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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 October 31, 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
--------------------------------------------------------------------------------
Annual Report | October 31, 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: 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
Report of Independent Registered Public Accounting Firm 44
Trustees, Officers and Service Providers 46
Pioneer Equity Income Fund | Annual Report | 10/31/11 1
President's Letter
Dear Shareowner,
During the first three quarters of 2011, the U.S. economy struggled to gain
solid footing. The economy went through a soft patch in the first half, and the
second half, so far, has been highlighted by the U.S. government's battle over
the debt ceiling and Standard & Poor's downgrade of the U.S. Treasury's credit
rating from the top rating of "AAA" for the first time in history. After
rallying nicely in the first half, U.S. equity markets reacted sharply this
summer to the political stalemate and the downgrade. There has been continued
pressure on equities due to concerns about the growing European sovereign-debt
crisis and its potential impact on the global economy.
Despite legitimate reasons for concern, we believe there are also reasons for
optimism that the U.S. economy will continue to exhibit modest growth and is
not headed into a severe recession. Corporations continue to post solid
earnings and, for the most part, are maintaining their positive earnings
outlooks. They also have strong balance sheets with improved net leverage and
high cash levels. Auto production has rebounded following the Japanese
supply-chain interruptions caused by the earthquake and tsunami last spring.
Retail sales growth year-over-year has remained steady despite low consumer
confidence. And despite high unemployment in the U.S., private sector
employment has grown consistently, albeit modestly, since February 2010. There
are certainly risks to our outlook, including possible contagion from the
European sovereign-debt and banking crisis, the fiscal drag from federal and
state budget cuts in the U.S., as well as potential "negative feedback loops"
from capital-market volatility. But broadly speaking, we think the subpar
economic recovery is consistent with recoveries from other "balance
sheet"-caused recessions.
The difficult recovery process has been accompanied by wide market swings.
While this is a challenging environment, our investment professionals continue
to focus on finding good opportunities to invest in both equity and bond
markets using the same disciplined approach Pioneer has used since 1928. Our
approach is to identify 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.
2 Pioneer Equity Income Fund | Annual Report | 10/31/11
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. 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.
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
us.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 opinion 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 | Annual Report | 10/31/11 3
Portfolio Management Discussion | 10/31/11
In the following interview, John Carey, Executive Vice President and Head of
U.S. Core Value at Pioneer Investments, discusses the investment environment
during the 12-month period ended October 31, 2011, and Pioneer Equity Income
Fund's performance during the period. Mr. Carey is responsible for the
day-to-day management of Pioneer Equity Income Fund.
Q How did the Fund perform over the 12 months ended October 31, 2011?
A Over the 12 months ended October 31, 2011, Pioneer Equity Income Fund Class A
shares returned 11.26% at net asset value, while the Fund's benchmark, the
Russell 1000 Value Index, returned 6.16%. Over the same 12-month period, the
average return of the 286 mutual funds in Lipper's Equity Income Funds
category was 7.13%. In comparison, over the last six months of the Fund's
annual reporting period ended October 31, 2011, the Fund's Class A shares
returned -5.58% at net asset value, while the Russell 1000 Value Index
returned -9.49%.
Q How would you describe the markets for equities over the 12 months ended
October 31, 2011, particularly for the types of equities deemed appropriate
for the Fund?
A The first six months of the Fund's fiscal year, November 1, 2010, through
April 30, 2011, were generally positive months for stocks, but the second half
of the Fund's fiscal year concluded on October 31, 2011, saw an extended and
nerve-wracking market correction. A rally beginning in early October 2011
reversed some of the losses, but the second six-month period from May through
October 2011 was still one of overall market decline. It seemed to us a
peculiar decline, in that underlying economic and corporate fundamentals
remained in satisfactory to good condition. The focus of traders and investors
was rather on Europe and its sovereign-debt woes, and on Washington, D. C.,
and the U.S. government's own political disputes over budgetary imbalances. In
a "headline-driven" market, it sometimes makes the most sense to sit tight,
after determining that the companies whose stocks one owns are likely to stay
in business and continue growing in spite of the "macroeconomic" issues
pushing share prices first one way and then the other. Fortunately, most of
the stocks in the Fund's portfolio appeared to us to have those
characteristics of resiliency, and indeed the share prices of the kinds of
stable, dividend-paying companies the Fund typically holds did decline by less
during the correction than the broader market, as measured by the Fund's
benchmark, the Russell 1000 Index (the Russell Index).
Q The Fund outperformed the benchmark Russell Index over the 12-month period
ended October 31, 2011, as well as over the final six months of the
4 Pioneer Equity Income Fund | Annual Report | 10/31/11
period. What were the main reasons for the Fund's above-benchmark performance?
A Both for the Fund's fiscal year as a whole and the second six months of the
fiscal year (from May 1 through October 31, 2011), the Fund's outperformance
was attributable both to sector allocations and stock selections. The biggest
sector-weighting contributors to performance were the Fund's significant
underweight relative to the Russell Index in the poorly performing financials
sector and the Fund's overweight relative to the benchmark in the strongly
performing utilities sector. The best stock selection results occurred, again,
in the financials sector, but in both halves of the fiscal year the Fund also
experienced good stock selection results in the energy and consumer
discretionary sectors, among others. Standout performers in the portfolio were
EQT in the energy sector and VF in the consumer discretionary sector. In
financials, Chubb was a top performer for the Fund, and performance also
benefited from names the Fund did not own, principally the so-called
"money-center" banks (Bank of America, Citigroup, and JPMorgan Chase).
Concerns about the interlocking relationships between the troubled European
banking system and U.S. global banks led investors to sell shares of the
money-center institutions quite heavily. We were happy to watch that selling
activity from the sidelines.
On the negative side, the Fund's overweight in the underperforming materials
sector hurt results somewhat in the second half of the fiscal year, though
good stock selection in the sector sharply limited the weighting's negative
contribution. The Fund's weakest results in the second half of the fiscal year
were in the industrials sector; the portfolio was overweight the
underperforming sector and stock selections also fared worse than the average
stock performance within the sector. Among the Fund's industrials holdings,
Emerson Electric and Gorman-Rupp were especially weak, though in both cases we
retained the Fund's positions because of our confidence in the longer-term
prospects for the companies.
Q Could you please discuss changes to the Fund's portfolio during the Fund's
fiscal year ended October 31, 2011, particularly those made over the final six
months of the period?
A Overall, we purchased several new positions. In the second half of the period,
in fact, one of the Fund's existing holdings split into two companies, and one
Fund holding was acquired by another company in exchange for stock. We also
liquidated multiple Fund positions; as noted, the one portfolio name
transmogrified into two; and the company that was acquired was replaced in the
portfolio by shares of its acquirer.
New purchases included Exxon Mobil, the worldwide oil and gas company;
Walgreen, the prominent drugstore company; PepsiCo, the large producer of
beverages and snack foods; CBS, the broadcasting company; Owens & Minor,
distributor of medical and surgical supplies to hospitals; Discover
Pioneer Equity Income Fund | Annual Report | 10/31/11 5
Financial Services, the credit-card company; and Windstream, the rural
telephone-service provider. All of the companies added to the Fund's portfolio
pay dividends, and all, we thought, were selling at attractive prices relative
to their outlooks.
Marathon Oil was the existing Fund holding that became two separate companies
during the period. In an effort to highlight the values of its two main
businesses, Marathon Oil split itself into a "new" Marathon Oil, which
controls the former company's oil and gas exploration and production
businesses (the so-called "upstream"), and Marathon Petroleum, which operates
the former company's refining, marketing, and energy transporting divisions
(the "downstream" and "midstream"). Finally, Ventas, a real estate investment
trust, or REIT, acquired with stock the Fund's holding in Nationwide Health
Properties. We have retained the shares of Ventas, which, like Nationwide,
owns health care properties.
Fund positions liquidated during the period included Lockheed Martin, CSX,
Norfolk Southern, Reed Elsevier, Bank of New York Mellon, Northern Trust,
Aflac, Cincinnati Financial, Hewlett-Packard, Frontier Communications, and
NSTAR. In most cases, the stocks had reached our target prices, and we thought
that there were more compelling values elsewhere in the market. In a few
cases, we were disappointed with company management and no longer as convinced
of the potential earnings development.
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 Of course, having weathered the subprime mortgage meltdown of 2007-2009, we
find ourselves in a new financial crisis, having to do this time with European
sovereign debt! And no, dividends -- especially in the financials sector --
had not returned to pre-crisis levels before the onset of this most recent
crisis, and it would now appear unlikely that banks in particular will be able
to get their dividends back to those earlier levels anytime soon. However, in
other sectors of the market we have been seeing very good dividend increases,
and we think that companies that are showing strong profitability will
continue to reward shareholders with higher dividend payments. With reference
to data from Standard & Poor's (S&P), as we write this shareholder letter
during the third week of November 2011, there have been more than twice as
many increases in the dividend by companies in the S&P database as there had
been by this time in 2009, and fewer than 10% of the dividend decreases that
we had seen by this time in 2009.
Q Given the various headwinds facing the global economy, what is your outlook
for the coming year?
A We do think that there is a better set of fundamentals than the volatility in
the market would lead one to think. Investor skittishness has arisen from
6 Pioneer Equity Income Fund | Annual Report | 10/31/11
the admittedly concerning stories in the press about European and U. S. fiscal
challenges and the inability or unwillingness of elected political leaders to
come to grips with them. We cannot discount the possibility that the "macro"
worries will influence and affect the behavior of consumers, investors, and
business managers. So far, the U.S. economy has kept growing, if only at a
moderate pace, and the stores are still full of shoppers. However, we saw
during the 2007-2009 period the effect that a full-blown financial crisis can
have on the larger economy. The European situation has been simmering for a
couple of years and may or may not come to the full boil that many people
fear. Greece and several other European countries are obviously experiencing
great difficulties in keeping their government budgets within the bounds
required under the original euro agreement. Unfortunately, economic growth is
not fast enough in Europe to "bail out" the struggling governments, and so
some more drastic actions will be required. At the same time, here in the U.
S., we are running record budget deficits and likewise cannot seem to find the
gumption needed to bring them down. We do, though, have the advantage of a
rather more dynamic economy than the Europeans have, and so growth can at
least play a role in solving the fiscal problem we face.
So, while people are endlessly clever and while there are examples throughout
history of success snatched from the jaws of failure, the challenges today,
which we are reading about, it seems, all the time, are to be taken into
consideration as one invests. Our approach is to emphasize financially strong
companies in the Fund, that is, companies not greatly dependent on government
spending for their revenue streams, with enterprises that are attractively
positioned competitively and that have proven in the past their ability to
steer through treacherous economic waters. As always, we shall regard the
dividend-paying record of companies as an important indicator of the
investment qualities we seek when adding holdings to the Fund's portfolio.
Thank you for your faithful interest in the Fund.
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 opinion as of the date of this report. These opinions should not
be relied upon for any other purposes.
Pioneer Equity Income Fund | Annual Report | 10/31/11 7
Portfolio Summary | 10/31/11
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE DATA BELOW IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Staples 14.4%
Financials 13.4%
Energy 12.8%
Health Care 11.3%
Utilities 10.4%
Consumer Discretionary 9.4%
Industrials 8.2%
Materials 7.8%
Information Technology 7.4%
Telecommunication Services 4.9%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Gorman-Rupp Co. 3.08%
--------------------------------------------------------------------------------
2. Valspar Corp. 2.85
--------------------------------------------------------------------------------
3. H.J. Heinz Co., Inc. 2.83
--------------------------------------------------------------------------------
4. EQT Corp. 2.66
--------------------------------------------------------------------------------
5. Johnson Controls, Inc. 2.60
--------------------------------------------------------------------------------
6. Chubb Corp. 2.50
--------------------------------------------------------------------------------
7. VF Corp. 2.14
--------------------------------------------------------------------------------
8. Hershey Foods Corp. 1.94
--------------------------------------------------------------------------------
9. Microchip Technology, Inc. 1.92
--------------------------------------------------------------------------------
10. Compass Minerals International, Inc. 1.87
--------------------------------------------------------------------------------
* 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 | Annual Report | 10/31/11
Prices and Distributions | 10/31/11
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/11 10/31/10
--------------------------------------------------------------------------------
A $26.19 $23.92
--------------------------------------------------------------------------------
B $26.02 $23.77
--------------------------------------------------------------------------------
C $25.91 $23.66
--------------------------------------------------------------------------------
R $26.45 $24.14
--------------------------------------------------------------------------------
Y $26.38 $24.09
--------------------------------------------------------------------------------
Z $26.21 $23.95
--------------------------------------------------------------------------------
Distributions per Share: 11/1/10-10/31/11
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.4125 $ -- $ --
--------------------------------------------------------------------------------
B $0.1513 $ -- $ --
--------------------------------------------------------------------------------
C $0.2170 $ -- $ --
--------------------------------------------------------------------------------
R $0.3266 $ -- $ --
--------------------------------------------------------------------------------
Y $0.5196 $ -- $ --
--------------------------------------------------------------------------------
Z $0.5170 $ -- $ --
--------------------------------------------------------------------------------
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 | Annual Report | 10/31/11 9
Performance Update | 10/31/11 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 October 31, 2011)
-------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
-------------------------------------------------------------------
10 Years 4.83% 4.22%
5 Years 0.19 -0.99
1 Year 11.26 4.86
-------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2011)
-------------------------------------------------------------------
Gross Net
-------------------------------------------------------------------
1.19% 1.19%
--------------------------------------------------------------------
[THE DATA BELOW IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Russell 1000
Equity Income Fund Value Index
10/01 $ 9,425 $10,000
10/02 $ 8,236 $ 8,998
10/03 $ 9,545 $11,056
10/04 $11,103 $12,765
10/05 $12,311 $14,279
10/06 $14,971 $17,343
10/07 $16,501 $19,222
10/08 $11,552 $12,149
10/09 $11,286 $12,730
10/10 $13,583 $14,730
10/11 $15,114 $15,637
Call 1-800-225-6292 or visit us.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 | Annual Report | 10/31/11
Performance Update | 10/31/11 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 October 31, 2011)
-------------------------------------------------------------------
If If
Period Held Redeemed
-------------------------------------------------------------------
10 Years 3.90% 3.90%
5 Years -0.74 -0.74
1 Year 10.12 6.12
-------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2011)
-------------------------------------------------------------------
Gross Net
-------------------------------------------------------------------
2.17% 2.17%
-------------------------------------------------------------------
[THE DATA BELOW IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Russell 1000
Equity Income Fund Value Index
10/01 $10,000 $0,000
10/02 $ 8,666 $8,998
10/03 $ 9,958 $1,056
10/04 $11,485 $2,765
10/05 $12,621 $4,279
10/06 $15,216 $7,343
10/07 $16,631 $9,222
10/08 $11,545 $2,149
10/09 $11,168 $2,730
10/10 $13,316 $4,730
10/11 $14,663 $5,637
Call 1-800-225-6292 or visit us.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
us.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 | Annual Report | 10/31/11 11
Performance Update | 10/31/11 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 October 31, 2011)
-------------------------------------------------------------------
If If
Period Held Redeemed
-------------------------------------------------------------------
10 Years 4.01% 4.01%
5 Years -0.58 -0.58
1 Year 10.45 10.45
-------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2011)
-------------------------------------------------------------------
Gross Net
-------------------------------------------------------------------
1.96% 1.96%
-------------------------------------------------------------------
[THE DATA BELOW IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Russell 1000
Equity Income Fund Value Index
10/01 $10,000 $10,000
10/02 $ 8,664 $ 8,998
10/03 $ 9,957 $11,056
10/04 $11,491 $12,765
10/05 $12,637 $14,279
10/06 $15,248 $17,343
10/07 $16,677 $19,222
10/08 $11,587 $12,149
10/09 $11,226 $12,730
10/10 $13,411 $14,730
10/11 $14,812 $15,637
Call 1-800-225-6292 or visit us.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 | Annual Report | 10/31/11
Performance Update | 10/31/11 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 October 31, 2011)
-------------------------------------------------------------------
If If
Period Held Redeemed
-------------------------------------------------------------------
10 Years 4.59% 4.59%
5 Years -0.02 -0.02
1 Year 10.96 10.96
-------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2011)
-------------------------------------------------------------------
Gross Net
-------------------------------------------------------------------
1.44% 1.44%
-------------------------------------------------------------------
[THE DATA BELOW IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Russell 1000
Equity Income Fund Value Index
10/01 $10,000 $10,000
10/02 $ 8,695 $ 8,998
10/03 $10,049 $11,056
10/04 $11,679 $12,765
10/05 $12,921 $14,279
10/06 $15,688 $17,343
10/07 $17,271 $19,222
10/08 $12,067 $12,149
10/09 $11,765 $12,730
10/10 $14,121 $14,730
10/11 $15,668 $15,637
Call 1-800-225-6292 or visit us.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 | Annual Report | 10/31/11 13
Performance Update | 10/31/11 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 October 31, 2011)
-------------------------------------------------------------------
If If
Period Held Redeemed
-------------------------------------------------------------------
10 Years 5.29% 5.29%
5 Years 0.63 0.63
1 Year 11.73 11.73
-------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2011)
-------------------------------------------------------------------
Gross Net
-------------------------------------------------------------------
0.72% 0.72%
-------------------------------------------------------------------
[THE DATA BELOW IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $5,000,000 Investment
Pioneer Russell 1000
Equity Income Fund Value Index
10/01 $5,000,000 $5,000,000
10/02 $4,388,021 $4,498,967
10/03 $5,109,785 $5,528,098
10/04 $5,972,538 $6,382,370
10/05 $6,647,988 $7,139,634
10/06 $8,116,901 $8,671,580
10/07 $8,981,717 $9,611,051
10/08 $6,312,891 $6,074,399
10/09 $6,196,317 $6,365,045
10/10 $7,496,286 $7,364,764
10/11 $8,375,847 $7,818,476
Call 1-800-225-6292 or visit us.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 | Annual Report | 10/31/11
Performance Update | 10/31/11 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 October 31, 2011)
-------------------------------------------------------------------
If If
Period Held Redeemed
-------------------------------------------------------------------
10 Years 4.94% 4.94%
5 Years 0.39 0.39
1 Year 11.67 11.67
-------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2011)
-------------------------------------------------------------------
Gross Net
-------------------------------------------------------------------
0.81% 0.81%
-------------------------------------------------------------------
[THE DATA BELOW IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Russell 1000
Equity Income Fund Value Index
10/01 $10,000 $10,000
10/02 $ 8,738 $ 8,998
10/03 $10,127 $11,056
10/04 $11,780 $12,765
10/05 $13,061 $14,279
10/06 $15,884 $17,343
10/07 $17,411 $19,222
10/08 $12,231 $12,149
10/09 $12,001 $12,730
10/10 $14,502 $14,730
10/11 $16,193 $15,637
Call 1-800-225-6292 or visit us.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 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 | Annual Report | 10/31/11 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 May 1, 2011 through October 31, 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 5/1/11
----------------------------------------------------------------------------------------------
Ending Account Value $944.16 $939.27 $940.56 $942.50 $946.14 $945.87
(after expenses)
on 10/31/11
----------------------------------------------------------------------------------------------
Expenses Paid $5.64 $10.61 $9.34 $7.25 $3.68 $4.17
During Period*
----------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.15%, 2.17%,
1.91%, 1.48%, 0.75%, and 0.85% 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 184/365 (to reflect the one-half year
period).
16 Pioneer Equity Income Fund | Annual Report | 10/31/11
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 May 1, 2011 through October 31, 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 5/1/11
----------------------------------------------------------------------------------------------
Ending Account Value $1,019.41 $1,014.27 $1,015.58 $1,017.74 $1,021.42 $1,020.92
(after expenses)
on 10/31/11
----------------------------------------------------------------------------------------------
Expenses Paid $5.85 $11.02 $9.70 $7.53 $3.82 $4.33
During Period*
----------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.15%, 2.17%,
1.91%, 1.48%, 0.75%, and 0.85% 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 184/365 (to reflect the one-half year
period).
Pioneer Equity Income Fund | Annual Report | 10/31/11 17
Schedule of Investments | 10/31/11
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
COMMON STOCKS -- 99.8%
ENERGY -- 12.8%
Integrated Oil & Gas -- 5.5%
169,100 Chevron Corp. $ 17,763,955
196,160 ConocoPhillips 13,662,544
118,200 Exxon Mobil Corp. 9,230,238
451,200 QEP Resources, Inc. 16,040,160
--------------
$ 56,696,897
-------------------------------------------------------------------------------------
Oil & Gas Drilling -- 1.2%
236,300 Helmerich & Payne, Inc. $ 12,566,434
-------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 3.9%
434,800 EQT Corp. $ 27,609,800
511,800 Marathon Oil Corp. 13,322,154
--------------
$ 40,931,954
-------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.9%
255,900 Marathon Petroleum Corp. $ 9,186,810
-------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.3%
483,800 Spectra Energy Corp. $ 13,851,194
--------------
Total Energy $ 133,233,289
-------------------------------------------------------------------------------------
MATERIALS -- 7.8%
Diversified Chemical -- 1.5%
322,600 E.I. du Pont de Nemours and Co. $ 15,507,382
-------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.8%
255,100 Compass Minerals International, Inc. $ 19,405,457
-------------------------------------------------------------------------------------
Paper Packaging -- 0.9%
287,500 Sonoco Products Co. $ 9,024,625
-------------------------------------------------------------------------------------
Specialty Chemicals -- 3.6%
141,800 Ecolab, Inc. (b) $ 7,634,512
850,400 Valspar Corp. 29,653,448
--------------
$ 37,287,960
--------------
Total Materials $ 81,225,424
-------------------------------------------------------------------------------------
CAPITAL GOODS -- 7.6%
Aerospace & Defense -- 0.6%
101,400 Northrop Grumman Corp.*(b) $ 5,855,850
-------------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 0.7%
283,500 Trinity Industries, Inc. $ 7,731,045
-------------------------------------------------------------------------------------
Electrical Components & Equipment -- 1.3%
273,600 Emerson Electric Co. $ 13,165,632
-------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Equity Income Fund | Annual Report | 10/31/11
-----------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------
Industrial Machinery -- 5.0%
1,190,943 Gorman-Rupp Co.+(b) $ 32,000,638
189,000 Snap-On, Inc. 10,143,630
231,500 The Timken Co. 9,750,780
--------------
$ 51,895,048
--------------
Total Capital Goods $ 78,647,575
-----------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.7%
Office Services & Supplies -- 0.7%
212,600 Mine Safety Appliances Co. (b) $ 7,132,730
--------------
Total Commercial Services & Supplies $ 7,132,730
-----------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 2.6%
Auto Parts & Equipment -- 2.6%
819,100 Johnson Controls, Inc. $ 26,972,963
--------------
Total Automobiles & Components $ 26,972,963
-----------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 2.1%
Apparel, Accessories & Luxury Goods -- 2.1%
160,600 VF Corp. (b) $ 22,198,132
--------------
Total Consumer Durables & Apparel $ 22,198,132
-----------------------------------------------------------------------------
CONSUMER SERVICES -- 1.4%
Leisure Facilities -- 1.4%
703,917 Cedar Fair LP (b) $ 14,085,379
--------------
Total Consumer Services $ 14,085,379
-----------------------------------------------------------------------------
MEDIA -- 1.1%
Broadcasting -- 1.1%
459,376 CBS Corp. (Class B) $ 11,856,495
--------------
Total Media $ 11,856,495
-----------------------------------------------------------------------------
RETAILING -- 2.2%
Distributors -- 1.4%
264,600 Genuine Parts Co. $ 15,195,978
-----------------------------------------------------------------------------
Home Improvement Retail -- 0.8%
377,900 Lowe's Companies, Inc. $ 7,943,458
--------------
Total Retailing $ 23,139,436
-----------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 1.9%
Drug Retail -- 0.8%
248,500 Walgreen Co. $ 8,250,200
-----------------------------------------------------------------------------
Food Distributors -- 1.1%
394,800 Sysco Corp. $ 10,943,856
--------------
Total Food & Drug Retailing $ 19,194,056
-----------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/11 19
Schedule of Investments | 10/31/11 (continued)
-------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 9.8%
Packaged Foods & Meats -- 9.0%
343,300 Campbell Soup Co. (b) $ 11,414,725
311,800 General Mills, Inc. 12,013,654
550,550 H.J. Heinz Co., Inc. 29,421,392
352,400 Hershey Foods Corp. 20,167,852
812,300 Sara Lee Corp. 14,458,940
78,400 The J.M. Smucker Co. 6,038,368
--------------
$ 93,514,931
-------------------------------------------------------------------------
Soft Drinks -- 0.8%
130,800 PepsiCo, Inc. $ 8,233,860
--------------
Total Food, Beverage & Tobacco $ 101,748,791
-------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.7%
Household Products -- 2.7%
222,900 Clorox Co. $ 14,920,926
147,357 Colgate-Palmolive Co. 13,316,652
--------------
$ 28,237,578
--------------
Total Household & Personal Products $ 28,237,578
-------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.5%
Health Care Distributors -- 1.3%
462,200 Owens & Minor, Inc. $ 13,829,024
-------------------------------------------------------------------------
Health Care Equipment -- 3.2%
225,900 Baxter International, Inc. $ 12,419,982
141,800 Becton, Dickinson & Co. 11,093,014
1,079,500 Smith & Nephew Plc 9,943,691
--------------
$ 33,456,687
--------------
Total Health Care Equipment & Services $ 47,285,711
-------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 6.7%
Pharmaceuticals -- 6.7%
338,900 Abbott Laboratories, Inc. $ 18,256,543
559,100 Bristol-Myers Squibb Co. 17,661,969
246,100 Eli Lilly & Co. 9,145,076
450,905 Merck & Co., Inc. 15,556,223
472,500 Pfizer, Inc. 9,100,350
--------------
$ 69,720,161
--------------
Total Pharmaceuticals & Biotechnology $ 69,720,161
-------------------------------------------------------------------------
BANKS -- 6.0%
Diversified Banks -- 3.0%
708,800 U.S. Bancorp $ 18,138,192
497,400 Wells Fargo & Co. 12,887,634
--------------
$ 31,025,826
-------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Equity Income Fund | Annual Report | 10/31/11
----------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------
Regional Banks -- 2.1%
220,800 PNC Bank Corp. $ 11,859,168
523,800 SunTrust Banks, Inc. 10,334,574
--------------
$ 22,193,742
----------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.9%
728,800 New York Community Bancorp, Inc. (b) $ 9,700,328
--------------
Total Banks $ 62,919,896
----------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.1%
Asset Management & Custody Banks -- 0.6%
128,500 T. Rowe Price Associates, Inc. $ 6,789,940
----------------------------------------------------------------------------------
Consumer Finance -- 1.5%
189,000 American Express Co. $ 9,567,180
239,900 Discover Financial Services, Inc. 5,652,044
--------------
$ 15,219,224
--------------
Total Diversified Financials $ 22,009,164
----------------------------------------------------------------------------------
INSURANCE -- 3.6%
Property & Casualty Insurance -- 3.6%
387,600 Chubb Corp. $ 25,988,580
198,500 The Travelers Companies, Inc. 11,582,475
--------------
$ 37,571,055
--------------
Total Insurance $ 37,571,055
----------------------------------------------------------------------------------
REAL ESTATE -- 1.6%
Office Real Estate Investment Trusts -- 0.6%
94,500 Alexandria Real Estate Equities, Inc. (b) $ 6,245,505
----------------------------------------------------------------------------------
Specialized Real Estate Investment Trusts -- 1.0%
185,893 Ventas, Inc.*(b) $ 10,337,510
--------------
Total Real Estate $ 16,583,015
----------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.7%
Data Processing & Outsourced Services -- 0.7%
143,700 Automatic Data Processing, Inc. $ 7,519,821
--------------
Total Software & Services $ 7,519,821
----------------------------------------------------------------------------------
SEMICONDUCTORS -- 6.6%
Semiconductor Equipment -- 0.3%
239,600 Applied Materials, Inc. $ 2,951,872
----------------------------------------------------------------------------------
Semiconductors -- 6.3%
387,700 Analog Devices, Inc. $ 14,178,189
415,800 Intel Corp. 10,203,732
303,300 Linear Technology Corp. 9,799,623
550,500 Microchip Technology, Inc. (b) 19,906,080
354,200 Xilinx, Inc. (b) 11,851,532
--------------
$ 65,939,156
--------------
Total Semiconductors $ 68,891,028
----------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/11 21
Schedule of Investments | 10/31/11 (continued)
------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.9%
Integrated Telecommunication Services -- 4.9%
332,700 AT&T Corp. $ 9,751,437
513,000 CenturyLink, Inc. 18,088,380
416,584 Verizon Communications, Inc. 15,405,276
595,500 Windstream Corp. (b) 7,247,235
--------------
$ 50,492,328
--------------
Total Telecommunication Services $ 50,492,328
------------------------------------------------------------------------------
UTILITIES -- 10.4%
Electric Utilities -- 3.2%
352,150 American Electric Power Co., Inc.* $ 13,832,452
290,400 DPL, Inc. 8,813,640
252,600 Southern Co. 10,912,320
--------------
$ 33,558,412
------------------------------------------------------------------------------
Gas Utilities -- 4.0%
370,500 AGL Resources, Inc. $ 15,538,770
221,300 National Fuel Gas Co. 13,563,477
655,000 Questar Corp. 12,621,850
--------------
$ 41,724,097
------------------------------------------------------------------------------
Multi-Utilities -- 2.4%
292,500 Ameren Corp. $ 9,324,900
263,372 Consolidated Edison, Inc. 15,241,338
--------------
$ 24,566,238
------------------------------------------------------------------------------
Water Utilities -- 0.8%
270,700 American Water Works Co., Inc. $ 8,264,471
--------------
Total Utilities $ 108,113,218
------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $753,674,110) $1,038,777,245
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Principal
Amount ($)
------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 8.3%
SECURITIES LENDING COLLATERAL -- 8.3% (c)
Certificates of Deposit:
2,922,492 Bank of Nova Scotia Houston, 0.32%, 6/11/12 $ 2,924,613
3,653,198 DnB Nor Bank ASA NY, 0.22%, 11/14/11 3,655,700
3,289,634 JPMorgan Chase Bank NA, 0.43%, 11/16/12 3,290,190
2,558,088 National Australia Bank NY, 0.31%, 1/9/12 2,559,036
2,193,077 RaboBank Nederland, 0.34%, 4/2/12 2,193,656
3,650,923 Skandinav Enskilda Bank NY, 0.33%, 11/9/11 3,655,782
3,653,904 Westpac Banking Corp., NY, 0.32%, 12/6/11 3,655,766
--------------
$ 21,934,743
------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Annual Report | 10/31/11
-----------------------------------------------------------------------------------------
Principal
Amount ($) Value
-----------------------------------------------------------------------------------------
Commercial Paper:
1,169,452 Commonwealth Bank of Australia, 0.28%, 12/15/11 $ 1,169,452
2,228,359 Commonwealth Bank of Australia, 0.39%, 2/23/12 2,228,359
401,798 General Electric Capital Corp., 0.28%, 11/21/11 402,177
3,289,339 Nestle Capital Corp., 0.19%, 12/20/11 3,289,339
2,923,043 Nordea NA, 0.28%, 1/9/12 2,923,043
2,924,590 Procter & Gamble, 0.14%, 11/3/11 2,924,590
812,075 Straight-A Funding LLC, 0.19%, 12/9/2011 812,075
2,192,224 Svenska HandelsBanken, 0.38%, 10/5/12 2,193,460
730,966 Thunderbay Funding LLC, 0.22%, 12/13/11 730,966
1,462,003 Thunderbay Funding LLC, 0.22%, 12/5/11 1,462,003
1,827,499 Variable Funding Capital Co. LLC, 0.21%, 12/7/11 1,827,499
--------------
$ 19,962,963
-----------------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
7,311,532 Merrill Lynch, Inc., 0.08%, dated 10/31/11, repurchase
price of $7,311,532 plus accrued interest on 11/1/11
collateralized by the following:
$6,833,170 Freddie Mac, 0.5 - 0.75%,
2/15/13 - 3/28/13
$619,214 Federal Home Loan Bank, 0.0%, 11/4/11 $ 7,311,532
9,473,114 RBS Securities, Inc., 0.09%, dated 10/31/11, repurchase
price of $9,473,114 plus accrued interest on 11/1/11
collateralized by $9,662,856
US Treasury Note, 1.75%, 10/31/18 9,473,114
9,139,415 Barclays Capital Markets, 0.09%, dated 10/31/11,
repurchase price of $9,139,415 plus accrued interest on
11/1/11 collateralized by $9,322,205
U.S. Treasury Notes, 3.125%, 5/15/21 9,139,415
10,967,298 HSBC Plc, 0.09%, dated 10/31/11, repurchase price of
$10,967,298 plus accrued interest on 11/1/11
collateralized by the following:
$5,836,168 Federal Home Loan Bank, 0.12 - 5.625%,
2/27/12 - 8/15/24
$5,350,740 Federal National Mortgage Association,
0.75 - 7.25%, 12/18/13 - 11/15/30 10,967,298
--------------
$ 36,891,360
-----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/11 23
Schedule of Investments | 10/31/11 (continued)
---------------------------------------------------------------------------
Shares Value
Money Market Mutual Funds:
3,655,766 BlackRock Preferred Money Market Fund $ 3,655,766
3,655,766 Fidelity Prime Money Market Fund 3,655,766
--------------
$ 7,311,532
--------------
Total Securities Lending Collateral $ 86,100,598
---------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $86,100,598) $ 86,100,598
---------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 108.1%
(Cost $839,774,708) (a) $1,124,877,843
---------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (8.1)% $ (83,904,566)
---------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $1,040,973,277
===========================================================================
* Non-income producing security.
+ Investment held by the Fund representing 5% or more of the outstanding
voting stock of such company.
(a) At October 31, 2011, the net unrealized gain on investments based on cost
for federal income tax purposes of $826,487,764 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $305,105,638
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (6,715,559)
------------
Net unrealized gain $298,390,079
============
(b) At October 31, 2011, the following securities were out on loan:
------------------------------------------------------------------------
Shares Security Value
------------------------------------------------------------------------
12,600 Alexandria Real Estate Equities, Inc. $ 832,734
329,800 Campbell Soup Co. 10,965,850
141,200 Cedar Fair LP 2,825,412
40,000 Ecolab, Inc. 2,153,600
87,865 Gorman-Rupp Co. + 2,360,933
544,900 Microchip Technology, Inc. 19,703,584
24,090 Mine Safety Appliances Co. 808,220
711,200 New York Community Bancorp, Inc. 9,466,072
15,000 Northrop Grumman Corp. * 866,250
137,120 VF Corp. 18,952,726
129,700 Ventas, Inc. * 7,212,617
273,400 Windstream Corp. 3,327,278
106,500 Xilinx, Inc. 3,563,490
------------------------------------------------------------------------
Total $ 83,038,766
========================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Annual Report | 10/31/11
(c) Securities lending collateral is managed by Credit Suisse AG, New York
Branch.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 2011 aggregated $274,638,696 and $241,276,323,
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.
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)
Generally, equity securities are categorized as Level 1, fixed income
securities and senior loans are categorized as Level 2 and securities valued
using fair value methods (other than prices supplied by independent pricing
services) are categorized as Level 3. See Notes to Financial Statements --
Note 1A.
The following is a summary of the inputs used as of October 31, 2011, in
valuing the Fund's assets:
------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------------
Common Stocks $1,038,777,245 $ -- $-- $1,038,777,245
Temporary Cash Investments -- 41,897,706 -- 41,897,706
Repurchase Agreements -- 36,891,360 -- 36,891,360
Money Market Mutual Funds 7,311,532 -- -- 7,311,532
------------------------------------------------------------------------------------------------
Total $1,046,088,777 $78,789,066 $-- $1,124,877,843
================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/11 25
Statement of Assets and Liabilities | 10/31/11
ASSETS:
Investment in securities of unaffiliated issuers, at value
(including securities on loan of $80,677,833) (cost $832,159,285) $1,092,877,205
Investment in securities of affiliated issuers, at value (including securities on
loan of $2,360,933) (cost $7,615,423) 32,000,638
-------------------------------------------------------------------------------------------------------
Total investments in securities, at value (including securities on loan of
$83,038,766) (cost $839,774,708) $1,124,877,843
Cash 1,485,469
Receivables --
Investment securities sold 11,264,795
Fund shares sold 2,918,048
Dividends 1,661,667
Due from Pioneer Investment Management, Inc. 89
Other 47,836
-------------------------------------------------------------------------------------------------------
Total assets $1,142,255,747
-------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 13,028,488
Fund shares repurchased 1,747,116
Upon return of securities loaned 86,100,598
Due to affiliates 321,332
Accrued expenses 84,936
-------------------------------------------------------------------------------------------------------
Total liabilities $ 101,282,470
-------------------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 899,103,851
Undistributed net investment income 14,318,663
Accumulated net realized loss on investments (157,556,694)
Net unrealized gain on investments 285,103,135
Net unrealized gain on assets and liabilities denominated in foreign currencies 4,322
-------------------------------------------------------------------------------------------------------
Total net assets $1,040,973,277
-------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $630,087,248/24,054,352 shares) $ 26.19
Class B (based on $21,744,314/835,762 shares) $ 26.02
Class C (based on $70,682,825/2,728,088 shares) $ 25.91
Class R (based on $78,158,771/2,955,473 shares) $ 26.45
Class Y (based on $238,646,829/9,047,277 shares) $ 26.38
Class Z (based on $1,653,290/63,091 shares) $ 26.21
MAXIMUM OFFERING PRICE:
Class A ($26.19 [divided by] 94.25%) $ 27.79
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Annual Report | 10/31/11
Statement of Operations
For the Year Ended 10/31/11
INVESTMENT INCOME:
Dividends (including income from affiliated issuers of $426,195) $29,156,469
Interest 17,535
Income from securities loaned, net 127,721
------------------------------------------------------------------------------------------------------
Total investment income $ 29,301,725
------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 6,001,132
Transfer agent fees and expenses
Class A 664,386
Class B 108,524
Class C 78,186
Class R 7,543
Class Y 7,407
Class Z 588
Distribution fees
Class A 1,598,559
Class B 280,313
Class C 712,304
Class R 385,260
Shareholder communications expense 1,359,829
Administrative reimbursement 297,555
Custodian fees 25,543
Registration fees 106,127
Professional fees 82,642
Printing expense 41,599
Fees and expenses of nonaffiliated Trustees 33,996
Miscellaneous 76,470
------------------------------------------------------------------------------------------------------
Total expenses $ 11,867,963
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (89)
------------------------------------------------------------------------------------------------------
Net expenses $ 11,867,874
------------------------------------------------------------------------------------------------------
Net investment income $ 17,433,851
------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $63,183,922
Foreign currency contracts and other assets and
liabilities denominated in foreign currencies (54,055) $ 63,129,867
------------------------------------------------------------------------------------------------------
Change in net unrealized gain on:
Investments $20,453,947
Foreign currency contracts and other assets and
liabilities denominated in foreign currencies 4,322 $ 20,458,269
------------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $ 83,588,136
------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $101,021,987
======================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/11 27
Statement of Changes in Net Assets
---------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/11 10/31/10
---------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 17,433,851 $ 16,759,440
Net realized gain on investments and foreign currency
transactions 63,129,867 13,161,629
Change in net unrealized gain on investments and foreign
currency transactions 20,458,269 134,326,257
---------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 101,021,987 $164,247,326
---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.41 and $0.40 per share, respectively) $ (10,220,493) $(10,749,043)
Class B ($0.15 and $0.18 per share, respectively) (163,053) (309,193)
Class C ($0.22 and $0.22 per share, respectively) (599,437) (682,700)
Class R ($0.33 and $0.35 per share, respectively) (959,053) (1,077,046)
Class Y ($0.52 and $0.51 per share, respectively) (3,695,328) (2,894,237)
Class Z ($0.52 and $0.50 per share, respectively) (22,247) (8,093)
---------------------------------------------------------------------------------------------
Total distributions to shareowners $ (15,659,611) $(15,720,312)
---------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 362,649,722 $169,859,562
Reinvestment of distributions 13,084,371 13,101,969
Cost of shares repurchased (342,916,354) (266,087,513)
---------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ 32,817,739 $(83,125,982)
---------------------------------------------------------------------------------------------
Net increase in net assets $ 118,180,115 $ 65,401,032
NET ASSETS:
Beginning of year 922,793,162 857,392,130
---------------------------------------------------------------------------------------------
End of year $1,040,973,277 $922,793,162
---------------------------------------------------------------------------------------------
Undistributed net investment income $ 14,318,663 $ 13,070,002
=============================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Equity Income Fund | Annual Report | 10/31/11
-------------------------------------------------------------------------------------------------------
'11 Shares '11 Amount '10 Shares '10 Amount
-------------------------------------------------------------------------------------------------------
Class A
Shares sold 7,731,170 $201,031,990 4,873,621 $108,355,144
Reinvestment of distributions 369,238 9,449,125 440,507 9,726,523
Less shares repurchased (9,409,943) (241,235,449) (7,940,823) (175,843,400)
-------------------------------------------------------------------------------------------------------
Net decrease (1,309,535) $(30,754,334) (2,626,695) $(57,761,733)
=======================================================================================================
Class B
Shares sold or exchanged 61,047 $ 1,569,674 55,270 $ 1,209,791
Reinvestment of distributions 5,871 150,388 12,162 266,465
Less shares repurchased (603,080) (15,541,805) (832,631) (18,239,568)
-------------------------------------------------------------------------------------------------------
Net decrease (536,162) $(13,821,743) (765,199) $(16,763,312)
=======================================================================================================
Class C
Shares sold 542,345 $ 13,931,967 286,363 $ 6,286,178
Reinvestment of distributions 16,112 408,809 21,035 459,127
Less shares repurchased (642,327) (16,490,430) (929,112) (20,236,101)
-------------------------------------------------------------------------------------------------------
Net decrease (83,870) $ (2,149,654) (621,714) $(13,490,796)
=======================================================================================================
Class R
Shares sold 862,987 $ 22,565,673 464,387 $ 10,404,925
Reinvestment of distributions 36,149 936,944 46,897 1,045,338
Less shares repurchased (737,876) (19,008,273) (1,090,573) (24,270,696)
-------------------------------------------------------------------------------------------------------
Net increase (decrease) 161,260 $ 4,494,344 (579,289) $(12,820,433)
=======================================================================================================
Class Y
Shares sold 4,698,435 $122,189,647 1,935,058 $ 43,250,835
Reinvestment of distributions 82,991 2,117,150 71,837 1,598,197
Less shares repurchased (1,919,671) (50,361,539) (1,227,685) (27,349,275)
-------------------------------------------------------------------------------------------------------
Net increase 2,861,755 $ 73,945,258 779,210 $ 17,499,757
=======================================================================================================
Class Z
Shares sold 51,645 $ 1,360,771 15,868 $ 352,689
Reinvestment of distributions 867 21,955 285 6,319
Less shares repurchased (10,526) (278,858) (6,538) (148,473)
-------------------------------------------------------------------------------------------------------
Net increase 41,986 $ 1,103,868 9,615 $ 210,535
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/11 29
Financial Highlights
-------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/11 10/31/10 10/31/09 10/31/08 10/31/07
-------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 23.92 $ 20.24 $ 21.28 $ 33.10 $ 33.53
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.48 $ 0.46 $ 0.58 $ 0.75 $ 0.69
Net realized and unrealized gain (loss) on investments 2.20 3.63 (1.12) (10.03) 2.50
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.68 $ 4.09 $ (0.54) $ (9.28) $ 3.19
Distributions to shareowners:
Net investment income (0.41) (0.40) (0.50) (0.67) (0.73)
Net realized gain -- -- (1.81) (2.89)
Tax return of capital -- -- -- (0.06) --
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.27 $ 3.69 $ (1.04) $ (11.82) $ (0.43)
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 26.19 $ 23.92 $ 20.24 $ 21.28 $ 33.10
===============================================================================================================================
Total return* 11.26% 20.36% (2.30)% (29.99)% 10.22%
Ratio of net expenses to average net assets+ 1.15% 1.19% 1.23% 1.11% 1.03%
Ratio of net investment income to average net assets+ 1.78% 1.93% 2.98% 2.67% 2.27%
Portfolio turnover rate 24% 15% 28% 19% 14%
Net assets, end of period (in thousands) $630,087 $606,693 $566,439 $639,388 $1,063,910
Ratios with reduction for fees paid indirectly:
Net expenses 1.15% 1.19% 1.23% 1.10% 1.02%
Net investment income 1.78% 1.93% 2.98% 2.68% 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.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Equity Income Fund | Annual Report | 10/31/11
-----------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/11 10/31/10 10/31/09 10/31/08 10/31/07
-----------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 23.77 $ 20.10 $ 21.14 $ 32.88 $ 33.32
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.43 $ 0.38 $ 0.51 $ 0.57 $ 0.51
Net realized and unrealized gain (loss) on investments 1.97 3.47 (1.23) (10.02) 2.38
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.40 $ 3.85 $ (0.72) $ (9.45) $ 2.89
Distributions to shareowners:
Net investment income (0.15) (0.18) (0.32) (0.44) (0.44)
Net realized gain -- (1.81) (2.89)
Tax return of capital -- -- -- (0.04) --
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.25 $ 3.67 $ (1.04) $(11.74) $ (0.44)
-----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 26.02 $ 23.77 $ 20.10 $ 21.14 $ 32.88
=============================================================================================================================
Total return* 10.12% 19.23% (3.26)% (30.58)% 9.30%
Ratio of net expenses to average net assets+ 2.17% 2.17% 2.20% 1.96% 1.90%
Ratio of net investment income to average net assets+ 0.78% 0.98% 2.08% 1.83% 1.42%
Portfolio turnover rate 24% 15% 28% 19% 14%
Net assets, end of period (in thousands) $21,744 $32,604 $42,950 $66,530 $134,618
Ratios with reduction for fees paid indirectly:
Net expenses 2.17% 2.17% 2.20% 1.96% 1.89%
Net investment income 0.78% 0.98% 2.08% 1.83% 1.43%
=============================================================================================================================
* 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.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/11 31
Financial Highlights (continued)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/11 10/31/10 10/31/09 10/31/08 10/31/07
-------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 23.66 $ 20.01 $ 21.04 $ 32.75 $ 33.20
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.27 $ 0.32 $ 0.47 $ 0.55 $ 0.46
Net realized and unrealized gain (loss) on investments 2.20 3.55 (1.16) (9.94) 2.44
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.47 $ 3.87 $ (0.69) $ (9.39) $ 2.90
Distributions to shareowners:
Net investment income (0.22) (0.22) (0.34) (0.47) (0.46)
Net realized gain -- -- -- (1.81) (2.89)
Tax return of capital -- -- -- (0.04) --
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.25 $ 3.65 $ (1.03) $ (11.71) $ (0.45)
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 25.91 $ 23.66 $ 20.01 $ 21.04 $ 32.75
===============================================================================================================================
Total return* 10.45% 19.46% (3.11)% (30.52)% 9.37%
Ratio of net expenses to average net assets+ 1.91% 1.96% 2.04% 1.87% 1.82%
Ratio of net investment income to average net assets+ 1.02% 1.17% 2.21% 1.92% 1.48%
Portfolio turnover rate 24% 15% 28% 19% 14%
Net assets, end of period (in thousands) $70,683 $66,536 $68,719 $ 88,291 $157,553
Ratios with reduction for fees paid indirectly:
Net expenses 1.91% 1.96% 2.04% 1.87% 1.81%
Net investment income 1.02% 1.17% 2.21% 1.92% 1.49%
===============================================================================================================================
* 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.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Equity Income Fund | Annual Report | 10/31/11
-------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/11 10/31/10 10/31/09 10/31/08 10/31/07
-------------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 24.14 $ 20.43 $ 21.45 $ 33.34 $ 33.73
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.36 $ 0.44 $ 0.49 $ 0.68 $ 0.54
Net realized and unrealized gain (loss) on investments 2.28 3.62 (1.07) (10.09) 2.63
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.64 $ 4.07 $ (0.58) $ (9.41) $ 3.17
Distributions to shareowners:
Net investment income (0.33) (0.35) (0.44) (0.62) (0.67)
Net realized gain -- -- -- (1.81) (2.89)
Tax return of capital -- -- -- (0.05) --
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.31 $ 3.72 $ (1.02) $(11.89) $ (0.39)
-------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 26.45 $ 24.14 $ 20.43 $ 21.45 $ 33.34
===============================================================================================================================
Total return* 10.96% 20.03% (2.50)% (30.14)% 10.10%
Ratio of net expenses to average net assets+ 1.48% 1.44% 1.44% 1.33% 1.20%
Ratio of net investment income to average net assets+ 1.46% 1.68% 2.71% 2.44% 2.07%
Portfolio turnover rate 24% 15% 28% 19% 14%
Net assets, end of period (in thousands) $78,159 $67,450 $68,904 $64,559 $67,239
Ratios with reduction for fees paid indirectly:
Net expenses 1.48% 1.44% 1.44% 1.33% 1.19%
Net investment income 1.46% 1.68% 2.71% 2.44% 2.08%
===============================================================================================================================
* 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.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/11 33
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/11 10/31/10 10/31/09 10/31/08 10/31/07
------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 24.09 $ 20.37 $ 21.41 $ 33.28 $ 33.68
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.44 $ 0.49 $ 0.42 $ 0.67 $ 0.91
Net realized and unrealized gain (loss) on investments 2.37 3.74 (0.87) (9.89) 2.42
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.81 $ 4.22 $ (0.45) $ (9.22) $ 3.33
Distributions to shareowners:
Net investment income (0.52) (0.51) (0.59) (0.77) (0.84)
Net realized gain -- -- -- (1.81) (2.89)
Tax return of capital -- -- -- (0.07) --
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.29 $ 3.71 $ (1.04) $(11.87) $ (0.40)
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 26.38 $ 24.09 $ 20.37 $ 21.41 $ 33.28
============================================================================================================================
Total return* 11.73% 20.98% (1.85)% (29.72)% 10.66%
Ratio of net expenses to average net assets+ 0.75% 0.72% 0.75% 0.72% 0.66%
Ratio of net investment income to average net assets+ 2.16% 2.38% 3.10% 3.09% 2.66%
Portfolio turnover rate 24% 15% 28% 19% 14%
Net assets, end of period (in thousands) $238,647 $148,995 $110,148 $29,157 $11,471
Ratios with reduction for fees paid indirectly:
Net expenses 0.75% 0.72% 0.75% 0.72% 0.66%
Net investment income 2.16% 2.38% 3.10% 3.09% 2.66%
============================================================================================================================
* 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.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Equity Income Fund | Annual Report | 10/31/11
-------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/11 10/31/10
-------------------------------------------------------------------------------------
Class Z
Net asset value, beginning of period $23.95 $20.27
-------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.30 $ 0.38
Net realized and unrealized gain (loss) on investments 2.48 3.80
-------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.78 $ 4.18
Distributions to shareowners:
Net investment income (0.52) (0.50)
Net realized gain -- --
Tax return of capital -- --
-------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.26 $ 3.68
-------------------------------------------------------------------------------------
Net asset value, end of period $26.21 $23.95
=====================================================================================
Total return* 11.67% 20.84%
Ratio of net expenses to average net assets+ 0.85% 0.81%
Ratio of net investment income to average net assets+ 2.05% 2.25%
Portfolio turnover rate 24% 15%
Net assets, end of period (in thousands) $1,653 $ 505
Ratios with reduction for fees paid indirectly:
Net expenses 0.85% 0.81%
Net investment income 2.05% 2.25%
=====================================================================================
-------------------------------------------------------------------------------------------------
Year Ended Year Ended 7/6/07 (a)
10/31/09 10/31/08 to 10/31/07
-------------------------------------------------------------------------------------------------
Class Z
Net asset value, beginning of period $21.30 $ 33.12 $34.18
-------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.45 $ 0.80 $ 0.24
Net realized and unrealized gain (loss) on investments (0.91) (9.98) (1.08)
-------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $(0.46) $ (9.18) $(0.84)
Distributions to shareowners:
Net investment income (0.57) (0.76) (0.22)
Net realized gain -- (1.81) --
Tax return of capital -- (0.07) --
-------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(1.03) $(11.82) $(1.06)
-------------------------------------------------------------------------------------------------
Net asset value, end of period $20.27 $ 21.30 $33.12
=================================================================================================
Total return* (1.88)% (29.75)% (2.46)%(b)
Ratio of net expenses to average net assets+ 0.79% 0.76% 0.67%**
Ratio of net investment income to average net assets+ 3.24% 3.03% 2.26%**
Portfolio turnover rate 28% 19% 14%(b)
Net assets, end of period (in thousands) $ 233 $ 75 $ 97
Ratios with reduction for fees paid indirectly:
Net expenses 0.95% 0.76% 0.67%**
Net investment income 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 | Annual Report | 10/31/11 35
Notes to Financial Statements | 10/31/11
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.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
36 Pioneer Equity Income Fund | Annual Report | 10/31/11
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. 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. 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.
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.
Securities for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued using fair value
methods pursuant to procedures adopted by the Board of Trustees. The Fund 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. Examples
of a significant event might include political or economic news, corporate
restructurings, natural disasters, terrorist activity or trading halts. Thus,
the valuation of the Fund's securities may differ from exchange prices.
At October 31, 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.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in the
exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis. Dividend and
interest income are reported net of unrecoverable foreign taxes withheld at
the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
Pioneer Equity Income Fund | Annual Report | 10/31/11 37
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
federal and state 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.
At October 31, 2011, the Fund had a net capital loss carryforward of
$157,374,170 which will expire in 2017 if not utilized.
At October 31, 2011, the Fund reclassified $525,579 to decrease undistributed
net investment income and $525,579 to decrease accumulated net realized loss,
to reflect permanent book/tax differences. The reclassification has no impact
on the net assets of the Fund and presents the Fund's capital accounts on a
tax basis.
Under the recently enacted Regulated Investment Company Modernization Act of
2010, the Fund will be permitted to carry forward capital losses incurred in
taxable years beginning after December 22, 2010 for an unlimited period.
However, any losses incurred during those future years will be required to be
utilized prior to the losses incurred in pre-enactment tax years. As a result
of this ordering rule, pre-enactment capital loss carryforwards may be more
likely to expire unused. Additionally, post-enactment capital losses that are
carried forward will retain their character as either short-term or long-term
capital losses rather than being considered all short-term as under previous
law.
The tax character of distributions paid during the years ended October 31,
2011 and October 31, 2010 was as follows:
--------------------------------------------------------------------------------
2011 2010
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $15,659,611 $15,720,312
--------------------------------------------------------------------------------
Total $15,659,611 $15,720,312
================================================================================
38 Pioneer Equity Income Fund | Annual Report | 10/31/11
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2011:
--------------------------------------------------------------------------------
2011
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $849,195
Capital loss carryforward (157,374,170)
Net unrealized gain 298,394,401
--------------------------------------------------------------------------------
Total $141,869,426
================================================================================
The difference between book-basis and tax-basis net unrealized gain is
attributable to the tax deferral of losses on wash sales, the tax basis
adjustments on partnerships, and REIT holdings.
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 $65,628 in underwriting commissions on the sale of Class A shares
during the year ended October 31, 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. Risks
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
Pioneer Equity Income Fund | Annual Report | 10/31/11 39
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.
F. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian or a subcustodian of the Fund. The Fund's
investment adviser, Pioneer Investment Management, Inc. (PIM), is responsible
for determining that the value of the collateral remains at least equal to
the repurchase price.
G. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors. When entering into a securities loan transaction,
the Fund typically receives cash collateral from the borrower equal to at
least the value of the securities loaned, which is invested in temporary
investments. Credit Suisse AG, New York Branch, as the Fund's securities
lending agent, manages the Fund's securities lending collateral. The income
earned on the investment of collateral is shared with the borrower and the
lending agent in payment of any rebate due to the borrower with respect to
the securities loan, and in compensation for the lending agent's services to
the Fund. The Fund also continues to receive payments in lieu of dividends or
interest on the securities loaned. Gain or loss on the value of the loaned
securities that may occur during the term of the loan will be for the account
of the Fund. The amount of the collateral is required to be adjusted daily to
reflect any price fluctuation in the value of the loaned securities. If the
required market value of the collateral is less than the value of the loaned
securities, the borrower is required to deliver additional collateral for the
account of the Fund prior to the close of business on that day. The Fund has
the right, under the lending agreement, to terminate the loan and recover the
securities from the borrower with prior notice. The Fund is required to
return the cash collateral to the borrower and could suffer a loss if the
value of the collateral, as invested, has declined.
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% on assets over
$10 billion. For the year ended October 31, 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.
40 Pioneer Equity Income Fund | Annual Report | 10/31/11
PIM 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. Fees waived and expenses reimbursed during the
year ended October 31, 2011 are reflected on the Statement of Operations. 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
$55,023 in management fees, administrative costs and certain other
reimbursements payable to PIM at October 31, 2011.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the year ended October 31, 2011, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $851,242
Class B 34,095
Class C 98,007
Class R 232,938
Class Y 142,005
Class Z 1,542
--------------------------------------------------------------------------------
Total $1,359,829
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $240,851 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at October 31, 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%
Pioneer Equity Income Fund | Annual Report | 10/31/11 41
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 $25,458 in distribution fees payable to PFD at October 31, 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 12 months of purchase. 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. 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 year ended October 31, 2011, CDSCs in the amount of $32,398 were paid
to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned
on cash held by PIMSS. For the year ended October 31, 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
42 Pioneer Equity Income Fund | Annual Report | 10/31/11
annualized basis. The Funds pay an annual commitment fee for this facility. The
commitment fee is allocated among participating Funds based on an allocation
schedule set forth in the credit agreement. For the year ended October 31,
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 year ended October 31, 2011:
---------------------------------------------------------------------------------------------------------
Beginning Corporate Ending
Balance Purchases Actions Balance Dividend
Affiliates (shares) (shares) (shares) (shares) Income Value
---------------------------------------------------------------------------------------------------------
Gorman-Rupp Co. 988,195 -- -- 1,190,943 $426,195 $32,000,638
Pioneer Equity Income Fund | Annual Report | 10/31/11 43
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of
Pioneer Equity Income Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Equity Income Fund (the "Fund"), including the schedule of investments, as of
October 31, 2011, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Fund's internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of October 31, 2011, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Equity Income Fund at October 31, 2011, the results of its operations
for the year then ended, the changes in its net assets for each of the two
years in the period then ended, and the financial highlights for each of the
periods indicated therein, in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 23, 2011
44 Pioneer Equity Income Fund | Annual Report | 10/31/11
ADDITIONAL INFORMATION (unaudited)
For the year ended October 31, 2011, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth
Tax Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate
up to the maximum amount of such dividends allowable under the Act, as taxed at
a maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2011 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 100%.
Pioneer Equity Income Fund | Annual Report | 10/31/11 45
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at us.pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed on the following pages, together
with their principal occupations during at least the past five years. Trustees
who are interested persons of the Fund within the meaning of the 1940 Act are
referred to as Interested Trustees. Trustees who are not interested persons of
the Fund are referred to as Independent Trustees. Each of the Trustees, except
Mr. West, serves as a trustee of each of the 55 U.S. registered investment
portfolios for which Pioneer serves as investment adviser (the "Pioneer
Funds"). Mr. West serves as a trustee of 44 U.S. registered investment
portfolios for which Pioneer serves as investment adviser. The address for all
Trustees and all officers of the Fund is 60 State Street, Boston, Massachusetts
02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
46 Pioneer Equity Income Fund | Annual Report | 10/31/11
Interested Trustees
-----------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
-----------------------------------------------------------------------
John F. Cogan, Jr. (85)* Chairman of the Trustee since
Board, Trustee 1990. Serves until
and President a successor trustee
is elected or earlier
retirement or
removal.
-----------------------------------------------------------------------
Daniel K. Kingsbury (53)* Trustee and Trustee since
Executive Vice 2007. Serves until
President a successor trustee
is elected or earlier
retirement or
removal.
-----------------------------------------------------------------------
Interested Trustees
------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation Held by this Trustee
------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (85)* Non-Executive Chairman and a director of Pioneer Investment None
Management USA Inc. ("PIM-USA"); Chairman and a director of
Pioneer; Chairman and Director of Pioneer Institutional Asset
Management, Inc. (since 2006); Director of Pioneer Alternative
Investment Management Limited (Dublin, until October 2011);
President and a director of Pioneer Alternative Investment
Management (Bermuda) Limited and affiliated funds; Deputy
Chairman and a director of Pioneer Global Asset Management
S.p.A. ("PGAM") (until April 2010); Director of PIOGLOBAL Real
Estate Investment Fund (Russia) (until June 2006); Director of
Nano-C, Inc. (since 2003); Director of Cole Management Inc.
(since 2004); Director of Fiduciary Counseling, Inc.;
President and Director of Pioneer Funds Distributor, Inc.
("PFD") (until May 2006); President of all of the Pioneer
Funds; and Of Counsel, Wilmer Cutler Pickering Hale and Dorr LLP
------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (53)* Director, CEO and President of PIM-USA (since February None
2007); Director and President of Pioneer and Pioneer
Institutional Asset Management, Inc. (since February 2007);
Executive Vice President of all of the Pioneer Funds (since
March 2007); Director of PGAM (2007 - 2010); Head of New
Europe Division, PGAM (2000 - 2005); and Head of New Markets
Division, PGAM (2005 - 2007)
------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers
or directors of the Fund's investment adviser and certain of its affiliates.
Pioneer Equity Income Fund | Annual Report | 10/31/11 47
Independent Trustees
-------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
-------------------------------------------------------------
David R. Bock (67) Trustee Trustee since
2005. Serves until
a successor trustee
is elected or earlier
retirement or
removal.
-------------------------------------------------------------
Mary K. Bush (63) Trustee Trustee since
1997. Serves until
a successor trustee
is elected or earlier
retirement or
removal.
Independent Trustees
----------------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation Held by this Trustee
----------------------------------------------------------------------------------------------------------------------------------
David R. Bock (67) Managing Partner, Federal City Capital Advisors (corporate Director of Enterprise Community
advisory services company) (1997 - 2004 and 2008 - Investment, Inc. (privately held
present); Interim Chief Executive Officer, Oxford Analytica, Inc. affordable housing finance company
(privately held research and consulting company) (2010); (1985 - 2010); Director of Oxford
Executive Vice President and Chief Financial Officer, I-trax, Analytica, Inc. (2008 - present);
Inc. (publicly traded health care services company) (2004 - Director of The Swiss Helvetia Fund,
2007); and Executive Vice President and Chief Financial Inc. (closed-end fund) (2010 - present);
Officer, Pedestal Inc. (internet-based mortgage trading and Director of New York Mortgage Trust
company) (2000 - 2002) (publicly traded mortgage REIT)
(2004 - 2009)
----------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (63) Chairman, Bush International, LLC (international financial Director of Marriott International,
advisory firm) (1991 - present); Senior Managing Director, Inc. (2008 - present); Director of
Brock Capital Group, LLC (strategic business advisors) (2010 Discover Financial Services (credit
- present); Managing Director, Federal Housing Finance Board card issuer and electronic payment
(oversight of Federal Home Loan Bank system) (1989 - services) (2007 - present); Former
1991); Vice President and Head of International Finance, Director of Briggs & Stratton Co.
Federal National Mortgage Association (1988 - 1989); U.S. (engine manufacturer) (2004 -
Alternate Executive Director, International Monetary Fund 2009); Former Director of UAL
(1984 - 1988); Executive Assistant to Deputy Secretary of Corporation (airline holding company
the U.S. Treasury, U.S. Treasury Department (1982 - 1984); (2006 - 2010); Director of ManTech
and Vice President and Team Leader in Corporate Banking, International Corporation (national
Bankers Trust Co. (1976 - 1982) security, defense, and
48 Pioneer Equity Income Fund | Annual Report | 10/31/11
----------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
----------------------------------------------------------------------
Mary K. Bush (continued)
----------------------------------------------------------------------
Benjamin M. Friedman (67) Trustee Trustee since
2008. Serves until
a successor trustee
is elected or earlier
retirement or
removal.
----------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation Held by this Trustee
------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (continued) intelligence technology firm) (2006
- present); Member, Board of Governors,
Investment Company Institute (2007 -
present); Member, Board of Governors,
Independent Directors Council (2007 -
present); Former Director of Brady
Corporation (2000 - 2007); Former
Director of Mortgage Guaranty Insurance
Corporation (1991 - 2006);
Former Director of Millennium
Chemicals, Inc. (commodity
chemicals) (2002 - 2005); Former
Director, R.J. Reynolds Tobacco
Holdings, Inc. (tobacco) (1999 -
2005); and Former Director of
Texaco, Inc. (1997 - 2001)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (67) William Joseph Maier Professor of Political Economy, Harvard Trustee, Mellon Institutional Funds
University (1972 - present) Investment Trust and Mellon Institutional
Funds Master Portfolio (oversaw 17
portfolios in fund complex) (1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/11 49
Independent Trustees (continued)
----------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
----------------------------------------------------------------------
Margaret B.W. Graham (64) Trustee Trustee since
1990. Serves until
a successor trustee
is elected or earlier
retirement or
removal.
----------------------------------------------------------------------
Thomas J. Perna (61) Trustee Trustee since
2006. Serves until
a successor trustee
is elected or earlier
retirement or
removal.
----------------------------------------------------------------------
Marguerite A. Piret (63) Trustee Trustee since
1990. Serves until
a successor trustee
is elected or earlier
retirement or
removal.
----------------------------------------------------------------------
Stephen K. West (83) Trustee Trustee since
1993. Serves until
a successor trustee
is elected or earlier
retirement or
removal.
----------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation Held by this Trustee
--------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (64) Founding Director, Vice President and Corporate Secretary, None
The Winthrop Group, Inc. (consulting firm) (1982 - present);
Desautels Faculty of Management, McGill University (1999 -
present); and Manager of Research Operations and
Organizational Learning, Xerox PARC, Xerox's Advance Research
Center (1990 - 1994)
--------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (61) Chairman and Chief Executive Officer, Quadriserv, Inc. Director, Broadridge Financial
(technology products for securities lending industry) Solutions, Inc. (investor
(2008 - present); private investor (2004 - 2008); and Senior communications and securities
Executive Vice President, The Bank of New York (financial and processing provider for financial
securities services) (1986 - 2004) services industry) (2009 - present);
and Director, Quadriserv, Inc.
(2005 - present)
--------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (63) President and Chief Executive Officer, Newbury, Piret & Director of New America High
Company, Inc. (investment banking firm) (1981 - present) Income Fund, Inc. (closed-end
investment company) (2004 -
present); and member, Board of
Governors, Investment Company
Institute (2000 - 2006)
--------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (83) Senior Counsel, Sullivan & Cromwell LLP (law firm) (1998 - Director, The Swiss Helvetia Fund,
present); and Partner, Sullivan & Cromwell LLP (prior to Inc. (closed-end investment
1998) company); and Director, AMVESCAP,
PLC (investment manager) (1997 -
2005)
--------------------------------------------------------------------------------------------------------------------------------
50 Pioneer Equity Income Fund | Annual Report | 10/31/11
Fund Officers
-----------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
-----------------------------------------------------------------------------
Christopher J. Kelley (46) Secretary Since 2010. Serves
at the discretion of
the Board.
-----------------------------------------------------------------------------
Carol B. Hannigan (50) Assistant Since 2010. Serves
Secretary at the discretion of
the Board.
-----------------------------------------------------------------------------
Thomas Reyes (48) Assistant Since 2010. Serves
Secretary at the discretion of
the Board.
-----------------------------------------------------------------------------
Mark E. Bradley (51) Treasurer Since 2008. Serves
at the discretion of
the Board.
-----------------------------------------------------------------------------
Luis I. Presutti (46) Assistant Treasurer Since 2000. Serves
at the discretion of
the Board.
-----------------------------------------------------------------------------
Gary Sullivan (53) Assistant Treasurer Since 2002. Serves
at the discretion of
the Board.
-----------------------------------------------------------------------------
Fund Officers
--------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
--------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (46) Vice President and Associate General Counsel of Pioneer None
since January 2008 and Secretary of all of the Pioneer Funds
since June 2010; Assistant Secretary of all of the Pioneer
Funds from September 2003 to May 2010; and Vice President
and Senior Counsel of Pioneer from July 2002 to December 2007
--------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (50) Fund Governance Director of Pioneer since December 2006 None
and Assistant Secretary of all the Pioneer Funds since June
2010; Manager - Fund Governance of Pioneer from December 2003
to November 2006; and Senior Paralegal of Pioneer from January
2000 to November 2003
--------------------------------------------------------------------------------------------------------------------
Thomas Reyes (48) Counsel of Pioneer since June 2007 and Assistant Secretary None
of all the Pioneer Funds since June 2010; and Vice President
and Counsel at State Street Bank from October 2004 to June
2007
--------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (51) Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; Treasurer of all of the
Pioneer Funds since March 2008; Deputy Treasurer of Pioneer
from March 2004 to February 2008; and Assistant Treasurer of
all of the Pioneer Funds from March 2004 to February 2008
--------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (46) Assistant Vice President - Fund Accounting, Administration None
and Controllership Services of Pioneer; and Assistant
Treasurer of all of the Pioneer Funds
--------------------------------------------------------------------------------------------------------------------
Gary Sullivan (53) Fund Accounting Manager - Fund Accounting, Administration None
and Controllership Services of Pioneer; and Assistant
Treasurer of all of the Pioneer Funds
--------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/11 51
Fund Officers (continued)
------------------------------------------------------------------------
Position Held Length of Service
Name and Age with the Fund and Term of Office
------------------------------------------------------------------------
David F. Johnson (31) Assistant Treasurer Since 2009. Serves
at the discretion of
the Board.
------------------------------------------------------------------------
Jean M. Bradley (59) Chief Compliance Since 2010. Serves
Officer at the discretion of
the Board.
------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
--------------------------------------------------------------------------------------------------------------------
David F. Johnson (31) Fund Administration Manager - Fund Accounting, None
Administration and Controllership Services since
November 2008; Assistant Treasurer of all of the
Pioneer Funds since January 2009; and Client Service
Manager - Institutional Investor Services at State
Street Bank from March 2003 to March 2007
--------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (59) Chief Compliance Officer of Pioneer and of all the Pioneer None
Funds since March 2010; Director of Adviser and Portfolio
Compliance at Pioneer since October 2005; and Senior
Compliance Officer for Columbia Management Advisers, Inc.
from October 2003 to October 2005
--------------------------------------------------------------------------------------------------------------------
52 Pioneer Equity Income Fund | Annual Report | 10/31/11
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: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Audit Fees
Fees for audit services provided to the Fund, including fees
associated with the filings to update its Form N-2 and
issuance of comfort letters, totaled approximately $36,386
in 2011 and $36,386 in 2010.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no fees for audit-related or other services
provided to the Fund during the fiscal years ended October
31, 2011 and 2010.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Tax Fees
Fees for tax compliance services, primarily for tax returns,
totaled approximately $8,290 and $8,290 for 2011 and
2010, respectively.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
Other Fees
There were no fees for other services provided to the Fund
during the fiscal years ended October 31, 2011 and 2010.
(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.
Non-Audit Services
Beginning with non-audit service contracts entered into on
or after May 6, 2003, the effective date of the new SEC
pre-approval rules, the Fund's audit committee is required
to pre-approve services to affiliates defined by SEC rules
to the extent that the services are determined to have a
direct impact on the operations or financial reporting of the
Fund. For the years ended October 31, 2011 and 2010,
there were no services provided to an affiliate that required
the Fund's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and affiliates, as
previously defined, totaled approximately $8,290 in 2011
and $8,290 in 2010.
(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 December 30, 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 December 30, 2011
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 30, 2011
* Print the name and title of each signing officer under his or her signature.