%
397,500 Chubb Corp. $ 25,913,025
247,100 Cincinnati Financial Corp. (b) 7,828,128
203,500 The Travelers Companies, Inc. 12,877,480
--------------
$ 46,618,633
--------------
Total Insurance $ 59,075,956
----------------------------------------------------------------------------------
REAL ESTATE -- 1.7%
Office Real Estate Investment Trusts -- 0.7%
96,900 Alexandria Real Estate Equities, Inc. (b) $ 7,960,335
----------------------------------------------------------------------------------
Specialized Real Estate Investment Trusts -- 1.0%
242,300 Nationwide Health Properties, Inc. $ 10,612,740
--------------
Total Real Estate $ 18,573,075
----------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.5%
Data Processing & Outsourced Services -- 0.5%
96,900 Automatic Data Processing, Inc. $ 5,266,515
--------------
Total Software & Services $ 5,266,515
----------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.6%
Computer Hardware -- 0.6%
164,700 Hewlett-Packard Co. $ 6,648,939
--------------
Total Technology Hardware & Equipment $ 6,648,939
----------------------------------------------------------------------------------
SEMICONDUCTORS -- 6.4%
Semiconductor Equipment -- 0.4%
290,700 Applied Materials, Inc. $ 4,561,083
----------------------------------------------------------------------------------
Semiconductors -- 6.0%
397,600 Analog Devices, Inc. $ 16,027,254
426,400 Intel Corp. 9,888,216
170,000 Linear Technology Corp.* 5,916,000
484,500 Microchip Technology, Inc. (b) 19,883,880
363,200 Xilinx, Inc. (b) 12,661,152
--------------
$ 64,376,502
--------------
Total Semiconductors $ 68,937,585
----------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 3.6%
Integrated Telecommunication Services -- 3.6%
290,700 AT&T Corp. $ 9,046,584
423,500 CenturyLink, Inc. 17,270,330
78,293 Frontier Communications Corp. 647,483
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 21
Schedule of Investments | 4/30/11 (unaudited) (continued)
--------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------
Integrated Telecommunication Services -- (continued)
326,184 Verizon Communications, Inc. $ 12,323,232
--------------
$ 39,287,629
--------------
Total Telecommunication Services $ 39,287,629
--------------------------------------------------------------------------------------
UTILITIES -- 11.1%
Electric Utilities -- 3.2%
361,150 American Electric Power Co., Inc.* $ 13,174,752
297,800 DPL, Inc. (b) 9,020,362
319,500 Southern Co. 12,473,280
--------------
$ 34,668,394
--------------------------------------------------------------------------------------
Gas Utilities -- 3.4%
380,000 AGL Resources, Inc. (b) $ 15,773,800
126,000 National Fuel Gas Co. 9,235,800
671,700 Questar Corp. 11,801,769
--------------
$ 36,811,369
--------------------------------------------------------------------------------------
Multi-Utilities -- 4.0%
200,000 Ameren Corp. $ 5,862,000
270,072 Consolidated Edison, Inc. 14,076,153
513,600 NSTAR (b) 23,779,680
--------------
$ 43,717,833
--------------------------------------------------------------------------------------
Water Utilities -- 0.5%
175,000 American Water Works Co., Inc. $ 5,141,500
--------------
Total Utilities $ 120,339,096
--------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $706,365,305) $1,074,354,689
--------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
Principal
Amount ($)
----------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 6.5%
Securities Lending Collateral -- 6.5% (c)
Certificates of Deposit:
1,815,114 Bank of Nova Scotia, 0.27%, 9/29/11 $ 1,815,114
1,270,580 BBVA Group NY, 1.11%, 7/26/11 1,270,580
1,815,114 BNP Paribas Bank NY, 0.34%, 5/9/11 1,815,114
1,815,114 Canadian Imperial Bank of Commerce NY, 0.22%, 10/3/11 1,815,114
1,815,114 DnB NOR Bank ASA NY, 0.24%, 6/7/11 1,815,114
907,524 National Australia Bank NY, 0.29%, 10/19/11 907,524
1,997,020 RaboBank Netherland NV NY, 0.34%, 4/2/12 1,997,020
1,089,068 Royal Bank of Canada NY, 0.34%, 12/2/11 1,089,068
1,815,114 Skandinav Enskilda Bank NY, 0.38%, 6/7/11 1,815,114
1,089,068 SOCGEN NY, 0.28%, 7/14/11 1,089,068
726,046 SOCGEN NY, 0.37%, 6/10/11 726,046
544,534 SOCGEN NY, 0.18%, 5/20/11 544,534
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
---------------------------------------------------------------------------------------
Principal
Amount ($) Value
---------------------------------------------------------------------------------------
Certificates of Deposit -- (continued)
1,815,114 Svenska NY, 0.28%, 5/12/11 $ 1,815,114
1,270,583 Svenska NY, 0.20%, 7/19/11 1,270,583
1,815,114 Westpac Banking Corp. NY, 0.34%, 12/6/11 1,815,114
--------------
$ 21,600,221
---------------------------------------------------------------------------------------
Commercial Paper:
726,046 American Honda Finance, 0.34%, 1/11/12 $ 726,046
726,843 American Honda Finance, 1.06%, 6/20/11 726,843
665,419 Australia & New Zealand Banking Group, 0.91%, 8/4/11 665,419
725,946 BBVLON, 0.55%, 5/9/11 725,946
1,088,973 BBVLON, 0.35%, 5/9/11 1,088,973
1,814,421 BCSFUN, 0.25%, 6/24/11 1,814,421
272,117 BCSFUN, 0.22%, 7/29/11 272,117
1,633,337 CBAPP, 0.26%, 5/23/11 1,633,337
1,844,425 Caterpillar Financial Services Corp., 1.06%, 6/24/11 1,844,425
1,815,146 Federal Home Loan Bank, 0.27%, 6/1/11 1,815,146
181,494 General Electric Capital Corp., 0.39%, 6/6/11 181,494
1,451,980 HSBC, 0.25%, 5/11/11 1,451,980
272,524 JPMorgan Chase & Co., 1.06%, 6/13/11 272,524
1,633,603 JPMorgan Chase & Co., 0.30%, 5/18/11 1,633,603
907,359 NABPP, 0.25%, 6/1/11 907,359
1,451,231 NORDNA, 0.27%, 7/18/11 1,451,231
1,451,365 PARFIN, 0.23%, 7/11/11 1,451,365
726,046 Royal Bank of Canada NY, 0.30%, 4/30/12 726,046
1,088,943 SANU, 0.68%, 5/13/11 1,088,943
1,088,008 SANU, 0.68%, 6/17/11 1,088,008
907,008 SANU, 0.68%, 6/1/11 907,008
1,088,994 SEB, 0.19%, 5/13/11 1,088,994
907,529 SOCNAM, 0.37%, 5/3/11 907,529
1,815,114 Toyota Motor Credit Corp., 0.34%, 9/8/11 1,815,114
545,060 Wachovia, 0.46%, 3/1/12 545,060
726,321 Wachovia, 0.43%, 10/15/11 726,321
363,282 Wells Fargo & Co., 0.39%, 1/24/12 363,282
--------------
$ 27,918,534
---------------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
3,256,387 Barclays Capital Plc, 0.03%, 5/2/11 $ 3,256,387
3,630,228 Deutsche Bank AG, 0.03, 5/2/11 3,630,228
3,630,228 HSBC Bank USA NA, 0.03%, 5/2/11 3,630,228
3,630,228 RBS Securities, Inc., 0.04%, 5/2/11 3,630,228
--------------
$ 14,147,071
---------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 23
Schedule of Investments | 4/30/11 (unaudited) (continued)
----------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------
Money Market Mutual Funds:
3,267,205 Dreyfus Preferred Money Market Fund $ 3,267,205
3,267,205 Fidelity Prime Money Market Fund 3,267,205
--------------
$ 6,534,410
--------------
Total Securities Lending Collateral $ 70,200,236
----------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $70,200,236) $ 70,200,236
----------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 106.0%
(Cost $776,565,541) (a) $1,144,554,925
----------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (6.0)% $ (64,638,567)
----------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $1,079,916,358
============================================================================
(A.D.R.) American Depositary Receipt
* Non-income producing security.
+ Investment held by the Fund representing 5% or more of the outstanding
voting stock of such company.
(a) At April 30, 2011, the net unrealized gain on investments based on cost
for federal income tax purposes of $765,603,841 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $382,985,478
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (4,034,394)
------------
Net unrealized gain $378,951,084
============
(b) At April 30, 2011, the following securities were out on loan:
---------------------------------------------------------------------
Shares Security Value
---------------------------------------------------------------------
11,100 AGL Resources, Inc. $ 460,650
14,100 Alexandria Real Estate Equities, Inc. 1,159,020
148,500 Campbell Soup Co. 4,989,600
21,600 Cedar Fair LP 410,400
114,400 Cincinnati Financial Corp. 3,626,480
3,900 Clorox Co. 271,830
5,900 DPL, Inc. 178,770
8,200 EQT Corp. 431,320
32,900 Genuine Parts Co. 1,766,730
76,532 Gorman-Rupp Co.+ 3,099,546
1,700 Helmerich & Payne, Inc. 112,710
60,000 Hershey Foods Corp. 3,462,000
12,283 Huntington Ingalls Industries, Inc.++ 491,320
479,600 Microchip Technology, Inc. 19,663,600
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
-----------------------------------------------------------------
Shares Security Value
-----------------------------------------------------------------
14,090 Mine Safety Appliances Co. $ 559,373
187,600 New York Community Bancorp, Inc. 3,114,160
118,200 NSTAR 5,472,660
45,500 Reed Elsevier Plc (A.D.R.) 1,619,800
9,200 Sonoco Products Co. 318,320
8,100 Trinity Industries, Inc. 293,220
62,700 VF Corp. 6,307,620
96,600 Valspar Corp. 3,796,380
196,900 Xilinx, Inc. 6,871,810
-----------------------------------------------------------------
Total $68,477,319
=================================================================
++ Represents a pending sale as of April 30, 2011.
(c) Securities lending collateral is managed by Credit Suisse AG, New York
Branch.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended April 30, 2011 aggregated $130,273,065 and $130,959,299,
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 April 30, 2011, in valuing
the Fund's assets:
-----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------------
Common Stocks $1,074,354,689 $ -- $ -- $1,074,354,689
Temporary Cash Investments -- 63,665,826 -- 63,665,826
Money Market Mutual Funds 6,534,410 -- -- 6,534,410
-----------------------------------------------------------------------------------------------
Total $1,080,889,099 $63,665,826 $ -- $1,144,554,925
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 25
Statement of Assets and Liabilities | 4/30/11 (unaudited)
ASSETS:
Investment in securities of unaffiliated issuers, at value
(including securities loaned of $65,377,773) (cost $768,750,384) $1,105,032,241
Investment in securities of affiliated issuers, at value (including securities
loaned of $3,099,546) (cost $7,815,157) 39,522,684
---------------------------------------------------------------------------------------------------
Total investments in securities, at value (cost $776,565,541) $1,144,554,925
Receivables --
Investment securities sold 693,767
Fund shares sold 5,182,956
Dividends, interest and foreign taxes withheld 1,825,625
Other 58,252
---------------------------------------------------------------------------------------------------
Total assets $1,152,315,525
---------------------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 988,235
Upon return of securities loaned 70,200,236
Due to bank 904,398
Due to affiliates 216,015
Accrued expenses 90,283
---------------------------------------------------------------------------------------------------
Total liabilities $ 72,399,167
---------------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 869,445,848
Undistributed net investment income 13,816,946
Accumulated net realized loss on investments (171,338,145)
Net unrealized gain on investments 367,989,384
Net unrealized gain on forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 2,325
---------------------------------------------------------------------------------------------------
Total net assets $1,079,916,358
===================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $697,489,662/24,932,626 shares) $ 27.97
Class B (based on $30,023,131/1,080,180 shares) $ 27.79
Class C (based on $77,491,956/2,800,624 shares) $ 27.67
Class R (based on $85,714,276/3,036,344 shares) $ 28.23
Class Y (based on $188,100,865/6,677,975 shares) $ 28.17
Class Z (based on $1,096,468/39,156 shares) $ 28.00
MAXIMUM OFFERING PRICE:
Class A ($27.97 [divided by] 94.25%) $ 29.68
===================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
Statement of Operations (unaudited)
For the Six Months Ended 4/30/11
INVESTMENT INCOME:
Dividends $ 14,084,497
(including income from affiliated issuers of $206,353)
Interest 16,873
Income from securities loaned, net 74,035
-----------------------------------------------------------------------------------------------
Total investment income $ 14,175,405
-----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 2,931,881
Transfer agent fees and expenses
Class A 344,539
Class B 58,595
Class C 41,796
Class R 3,893
Class Y 3,510
Class Z 318
Distribution fees
Class A 792,864
Class B 156,359
Class C 355,816
Class R 185,708
Shareholder communications expense 620,592
Administrative fees 149,886
Custodian fees 12,932
Registration fees 40,131
Professional fees 37,085
Printing expense 32,008
Fees and expenses of nonaffiliated trustees 14,641
Miscellaneous 54,302
-----------------------------------------------------------------------------------------------
Total expenses $ 5,836,856
-----------------------------------------------------------------------------------------------
Net expenses $ 5,836,856
-----------------------------------------------------------------------------------------------
Net investment income $ 8,338,549
-----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 49,922,865
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (48,870) $ 49,873,995
-----------------------------------------------------------------------------------------------
Change in net unrealized gain on:
Investments $103,340,196
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 2,325 $103,342,521
-----------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $153,216,516
-----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $161,555,065
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 27
Statements of Changes in Net Assets
For the Six Months Ended 4/30/11 and the Year Ended 10/31/10, respectively
------------------------------------------------------------------------------------------------
Six Months
Ended
4/30/11 Year Ended
(unaudited) 10/31/10
------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 8,338,549 $ 16,759,440
Net realized gain on investments and foreign currency
transactions 49,873,995 13,161,629
Change in net unrealized gain on investments and foreign
currency transactions 103,342,521 134,326,257
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 161,555,065 $164,247,326
------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.20 and $0.40 per share, respectively) $ (5,050,629) $(10,749,043)
Class B ($0.07 and $0.18 per share, respectively) (87,122) (309,193)
Class C ($0.11 and $0.22 per share, respectively) (299,028) (682,700)
Class R ($0.18 and $0.35 per share, respectively) (505,213) (1,077,046)
Class Y ($0.26 and $0.51 per share, respectively) (1,641,520) (2,894,237)
Class Z ($0.26 and $0.50 per share, respectively) (8,093) (8,093)
------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (7,591,605) $(15,720,312)
------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 171,558,012 $169,859,562
Reinvestment of distributions 6,315,614 13,101,969
Cost of shares repurchased (174,713,890) (266,087,513)
------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from fund
share transactions $ 3,159,736 $(83,125,982)
------------------------------------------------------------------------------------------------
Net increase in net assets $ 157,123,196 $ 65,401,032
NET ASSETS:
Beginning of period 922,793,162 857,392,130
------------------------------------------------------------------------------------------------
End of period $1,079,916,358 $922,793,162
------------------------------------------------------------------------------------------------
Undistributed net investment income $ 13,816,946 $ 13,070,002
================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
-------------------------------------------------------------------------------------------------
'11 Shares '11 Amount '10 Shares '10 Amount
(unaudited) (unaudited)
-------------------------------------------------------------------------------------------------
Class A
Shares sold 4,125,001 $107,521,285 4,873,621 $108,355,144
Reinvestment of distributions 179,268 4,672,466 440,507 9,726,523
Less shares repurchased (4,735,530) (121,457,099) (7,940,823) (175,843,400)
-------------------------------------------------------------------------------------------------
Net decrease (431,261) $ (9,263,348) (2,626,695) $(57,761,733)
=================================================================================================
Class B
Shares sold 40,715 $ 1,049,443 55,270 $ 1,209,791
Reinvestment of distributions 3,083 79,525 12,162 266,465
Less shares repurchased (335,542) (8,628,592) (832,631) (18,239,568)
-------------------------------------------------------------------------------------------------
Net decrease (291,744) $ (7,499,624) (765,199) $(16,763,312)
=================================================================================================
Class C
Shares sold 287,178 $ 7,379,558 286,363 $ 6,286,178
Reinvestment of distributions 7,915 203,998 21,035 459,127
Less shares repurchased (306,427) (7,843,173) (929,112) (20,236,101)
-------------------------------------------------------------------------------------------------
Net decrease (11,334) $ (259,617) (621,714) $(13,490,796)
=================================================================================================
Class R
Shares sold 561,022 $ 14,613,689 464,387 $ 10,404,925
Reinvestment of distributions 18,689 492,799 46,897 1,045,338
Less shares repurchased (337,580) (8,553,345) (1,090,573) (24,270,696)
-------------------------------------------------------------------------------------------------
Net increase (decrease) 242,131 $ 6,553,143 (579,289) $(12,820,433)
=================================================================================================
Class Y
Shares sold 1,540,289 $ 40,493,495 1,935,058 $ 43,250,835
Reinvestment of distributions 32,684 859,014 71,837 1,598,197
Less shares repurchased (1,080,520) (28,187,976) (1,227,685) (27,349,275)
-------------------------------------------------------------------------------------------------
Net increase 492,453 $ 13,164,533 779,210 $ 17,499,757
=================================================================================================
Class Z
Shares sold 19,384 $ 500,542 15,868 $ 352,689
Reinvestment of distributions 297 7,812 285 6,319
Less shares repurchased (1,630) (43,705) (6,538) (148,473)
-------------------------------------------------------------------------------------------------
Net increase 18,051 $ 464,649 9,615 $ 210,535
=================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 29
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/11 Ended Ended Ended Ended Ended
(unaudited) 10/31/10 10/31/09 10/31/08 10/31/07 10/31/06
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 23.92 $ 20.24 $ 21.28 $ 33.10 $ 33.53 $ 29.23
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations:
Net investment income $ 0.23 $ 0.46 $ 0.58 $ 0.75 $ 0.69 $ 0.68
Net realized and unrealized gain (loss)
on investments 4.02 3.63 (1.12) (10.03) 2.50 5.36
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ 4.25 $ 4.09 $ (0.54) $ (9.28) $ 3.19 $ 6.04
Distributions to shareowners:
Net investment income (0.20) (0.40) (0.50) (0.67) (0.73) (0.66)
Net realized gain -- -- -- (1.81) (2.89) (1.08)
Tax return of capital -- -- -- (0.06) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 4.05 $ 3.69 $ (1.04) $ (11.82) $ (0.43) $ 4.30
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.97 $ 23.92 $ 20.24 $ 21.28 $ 33.10 $ 33.53
====================================================================================================================================
Total return* 17.84% 20.36% (2.30)% (29.99)% 10.22% 21.61%
Ratio of net expenses to average net assets+ 1.16%** 1.19% 1.23% 1.11% 1.03% 1.04%
Ratio of net investment income to average
net assets+ 1.74%** 1.93% 2.98% 2.67% 2.27% 2.27%
Portfolio turnover rate 27%** 15% 28% 19% 14% 32%
Net assets, end of period (in thousands) $697,490 $606,693 $566,439 $639,388 $1,063,910 $840,640
Ratios with reduction for fees paid indirectly:
Net expenses 1.16%** 1.19% 1.23% 1.10% 1.02% 1.03%
Net investment income 1.74%** 1.93% 2.98% 2.68% 2.28% 2.28%
====================================================================================================================================
* 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 Equity Income Fund | Semiannual Report | 4/30/11
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/11 Ended Ended Ended Ended Ended
(unaudited) 10/31/10 10/31/09 10/31/08 10/31/07 10/31/06
------------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 23.77 $ 20.10 $ 21.14 $ 32.88 $ 33.32 $ 29.05
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.20 $ 0.38 $ 0.51 $ 0.57 $ 0.51 $ 0.47
Net realized and unrealized gain (loss) on investments 3.89 3.47 (1.23) (10.02) 2.38 5.26
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.09 $ 3.85 $ (0.72) $ (9.45) $ 2.89 $ 5.73
Distributions to shareowners:
Net investment income (0.07) (0.18) (0.32) (0.44) (0.44) (0.38)
Net realized gain -- -- -- (1.81) (2.89) (1.08)
Tax return of capital -- -- -- (0.04) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 4.02 $ 3.67 $ (1.04) $ (11.74) $ (0.44) $ 4.27
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.79 $ 23.77 $ 20.10 $ 21.14 $ 32.88 $ 33.32
====================================================================================================================================
Total return* 17.24% 19.23% (3.26)% (30.58)% 9.30% 20.55%
Ratio of net expenses to average net assets+ 2.13%** 2.17% 2.20% 1.96% 1.90% 1.91%
Ratio of net investment income to average net assets+ 0.81%** 0.98% 2.08% 1.83% 1.42% 1.44%
Portfolio turnover rate 27%** 15% 28% 19% 14% 32%
Net assets, end of period (in thousands) $30,023 $32,604 $42,950 $ 66,530 $134,618 $155,733
Ratios with reduction for fees paid indirectly:
Net expenses 2.13%** 2.17% 2.20% 1.96% 1.89% 1.90%
Net investment income 0.81%** 0.98% 2.08% 1.83% 1.43% 1.45%
====================================================================================================================================
* 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 Equity Income Fund | Semiannual Report | 4/30/11 31
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/11 Ended Ended Ended Ended Ended
(unaudited) 10/31/10 10/31/09 10/31/08 10/31/07 10/31/06
------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 23.66 $ 20.01 $ 21.04 $ 32.75 $ 33.20 $ 28.96
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.13 $ 0.32 $ 0.47 $ 0.55 $ 0.46 $ 0.45
Net realized and unrealized gain (loss) on investments 3.99 3.55 (1.16) (9.94) 2.44 5.29
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.12 $ 3.87 $ (0.69) $ (9.39) $ 2.90 $ 5.74
Distributions to shareowners:
Net investment income (0.11) (0.22) (0.34) (0.47) (0.46) (0.42)
Net realized gain -- -- -- (1.81) (2.89) (1.08)
Tax return of capital -- -- -- (0.04) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 4.01 $ 3.65 $ (1.03) $ (11.71) $ (0.45) $ 4.24
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.67 $ 23.66 $ 20.01 $ 21.04 $ 32.75 $ 33.20
====================================================================================================================================
Total return* 17.43% 19.46% (3.11)% (30.52)% 9.37% 20.66%
Ratio of net expenses to average net assets+ 1.91%** 1.96% 2.04% 1.87% 1.82% 1.83%
Ratio of net investment income to average net assets+ 1.00%** 1.17% 2.21% 1.92% 1.48% 1.49%
Portfolio turnover rate 27%** 15% 28% 19% 14% 32%
Net assets, end of period (in thousands) $77,492 $66,536 $68,719 $ 88,291 $157,553 $139,915
Ratios with reduction for fees paid indirectly:
Net expenses 1.91%** 1.96% 2.04% 1.87% 1.81% 1.82%
Net investment income 1.00%** 1.17% 2.21% 1.92% 1.49% 1.50%
====================================================================================================================================
* 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.
32 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/11 Ended Ended Ended Ended Ended
(unaudited) 10/31/10 10/31/09 10/31/08 10/31/07 10/31/06
------------------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 24.14 $ 20.43 $ 21.45 $ 33.34 $ 33.73 $ 29.39
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.17 $ 0.44 $ 0.49 $ 0.68 $ 0.54 $ 0.51
Net realized and unrealized gain (loss) on investments 4.10 3.63 (1.07) (10.09) 2.63 5.51
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.27 $ 4.07 $ (0.58) $ (9.41) $ 3.17 $ 6.02
Distributions to shareowners:
Net investment income (0.18) (0.35) (0.44) (0.62) (0.67) (0.60)
Net realized gain -- -- -- (1.81) (2.89) (1.08)
Tax return of capital -- -- -- (0.05) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 4.09 $ 3.72 $ (1.02) $ (11.89) $ (0.39) $ 4.34
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.23 $ 24.14 $ 20.43 $ 21.45 $ 33.34 $ 33.73
====================================================================================================================================
Total return* 17.73% 20.03% (2.50)% (30.14)% 10.10% 21.41%
Ratio of net expenses to average net assets+ 1.41%** 1.44% 1.44% 1.33% 1.20% 1.23%
Ratio of net investment income to average net assets+ 1.49%** 1.68% 2.71% 2.44% 2.07% 2.00%
Portfolio turnover rate 27%** 15% 28% 19% 14% 32%
Net assets, end of period (in thousands) $ 85,714 $67,460 $68,904 $ 64,559 $ 67,239 $26,140
Ratios with reduction for fees paid indirectly:
Net expenses 1.41%** 1.44% 1.44% 1.33% 1.19% 1.22%
Net investment income 1.49%** 1.68% 2.71% 2.44% 2.08% 2.01%
====================================================================================================================================
* 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.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 33
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/11 Ended Ended Ended Ended Ended
(unaudited) 10/31/10 10/31/09 10/31/08 10/31/07 10/31/06
------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 24.09 $ 20.37 $ 21.41 $ 33.28 $ 33.68 $ 29.35
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.25 $ 0.49 $ 0.42 $ 0.67 $ 0.91 $ 0.73
Net realized and unrealized gain (loss) on investments 4.09 3.74 (0.87) (9.89) 2.42 5.45
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.34 $ 4.22 $ (0.45) $ (9.22) $ 3.33 $ 6.18
Distributions to shareowners:
Net investment income (0.26) (0.51) (0.59) (0.77) (0.84) (0.77)
Net realized gain -- -- -- (1.81) (2.89) (1.08)
Tax return of capital -- -- -- (0.07) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 4.08 $ 3.71 $ (1.04) $ (11.87) $ (0.40) $ 4.33
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.17 $ 24.09 $ 20.37 $ (21.41) $ 33.28 $ 33.68
====================================================================================================================================
Total return* 18.09% 20.98% (1.85)% (29.72)% 10.66% 22.10%
Ratio of net expenses to average net assets+ 0.76%** 0.72% 0.75% 0.72% 0.66% 0.65%
Ratio of net investment income to average net assets+ 2.14%** 2.38% 3.10% 3.09% 2.66% 2.61%
Portfolio turnover rate 27%** 15% 28% 19% 14% 32%
Net assets, end of period (in thousands) $188,101 $148,995 $110,148 $ 29,157 $ 11,471 $12,956
Ratios with reduction for fees paid indirectly:
Net expenses 0.76%** 0.72% 0.75% 0.72% 0.66% 0.65%
Net investment income 2.14%** 2.38% 3.10% 3.09% 2.66% 2.61%
====================================================================================================================================
* 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.
34 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year
4/30/11 Ended Ended Ended 7/6/07 (a)
(unaudited) 10/31/10 10/31/09 10/31/08 to 10/31/07
------------------------------------------------------------------------------------------------------------------------------------
Class Z
Net asset value, beginning of period $ 23.95 $ 20.27 $ 21.30 $ 33.12 $ 34.18
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.10 $ 0.38 $ 0.45 $ 0.80 $ 0.24
Net realized and unrealized gain (loss) on investments 4.21 3.80 (0.91) ( 9.98) (1.08)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.31 $ 4.18 $ (0.46) $ (9.18) $ (0.84)
Distributions to shareowners:
Net investment income (0.26) (0.50) (0.57) (0.76) (0.22)
Net realized gain -- -- -- (1.81) --
Tax return of capital -- -- -- (0.07) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 4.05 $ 3.68 $ (1.03) $ (11.82) $ (1.06)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.00 $ 23.95 $ 20.27 $ 21.30 $ 33.12
====================================================================================================================================
Total return* 18.06% 20.84% (1.88)% (29.75)% (2.46)%(b)
Ratio of net expenses to average net assets+ 0.78%** 0.81% 0.79% 0.76% 0.67%**
Ratio of net investment income to average net assets+ 2.07%** 2.25% 3.24% 3.03% 2.26%**
Portfolio turnover rate 27%** 15% 28% 19% 14%(b)
Net assets, end of period (in thousands) $ 1,096 $ 505 $ 233 $ 75 $ 97
Ratios with reduction for fees paid indirectly:
Net expenses 0.78%** 0.81% 0.95% 0.76% 0.67%**
Net investment income 2.07%** 2.25% 3.08% 3.03% 2.26%**
====================================================================================================================================
(a) Class Z shares were first publicly offered on July 6, 2007.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
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.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 35
Notes to Financial Statements | 4/30/11 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Equity Income Fund (the Fund) is a Delaware statutory trust. The Fund
is registered under the Investment Company Act of 1940 as a diversified,
open-end management investment company. The investment objective of the Fund is
current income and long-term growth of capital from a portfolio consisting
primarily of income producing equity securities of U.S. corporations.
The Fund offers six classes of shares designated as Class A, Class B, Class C,
Class R, Class Y and Class Z shares. Class R shares commenced operations on
April 1, 2003. Class Z shares were first publicly offered on July 6, 2007.
Effective as of the close of business on December 31, 2009, Class B shares are
no longer offered to new or existing shareholders, except that dividends and/or
capital gain distributions may continue to be reinvested in Class B shares, and
shareholders may exchange their Class B shares for Class B shares of other
Pioneer funds, as permitted by existing exchange privileges. Each class of
shares represents an interest in the same portfolio of investments of the Fund
and has identical rights (based on relative net asset values) to assets and
liquidation proceeds. Share classes can bear different rates of class-specific
fees and expenses such as transfer agent and distribution fees. Differences in
class-specific fees and expenses will result in differences in net investment
income and, therefore, the payment of different dividends from net investment
income earned by each class. The Amended and Restated Declaration of Trust of
the Fund gives the Board the flexibility to specify either per-share voting or
dollar-weighted voting when submitting matters for shareholder approval. Under
per-share voting, each share of a class of the Fund is entitled to one vote.
Under dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y or Class Z shares. Class
B shares convert to Class A shares approximately eight years after the date of
purchase.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making the Fund more susceptible to
any economic, political or regulatory developments or other risks affecting
those industries or sectors. The Fund's prospectus contains unaudited
information regarding the Fund's principal risks. Please refer to 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
36 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities that have traded on an exchange are valued at
the last sale price on the principal exchange where they are traded.
Securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued at the mean between
the last bid and asked prices. Securities for which market prices and/or
quotations are not readily available or are considered to be unreliable are
valued using fair value methods pursuant to procedures adopted by the Board
of Trustees.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times.
The Fund may use fair value methods if it is determined that a significant
event has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset value.
Thus, the valuation of the Fund's securities may differ from exchange prices.
At April 30, 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, including interest on
income bearing cash accounts, is recorded on the accrual basis.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 37
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
share-owners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years remain subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
The tax character of current year distributions payable will be determined at
the end of the current taxable year. The tax character of distributions paid
during the year ended October 31, 2010 was as follows:
--------------------------------------------------------------------------------
2010
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $15,720,312
--------------------------------------------------------------------------------
Total $15,720,312
================================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2010:
--------------------------------------------------------------------------------
2010
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 659,959
Capital loss carryforward (219,763,797)
Unrealized appreciation 275,610,888
--------------------------------------------------------------------------------
Total $ 56,507,050
================================================================================
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales, the tax basis
adjustments on partnerships, and REIT holdings.
38 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
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 $38,296 in underwriting commissions on the sale of Class A shares
during the six months ended April 30, 2011.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning of
the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, Class C and Class R shares of the Fund,
respectively (see Note 4). Class Y and Class Z shares do not pay distribution
fees. All expenses and fees paid to the transfer agent, Pioneer Investment
Management Shareholder Services, Inc. (PIMSS), for its services are allocated
among the classes of shares based on the number of accounts in each class and
the ratable allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class B, Class C, Class R, Class Y
and Class Z shares can reflect different transfer agent and distribution
expense rates.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian or a subcustodian of the Fund. The Fund's
investment adviser, Pioneer Investment Management, Inc. (PIM), is responsible
for determining that the value of the collateral remains at least equal to
the repurchase price.
F. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors. When entering into a securities loan transaction,
the Fund typically receives cash collateral from the borrower equal to at
least the value of the securities loaned, which is invested in temporary
investments. 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
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 39
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.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.60% of
the Fund's average daily net assets up to $10 billion and 0.575% of the excess
over $10 billion. For the six months ended April 30, 2011, the effective
management fee (excluding waivers and/or assumption of expenses) was equivalent
to 0.60% of the Fund's average daily net assets.
Pioneer has contractually agreed to limit ordinary operating expenses to the
extent required to reduce Class Z expenses to 0.85% of the average daily net
assets attributable to Class Z shares. This expense limitation is in effect
through March 1, 2012. There can be no assurance that PIM will extend the
expense limitation agreement beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting, and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$40,415 in management fees, administrative costs and certain other
reimbursements payable to PIM at April 30, 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.
40 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
For the six months ended April 30, 2011, such out-of-pocket expenses by class
of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $405,604
Class B 13,904
Class C 42,869
Class R 86,570
Class Y 71,535
Class Z 110
--------------------------------------------------------------------------------
Total $620,592
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $156,762 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at April 30, 2011.
4. Distribution and Service Plans
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B, Class C
and Class R shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the
average daily net assets attributable to Class A shares as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class A shares. Pursuant to the Plan, the Fund also pays PFD
1.00% of the average daily net assets attributable to Class B and Class C
shares. The fee for Class B and Class C shares consists of a 0.25% service fee
and a 0.75% distribution fee paid as compensation for personal services and/or
account maintenance services or distribution services with regard to Class B
and Class C shares. Pursuant to the Plan, the Fund further pays PFD 0.50% of
the average daily net assets attributable to Class R shares for distribution
services. Included in "Due to affiliates" reflected on the Statement of Assets
and Liabilities is $18,838 in distribution fees payable to PFD at April 30,
2011.
The Fund also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Fund a
service fee of up to 0.25% of the Fund's average daily net assets attributable
to Class R shares held by such plans.
In addition, redemptions of each class of shares (except Class R, Class Y and
Class Z shares) may be subject to a contingent deferred sales charge (CDSC). A
CDSC of 1.00% may be imposed on redemptions of certain net asset value
purchases of Class A shares within 18 months of purchase (within 12 months for
purchases made on or after April 1, 2009). Class B shares redeemed within five
years of purchase are subject to a CDSC at declining rates beginning at 4.00%,
based on the lower of cost or market value of shares being redeemed.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 41
Redemptions of Class C shares within one year of purchase are subject to a CDSC
of 1.00%, based on the lower of cost or market value of shares being redeemed.
Shares purchased as part of an exchange remain subject to any CDSC that applied
to the original purchase of those shares. There is no CDSC for Class R, Class Y
or Class Z shares. Proceeds from the CDSCs are paid to PFD. For the six months
ended April 30, 2011, CDSCs in the amount of $12,678 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended April 30, 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
April 30, 2011, the Fund had no borrowings under this agreement.
7. Affiliated Companies
The Fund's investments in certain companies may exceed 5% of the outstanding
voting stock of those companies. Such companies are deemed affiliates of the
Fund for financial reporting purposes. The following summarizes transactions
with affiliates of the Fund for the six months ended April 30, 2011:
--------------------------------------------------------------------------------------------------------
Beginning Corporate Ending
Balance Purchases Actions Balance Dividend
Affiliates (shares) (shares) (shares) (shares) Income Value
--------------------------------------------------------------------------------------------------------
Gorman-Rupp Co. 988,195 -- -- 977,075 $206,353 $39,522,684
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.
42 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Equity Income Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether
to renew the investment advisory agreement for the Fund.
The contract review process began in March 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
attention and high priority given by PIM's senior management to the Pioneer
fund complex.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 43
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, in the second quintile of
its Morningstar category for the three and five year periods ended June 30,
2010, and in the third quintile of its Morningstar category for the ten 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 breakpoint in the management fee schedule and
the reduced fee rate on assets over $10 billion. The Trustees considered that
the Fund's expense ratio for the twelve months ended June 30, 2010 was in the
fourth quintile relative to its Strategic Insight peer group for the comparable
period. The Trustees noted the impact of the Fund's non-management fee expenses
on the Fund's expense ratio.
44 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
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.
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 Equity Income Fund | Semiannual Report | 4/30/11 45
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.
46 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
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.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 47
This page for your notes.
48 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
This page for your notes.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 49
This page for your notes.
50 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
This page for your notes.
Pioneer Equity Income Fund | Semiannual Report | 4/30/11 51
This page for your notes.
52 Pioneer Equity Income Fund | Semiannual Report | 4/30/11
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.
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 Equity Income Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date June 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 June 29, 2011
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date June 29, 2011
* Print the name and title of each signing officer under his or her signature.