OMB APPROVAL
OMB Number: 3235-0570
Expires: August 31, 2013
Estimated average burden
hours per response.....18.9
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, 2011 through April 30, 2012
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer Equity
Income Fund
--------------------------------------------------------------------------------
Semiannual Report | April 30, 2012
--------------------------------------------------------------------------------
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 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 17
Schedule of Investments 19
Financial Statements 26
Notes to Financial Statements 36
Approval of Investment Advisory Agreement 44
Trustees, Officers and Service Providers 48
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 1
President's Letter
Dear Shareowner,
The U.S. economy continued its recovery through the first quarter of 2012, even
as broader global concerns weighed on investors. The U.S. unemployment rate
fell to 8.1% in April, and some indicators suggest that it may continue to
trend down. The housing market continued to improve, fueled in part by
record-low mortgage rates. The risk of rising oil prices appeared to recede.
The improved outlook helped U.S. equity markets to perform well in the first
quarter, with the Standard & Poor's 500 Index rising by 12%. For bond
investors, the riskier sectors of the bond market fared the best. The broad
bond market, as measured by the Barclays Capital Aggregate Bond Index, rose by
just 0.3%, while the high-yield bond market, as measured by the Bank of America
Merrill Lynch High Yield Master II Index, rose by 5.15%.
We are cautiously optimistic that the U.S. economy will continue to improve.
But we are also closely monitoring macroeconomic concerns that could change the
market's direction, such as the lingering debt woes in Europe, the state of the
Chinese economy, and the U.S. government's fiscal situation. Clouds have
continued to hover over Europe, as the exit of Greece from the Euro-zone
remains a possibility. Meanwhile, China continues to face a potential slowdown
in economic growth. In the U.S., tax increases and spending cuts scheduled to
take effect at year-end should, unless fiscal policy changes, sharply reduce
the budget deficit -- which would be very good for the country in the longer
run -- but also could potentially stall U.S. economic growth in 2013. All of
these considerations may lead to further market volatility.
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.
Pioneer's investment professionals focus on finding good opportunities to
invest in both equity and bond markets using the same disciplined investment
approach we have used since 1928. Our strategy is to identify undervalued
individual securities with the greatest potential for success, carefully
weighing risk against reward. Our teams of investment professionals continually
2 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
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.
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 | Semiannual Report | 4/30/12 3
Portfolio Management Discussion | 4/30/12
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 six-month period ended April 30, 2012, 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 would you describe the market for equities during the six months ended
April, 30, 2012, particularly for the types of equities deemed appropriate for
the Fund?
A In general, it was a good period for stocks. After the sharp correction during
the summer months of 2011, the stock market began recovering in the fall and
recorded an especially good advance during the first several months of 2012.
Some of the concerns about European financial and currency-related issues
eased for a time (they have since returned), and investors took heart from
positive earnings and economic data. The correction had also pushed many share
prices down to what a lot of investors appeared to regard as bargain levels,
prompting buying.
While the general stock market advanced, however, there were shifts in "market
leadership"-- that is, in the relative performance of the various market
sectors and industries. The near panic that affected the market during the
difficult months of 2011 gave way to a much more bullish sentiment. The
emotional change was reflected in the strong relative performance of the
so-called "money-center" financials, which had been particularly hard hit
during the downturn, and the relatively weak performance of utilities and
consumer staples, two of the sectors that had attracted scared investors in
2011. The rotation in sector leadership was sometimes characterized in the
business press as "risk off to risk on."
Pioneer Equity Income Fund has usually been geared more towards a "risk
off"-type of market. That is because our emphasis on stable and growing
dividends tends to position the portfolio in the calmer seas of the market.
Yet it is sometimes in the stormier areas of the ocean where the strong winds
arise that can propel a ship sharply forward, and so it is that "risk on"
portfolios may on those occasions do better than our Fund.
Q How did the Fund perform in that environment during the six-month period ended
April 30, 2012?
A Pioneer Equity Income Fund Class A shares returned 8.30% at net asset value
during the six months ended April 30, 2012, while the Fund's benchmark, the
Russell 1000 Value Index (the Russell Index), returned 11.62%. During the same
six-month period, the average return of the 314 mutual funds in Lipper's
Equity Income Funds category was 10.34%.
4 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
Q Could you please talk in more detail about the Fund's performance during the
six months ended April 30, 2012? Specifically, what were the main reasons for
the Fund's underperformance of the benchmark Russell Index?
A Being underweight the top-performing financials sector and overweight the
bottom-performing utilities sector were key reasons for the Fund's
underperformance, plus stock selections in those two sectors as well as in the
health care, energy and information technology sectors. Within financials, the
Fund was largely unrepresented during most of the six-month period in the
recovering money-center banks, with an underweight in JPMorgan Chase being
especially costly for benchmark-relative performance. In the utilities and
energy sectors, the Fund had positions in a number of companies with natural
gas exploration and production exposures, which hurt them at a time when
natural gas, due to mild winter weather in the United States and plentiful
supplies, was plummeting in price. In health care, because of our dividend
objective, we had emphasized pharmaceutical and medical equipment companies in
the portfolio over health insurance and management companies, and it was the
latter that fared better. Finally, in information technology--again because of
our dividend goal--the Fund had a good slug of semiconductor stocks, while
other industries within the technology sector outperformed.
On the plus side of the ledger, some of the Fund's "special situations" did
very well. Valspar, a supplier of house paint to home-improvement giant
Lowe's, was up by more than 48% during the period; Cedar Fair, operator of
amusement parks, recorded a gain of more than 62%; Timken, a producer of
roller bearings for various vehicles, advanced by more than 35%; and Sara Lee,
a food company in the midst of a restructuring, moved ahead by some 25%.
Nonetheless, the overall portfolio positioning and the effect of the
underperformers resulted in a total return for the Fund that was less than
that of the Russell Index.
Q Could you please discuss changes that you made to the Fund's portfolio during
the six months ended April 30, 2012?
A The changes that we saw in the stock market, along with our desire to boost
the distributable dividend* income from the portfolio, led us to make a large
number of purchases and a sizeable, though smaller, number of sales during the
six-month period. The effect on the portfolio was a net increase of nearly 20
positions. In sum, we took initial portfolio stakes in 38 stocks and
liquidated investments in 19.
Among the Fund's new holdings were several European securities. We felt that
some of the pessimism about Europe was overdone and that values had emerged in
several countries on that continent. One European addition to
* Dividends are not guaranteed.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 5
the portfolio was Total, an international, integrated oil company, meaning
that it participates across the whole spectrum of energy production, refining
and transport, and marketing activities. Other European firms added to the
portfolio during the period were J Sainsbury, a well-established operator of
grocery stores in the United Kingdom, and Vodafone, a European-wide telephone
service provider.
The vast majority of new positions in the portfolio were United States-
headquartered companies. Among the new additions was Microsoft, which may not
be the first stock that comes to mind when thinking of income-producing "value
plays," yet the price-to-earnings multiple on today's Microsoft is well below
the average multiple for stocks in the Standard & Poor's 500 Index (the S&P
500), and the company's dividend yield is above average relative to the yield
on the S&P 500. Also added was Ford Motor, an impressive recovery story over
the past several years, which resumed paying dividends during the six-month
period. As we write this letter, the company has regained its investment-grade
credit rating from some of the principal rating agencies. We believe that our
purchase of Home Depot positions the portfolio to take part in a recovering
home improvement market. Our buys of Coca-Cola, Dr. Pepper Snapple, and
Kellogg are consistent with our customary emphasis in the portfolio on
consumer staples companies selling at what we regard as attractive levels.
Likewise, purchases of Duke Energy and Alliant Energy illustrate our
continuing interest in the utilities sector for this portfolio.
Seeing finally the signs of more probable recovery in the diversified-
financials sector, we purchased shares of a number of companies, including
JPMorgan Chase, Bank of America, and NYSE Euronext, the operator of the New
York Stock Exchange.
Among sales from the Fund's portfolio during the period were stocks we thought
had reached reasonable price objectives or that appeared less compelling with
respect to near- and intermediate-term prospects than stocks we wished to
purchase. In the former category, for example, were Bristol-Myers Squibb,
American Water Works, and Southern; and in the latter category were PepsiCo,
Walgreen, and Applied Materials.
Q The Fund typically places an important emphasis on dividend-paying stocks.
Would you describe the environment for dividends as positive or negative
during the six months ended April 20, 2012?
A From my point of view, definitely positive! American companies, as well as
many foreign companies, have accumulated large cash reserves during this
period of moderate economic growth. Finding themselves with more cash than
they require for capital expenditures and additions to working capital, a
considerable number of companies have been choosing to pay out larger amounts
than heretofore in the form of dividends. Of course, companies
6 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
continue to repurchase shares, and some are also using cash to acquire other
companies. But at a time when business executives remain cautious, dividends
can appear to companies a compelling use of extra cash and a way to support
their share prices. We are seeing not only generous dividend increases from
companies, but also payments of "extra" dividends, which at least in the short
term can have the effect of raising the yield considerably.
Looming on the horizon, of course, is the potential increase in federal tax
rates on dividends in 2013. It remains to be seen what will happen in
Washington, D.C., with regard to tax policy. There certainly could be an
effect on companies' behavior with regard to dividend payments. We cannot
predict anything in that regard, and so it is not now possible for us to look
very far ahead when it comes to dividends. A severe economic setback leading
to a sharp reduction in corporate earnings could also affect dividend
payments.
Q Given the various potential headwinds facing the global economy, what is your
outlook for the remainder of 2012?
A For a small country, Greece has certainly been much in the news of late. In
fact, Greece has become a kind of shorthand way of referring to the problems
in the euro zone and, perhaps more broadly, in the Western world, including
the United States. Years of deficit spending, and years of building up
unfunded retirement and health care obligations, have left countries on both
sides of the Atlantic in a strained financial condition. At the same time, the
economic growth that historically has helped in righting the fiscal ships has
not been strong enough to do that this time around. So we are looking at an
uncertain picture in "our own neck of the woods." In regard to Asia and Latin
America and other areas that have been growing faster and helping to maintain
some economic "luster" in the world, there are signs of pressures there, too.
In the near term, corporate earnings have remained strong, dividend payments
have continued, and most economic indicators have been positive, if only
moderately so. We think, though, that one should keep one's weather-eye open
and be prepared for occasional market volatility. We saw sharp moves in the
stock market during 2011 as people first focused closely and then focused less
closely on some of the macroeconomic and geopolitical risks. We have no reason
to believe that we are "out of the woods" with respect to those risks. Our
approach as always is to emphasize companies for the portfolio that we think
can withstand both the stresses of the business cycle and the vagaries of
world politics. Our focus is on company fundamentals as well as on those
larger risks, and we work hard every day, with our independent staff of
experienced securities analysts, to put together a portfolio of companies with
potential for attractive returns. We cannot, of course, provide any guarantees
that we shall be successful.
Thank you for your continuing support.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 7
Please refer to the Schedule of Investments on pages 19-25 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.
8 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
Portfolio Summary | 4/30/12
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE DATA BELOW IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
U.S. Common Stocks 90.2%
International Common Stocks 5.2%
Depositary Receipts for International Stocks 4.6%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE DATA BELOW IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Financials 21.8%
Consumer Staples 12.8%
Energy 9.5%
Materials 9.2%
Industrials 9.1%
Utilities 8.4%
Information Technology 8.4%
Health Care 7.9%
Consumer Discretionary 6.7%
Telecommunication Services 6.2%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Valspar Corp. 3.45%
--------------------------------------------------------------------------------
2. The Gorman-Rupp Co. 2.91
--------------------------------------------------------------------------------
3. The Chubb Corp. 2.41
--------------------------------------------------------------------------------
4. US Bancorp 2.08
--------------------------------------------------------------------------------
5. Becton Dickinson and Co. 2.01
--------------------------------------------------------------------------------
6. The Hershey Co. 2.00
--------------------------------------------------------------------------------
7. Johnson Controls, Inc. 1.95
--------------------------------------------------------------------------------
8. HJ Heinz Co. 1.90
--------------------------------------------------------------------------------
9. JPMorgan Chase & Co. 1.80
--------------------------------------------------------------------------------
10. Canadian Imperial Bank of Commerce 1.71
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 9
Prices and Distributions | 4/30/12
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 4/30/12 10/31/11
--------------------------------------------------------------------------------
A $27.93 $26.19
--------------------------------------------------------------------------------
B $27.76 $26.02
--------------------------------------------------------------------------------
C $27.63 $25.91
--------------------------------------------------------------------------------
R $28.21 $26.45
--------------------------------------------------------------------------------
Y $28.14 $26.38
--------------------------------------------------------------------------------
Z $27.95 $26.21
--------------------------------------------------------------------------------
Distributions per Share: 11/1/11-4/30/12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.4181 $ -- $ --
--------------------------------------------------------------------------------
B $0.2592 $ -- $ --
--------------------------------------------------------------------------------
C $0.3155 $ -- $ --
--------------------------------------------------------------------------------
R $0.3824 $ -- $ --
--------------------------------------------------------------------------------
Y $0.4622 $ -- $ --
--------------------------------------------------------------------------------
Z $0.4394 $ -- $ --
--------------------------------------------------------------------------------
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 11-16.
10 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
Performance Update | 4/30/12 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2012)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
10 Years 5.03% 4.41%
5 Years -0.29 -1.47
1 Year 2.25 -3.63
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.15%
--------------------------------------------------------------------------------
[THE DATA BELOW IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/02 $ 9,425 $10,000
4/03 7,853 8,699
4/04 9,724 10,984
4/05 11,154 12,513
4/06 12,883 14,803
4/07 15,621 17,490
4/08 14,448 15,921
4/09 9,217 9,679
4/10 12,352 13,770
4/11 15,053 15,869
4/12 15,393 16,032
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.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 11
Performance Update | 4/30/12 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 4.08% 4.08%
5 Years -1.24 -1.24
1 Year 1.17 -2.82
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.17%
--------------------------------------------------------------------------------
[THE DATA BELOW IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/02 $10,000 $10,000
4/03 8,265 8,699
4/04 10,147 10,984
4/05 11,537 12,513
4/06 13,211 14,803
4/07 15,879 17,490
4/08 14,563 15,921
4/09 9,204 9,679
4/10 12,220 13,770
4/11 14,744 15,869
4/12 14,918 16,032
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.
12 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
Performance Update | 4/30/12 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 4.21% 4.21%
5 Years -1.06 -1.06
1 Year 1.48 1.48
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.91%
--------------------------------------------------------------------------------
[THE DATA BELOW IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/02 $10,000 $10,000
4/03 8,264 8,699
4/04 10,149 10,984
4/05 11,549 12,513
4/06 13,233 14,803
4/07 15,923 17,490
4/08 14,615 15,921
4/09 9,248 9,679
4/10 12,301 13,770
4/11 14,877 15,869
4/12 15,098 16,032
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.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 13
Performance Update | 4/30/12 Class R Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 4.80% 4.80%
5 Years -0.52 -0.52
1 Year 1.93 1.93
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.48%
--------------------------------------------------------------------------------
[THE DATA BELOW IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/02 $10,000 $10,000
4/03 8,291 8,699
4/04 10,257 10,984
4/05 11,750 12,513
4/06 13,553 14,803
4/07 16,400 17,490
4/08 15,142 15,921
4/09 9,639 9,679
4/10 12,894 13,770
4/11 15,672 15,869
4/12 15,975 16,032
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.
14 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
Performance Update | 4/30/12 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 5.49% 5.49%
5 Years 0.13 0.13
1 Year 2.64 2.64
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.75%
--------------------------------------------------------------------------------
[THE DATA BELOW IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $5 Million Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/02 $5,000,000 $5,000,000
4/03 4,187,335 4,349,418
4/04 5,208,740 5,491,765
4/05 6,001,361 6,256,490
4/06 6,959,716 7,401,739
4/07 8,472,635 8,744,804
4/08 7,863,911 7,960,336
4/09 5,040,007 4,839,279
4/10 6,788,227 6,885,206
4/11 8,310,401 7,934,299
4/12 8,530,242 8,016,033
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.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 15
Performance Update | 4/30/12 Class Z Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 5.14% 5.14%
5 Years 0.01 0.01
1 Year 2.50 2.50
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.85%
--------------------------------------------------------------------------------
[THE DATA BELOW IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/02 $10,000 $10,000
4/03 8,331 8,699
4/04 10,316 10,984
4/05 11,833 12,513
4/06 13,668 14,803
4/07 16,489 17,490
4/08 15,271 15,921
4/09 9,776 9,679
4/10 13,163 13,770
4/11 16,100 15,869
4/12 16,503 16,032
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.
16 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on actual returns from November 1, 2011 through April 30, 2012.
---------------------------------------------------------------------------------------------------------------------
Share Class A B C R Y Z
---------------------------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 11/1/11
---------------------------------------------------------------------------------------------------------------------
Ending Account Value $1,083.00 $1,077.20 $1,079.00 $1,081.50 $1,084.90 $1,083.70
(after expenses)
on 4/30/12
---------------------------------------------------------------------------------------------------------------------
Expenses Paid $6.01 $11.57 $9.67 $7.25 $4.04 $5.03
During Period*
---------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.16%, 2.24%,
1.87%, 1.40%, 0.78%, and 0.97% 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 182/366 (to reflect the one-half year
period).
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 17
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from November 1, 2011 through April 30, 2012.
---------------------------------------------------------------------------------------------------------------------
Share Class A B C R Y Z
---------------------------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 11/1/11
---------------------------------------------------------------------------------------------------------------------
Ending Account Value $1,019.10 $1,013.72 $1,015.56 $1,017.90 $1,020.98 $1,020.04
(after expenses)
on 4/30/12
---------------------------------------------------------------------------------------------------------------------
Expenses Paid $5.82 $11.22 $9.37 $7.02 $3.92 $4.87
During Period*
---------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.16%, 2.24%,
1.87%, 1.40%, 0.78%, and 0.97% 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 182/366 (to reflect the one-half year period).
18 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
Schedule of Investments | 4/30/12 (unaudited)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS -- 99.9%
ENERGY -- 9.6%
Integrated Oil & Gas -- 4.3%
100,000 BP Plc (A.D.R.) $ 4,341,000
68,000 Chevron Corp. 7,246,080
116,700 Exxon Mobil Corp. 10,075,878
351,200 QEP Resources, Inc. 10,820,472
381,100 Total SA (A.D.R.) 18,334,721
--------------
$ 50,818,151
--------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 3.1%
139,160 ConocoPhillips $ 9,968,031
224,800 EQT Corp. 11,199,536
511,800 Marathon Oil Corp. 15,016,212
--------------
$ 36,183,779
--------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 0.9%
255,900 Marathon Petroleum Corp.* $ 10,647,999
--------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.3%
483,800 Spectra Energy Corp. $ 14,872,012
--------------
Total Energy $ 112,521,941
--------------------------------------------------------------------------------
MATERIALS -- 9.3%
Diversified Chemicals -- 1.5%
322,600 EI du Pont de Nemours & Co. $ 17,246,196
--------------------------------------------------------------------------------
Specialty Chemicals -- 3.4%
792,800 Valspar Corp. $ 40,551,719
--------------------------------------------------------------------------------
Paper Packaging -- 1.3%
700,000 Boise, Inc. $ 5,348,000
287,500 Sonoco Products Co. 9,524,875
--------------
$ 14,872,875
--------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.7%
255,100 Compass Minerals International, Inc. $ 19,520,252
--------------------------------------------------------------------------------
Gold -- 0.6%
147,600 Newmont Mining Corp. $ 7,033,140
--------------------------------------------------------------------------------
Steel -- 0.3%
100,000 Nucor Corp. $ 3,921,000
--------------------------------------------------------------------------------
Paper Products -- 0.5%
183,100 International Paper Co. $ 6,099,061
--------------
Total Materials $ 109,244,243
--------------------------------------------------------------------------------
CAPITAL GOODS -- 7.6%
Electrical Components & Equipment -- 0.6%
135,000 Emerson Electric Co. $ 7,092,900
--------------------------------------------------------------------------------
Industrial Conglomerates -- 1.5%
882,700 General Electric Co. $ 17,283,266
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 19
Schedule of Investments | 4/30/12 (unaudited) (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Industrial Machinery -- 5.5%
400,000 Kaydon Corp. $ 9,812,000
189,000 Snap-on, Inc. 11,820,060
1,190,943 The Gorman-Rupp Co.+ 34,299,158
153,700 Timken Co. 8,685,587
--------------
$ 64,616,805
--------------
Total Capital Goods $ 88,992,971
--------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 1.6%
Office Services & Supplies -- 0.8%
212,600 Mine Safety Appliances Co. $ 9,026,996
--------------------------------------------------------------------------------
Diversified Support Services -- 0.8%
300,000 G&K Services, Inc. $ 9,858,000
--------------
Total Commercial Services & Supplies $ 18,884,996
--------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 2.6%
Auto Parts & Equipment -- 1.9%
719,100 Johnson Controls, Inc. $ 22,989,627
--------------------------------------------------------------------------------
Automobile Manufacturers -- 0.7%
712,700 Ford Motor Co. $ 8,039,256
--------------
Total Automobiles & Components $ 31,028,883
--------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.3%
Apparel, Accessories & Luxury Goods -- 0.3%
26,400 VF Corp. $ 4,014,120
--------------
Total Consumer Durables & Apparel $ 4,014,120
--------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.6%
Leisure Facilities -- 1.6%
607,087 Cedar Fair LP $ 18,886,477
--------------
Total Consumer Services $ 18,886,477
--------------------------------------------------------------------------------
MEDIA -- 0.5%
Movies & Entertainment -- 0.5%
400,000 Regal Entertainment Group $ 5,444,000
--------------
Total Media $ 5,444,000
--------------------------------------------------------------------------------
RETAILING -- 1.7%
Distributors -- 1.1%
188,800 Genuine Parts Co. $ 12,230,464
--------------------------------------------------------------------------------
Home Improvement Retail -- 0.6%
144,000 The Home Depot, Inc. $ 7,457,760
--------------
Total Retailing $ 19,688,224
--------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.9%
Food Distributors -- 0.5%
200,600 Sysco Corp. $ 5,797,340
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
---------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------
Food Retail -- 0.4%
1,000,000 J Sainsbury Plc $ 4,998,141
--------------
Total Food & Staples Retailing $ 10,795,481
---------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 10.6%
Soft Drinks -- 1.3%
180,000 Dr Pepper Snapple Group, Inc. $ 7,304,400
100,000 The Coca-Cola Co. 7,632,000
--------------
$ 14,936,400
---------------------------------------------------------------------------------------
Packaged Foods & Meats -- 9.3%
443,300 Campbell Soup Co. $ 14,996,839
111,800 General Mills, Inc. 4,347,902
420,550 HJ Heinz Co. 22,419,520
200,000 Kellogg Co. 10,114,000
100,000 McCormick & Co, Inc. 5,591,000
912,300 Sara Lee Corp. 20,107,092
352,400 The Hershey Co. 23,614,324
235,000 Unilever NV (A.D.R.) 8,072,250
--------------
$ 109,262,927
--------------
Total Food, Beverage & Tobacco $ 124,199,327
---------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 1.3%
Household Products -- 1.3%
222,900 The Clorox Co. $ 15,625,290
--------------
Total Household & Personal Products $ 15,625,290
---------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.2%
Health Care Equipment -- 2.9%
301,800 Becton Dickinson and Co. $ 23,676,210
1,079,500 Smith & Nephew Plc 10,628,017
--------------
$ 34,304,227
---------------------------------------------------------------------------------------
Health Care Distributors -- 1.3%
509,300 Owens & Minor, Inc. $ 14,891,932
--------------
Total Health Care Equipment & Services $ 49,196,159
---------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 3.7%
Pharmaceuticals -- 3.7%
313,900 Abbott Laboratories, Inc. $ 19,480,634
353,405 Merck & Co., Inc. 13,867,612
472,500 Pfizer, Inc. 10,834,425
--------------
$ 44,182,671
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 44,182,671
---------------------------------------------------------------------------------------
BANKS -- 9.0%
Diversified Banks -- 6.4%
219,400 Bank of Montreal $ 13,025,778
267,000 Canadian Imperial Bank of Commerce 20,154,464
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 21
Schedule of Investments | 4/30/12 (unaudited) (continued)
-------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------
Diversified Banks -- (continued)
200,000 HSBC Holdings Plc (A.D.R.) $ 9,034,000
761,700 US Bancorp 24,503,889
247,400 Wells Fargo & Co. 8,270,582
--------------
$ 74,988,713
-------------------------------------------------------------------------
Regional Banks -- 1.4%
220,800 PNC Financial Services Group, Inc. $ 14,643,456
89,800 SunTrust Banks, Inc. 2,180,344
--------------
$ 16,823,800
-------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.2%
1,028,800 New York Community Bancorp, Inc. $ 13,878,512
--------------
Total Banks $ 105,691,025
-------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 7.9%
Other Diversified Financial Services -- 3.0%
727,800 Bank of America Corp. $ 5,902,458
243,000 Citigroup, Inc. 8,028,720
493,400 JPMorgan Chase & Co. 21,206,332
--------------
$ 35,137,510
-------------------------------------------------------------------------
Specialized Finance -- 0.9%
100,000 Deutsche Boerse AG $ 6,278,072
200,000 NYSE Euronext 5,150,000
--------------
$ 11,428,072
-------------------------------------------------------------------------
Consumer Finance -- 0.7%
239,900 Discover Financial Services LLC $ 8,132,610
-------------------------------------------------------------------------
Asset Management & Custody Banks -- 2.0%
400,000 Ares Capital Corp. $ 6,416,000
405,100 Federated Investors, Inc. (Class B) 8,944,608
128,500 T. Rowe Price Group, Inc. 8,110,278
--------------
$ 23,470,886
-------------------------------------------------------------------------
Investment Banking & Brokerage -- 1.3%
200,000 LPL Investment Holdings, Inc.* $ 7,178,000
456,700 Morgan Stanley Co. 7,891,776
--------------
$ 15,069,776
--------------
Total Diversified Financials $ 93,238,854
-------------------------------------------------------------------------
INSURANCE -- 3.6%
Property & Casualty Insurance -- 3.6%
387,600 The Chubb Corp. $ 28,321,932
218,500 The Travelers Companies, Inc. 14,053,920
--------------
$ 42,375,852
--------------
Total Insurance $ 42,375,852
-------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
REAL ESTATE -- 1.3%
Mortgage REITs -- 0.4%
264,300 Ares Commercial Real Estate Corp.* $ 4,752,114
--------------------------------------------------------------------------------
Office REITs -- 0.9%
144,500 Alexandria Real Estate Equities, Inc. $ 10,825,940
--------------
Total Real Estate $ 15,578,054
--------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.5%
Data Processing & Outsourced Services -- 0.4%
83,700 Automatic Data Processing, Inc. $ 4,655,394
--------------------------------------------------------------------------------
Systems Software -- 1.1%
400,000 Microsoft Corp. $ 12,808,000
--------------
Total Software & Services $ 17,463,394
--------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.8%
Electronic Manufacturing Services -- 0.8%
419,300 Molex, Inc. $ 9,601,970
--------------
Total Technology Hardware & Equipment $ 9,601,970
--------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 6.1%
Semiconductor Equipment -- 0.2%
86,033 Cabot Microelectronics Corp. $ 2,957,815
--------------------------------------------------------------------------------
Semiconductors -- 5.9%
387,700 Analog Devices, Inc. $ 15,112,546
415,800 Intel Corp. 11,808,720
303,300 Linear Technology Corp. 9,920,943
550,500 Microchip Technology, Inc. 19,454,670
354,200 Xilinx, Inc. 12,885,796
--------------
$ 69,182,675
--------------
Total Semiconductors & Semiconductor Equipment $ 72,140,490
--------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 5.7%
Integrated Telecommunication Services -- 4.5%
513,000 CenturyLink, Inc. $ 19,781,280
2,400,000 Singapore Telecommunications, Ltd. 6,052,866
416,584 Verizon Communications, Inc. 16,821,662
888,900 Windstream Corp. 9,991,236
--------------
$ 52,647,044
--------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.2%
500,000 Vodafone Group Plc (A.D.R.) $ 13,915,000
--------------
Total Telecommunication Services $ 66,562,044
--------------------------------------------------------------------------------
UTILITIES -- 8.5%
Electric Utilities -- 1.9%
287,150 American Electric Power Co., Inc. $ 11,152,906
500,000 Duke Energy Corp. 10,715,000
--------------
$ 21,867,906
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 23
Schedule of Investments | 4/30/12 (unaudited) (continued)
------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------
Gas Utilities -- 3.7%
370,500 AGL Resources, Inc. $ 14,608,815
332,700 National Fuel Gas Co. 15,743,364
655,000 Questar Corp. 12,936,250
--------------
$ 43,288,429
------------------------------------------------------------------------
Multi-Utilities -- 2.9%
100,000 Alliant Energy Corp. $ 4,524,000
438,500 Ameren Corp. 14,378,415
263,372 Consolidated Edison, Inc. 15,657,465
--------------
$ 34,559,880
--------------
Total Utilities $ 99,716,215
------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $912,117,247) $1,175,072,681
------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.9%
(Cost $912,117,247) (a) $1,175,072,681
------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.1% $ 1,142,384
------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $1,176,215,065
========================================================================
* Non-income producing security.
(A.D.R.) American Depositary Receipts.
+ Investment held by the Fund representing 5% or more of the outstanding
voting stock of such company.
(a) At April 30, 2012, the net unrealized gain on investments based on cost
for federal income tax purposes of $898,830,303 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $300,578,788
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (24,336,410)
------------
Net unrealized gain $276,242,378
============
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended April 30, 2012 aggregated $442,617,769 and $319,736,851,
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 as Level 2 and securities using fair value methods
are categorized as Level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
The following is a summary of the inputs used as of April 30, 2012, in valuing
the Fund's assets:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Common Stocks $1,175,072,681 $-- $-- $1,175,072,681
--------------------------------------------------------------------------------
Total $1,175,072,681 $-- $-- $1,175,072,681
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 25
Statement of Assets and Liabilities | 4/30/12 (unaudited)
ASSETS:
Investment in securities of unaffiliated issuers, at value
(cost $904,501,824) $1,140,773,523
Investment in securities of affiliated issuers, at value
(cost $7,615,423) 34,299,158
---------------------------------------------------------------------------------------------------
Total investments in securities, at value (cost $912,117,247) $1,175,072,681
Cash 1,219,781
Foreign currency (cost $204,253) 206,872
Receivables --
Investment securities sold 24,573,562
Fund shares sold 1,548,863
Dividends 1,592,320
Other 74,596
---------------------------------------------------------------------------------------------------
Total assets $1,204,288,675
---------------------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 17,954,998
Fund shares repurchased 9,518,509
Due to affiliates 540,261
Accrued expenses 59,842
---------------------------------------------------------------------------------------------------
Total liabilities $ 28,073,610
---------------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 962,038,448
Undistributed net investment income 19,666,893
Accumulated net realized loss on investments (68,436,908)
Net unrealized gain on investments 262,955,434
Net unrealized loss on forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (8,802)
---------------------------------------------------------------------------------------------------
Total net assets $1,176,215,065
===================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $694,569,903/24,864,559 shares) $ 27.93
Class B (based on $18,974,885/683,605 shares) $ 27.76
Class C (based on $76,487,280/2,767,858 shares) $ 27.63
Class R (based on $86,853,994/3,078,940 shares) $ 28.21
Class Y (based on $297,451,931/10,569,714 shares) $ 28.14
Class Z (based on $1,877,072/67,155 shares) $ 27.95
MAXIMUM OFFERING PRICE:
Class A ($27.93 [divided by] 94.25%) $ 29.63
===================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
Statement of Operations (unaudited)
For the Six Months Ended 4/30/12
INVESTMENT INCOME:
Dividends (including income from affiliated issuers of $107,185) $ 28,937,572
Interest 40,223
Income from securities loaned, net 25,102
-----------------------------------------------------------------------------------------------------------
Total investment income $ 29,002,897
-----------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 3,341,402
Transfer agent fees and expenses
Class A 305,443
Class B 43,972
Class C 32,293
Class R 2,635
Class Y 3,920
Class Z 387
Distribution fees
Class A 832,334
Class B 101,573
Class C 365,664
Class R 207,161
Shareholder communications expense 837,573
Administrative reimbursement 159,988
Custodian fees 17,380
Registration fees 49,284
Professional fees 43,523
Printing expense 8,054
Fees and expenses of nonaffiliated Trustees 17,921
Miscellaneous 47,688
-----------------------------------------------------------------------------------------------------------
Total expenses $ 6,418,195
-----------------------------------------------------------------------------------------------------------
Net investment income $ 22,584,702
-----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on:
Investments $ 89,093,824
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies 25,962 $ 89,119,786
-----------------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $(22,147,701)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (13,124) $(22,160,825)
-----------------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $ 66,958,961
-----------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 89,543,663
===========================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 27
Statement of Changes in Net Assets
-------------------------------------------------------------------------------------------------------
Six Months
Ended
4/30/12 Year Ended
(unaudited) 10/31/11
-------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 22,584,702 $ 17,433,851
Net realized gain on investments and foreign currency
transactions 89,119,786 63,129,867
Change in net unrealized gain (loss) on investments and foreign
currency transactions (22,160,825) 20,458,269
-------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 89,543,663 $ 101,021,987
-------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.42 and $0.41 per share, respectively) $ (10,349,574) $ (10,220,493)
Class B ($0.26 and $0.15 per share, respectively) (195,054) (163,053)
Class C ($0.32 and $0.22 per share, respectively) (859,971) (599,437)
Class R ($0.38 and $0.33 per share, respectively) (1,163,408) (959,053)
Class Y ($0.46 and $0.52 per share, respectively) (4,640,595) (3,695,328)
Class Z ($0.44 and $0.52 per share, respectively) (27,870) (22,247)
-------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (17,236,472) $ (15,659,611)
-------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 160,842,467 $ 362,649,722
Reinvestment of distributions 14,630,081 13,084,371
Cost of shares repurchased (112,537,951) (342,916,354)
-------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 62,934,597 $ 32,817,739
-------------------------------------------------------------------------------------------------------
Net increase in net assets $ 135,241,788 $ 118,180,115
NET ASSETS:
Beginning of period 1,040,973,277 922,793,162
-------------------------------------------------------------------------------------------------------
End of period $1,176,215,065 $1,040,973,277
-------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 19,666,893 $ 14,318,663
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
-----------------------------------------------------------------------------------------------
'12 Shares '12 Amount '11 Shares '11 Amount
(unaudited) (unaudited)
-----------------------------------------------------------------------------------------------
Class A
Shares sold 2,822,935 $76,108,286 7,731,170 $201,031,990
Reinvestment of distributions 352,707 9,540,835 369,238 9,449,125
Less shares repurchased (2,365,435) (64,315,464) (9,409,943) (241,235,449)
-----------------------------------------------------------------------------------------------
Net increase (decrease) 810,207 $21,333,657 (1,309,535) $(30,754,334)
===============================================================================================
Class B
Shares sold or exchanged 33,943 $ 915,935 61,047 $ 1,569,674
Reinvestment of distributions 6,831 183,544 5,871 150,388
Less shares repurchased (192,931) (5,167,945) (603,080) (15,541,805)
-----------------------------------------------------------------------------------------------
Net decrease (152,157) $(4,068,466) (536,162) $(13,821,743)
===============================================================================================
Class C
Shares sold 359,733 $ 9,621,412 542,345 $ 13,931,967
Reinvestment of distributions 21,636 579,682 16,112 408,809
Less shares repurchased (341,599) (9,131,397) (642,327) (16,490,430)
-----------------------------------------------------------------------------------------------
Net increase (decrease) 39,770 $ 1,069,697 (83,870) $ (2,149,654)
===============================================================================================
Class R
Shares sold 480,724 $12,971,256 862,987 $ 22,565,673
Reinvestment of distributions 41,820 1,142,632 36,149 936,944
Less shares repurchased (399,077) (10,925,680) (737,876) (19,008,273)
-----------------------------------------------------------------------------------------------
Net increase 123,467 $ 3,188,208 161,260 $ 4,494,344
===============================================================================================
Class Y
Shares sold 2,241,654 $61,010,931 4,698,435 $122,189,647
Reinvestment of distributions 115,748 3,155,552 82,991 2,117,150
Less shares repurchased (834,965) (22,866,411) (1,919,671) (50,361,539)
-----------------------------------------------------------------------------------------------
Net increase 1,522,437 $41,300,072 2,861,755 $ 73,945,258
===============================================================================================
Class Z
Shares sold 8,029 $ 214,647 51,645 $ 1,360,771
Reinvestment of distributions 1,026 27,836 867 21,955
Less shares repurchased (4,991) (131,054) (10,526) (278,858)
-----------------------------------------------------------------------------------------------
Net increase 4,064 $ 111,429 41,986 $ 1,103,868
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 29
Financial Highlights
--------------------------------------------------------------------------------------
Six Months
Ended
4/30/12 Year Ended
(unaudited) 10/31/11
--------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 26.19 $ 23.92
--------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.53 $ 0.48
Net realized and unrealized gain (loss) on investments 1.63 2.20
--------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.16 $ 2.68
Distributions to shareowners:
Net investment income (0.42) (0.41)
Net realized gain -- --
Tax return of capital -- --
--------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.74 $ 2.27
--------------------------------------------------------------------------------------
Net asset value, end of period $ 27.93 $ 26.19
======================================================================================
Total return* 8.30% 11.26%
Ratio of net expenses to average net assets+ 1.16%** 1.15%
Ratio of net investment income to average net assets+ 4.05%** 1.78%
Portfolio turnover rate 67%** 24%
Net assets, end of period (in thousands) $694,570 $630,087
Ratios with reduction for fees paid indirectly:
Net expenses 1.16%** 1.15%
Net investment income 4.05%** 1.78%
======================================================================================
----------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/10 10/31/09 10/31/08 10/31/07
----------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 20.24 $ 21.28 $ 33.10 $ 33.53
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.46 $ 0.58 $ 0.75 $ 0.69
Net realized and unrealized gain (loss) on investments 3.63 (1.12) (10.03) 2.50
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.09 $ (0.54) $ (9.28) $ 3.19
Distributions to shareowners:
Net investment income (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 $ 3.69 $ (1.04) $ (11.82) $ (0.43)
----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 23.92 $ 20.24 $ 21.28 $ 33.10
================================================================================================================
Total return* 20.36% (2.30)% (29.99)% 10.22%
Ratio of net expenses to average net assets+ 1.19% 1.23% 1.11% 1.03%
Ratio of net investment income to average net assets+ 1.93% 2.98% 2.67% 2.27%
Portfolio turnover rate 15% 28% 19% 14%
Net assets, end of period (in thousands) $606,693 $566,439 $639,388 $1,063,910
Ratios with reduction for fees paid indirectly:
Net expenses 1.19% 1.23% 1.10% 1.02%
Net investment income 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.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
-------------------------------------------------------------------------------------
Six Months
Ended
4/30/12 Year Ended
(unaudited) 10/31/11
-------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 26.02 $ 23.77
-------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.49 $ 0.43
Net realized and unrealized gain (loss) on investments 1.51 1.97
-------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.00 $ 2.40
Distributions to shareowners:
Net investment income ( 0.26) ( 0.15)
Net realized gain -- --
Tax return of capital -- --
-------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.74 $ 2.25
-------------------------------------------------------------------------------------
Net asset value, end of period $ 27.76 $ 26.02
=====================================================================================
Total return* 7.72 % 10.12%
Ratio of net expenses to average net assets+ 2.24%** 2.17%
Ratio of net investment income to average net assets+ 2.97%** 0.78%
Portfolio turnover rate 67%** 24%
Net assets, end of period (in thousands) $18,975 $21,744
Ratios with reduction for fees paid indirectly:
Net expenses 2.24%** 2.17%
Net investment income 2.97%** 0.78%
=====================================================================================
----------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/10 10/31/09 10/31/08 10/31/07
----------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 20.10 $ 21.14 $ 32.88 $ 33.32
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.38 $ 0.51 $ 0.57 $ 0.51
Net realized and unrealized gain (loss) on investments 3.47 ( 1.23) (10.02) 2.38
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.85 $ (0.72) $ (9.45) $ 2.89
Distributions to shareowners:
Net investment income ( 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 $ 3.67 $ (1.04) $ (11.74) $ (0.44)
----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 23.77 $ 20.10 $ 21.14 $ 32.88
================================================================================================================
Total return* 19.23% ( 3.26)% (30.58)% 9.30%
Ratio of net expenses to average net assets+ 2.17% 2.20% 1.96% 1.90%
Ratio of net investment income to average net assets+ 0.98% 2.08% 1.83% 1.42%
Portfolio turnover rate 15% 28% 19% 14%
Net assets, end of period (in thousands) $32,604 $42,950 $66,530 $134,618
Ratios with reduction for fees paid indirectly:
Net expenses 2.17% 2.20% 1.96% 1.89%
Net investment income 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.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 31
Financial Highlights (continued)
-------------------------------------------------------------------------------------
Six Months
Ended
4/30/12 Year Ended
(unaudited) 10/31/11
-------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 25.91 $ 23.66
-------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.44 $ 0.27
Net realized and unrealized gain (loss) on investments 1.60 2.20
-------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.04 $ 2.47
Distributions to shareowners:
Net investment income (0.32) (0.22)
Net realized gain -- --
Tax return of capital -- --
-------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.72 $ 2.25
-------------------------------------------------------------------------------------
Net asset value, end of period $ 27.63 $ 25.91
=====================================================================================
Total return* 7.90% 10.45%
Ratio of net expenses to average net assets+ 1.87%** 1.91%
Ratio of net investment income to average net assets+ 3.36%** 1.02%
Portfolio turnover rate 67%** 24%
Net assets, end of period (in thousands) $76,487 $70,683
Ratios with reduction for fees paid indirectly:
Net expenses 1.87%** 1.91%
Net investment income 3.36%** 1.02%
=====================================================================================
----------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/10 10/31/09 10/31/08 10/31/07
----------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 20.01 $ 21.04 $ 32.75 $ 33.20
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.32 $ 0.47 $ 0.55 $ 0.46
Net realized and unrealized gain (loss) on investments 3.55 (1.16) (9.94) 2.44
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.87 $ (0.69) $ (9.39) $ 2.90
Distributions to shareowners:
Net investment income (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 $ 3.65 $ (1.03) $(11.71) $ (0.45)
----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 23.66 $ 20.01 $ 21.04 $ 32.75
================================================================================================================
Total return* 19.46% (3.11)% (30.52)% 9.37%
Ratio of net expenses to average net assets+ 1.96% 2.04% 1.87% 1.82%
Ratio of net investment income to average net assets+ 1.17% 2.21% 1.92% 1.48%
Portfolio turnover rate 15% 28% 19% 14%
Net assets, end of period (in thousands) $66,536 $68,719 $88,291 $157,553
Ratios with reduction for fees paid indirectly:
Net expenses 1.96% 2.04% 1.87% 1.81%
Net investment income 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.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
-------------------------------------------------------------------------------------
Six Months
Ended
4/30/12 Year Ended
(unaudited) 10/31/11
-------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 26.45 $ 24.14
-------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.50 $ 0.36
Net realized and unrealized gain (loss) on investments 1.64 2.28
-------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.14 $ 2.64
Distributions to shareowners:
Net investment income (0.38) (0.33)
Net realized gain -- --
Tax return of capital -- --
-------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.76 $ 2.31
-------------------------------------------------------------------------------------
Net asset value, end of period $ 28.21 $ 26.45
=====================================================================================
Total return* 8.15% 10.96%
Ratio of net expenses to average net assets+ 1.40%** 1.48%
Ratio of net investment income to average net assets+ 3.81%** 1.46%
Portfolio turnover rate 67%** 24%
Net assets, end of period (in thousands) $86,854 $78,159
Ratios with reduction for fees paid indirectly:
Net expenses 1.40%** 1.48%
Net investment income 3.81%** 1.46%
=====================================================================================
---------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/10 10/31/09 10/31/08 10/31/07
---------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 20.43 $ 21.45 $ 33.34 $ 33.73
---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.44 $ 0.49 $ 0.68 $ 0.54
Net realized and unrealized gain (loss) on investments 3.62 (1.07) (10.09) 2.63
---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.07 $ (0.58) $ (9.41) $ 3.17
Distributions to shareowners:
Net investment income (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 $ 3.72 $ (1.02) $(11.89) $ (0.39)
---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.14 $ 20.43 $ 21.45 $ 33.34
===============================================================================================================
Total return* 20.03% (2.50)% (30.14)% 10.10%
Ratio of net expenses to average net assets+ 1.44% 1.44% 1.33% 1.20%
Ratio of net investment income to average net assets+ 1.68% 2.71% 2.44% 2.07%
Portfolio turnover rate 15% 28% 19% 14%
Net assets, end of period (in thousands) $67,450 $68,904 $64,559 $67,239
Ratios with reduction for fees paid indirectly:
Net expenses 1.44% 1.44% 1.33% 1.19%
Net investment income 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.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 33
Financial Highlights (continued)
--------------------------------------------------------------------------------------
Six Months
Ended
4/30/12 Year Ended
(unaudited) 10/31/11
--------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 26.38 $ 24.09
--------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.54 $ 0.44
Net realized and unrealized gain (loss) on investments 1.68 2.37
--------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.22 $ 2.81
Distributions to shareowners:
Net investment income (0.46) (0.52)
Net realized gain -- --
Tax return of capital -- --
--------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.76 $ 2.29
--------------------------------------------------------------------------------------
Net asset value, end of period $ 28.14 $ 26.38
======================================================================================
Total return* 8.49% 11.73%
Ratio of net expenses to average net assets+ 0.78%** 0.75%
Ratio of net investment income to average net assets+ 4.44%** 2.16%
Portfolio turnover rate 67%** 24%
Net assets, end of period (in thousands) $297,452 $238,647
Ratios with reduction for fees paid indirectly:
Net expenses 0.78%** 0.75%
Net investment income 4.44%** 2.16%
======================================================================================
---------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/10 10/31/09 10/31/08 10/31/07
---------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 20.37 $ 21.41 $ 33.28 $ 33.68
---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.49 $ 0.42 $ 0.67 $ 0.91
Net realized and unrealized gain (loss) on investments 3.74 (0.87) (9.89) 2.42
---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.22 $ (0.45) $ (9.22) $ 3.33
Distributions to shareowners:
Net investment income (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 $ 3.71 $ (1.04) $(11.87) $ (0.40)
---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.09 $ 20.37 $ 21.41 $ 33.28
===============================================================================================================
Total return* 20.98% (1.85)% (29.72)% 10.66%
Ratio of net expenses to average net assets+ 0.72% 0.75% 0.72% 0.66%
Ratio of net investment income to average net assets+ 2.38% 3.10% 3.09% 2.66%
Portfolio turnover rate 15% 28% 19% 14%
Net assets, end of period (in thousands) $148,995 $110,148 $29,157 $11,471
Ratios with reduction for fees paid indirectly:
Net expenses 0.72% 0.75% 0.72% 0.66%
Net investment income 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.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
--------------------------------------------------------------------------------------------------
Six Months
Ended
4/30/12 Year Ended Year Ended
(unaudited) 10/31/11 10/31/10
--------------------------------------------------------------------------------------------------
Class Z
Net asset value, beginning of period $26.21 $23.95 $20.27
--------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.56 $ 0.30 $ 0.38
Net realized and unrealized gain (loss) on investments 1.62 2.48 3.80
--------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.18 $ 2.78 $ 4.18
Distributions to shareowners:
Net investment income (0.44) (0.52) (0.50)
Net realized gain -- -- --
Tax return of capital -- -- --
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.74 $ 2.26 $ 3.68
--------------------------------------------------------------------------------------------------
Net asset value, end of period $27.95 $26.21 $23.95
==================================================================================================
Total return* 8.37% 11.67% 20.84%
Ratio of net expenses to average net assets+ 0.97%** 0.85% 0.81%
Ratio of net investment income to average net assets+ 4.26%** 2.05% 2.25%
Portfolio turnover rate 67%** 24% 15%
Net assets, end of period (in thousands) $1,877 $1,653 $ 505
Ratios with reduction for fees paid indirectly:
Net expenses 0.97%** 0.85% 0.81%
Net investment income 4.26%** 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 | Semiannual Report | 4/30/12 35
Notes to Financial Statements | 4/30/12 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Equity Income Fund (the Fund) is a Delaware statutory trust. The Fund
is registered under the Investment Company Act of 1940 as a diversified,
open-end management investment company. The investment objective of the Fund is
current income and long-term growth of capital from a portfolio consisting
primarily of income producing equity securities of U.S. corporations.
The Fund offers six classes of shares designated as Class A, Class B, Class C,
Class R, Class Y and Class Z shares. Class R shares commenced operations on
April 1, 2003. Class Z shares were first publicly offered on July 6, 2007.
Effective as of the close of business on December 31, 2009, Class B shares are
no longer offered to new or existing shareholders, except that dividends and/or
capital gain distributions may continue to be reinvested in Class B shares, and
shareholders may exchange their Class B shares for Class B shares of other
Pioneer funds, as permitted by existing exchange privileges. Each class of
shares represents an interest in the same portfolio of investments of the Fund
and has identical rights (based on relative net asset values) to assets and
liquidation proceeds. Share classes can bear different rates of class-specific
fees and expenses such as transfer agent and distribution fees. Differences in
class-specific fees and expenses will result in differences in net investment
income and, therefore, the payment of different dividends from net investment
income earned by each class. The Amended and Restated Declaration of Trust of
the Fund gives the Board the flexibility to specify either per-share voting or
dollar-weighted voting when submitting matters for shareholder approval. Under
per-share voting, each share of a class of the Fund is entitled to one vote.
Under dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y or Class Z shares. Class
B shares convert to Class A shares approximately eight years after the date of
purchase.
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 | Semiannual Report | 4/30/12
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 April 30, 2012, 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 | Semiannual Report | 4/30/12 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
shareowners. 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.
The tax character of current year distributions payable will be determined at
the end of the Fund's taxable year. The tax character of distributions paid
during the year ended October 31, 2011 was as follows:
--------------------------------------------------------------------------------
2011
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $15,659,611
--------------------------------------------------------------------------------
Total $15,659,611
================================================================================
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 $44,102 in underwriting commissions on the sale of Class A shares
during the six months ended April 30, 2012.
38 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
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
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 may lend 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
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 39
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. At April 30, 2012, the
Fund had no securities on loan.
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 six months ended April 30, 2012, the effective management
fee (excluding waivers and/or assumption of expenses) was equivalent to 0.60%
of the Fund's average daily net assets.
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
$112,523 in management fees, administrative costs and certain other
reimbursements payable to PIM at April 30, 2012.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
40 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
For the six months ended April 30, 2012, such out-of-pocket expenses by class
of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $530,623
Class B 14,368
Class C 42,416
Class R 97,214
Class Y 150,632
Class Z 2,320
--------------------------------------------------------------------------------
Total $837,574
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $392,140 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at April 30, 2012.
4. Distribution and Service Plans
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B, Class C
and Class R shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the
average daily net assets attributable to Class A shares as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class A shares. Pursuant to the Plan, the Fund also pays PFD
1.00% of the average daily net assets attributable to Class B and Class C
shares. The fee for Class B and Class C shares consists of a 0.25% service fee
and a 0.75% distribution fee paid as compensation for personal services and/or
account maintenance services or distribution services with regard to Class B
and Class C shares. Pursuant to the Plan, the Fund further pays PFD 0.50% of
the average daily net assets attributable to Class R shares for distribution
services. Included in "Due to affiliates" reflected on the Statement of Assets
and Liabilities is $35,598 in distribution fees payable to PFD at April 30,
2012.
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
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 41
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 April 30, 2012, CDSCs in the amount of $7,410 were paid to
PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned
on cash held by PIMSS. For the six months ended April 30, 2012, 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 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. The
credit facility in effect until January 20, 2012 was in the amount of $165
million. Under such facility, interest on borrowings was payable at the higher
of the London Interbank Offered Rate (LIBOR) on the borrowing date plus 1.25%
on an annualized basis or the Federal Funds Rate on the borrowing date plus
1.25% on an annualized basis. The credit facility in effect as of February 15,
2012 is in the amount of $215 million. Under such facility, depending on the
type of loan, interest on borrowings is payable at LIBOR plus 0.90% on an
annualized basis, or the Alternate Base Rate, which is the greater of (a) the
facility's administrative agent's daily announced prime rate on the borrowing
date, (b) 2% plus the Federal Funds Rate on the borrowing date and (c) 2% plus
the overnight Euro dollar rate on the borrowing date. The Funds pay an annual
commitment fee to participate in a credit facility. The commitment fee is
allocated among participating Funds based on an allocation schedule set forth
in the credit agreement. For the six months ended April 30, 2012, the Fund had
no borrowings under a credit facility.
42 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
7. Affiliated Companies
The Fund's investments in certain companies may exceed 5% of the outstanding
voting stock of those companies. Such companies are deemed affiliates of the
Fund for financial reporting purposes. The following summarizes transactions
with affiliates of the Fund for the six months ended April 30, 2012:
--------------------------------------------------------------------------------------------------------
Beginning Corporate Ending
Balance Purchases Actions Balance Dividend
Affiliates (shares) (shares) (shares) (shares) Income Value
--------------------------------------------------------------------------------------------------------
Gorman-Rupp Co. 1,190,943 -- -- 1,190,943 $107,185 $34,299,158
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 43
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Equity Income Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether
to renew the investment advisory agreement for the Fund.
The contract review process began in March 2011 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the
process. In July 2011, the Trustees approved the format of the contract review
materials and submitted their formal request to PIM to furnish information
necessary to evaluate the terms of the investment advisory agreement. The
contract review materials were provided to the Trustees in July 2011 and
September 2011. After reviewing and discussing the materials, the Trustees
submitted a request for additional information to PIM, and materials were
provided in response to this request. Meetings of the Independent Trustees of
the Fund were held in July, September, October, and November, 2011 to review
and discuss the contract review materials. In addition, the Trustees took into
account the information related to the Fund provided to the Trustees at each
regularly scheduled meeting.
At a meeting held on November 29, 2011, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for
the Fund, its research process and its process for trade execution. The
Trustees considered the resources of PIM and the personnel of PIM who provide
investment management services to the Fund. The Trustees considered the
non-investment resources and personnel of PIM involved in PIM's services to the
Fund, including PIM's compliance and legal resources and personnel. The
Trustees also considered the substantial attention and high priority given by
PIM's senior management to the Pioneer fund complex. In addition, the Trustees
considered PIM's plans to increase resources in its investment management
function and other enhancements to PIM's advisory capabilities.
44 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory
agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
performance of its peer group of funds as classified by Morningstar, Inc.
(Morningstar), an independent provider of investment company data, and with the
performance of the Fund's benchmark index. The Trustees considered that the
Fund's annualized total return was in the first quintile of its Morningstar
category for the one year period ended June 30, 2011, in the third quintile of
its Morningstar category for the three year period ended June 30, 2011, and in
the second quintile of its Morningstar category for the five year period ended
June 30, 2011. (In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Fund's shareowners. Thus,
highest relative performance would be first quintile and lowest relative
expenses would also be first quintile.) The Trustees concluded that the
investment performance of the Fund was satisfactory.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund
in comparison to the management fees and expense ratios of its peer group of
funds as classified by Morningstar and also to the expense ratios of a peer
group of funds selected on the basis of criteria determined by the Independent
Trustees for this purpose using data provided by Strategic Insight Mutual Trust
Research and Consulting, LLC (Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2011 was in the second quintile relative to the management fees
paid by other funds in its Morningstar peer group for the comparable period.
The Trustees also considered the breakpoint in the management fee schedule and
the reduced fee rate on assets over $10 billion. The Trustees considered that
the Fund's expense ratio for the twelve months ended June 30, 2011 was in the
third quintile relative to its Strategic Insight peer group for the comparable
period.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 45
The Trustees reviewed gross and net management fees charged by PIM to its
institutional and other clients, including publicly offered European funds,
U.S. registered investment companies (in a sub-advisory capacity), and
unaffiliated foreign and domestic separate accounts. The Trustees also
considered PIM's costs in providing services to the Fund and to its other
clients and considered the differences in management fees and profit margins
for PIM's Fund and non-Fund services. In evaluating the fees associated with
PIM's client accounts, the Trustees took into account the respective demands,
resources and complexity associated with the Fund and client accounts. The
Trustees noted that in some instances the fee rates for those clients were
lower than the management fee for the Fund and considered that, under the
investment advisory agreement with the Fund, PIM performs additional services
for the Fund that it does not provide to those other clients or services that
are broader in scope, including oversight of the Fund's other service providers
and activities related to compliance and the extensive regulatory and tax
regimes to which the Fund is subject. The Trustees also considered the
different entrepreneurial risks associated with PIM's management of the Fund
and the other client accounts. The Trustees concluded that the management fee
payable by the Fund to PIM was reasonable in relation to the nature and quality
of the services provided by PIM.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with funds and fund shareholders. The
Trustees noted the breakpoint in the management fee schedule. The Trustees
recognize that economies of scale are difficult to identify and quantify,
rarely identifiable on a Fund-by-Fund basis, and that, among other factors that
may be relevant, are the following: fee levels, expense subsidization,
investment by PIM in research and analytical capabilities and PIM's commitment
and resource allocation to the Funds. The Trustees noted that profitability
also may
46 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
be an indicator of the availability of any economies of scale, although
profitability may vary for other reasons particularly, for example during the
recent difficult periods for financial markets, as the level of services was
maintained notwithstanding a significant decline in PIM's fee revenues from the
Funds. Accordingly, the Trustees concluded that economies of scale, if any,
were being appropriately shared with the Fund.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with
the Fund. The Trustees considered the character and amount of fees paid by the
Fund, other than under the investment advisory agreement, for services provided
by PIM and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. The Trustees
also considered the benefits to the Fund and to PIM and its affiliates from the
use of "soft" commission dollars generated by the Fund to pay for research and
brokerage services. The Trustees considered the intangible benefits to PIM by
virtue of its relationship with the Fund and the other Pioneer funds. The
Trustees concluded that the receipt of these benefits was reasonable in the
context of the overall relationship between PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 47
Trustees, Officers and Service Providers
Trustees
John F. Cogan, Jr., Chairman
David R. Bock
Mary K. Bush
Benjamin M. Friedman
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Officers
John F. Cogan, Jr., President
Daniel K. Kingsbury, Executive Vice President
Mark E. Bradley, Treasurer
Christopher J. Kelley, Secretary
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at us.pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at www.sec.gov.
48 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
This page for your notes.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 49
This page for your notes.
50 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
This page for your notes.
Pioneer Equity Income Fund | Semiannual Report | 4/30/12 51
This page for your notes.
52 Pioneer Equity Income Fund | Semiannual Report | 4/30/12
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 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.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Equity Income Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date June 29, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date June 29, 2012
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date June 29, 2012
* Print the name and title of each signing officer under his or her signature.