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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07318
Pioneer International Value 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: November 30
Date of reporting period: December 1, 2011 through May 31, 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 International
Value Fund
--------------------------------------------------------------------------------
Semiannual Report | May 31, 2012
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PIIFX
Class B PBIFX
Class C PCITX
Class Y INVYX
[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 15
Schedule of Investments 17
Financial Statements 25
Notes to Financial Statements 33
Trustees, Officers and Service Providers 42
Pioneer International Value Fund | Semiannual Report | 5/31/12 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
* Diversification does not assure a profit or protect against loss in a
declining market.
2 Pioneer International Value Fund | Semiannual Report | 5/31/12
continually monitor and analyze the relative valuations of different sectors and
securities globally to help build portfolios that we believe can help you
achieve your investment goals.
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 Trust'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 International Value Fund | Semiannual Report | 5/31/12 3
Portfolio Management Discussion | 5/31/12
In the follow interview, Marco Pirondini, head of equities, U.S., and portfolio
manager for Pioneer in Boston, and Andrea Salvatori, senior vice president,
portfolio manager, and a member of Pioneer's international investment team in
Dublin, Ireland, discuss the factors that influenced Pioneer International Value
Fund's performance for the six-month period ended May 31, 2012, and their
outlook for the coming months.
Q Could you describe the factors that contributed to the market's
roller-coaster volatility during the six months ended May 31, 2012?
A After a strong rally in higher-risk assets for much of the six-month period,
concerns about Europe's debt crisis and slower growth in China sent
international stock prices lower during the final weeks of the period -
enough to erase 2012's previous gains. With investors curbing their risk
tolerance and moving to the sidelines, the more traditional safe havens, such
as gold and core government bonds, rallied.
International markets have swung from troughs marked by extreme risk-aversion
to peaks defined by incredibly high asset-class correlations. We think the
monolithic price movements have been in response to the larger macroeconomic
economic picture that has been driving investors' decisions, rather than
being due to assessments of the underlying fundamentals of individual
companies, or their stock prices. Given the Fund's fundamental, value-based
approach to selecting international stocks, it has been quite challenging for
us to navigate the portfolio's positioning in that environment, as investors
seem to be influenced more by shorter-term considerations, such as
stock-price momentum and earnings visibility. In managing the portfolio, our
perspective is more long-term in nature, with an investment horizon of three
to five years, and our process is rooted in finding financially sound
companies that are competitive, and that can adapt to changing market
conditions.
Q How did Pioneer International Value Fund perform in that environment during
the six months ended May 31, 2012?
A During the six months ended May 31, 2012, Pioneer International Value Fund's
Class A shares returned -7.55% at net asset value, while the Fund's
benchmark, the Morgan Stanley Capital International (MSCI) Europe,
Australasia, Far East (EAFE) Index1, returned -4.34%. During the same period,
the average return for the 228 mutual funds in Lipper's International
Multi-Cap Core Funds category was -3.78%.
4 Pioneer International Value Fund | Semiannual Report | 5/31/12
Q What was the main reason behind the Fund's underperformance of the MSCI EAFE
Index during the six months ended May 31, 2012, and what individual
investments were the biggest detractors from the Fund's performance during
the period?
A Stock selection, especially in the financials sector, was quite detrimental
to the Fund's performance and was the primary reason that the Fund
underperformed its benchmark during the six-month period.
The Fund's holding in Banca Intesa was especially disappointing, as the
company's stock price sat at a multi-year low as of period end in terms of
valuation, even though the bank's earnings and capital accumulations have
been good. It seems that in a market driven more by macroeconomic factors and
risk-aversion, sovereign-debt issues were foremost on the minds of investors,
thus obfuscating any rational consideration of a company's underlying
fundamentals. Even the mere presence of financials stocks in the portfolio
was, for the most part, a drag on performance during the period, due to the
deepening debt crisis. The Fund took a beating in financials during the
period despite the fact that the portfolio actually was slightly underweight
in the sector, and that we had correctly forecasted a very cautious
positioning on European banks. In addition to Banca Intesa, other financials
holdings that hurt Fund performance significantly during the period were
Societe Generale and Man Group.
The Fund's investments in the basic materials sector also lagged during the
period, especially positions in gold-related stocks, which declined in
response to falling demand when investors moved out of gold along with other
higher-risk assets during the market correction. In energy, a holding in the
Spanish oil and gas company Repsol also detracted from the Fund's results.
Repsol owns a 57% interest in the Argentinian oil company YPF, which was
nationalized by the government. The loss of YPF from Repsol's portfolio has
had a material effect on the company's performance, especially as the assets
were providing both cash flow and growth potential for Repsol.
Q What investment decisions or individual holdings made a positive contribution
to the Fund's returns during the six months ended May 31, 2012?
A Having underweight exposure to Europe and euro-denominated holdings relative
to the MSCI EAFE Index proved to be a good investment decision and aided the
Fund's performance during the six-month period, given the challenges across
the region.
As for specific investments, the Fund's holdings in Chinese banks and the
U.S.-based Capital One Financial provided better results than the portfolio's
other financials stocks during the period, which we believe illustrates the
importance of diversification* within the portfolio.
* Diversification does not assure a profit or protect against loss in a
declining market.
Pioneer International Value Fund | Semiannual Report | 5/31/12 5
Another positive for Fund performance during the period was the addition of
HTC to the portfolio. HTC is a global leader in mobile design and
innovations, including smartphones and tablets powered by the Android or
Window Phone operating systems. We purchased HTC when the stock was selling
at what was, in our opinion, an extremely cheap valuation. Given HTC's
longstanding working relationship with technology leaders such as Google,
Microsoft, and Qualcomm, we believed that the company's product momentum
would begin to have a favorable effect on HTC's earnings. The stock
appreciated sharply after we purchased it, and we sold HTC from the portfolio
in late February 2012, to lock in the gains.
Q What is your current assessment of the European sovereign-debt crisis?
A A few weeks after the close of the semiannual reporting period on May 31,
2012, Spain accepted a European bailout to help stabilize its cash-starved
banks and stem losses in the banks' real estate loan portfolios. Spain is the
fourth euro zone nation to receive aid, following in the footsteps of Greece,
Ireland, and Portugal. Shortly afterward, the Greek people headed to the
polls for the second time in two months and voted by a narrow margin to
approve their country's bailout - reducing fears that Greece would exit the
European Union (E.U.). Greece faces weeks or months of negotiations with
European leaders over the terms of austerity measures the country will be
forced to undertake, but the election could be a turning point in the crisis,
as it implies that Greece is likely to remain in the E.U. fold.
With that hurdle surmounted, investors breathed a sigh of relief, but much
work remains. The 17-nation euro zone avoided a recession in the first
quarter of 2012, but many economists expect the gross domestic product of the
region to decline for a second straight quarter, which would officially push
the region into recession. We think such a recession may last two or three
more quarters. Furthermore, it appears that the calming effects of the
European Central Bank's (ECB's) emergency funding measures are fading.
Blending fiscal austerity with economic reforms is a difficult task for any
of the struggling member nations, but especially so during a recession.
Q Have you adjusted the Fund's strategy in response to the market conditions
that prevailed during the six months ended May 31, 2012?
A Throughout the period, we maintained the Fund's defensive bias, which was
defined by a below-benchmark weighting in European banks and
commodity-related stocks. The positioning is based on our belief that Europe
remains embroiled in the sovereign-debt crisis, with its dampening impact on
the region's financial institutions and global growth.
6 Pioneer International Value Fund | Semiannual Report | 5/31/12
With the dramatic moves in stock prices during the six-month period, we took
advantage of the fluctuations to sell some Fund holdings that had become
expensive or overvalued relative to their growth potential, in our
estimation, and invested the proceeds in stocks that we believed were
offering better value, quality, and dividend yields. In the process, we have
brought the portfolio more in line with the MSCI EAFE Index, the Fund's
benchmark. Geographically speaking, we have found investment opportunities in
Japan and, selectively, among Europe's oversold markets. GlaxoSmithKline
(GSK) exemplifies our investment strategy and has performed well for the
Fund.
GSK is a British multinational pharmaceutical company that has seen strong
underlying sales performance across its pharmaceutical, vaccines, and
consumer health care divisions. GSK is committed to tackling HIV/AIDS,
tuberculosis and malaria - three priority diseases as identified by the World
Health Organization. GSK has offered strong sales growth and cash generation,
significant progress in its research and development efforts, and provides an
attractive 5% dividend yield** as a way of returning value to shareholders.
Q What is your outlook for international equity markets in the coming months?
A As of May 31, 2012, risk-aversion has been defining the market environment,
with credit spreads (the difference in yield between Treasury securities and
other fixed-income securities with similar maturities) rising and
international equities struggling. We have seen the scenario play out many
times over the last two years. The shelter provided by central banks'
extraordinarily supportive policies, notably the ECB's, should contain the
volatility to some extent, but some bold initiatives by political leaders may
also be needed to restore a degree of certainty to calm investors and ease
the extreme bouts of market volatility.
The debate about Greece's leaving the euro zone has created a dialogue about
a watershed event that could open the way for some very different and
uncharted scenarios. Those could range from a "soft landing" and gradual
phasing out of the European Monetary Union (EMU), to a more radical
dissolution which separates the strong countries from the weak, to an
outright collapse, under a worst-case scenario.
European leaders have responded to the crisis with a series of partial
measures that have held the EMU and banks together. After 13 years of working
closely together, the EMU is a much deeper union than a mere free-trade area
whose members may come and go as they please. However, speculation about a
"new" EMU may linger for a while, thus contributing to uncertainty and
volatility in the financial markets.
** Dividends are not guaranteed.
Pioneer International Value Fund | Semiannual Report | 5/31/12 7
Although we think the global economic situation is at far from panic levels,
we see few catalysts that may boost investors' outlook and risk appetites
again in the near term. However, we still believe that myriad investment
opportunities remain on a stock-by-stock basis, especially in undervalued
international stocks that have been unfairly tarnished during the market's
reversals.
(1) The MSCI information may only be used for your internal use, may not be
reproduced or re-disseminated in any form and may not be used as a basis for or
a component of any financial instruments or products or indices. None of the
MSCI information is intended to constitute investment advice or a recommendation
to make (or refrain from making) any kind of investment decision and may not be
relied on as such. Historical data and analysis should not be taken as an
indication or guarantee of any future performance analysis, forecast or
prediction. The MSCI information is provided on an "as is" basis and the user of
this information assumes the entire risk of any use made of this information.
MSCI, each of its affiliates and each other person involved in or related to
compiling, computing or creating any MSCI information (collectively, the "MSCI
Parties") expressly disclaims all warranties (including, without limitation, any
warranties of originality, accuracy, completeness, timeliness, non-infringement,
merchantability and fitness for a particular purpose) with respect to this
information. Without limiting any of the foregoing, in no event shall any MSCI
Party have any liability for any direct, indirect, special, incidental,
punitive, consequential (including, without limitation, lost profits) or any
other damages.
Please refer to the Schedule of Investments on pages 17-24 for a full listing of
Fund securities.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund may invest a substantial amount of its assets in issuers located in a
limited number of countries and therefore is susceptible to adverse economic,
political or regulatory developments affecting those countries.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries or sectors.
These risks may increase share price volatility.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes.
8 Pioneer International Value Fund | Semiannual Report | 5/31/12
Portfolio Summary | 5/31/12
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 18.8%
Industrials 13.6%
Consumer Staples 11.6%
Materials 11.4%
Consumer Discretionary 9.3%
Energy 8.8%
Health Care 8.1%
Telecommunication Services 6.4%
Information Technology 6.0%
Utilities 6.0%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
Japan 17.1%
United Kingdom 13.4%
Switzerland 8.7%
Hong Kong 8.4%
Germany 6.2%
France 5.9%
Italy 5.3%
United States 4.5%
Brazil 3.2%
Ireland 3.2%
Russian Federation 2.9%
Sweden 2.6%
South Africa 2.3%
Korea, Republic of 2.2%
Luxembourg 2.2%
Australia 2.1%
Philippines 1.3%
Mexico 1.2%
Other (individually less than 1%) 7.3%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. GlaxoSmithKline Plc 3.23%
--------------------------------------------------------------------------------
2. Lukoil OAO (A.D.R.) 2.98
--------------------------------------------------------------------------------
3. Nestle SA 2.86
--------------------------------------------------------------------------------
4. FamilyMart Co., Ltd. 2.76
--------------------------------------------------------------------------------
5. ITOCHU Corp. 2.69
--------------------------------------------------------------------------------
6. BP Plc 2.22
--------------------------------------------------------------------------------
7. Ryanair Holdings Plc 2.21
--------------------------------------------------------------------------------
8. Intesa Sanpaolo S.p.A. 2.06
--------------------------------------------------------------------------------
9. Fresenius Medical Care AG & Co., KGaA 1.98
--------------------------------------------------------------------------------
10. Sekisui Chemical Co., Ltd. 1.98
--------------------------------------------------------------------------------
* 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 International Value Fund | Semiannual Report | 5/31/12 9
Prices and Distributions | 5/31/12
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 5/31/12 11/30/11
--------------------------------------------------------------------------------
A $16.38 $17.99
--------------------------------------------------------------------------------
B $14.84 $16.17
--------------------------------------------------------------------------------
C $14.60 $15.97
--------------------------------------------------------------------------------
Y $16.40 $18.07
--------------------------------------------------------------------------------
Distributions per Share: 12/1/11-5/31/12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2619 $ -- $ --
--------------------------------------------------------------------------------
B $0.0473 $ -- $ --
--------------------------------------------------------------------------------
C $0.1060 $ -- $ --
--------------------------------------------------------------------------------
Y $0.3502 $ -- $ --
--------------------------------------------------------------------------------
The MSCI EAFE Index is a commonly used measure of international stocks. Index
returns are calculated monthly, assume reinvestment of dividends and, unlike
Fund returns, do not reflect any fees, expenses or sales charges. It is not
possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 11-14.
10 Pioneer International Value Fund | Semiannual Report | 5/31/12
Performance Update | 5/31/12 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer International Value Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) Europe,
Australasia and Far East (EAFE) Index.
Average Annual Total Returns
(As of May 31, 2012)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
10 Years 1.98% 1.38%
5 Years -8.78 -9.85
1 Year -21.06 -25.62
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2012)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.77% 1.45%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International MCSI EAFE
Value Fund Index
5/31/2002 $ 9,425 $ 10,000
5/31/2003 $ 7,910 $ 8,770
5/31/2004 $ 9,861 $ 11,634
5/31/2005 $ 11,048 $ 13,335
5/31/2006 $ 14,464 $ 17,102
5/31/2007 $ 18,151 $ 21,692
5/31/2008 $ 17,570 $ 21,143
5/31/2009 $ 11,245 $ 13,403
5/31/2010 $ 11,395 $ 14,289
5/31/2011 $ 14,525 $ 18,634
5/31/2012 $ 11,466 $ 14,817
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 net expense ratio reflects contractual expense limitations currently in
effect through April 1, 2013 for Class A shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer International Value Fund | Semiannual Report | 5/31/12 11
Performance Update | 5/31/12 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer International Value Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East
(EAFE) Index.
Average Annual Total Returns
(As of May 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 0.98% 0.98%
5 Years -9.59 -9.59
1 Year -21.78 -24.90
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2012)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.94% 2.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International MCSI EAFE
Value Fund Index
5/31/2002 $ 10,000 $ 10,000
5/31/2003 $ 8,295 $ 8,770
5/31/2004 $ 10,199 $ 11,634
5/31/2005 $ 11,314 $ 13,335
5/31/2006 $ 14,679 $ 17,102
5/31/2007 $ 18,258 $ 21,692
5/31/2008 $ 17,519 $ 21,143
5/31/2009 $ 11,112 $ 13,403
5/31/2010 $ 11,157 $ 14,289
5/31/2011 $ 14,098 $ 18,634
5/31/2012 $ 11,028 $ 14,817
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). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through April 1, 2013 for Class B shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
12 Pioneer International Value Fund | Semiannual Report | 5/31/12
Performance Update | 5/31/12 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer International Value Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East
(EAFE) Index.
Average Annual Total Returns
(As of May 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 1.03% 1.03%
5 Years -9.59 -9.59
1 Year -21.76 -21.76
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2012)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.52% 2.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International MCSI EAFE
Value Fund Index
5/31/2002 $ 10,000 $ 10,000
5/31/2003 $ 8,302 $ 8,770
5/31/2004 $ 10,194 $ 11,634
5/31/2005 $ 11,331 $ 13,335
5/31/2006 $ 14,712 $ 17,102
5/31/2007 $ 18,340 $ 21,692
5/31/2008 $ 17,612 $ 21,143
5/31/2009 $ 11,160 $ 13,403
5/31/2010 $ 11,205 $ 14,289
5/31/2011 $ 14,159 $ 18,634
5/31/2012 $ 11,078 $ 14,817
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 net expense ratio reflects contractual expense limitations currently in
effect through April 1, 2013 for Class C shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer International Value Fund | Semiannual Report | 5/31/12 13
Performance Update | 5/31/12 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer International Value Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East
(EAFE) Index.
Average Annual Total Returns
(As of May 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 1.71% 1.71%
5 Years -9.10 -9.10
1 Year -20.75 -20.75
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.01%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer International MCSI EAFE
Value Fund Index
5/31/2002 $ 5,000,000 $ 5,000,000
5/31/2003 $ 4,197,183 $ 4,384,847
5/31/2004 $ 5,232,394 $ 5,817,093
5/31/2005 $ 5,862,676 $ 6,667,616
5/31/2006 $ 7,675,300 $ 8,550,764
5/31/2007 $ 9,550,559 $ 10,845,874
5/31/2008 $ 9,089,781 $ 10,571,274
5/31/2009 $ 5,737,944 $ 6,701,322
5/31/2010 $ 5,836,661 $ 7,144,494
5/31/2011 $ 7,477,866 $ 9,316,926
5/31/2012 $ 5,926,435 $ 7,408,398
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 were first publicly offered on April 16, 2009. Performance shown
for periods prior to the inception of Class Y shares reflects the NAV
performance of the Fund's Class A shares. The performance does not reflect
differences in expenses, including the Rule 12b-1 fees applicable to Class A
shares. Since fees for Class A shares are generally higher than those of Class Y
shares, the performance for Class Y shares prior to their inception would have
been higher than the performance shown. Class Y shares are not subject to sales
charges and are available for limited groups of eligible investors, including
institutional investors. All results are historical and assume the reinvestment
of dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The 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 International Value Fund | Semiannual Report | 5/31/12
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 International Value Fund
Based on actual returns from December 1, 2011, through May 31, 2012.
----------------------------------------------------------------------------------------------------------
Share Class A B C Y
----------------------------------------------------------------------------------------------------------
Beginning Account Value on 12/1/11 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
----------------------------------------------------------------------------------------------------------
Ending Account Value (after expenses) on 5/31/12 $ 924.50 $ 920.60 $ 920.60 $ 926.30
----------------------------------------------------------------------------------------------------------
Expenses Paid During Period* $ 6.98 $ 11.28 $ 11.28 $ 4.72
----------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.45%, 2.35%,
2.35% and 0.98% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 183/366 (to reflect the one-half year period).
Pioneer International Value Fund | Semiannual Report | 5/31/12 15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads), or redemption fees that are charged at the time of the
transaction. Therefore, the table below is useful in comparing ongoing costs
only and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs were included, your
costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer International Value Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from December 1, 2011, through May 31, 2012.
----------------------------------------------------------------------------------------------------------
Share Class A B C Y
----------------------------------------------------------------------------------------------------------
Beginning Account Value on 12/1/11 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
----------------------------------------------------------------------------------------------------------
Ending Account Value (after expenses) on 5/31/12 $ 1,017.75 $ 1,013.25 $ 1,013.25 $ 1,020.25
----------------------------------------------------------------------------------------------------------
Expenses Paid During Period* $ 7.31 $ 11.83 $ 11.83 $ 4.95
----------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.45%, 2.35%,
2.35% and 0.98% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 183/366 (to reflect the one-half year period).
16 Pioneer International Value Fund | Semiannual Report | 5/31/12
Schedule of Investments | 5/31/12 (unaudited)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS -- 97.3%
ENERGY -- 8.7%
Oil & Gas Drilling -- 0.6%
33,700 Ensco Plc $ 1,513,467
--------------------------------------------------------------------------------
Integrated Oil & Gas -- 7.2%
957,656 BP Plc $ 5,821,773
149,300 Lukoil OAO (A.D.R.) 7,792,863
153,371 Repsol YPF SA 2,304,002
74,677 Total SA 3,231,795
----------------
$ 19,150,433
--------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.9%
432 Inpex Corp. $ 2,484,266
----------------
Total Energy $ 23,148,166
--------------------------------------------------------------------------------
MATERIALS -- 11.0%
Fertilizers & Agricultural Chemicals -- 0.7%
47,910 Yara International ASA $ 1,816,273
--------------------------------------------------------------------------------
Construction Materials -- 2.3%
2,814,000 China Resources Cement Holdings, Ltd. $ 2,053,994
155,400 CRH Plc 2,662,024
1,139,000 Semen Gresik Persero Tbk PT 1,324,812
----------------
$ 6,040,830
--------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.8%
254,400 Eurasian Natural Resources Corp Plc $ 1,669,406
53,400 Freeport-McMoRan Copper & Gold, Inc. 1,710,936
21,600 Rio Tinto, Ltd. 1,193,494
99,553 Southern Copper Corp. 2,832,283
----------------
$ 7,406,119
--------------------------------------------------------------------------------
Gold -- 3.2%
139,743 AngloGold Ashanti, Ltd. $ 5,037,424
2,076,500 Centamin Plc* 2,103,761
31,300 Newmont Mining Corp. 1,476,108
----------------
$ 8,617,293
--------------------------------------------------------------------------------
Precious Metals & Minerals -- 0.4%
65,800 Impala Platinum Holdings, Ltd. $ 1,041,401
--------------------------------------------------------------------------------
Steel -- 1.6%
94,300 Ternium SA (A.D.R.) $ 1,786,042
135,900 Vale SA (A.D.R.) 2,488,329
----------------
$ 4,274,371
--------------------------------------------------------------------------------
Forest Products -- 0.0%
157,400 Sino-Forest Corp.* (c) $ 0
----------------
Total Materials $ 29,196,287
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/12 17
Schedule of Investments | 5/31/12 (unaudited) (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
CAPITAL GOODS -- 10.2%
Construction & Engineering -- 0.9%
88,100 KBR, Inc. $ 2,243,907
--------------------------------------------------------------------------------
Heavy Electrical Equipment -- 2.1%
74,002 Alstom SA $ 2,153,027
449,000 Mitsubishi Electric Corp. 3,517,755
----------------
$ 5,670,782
--------------------------------------------------------------------------------
Industrial Conglomerates -- 3.4%
7,160,500 Alliance Global Group, Inc. $ 2,048,327
157,600 Koninklijke Philips Electronics NV 2,789,925
693,000 Shanghai Industrial Holdings, Ltd. 1,933,919
28,100 Siemens AG (A.D.R.) 2,321,060
----------------
$ 9,093,231
--------------------------------------------------------------------------------
Trading Companies & Distributors -- 3.8%
645,500 ITOCHU Corp. $ 7,043,790
3,576,100 Noble Group, Ltd. 3,080,371
----------------
$ 10,124,161
----------------
Total Capital Goods $ 27,132,081
--------------------------------------------------------------------------------
TRANSPORTATION -- 3.2%
Airlines -- 2.2%
1,147,962 Ryanair Holdings Plc* $ 5,786,110
--------------------------------------------------------------------------------
Highways & Railtracks -- 1.0%
5,783,500 Yuexiu Transport Infrastructure, Ltd. $ 2,759,460
----------------
Total Transportation $ 8,545,570
--------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 2.6%
Auto Parts & Equipment -- 0.2%
89,000 China XD Plastics Co., Ltd.* $ 429,870
--------------------------------------------------------------------------------
Tires & Rubber -- 1.3%
90,300 Bridgestone Corp. $ 1,922,022
162,000 Pirelli & Co., S.p.A. 1,618,360
----------------
$ 3,540,382
--------------------------------------------------------------------------------
Automobile Manufacturers -- 1.1%
65,500 Daimler AG $ 3,040,307
----------------
Total Automobiles & Components $ 7,010,559
--------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 5.9%
Homebuilding -- 1.9%
608,800 Sekisui Chemical Co., Ltd. $ 5,180,718
--------------------------------------------------------------------------------
Household Appliances -- 1.4%
190,000 Electrolux AB $ 3,628,206
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer International Value Fund | Semiannual Report | 5/31/12
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Apparel, Accessories & Luxury Goods -- 2.6%
17,400 Christian Dior SA $ 2,283,997
81,799 Cie Financiere Richemont SA 4,682,990
----------------
$ 6,966,987
----------------
Total Consumer Durables & Apparel $ 15,775,911
--------------------------------------------------------------------------------
RETAILING -- 0.6%
Automotive Retail -- 0.6%
15,400 USS Co., Ltd. $ 1,556,303
----------------
Total Retailing $ 1,556,303
--------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.7%
Food Retail -- 2.7%
159,300 FamilyMart Co., Ltd. $ 7,230,741
----------------
Total Food & Staples Retailing $ 7,230,741
--------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 8.7%
Soft Drinks -- 1.2%
41,600 Fomento Economico Mexicano
SAB de CV (A.D.R.) $ 3,279,328
--------------------------------------------------------------------------------
Packaged Foods & Meats -- 3.7%
132,000 Nestle SA $ 7,499,200
70,891 Unilever Plc 2,241,068
----------------
$ 9,740,268
--------------------------------------------------------------------------------
Tobacco -- 3.8%
141,914 Imperial Tobacco Group Plc $ 5,125,460
902 Japan Tobacco, Inc. 5,028,138
----------------
$ 10,153,598
----------------
Total Food, Beverage & Tobacco $ 23,173,194
--------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.9%
Health Care Services -- 1.9%
78,175 Fresenius Medical Care AG & Co. KGaA $ 5,194,976
----------------
Total Health Care Equipment & Services $ 5,194,976
--------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 6.1%
Pharmaceuticals -- 6.1%
380,500 GlaxoSmithKline Plc $ 8,446,617
48,900 Novartis AG 2,547,779
32,706 Roche Holding AG 5,129,612
----------------
$ 16,124,008
----------------
Total Pharmaceuticals, Biotechnology &
Life Sciences $ 16,124,008
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/12 19
Schedule of Investments | 5/31/12 (unaudited) (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
BANKS -- 11.2%
Diversified Banks -- 11.2%
373,500 Banco Santander Brasil SA (A.D.R.) $ 2,969,325
12,000,000 Bank Pembangunan Daerah Jawa
Barat Dan Banten Tbk PT 1,160,242
1,181,100 Commerzbank AG* 1,949,896
4,313,600 Intesa Sanpaolo S.p.A.* 5,408,204
214,100 Itau Unibanco Holding SA (A.D.R.) 3,098,027
740,699 Mitsubishi UFJ Financial Group, Inc. 3,190,354
200,808 National Australia Bank, Ltd. 4,403,270
493,700 Philippine National Bank* 816,296
105,995 Societe Generale SA 2,135,589
160,200 Sumitomo Mitsui Financial Group, Inc. 4,653,118
----------------
$ 29,784,321
----------------
Total Banks $ 29,784,321
--------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.4%
Multi-Sector Holdings -- 0.5%
1,302,000 First Pacific Co., Ltd. $ 1,340,248
--------------------------------------------------------------------------------
Specialized Finance -- 0.6%
33,300 Deutsche Boerse AG $ 1,591,791
--------------------------------------------------------------------------------
Consumer Finance -- 1.2%
58,600 Capital One Financial Corp. $ 3,010,282
--------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.0%
821 Reinet Investments SCA* $ 13,197
--------------------------------------------------------------------------------
Diversified Capital Markets -- 1.1%
155,220 Credit Suisse Group AG $ 2,966,781
----------------
Total Diversified Financials $ 8,922,299
--------------------------------------------------------------------------------
INSURANCE -- 2.9%
Life & Health Insurance -- 1.1%
320,200 T&D Holdings, Inc. $ 3,036,539
--------------------------------------------------------------------------------
Multi-line Insurance -- 1.8%
25,000 Allianz SE $ 2,265,965
596,460 Aviva Plc 2,407,280
----------------
$ 4,673,245
----------------
Total Insurance $ 7,709,784
--------------------------------------------------------------------------------
REAL ESTATE -- 0.4%
Real Estate Development -- 0.4%
2,685,000 Unitech, Ltd. $ 1,041,991
----------------
Total Real Estate $ 1,041,991
--------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 2.3%
Communications Equipment -- 1.3%
397,700 Telefonaktiebolaget LM Ericsson $ 3,371,643
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer International Value Fund | Semiannual Report | 5/31/12
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Computer Storage & Peripherals -- 0.5%
222,000 Catcher Technology Co., Ltd. $ 1,405,385
--------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.5%
433,000 Hon Hai Precision Industry Co., Ltd. $ 1,262,196
----------------
Total Technology Hardware & Equipment $ 6,039,224
--------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 3.7%
Semiconductor Equipment -- 1.5%
316,100 ASM Pacific Technology, Ltd. $ 3,880,922
--------------------------------------------------------------------------------
Semiconductors -- 2.2%
8,000 Samsung Electronics Co., Ltd. (G.D.R.) $ 4,129,473
94,320 SK Hynix, Inc. 1,842,109
----------------
$ 5,971,582
----------------
Total Semiconductors & Semiconductor
Equipment $ 9,852,504
--------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 6.4%
Integrated Telecommunication Services -- 2.0%
94,630 HKT Trust $ 72,067
4,353,000 PCCW, Ltd. 1,593,898
5,274,200 Telecom Italia S.p.A. 3,584,100
----------------
$ 5,250,065
--------------------------------------------------------------------------------
Wireless Telecommunication Services -- 4.4%
261,700 China Mobile, Ltd. $ 2,651,578
724,100 Idea Cellular, Ltd.* 977,961
47,000 Millicom International Cellular SA 4,077,250
1,491,221 Vodafone Group Plc 3,994,969
----------------
$ 11,701,758
----------------
Total Telecommunication Services $ 16,951,823
--------------------------------------------------------------------------------
UTILITIES -- 5.4%
Electric Utilities -- 0.8%
741,000 Enel S.p.A. $ 2,115,989
--------------------------------------------------------------------------------
Multi-Utilities -- 2.4%
131,500 GDF Suez $ 2,613,686
387,053 National Grid Plc 3,879,714
----------------
$ 6,493,400
--------------------------------------------------------------------------------
Water Utilities -- 2.2%
3,956,800 Guangdong Investment, Ltd. $ 2,622,172
1,298,300 Manila Water Co., Inc. 737,147
229,685 Suez Environnement Co. 2,509,079
----------------
$ 5,868,398
----------------
Total Utilities $ 14,477,787
--------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $285,704,064) $ 258,867,529
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/12 21
Schedule of Investments | 5/31/12 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (d) Ratings
Amount ($) (unaudited) (unaudited) Value
-----------------------------------------------------------------------------------------------------
CORPORATE BONDS -- 1.0%
MATERIALS -- 0.3%
Paper Packaging -- 0.3%
765,000 BB/B1 Sealed Air Corp., 6.875%,
7/15/33 (144A) $ 742,050
--------------
Total Materials $ 742,050
-----------------------------------------------------------------------------------------------------
BANKS -- 0.7%
Diversified Banks -- 0.7%
EURO 700,000 5.02 BBB+/Baa3 BNP Paribas SA, Floating Rate Note,
4/29/49 (Perpetual) $ 601,679
EURO 1,400,000 8.05 BB+/Ba1 Intesa Sanpaolo S.p.A., Floating Rate
Note, 6/29/49 (Perpetual) 1,246,644
--------------
$ 1,848,323
--------------
Total Banks $ 1,848,323
-----------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $2,595,124) $ 2,590,373
-----------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 98.3%
(Cost $288,299,188) (a) (b) $ 261,457,902
-----------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 1.7% $ 4,605,590
-----------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 266,063,492
=====================================================================================================
(A.D.R.) American Depositary Receipt.
(G.D.R.) Global Depositary Receipt.
(Perpetual) Security with no stated maturity date.
* Non-income producing security.
(144A) Security is exempt from registration under Rule 144A of the
Securities Act of 1933. Such securities may be resold normally to
qualified institutional buyers in a transaction exempt from
registration. At May 31, 2012, the value of these securities
amounted to $742,050 or 0.3% of total net assets.
(a) At May 31, 2012, the net unrealized loss on investments based on
cost for federal income tax purposes of $288,299,188 was as follows:
Aggregate gross unrealized gain for all investments for which
there is an excess of value over tax cost $ 21,514,622
Aggregate gross unrealized loss for all investments for which
there is an excess of tax cost over value (48,355,907)
-------------
Net unrealized loss $ (26,841,286)
=============
The accompanying notes are an integral part of these financial statements.
22 Pioneer International Value Fund | Semiannual Report | 5/31/12
(b) Distributions of investments by country of issue (excluding
temporary cash investments) as a percentage of total investment in
securities, is as follows:
Japan 17.1%
United Kingdom 13.4%
Switzerland 8.7%
Hong Kong 8.4%
Germany 6.2%
France 5.9%
Italy 5.3%
United States 4.5%
Brazil 3.2%
Ireland 3.2%
Russian Federation 2.9%
Sweden 2.6%
South Africa 2.3%
Korea, Republic of 2.2%
Luxembourg 2.2%
Australia 2.1%
Philippines 1.3%
Mexico 1.2%
Other (individually less than 1%) 7.3%
--------
100.0%
========
(c) Security is valued using fair value methods.
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise
noted:
EURO Euro
Purchases and sales of securities (excluding temporary cash
investments) for the six months ended May 31, 2012 aggregated
$104,119,026 and $90,077,560, 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 valued using fair value methods
(other than prices supplied by independent pricing services) are categorized as
Level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/12 23
Schedule of Investments | 5/31/12 (unaudited) (continued)
The following is a summary of the inputs used as of May 31, 2012, in valuing the
Fund's assets:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Common Stocks* $41,029,071 $217,838,452 $ -- $258,867,529
Corporate Bonds -- 2,590,373 -- 2,590,373
--------------------------------------------------------------------------------
Total $41,029,071 $220,428,825 $ -- $261,457,902
================================================================================
Other Financial Instruments** $ -- $ -- $ -- $ --
================================================================================
* Level 2 securities are valued by independent pricing services using fair
value factors.
** Other financial instruments include the unrealized gain (loss) on forward
foreign currency contracts.
The following is a reconciliation of assets valued using significant observable
inputs (Level 3):
--------------------------------------------------------------------------------
Common
Stocks
--------------------------------------------------------------------------------
Balance as of 11/30/11 $ 1,080,355
Realized gain (loss) --
Change in unrealized appreciation (depreciation)(1) (1,080,355)
Net purchases (sales) --
Transfers in and out of Level 3 --
--------------------------------------------------------------------------------
Balance as of 5/31/12 $ 0
================================================================================
(1) Realized gain (loss) on these securities is included in the net realized
gain (loss) on investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized gain (loss) on investments in the Statement of
Operations.
* Transfers are calculated on the beginning of period values.
Net change in unrealized appreciation (depreciation)
of investments still held as of 5/31/12 $ (1,080,355)
--------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer International Value Fund | Semiannual Report | 5/31/12
Statement of Assets and Liabilities | 5/31/12 (unaudited)
ASSETS:
Investment in securities (cost $288,299,188) $ 261,457,902
Cash 1,766,681
Foreign currencies, at value (cost $996,238) 987,034
Receivables --
Investment securities sold 2,043,771
Fund shares sold 122,069
Dividends, interest and foreign taxes withheld 1,977,397
Due from Pioneer Investment Management, Inc. 30,389
Other 39,213
------------------------------------------------------------------------------------
Total assets $ 268,424,456
====================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 1,961,254
Fund shares repurchased 249,194
Dividends 1,001
Forward foreign currency settlement hedge contracts, open-net 1,836
Due to affiliates 64,837
Accrued expenses 82,842
------------------------------------------------------------------------------------
Total liabilities $ 2,360,964
====================================================================================
NET ASSETS:
Paid-in capital $ 458,923,839
Undistributed net investment income 3,304,283
Accumulated net realized loss on investments and foreign currency
transactions (169,307,353)
Net unrealized loss on investments (26,841,286)
Net unrealized loss on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (15,991)
------------------------------------------------------------------------------------
Total net assets $ 266,063,492
====================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $69,888,481/4,267,873 shares) $ 16.38
Class B (based on $4,227,780/284,804 shares) $ 14.84
Class C (based on $9,050,407/619,988 shares) $ 14.60
Class Y (based on $182,896,824/11,152,576 shares) $ 16.40
MAXIMUM OFFERING PRICE:
Class A ($16.38 [divided by] 94.25%) $ 17.38
====================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/12 25
Statement of Operations (unaudited)
For the Six Months Ended 5/31/12
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $624,198) $ 5,413,369
Interest 236,840
Income from securities loaned, net 7,642
-------------------------------------------------------------------------------------------
Total investment income $ 5,657,851
===========================================================================================
EXPENSES:
Management fees $ 1,251,529
Transfer agent fees and expenses
Class A $ 166,033
Class B 26,629
Class C 20,931
Class Y 960
Distribution fees
Class A 99,816
Class B 26,674
Class C 52,104
Shareholder communications expense 68,232
Administrative reimbursement 38,547
Custodian fees 42,860
Registration fees 28,633
Professional fees 33,892
Printing expense 12,754
Fees and expenses of nonaffiliated Trustees 4,335
Miscellaneous 47,274
-------------------------------------------------------------------------------------------
Total expenses $ 1,921,203
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (161,723)
===========================================================================================
Net expenses $ 1,759,480
-------------------------------------------------------------------------------------------
Net investment income $ 3,898,371
-------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (7,924,571)
Class actions 9,166
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (288,708) $ (8,204,113)
-------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $ (18,897,219)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (80,487) $ (18,977,706)
-------------------------------------------------------------------------------------------
Net loss on investments and foreign currency transactions $ (27,181,819)
-------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (23,283,448)
===========================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer International Value Fund | Semiannual Report | 5/31/12
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------
Six Months
Ended
5/31/12 Year Ended
(unaudited) 11/30/11
-------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 3,898,371 $ 6,409,555
Net realized gain (loss) on investments and foreign currency
transactions (8,204,113) 9,883,254
Change in net unrealized gain (loss) on investments and
foreign currency transactions (18,977,706) (22,952,943)
-------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (23,283,448) $ (6,660,134)
-------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.26 and $0.22 per share, respectively) $ (1,153,020) $ (1,023,788)
Class B ($0.05 and $0.02 per share, respectively) (16,573) (13,411)
Class C ($0.11 and $0.06 per share, respectively) (69,163) (41,952)
Class Y ($0.35 and $0.30 per share, respectively) (3,694,097) (3,168,233)
-------------------------------------------------------------------------------------------
Total distributions to shareowners $ (4,932,853) $ (4,247,384)
-------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 20,103,721 $ 20,926,432
Reinvestment of distributions 1,187,083 1,034,534
Cost of shares repurchased (12,402,061) (31,870,345)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ 8,888,743 $ (9,909,379)
-------------------------------------------------------------------------------------------
Net decrease in net assets $ (19,327,558) $ (20,816,897)
NET ASSETS:
Beginning of period 285,391,050 306,207,947
-------------------------------------------------------------------------------------------
End of period $ 266,063,492 $ 285,391,050
-------------------------------------------------------------------------------------------
Undistributed net investment income $ 3,304,283 $ 4,338,765
===========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/12 27
Statement of Changes in Net Assets (continued)
-------------------------------------------------------------------------------------------
'12 Shares '12 Amount '11 Shares '11 Amount
(unaudited) (unaudited)
-------------------------------------------------------------------------------------------
CLASS A
Shares sold 231,354 $ 4,579,632 552,784 $ 10,885,729
Reinvestment of distributions 63,926 1,086,124 48,988 964,082
Less shares repurchased (450,766) (8,176,842) (940,687) (18,525,899)
-------------------------------------------------------------------------------------------
Net decrease (155,486) $ (2,511,086) (338,915) $ (6,676,088)
===========================================================================================
CLASS B
Shares sold or exchanged 4,567 $ 105,498 31,578 $ 557,777
Reinvestment of distributions 1,037 16,029 723 12,883
Less shares repurchased (91,165) (1,499,955) (244,054) (4,329,539)
-------------------------------------------------------------------------------------------
Net decrease (85,561) $ (1,378,428) (211,753) $ (3,758,879)
===========================================================================================
CLASS C
Shares sold 41,696 $ 730,669 111,479 $ 1,975,835
Reinvestment of distributions 4,302 65,387 2,226 39,190
Less shares repurchased (85,078) (1,400,218) (183,522) (3,216,738)
-------------------------------------------------------------------------------------------
Net decrease (39,080) $ (604,162) (69,817) $ (1,201,713)
===========================================================================================
CLASS Y
Shares sold 745,658 $ 14,687,922 388,272 $ 7,507,091
Reinvestment of distributions 1,151 19,543 934 18,379
Less shares repurchased (73,540) (1,325,046) (290,814) (5,798,169)
-------------------------------------------------------------------------------------------
Net increase 673,269 $ 13,382,419 98,392 $ 1,727,301
===========================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer International Value Fund | Semiannual Report | 5/31/12
Financial Highlights
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
5/31/12 Ended Ended Ended Ended Ended
(unaudited) 11/30/11 11/30/10 11/30/09 11/30/08 11/30/07
-----------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 17.99 $ 18.72 $ 19.16 $ 14.15 $ 28.12 $ 23.98
-----------------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.22 $ 0.37 $ 0.24 $ 0.14 $ 0.27 $ 0.22
Net realized and unrealized gain (loss) on (1.57)
investments and foreign currency transactions 0.00 (0.88) (0.61) 5.01 (14.05) 4.02
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.35) $ (0.51) $ (0.37) $ 5.15 $ (13.78) $ 4.24
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.26) (0.22) (0.07) (0.14) (0.19) (0.10)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.61) $ (0.73) $ (0.44) $ 5.01 $ (13.97) $ 4.14
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.38 $ 17.99 $ 18.72 $ 19.16 $ 14.15 $ 28.12
===================================================================================================================================
Total return* (7.55)%** (2.84)% (1.94)% 36.72% (49.33)% 17.73%
Ratio of net expenses to average net assets+ 1.45%** 1.45% 1.45% 1.52% 1.71% 1.68%
Ratio of net investment income to average net assets+ 2.36%** 1.80% 1.18% 0.97% 1.07% 0.76%
Portfolio turnover rate 62% 66% 66% 54% 135% 81%
Net assets, end of period (in thousands) $ 69,888 $ 79,559 $ 89,145 $ 106,263 $ 53,725 $ 133,264
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for fees
paid indirectly:
Net expenses 1.77%** 1.77% 1.76% 2.10% 1.90% 1.68%
Net investment income 2.04%** 1.48% 0.86% 0.39% 0.88% 0.76%
Ratios with waiver of fees and assumption of
expenses by the Adviser and reduction for fees paid
indirectly:
Net expenses 1.45%** 1.45% 1.45% 1.52% 1.70% 1.66%
Net investment income 2.36%** 1.80% 1.18% 0.97% 1.08% 0.78%
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/12 29
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
5/31/12 Ended Ended Ended Ended Ended
(unaudited) 11/30/11 11/30/10 11/30/09 11/30/08 11/30/07
-----------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 16.17 $ 16.82 $ 17.31 $ 12.77 $ 25.50 $ 21.86
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.18 $ 0.31 $ 0.09 $ (0.05)# $ 0.09 $ (0.02)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (1.46) (0.94) (0.58) 4.59 (12.76) 3.66
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.28) $ (0.63) $ (0.49) $ 4.54 $ (12.67) $ 3.64
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.05) (0.02) -- -- (0.06) --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.33) $ (0.65) $ (0.49) $ 4.54 $ (12.73) $ 3.64
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.84 $ 16.17 $ 16.82 $ 17.31 $ 12.77 $ 25.50
===================================================================================================================================
Total return* (7.94)%** (3.74)% (2.83)% 35.55% (49.80)% 16.65%
Ratio of net expenses to average net assets+ 2.35%** 2.35% 2.35% 2.40% 2.61% 2.55%
Ratio of net investment income (loss) to average net
assets+ 1.30%** 0.85% 0.26% (0.06)% 0.14% (0.12)%
Portfolio turnover rate 62%** 66% 66% 54% 135% 81%
Net assets, end of period (in thousands) $ 4,228 $ 5,987 $ 9,790 $ 14,538 $ 5,978 $ 18,562
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for fees
paid indirectly:
Net expenses 3.17%** 2.94% 2.88% 3.05% 2.76% 2.55%
Net investment loss 0.49%** 0.26% (0.27)% (0.71)% (0.01)% (0.12)%
Ratios with waiver of fees and assumption of
expenses by the Adviser and reduction for fees paid
indirectly:
Net expenses 2.35% 2.35%** 2.35% 2.40% 2.60% 2.52%
Net investment income (loss) 1.30%** 0.85% 0.26% (0.06)% 0.15% (0.09)%
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
# The amount shown for a share outstanding does not correspond with the
aggregate gain on investments for the period due to the timing of sales and
repurchases of shares in relation to fluctuating market values of the
investments of the Fund.
** Annualized.
The accompanying notes are an integral part of these financial statements.
30 Pioneer International Value Fund | Semiannual Report | 5/31/12
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
5/31/12 Ended Ended Ended Ended Ended
(unaudited) 11/30/11 11/30/10 11/30/09 11/30/08 11/30/07
-----------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 15.97 $ 16.64 $ 17.12 $ 12.64 $ 25.28 $ 21.64
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.13 $ 0.19 $ 0.06 $ (0.05)# $ 0.08 $ (0.01)
Net realized and unrealized gain (loss) on (1.39)
investments and foreign currency transactions $ -- $ (0.80) $ (0.54) $ 4.53 $ (12.62) $ 3.65
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.26) $ (0.61) $ (0.48) $ 4.48 $ (12.54) $ 3.64
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.11) (0.06) -- -- (0.10) --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.37) $ (0.67) $ (0.48) $ 4.48 $ (12.64) $ 3.64
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.60 $ 15.97 $ 16.64 $ 17.12 $ 12.64 $ 25.28
===================================================================================================================================
Total return* (7.94)%** (3.71)% (2.80)% 35.44% (49.79)% 16.82%
Ratio of net expenses to average net assets+ 2.35%** 2.35% 2.35% 2.40% 2.57% 2.45%
Ratio of net investment income (loss) to average net
assets+ 1.43%** 0.90% 0.26% (0.04)% 0.22% 0.00%(a)
Portfolio turnover rate 62%** 66% 66% 54% 135% 81%
Net assets, end of period (in thousands) $ 9,050 $ 10,523 $ 12,126 $ 14,839 $ 5,384 $ 16,486
Ratios with no waiver of fees and assumption of
expenses by the Adviser and no reduction for fees
paid indirectly:
Net expenses 2.60%** 2.52% 2.58% 2.74% 2.57% 2.45%
Net investment income (loss) 1.19%** 0.73% 0.02% (0.38)% 0.22% 0.00%(a)
Ratios with waiver of fees and assumption of
expenses by the Adviser and reduction for fees
paid indirectly:
Net expenses 2.35%** 2.35% 2.35% 2.40% 2.56% 2.44%
Net investment income (loss) 1.43%** 0.90% 0.26% (0.04)% 0.23% 0.01%
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
(a) Amount rounds to less than 0.01%.
# The amount shown for a share outstanding does not correspond with the
aggregate gain on investments for the period due to the timing of sales and
repurchases of shares in relation to fluctuating market values of the
investments of the Fund.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/12 31
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year 4/16/09 (a)
5/31/12 Ended Ended to
(Unaudited) 11/30/11 11/30/10 11/30/09
---------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 18.07 $ 18.80 $ 19.22 $ 14.11
---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.25 $ 0.44 $ 0.30 $ 0.10
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (1.57) (0.87) (0.59) 5.01
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.32) $ (0.43) $ (0.29) $ 5.11
---------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.35) (0.30) (0.13) --
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.67) $ (0.73) $ (0.42) $ 5.11
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.40 $ 18.07 $ 18.80 $ 19.22
=================================================================================================================================
Total return* (7.37)%** (2.39)% (1.51)% 36.22%(b)
Ratio of net expenses to average net assets+ 0.98%** 1.01% 1.01% 1.01%**
Ratio of net investment income to average net assets+ 2.90%** 2.26% 1.63% 1.10%**
Portfolio turnover rate 62%** 66% 66% 54%(b)
Net assets, end of period (in thousands) $ 182,897 $ 189,321 $ 195,147 $ 195,132
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Net expenses 0.98%** 1.01% 1.01% 1.01%**
Net investment income 2.90%** 2.26% 1.63% 1.10%**
Ratios with waiver of fees and assumption of expenses by
the Adviser and reduction for fees paid indirectly:
Net expenses 0.98%** 1.01% 1.01% 1.01%**
Net investment income 2.90%** 2.26% 1.63% 1.10%**
=================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
+ Ratios with no reduction for fees paid indirectly.
(a) Class Y shares were first publicly offered on April 16, 2009.
(b) Not annualized.
** Annualized.
The accompanying notes are an integral part of these financial statements.
32 Pioneer International Value Fund | Semiannual Report | 5/31/12
Notes to Financial Statements | 5/31/12 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer International Value Fund (the Fund) is the sole portfolio comprising
Pioneer Series Trust VIII, 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 long-term growth of
capital.
The Fund offers four classes of shares designated as Class A, Class B, Class C
and Class Y shares. Class R shares were first publicly offered on April 1, 2003
and ceased operations on February 1, 2007. Class Y shares were first publicly
offered on April 16, 2009. Effective as of the close of business on December 31,
2009, Class B shares are no longer offered to new or existing shareholders,
except that dividends and/or capital gain distributions may continue to be
reinvested in Class B shares, and shareholders may exchange their Class B shares
for Class B shares of other Pioneer funds, as permitted by existing exchange
privileges. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares. Class B shares convert to Class A shares
approximately eight years after the date of purchase.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
Pioneer International Value Fund | Semiannual Report | 5/31/12 33
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities that have traded on an exchange are valued
using the last sale price on the principal exchange where they are traded.
Securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices. 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.
The Fund invests primarily in securities of non-U.S. issuers. The principal
exchanges and markets for such securities have closing times prior to the
close of the NYSE. However, the value of these securities may be influenced
by changes in global markets occurring after the closing times of the local
exchanges and markets up to the time the Fund determines its net asset value.
Consequently, the Board of Trustees of the Fund has determined that daily
adjustments to the valuation of securities of non-U.S. issuers by utilizing
an independent pricing service that supplies an appropriate fair value factor
is appropriate for the Fund.
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 May 31, 2012, one security was valued using fair value methods (in
addition to securities valued using prices supplied by independent pricing
services) representing 0.00% of net assets. 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
34 Pioneer International Value Fund | Semiannual Report | 5/31/12
interest on income-bearing cash accounts, is recorded on the accrual basis.
Dividend and interest income are reported net of unrecoverable foreign taxes
withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the Statement of Operations from the
effects of changes in market price of those securities but are included with
the net realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized gains or losses are recorded in
the Fund's financial statements. The Fund records realized gains and losses
at the time a portfolio hedge is offset by entry into a closing transaction
or extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (see Note 6).
D. 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.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on the recognition of capital gains
and/or the repatriation of foreign currencies in certain countries. During
the six months ended May 31, 2012, the Fund paid no such taxes.
Pioneer International Value Fund | Semiannual Report | 5/31/12 35
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
The tax character of current year distributions payable will be determined at
the end of the current taxable year. The tax character of distributions paid
during the year ended November 30, 2011 was as follows:
-----------------------------------------------------------------------------
2011
-----------------------------------------------------------------------------
Distribution paid from:
Ordinary income $ 4,247,384
-----------------------------------------------------------------------------
Total $ 4,247,384
=============================================================================
The following shows the components of distributable earnings on a federal
income tax basis at November 30, 2011:
-----------------------------------------------------------------------------
2011
-----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 4,372,582
Capital loss carryforward (153,460,706)
Post-October loss deferred (3,493,787)
Net unrealized loss (12,062,135)
-----------------------------------------------------------------------------
Total $(164,644,046)
=============================================================================
The difference between book-basis and tax-basis net unrealized loss is
attributable to the tax deferral of losses on wash sales and the
mark-to-market of foreign currency contracts.
E. 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 $7,048 in underwriting commissions on the sale of Class A shares
during the six months ended May 31, 2012. During the six months ended May 31,
2012 the Fund recognized gains of $9,166 in settlement of class action
lawsuits from several different companies, as reflected on the Statement of
Operations.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning of
the day.
36 Pioneer International Value Fund | Semiannual Report | 5/31/12
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund, respectively
(see Note 4). Class Y shares do not pay distribution fees. 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 and Class Y shares can reflect
different transfer agent and distribution expense rates.
G. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. The Fund may invest a substantial amount of its assets
in issuers located in a limited number of countries and therefore may be
susceptible to adverse economic, political or regulatory developments
affecting those countries. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making the Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
H. 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 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
Pioneer International Value Fund | Semiannual Report | 5/31/12 37
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 May 31, 2012, the Fund had no
securities on loan.
I. 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.
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 0.85% of
the Fund's average daily net assets up to $500 million and 0.75% on assets over
$500 million. For the six months ended May 31, 2012, the effective management
fee (excluding waivers and/or assumptions of expenses) was equivalent to 0.85%
of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.45%, 2.35% and 2.35% of the average daily
net assets attributable to Class A, Class B and Class C shares, respectively.
Fees waived and expenses reimbursed during the six months ended May 31, 2012 are
reflected on the Statements of Operations. Class Y shares do not have an expense
limitation. These expense limitations are in effect through April 1, 2013. There
can be no assurance that PIM will extend the expense limitation agreement for a
class of shares beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$16,467 in management fees, administrative costs and certain other
reimbursements payable to PIM at May 31, 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.
38 Pioneer International Value Fund | Semiannual Report | 5/31/12
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the six months ended May 31, 2012, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 50,414
Class B 5,213
Class C 11,316
Class Y 1,289
--------------------------------------------------------------------------------
Total $ 68,232
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $46,664 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at May 31, 2012.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B and Class C
shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the
average daily net assets attributable to Class B and Class C shares. The fee for
Class B and Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class C
shares. Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $1,706 in distribution fees payable to PFD at May 31, 2012.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Class B shares redeemed within five years of
purchase are subject to a CDSC at declining rates beginning at 4.00%, based on
the lower of cost or market value of shares being redeemed. Redemptions of Class
C shares within one year of purchase are subject to a CDSC of 1.00%, based on
the lower of cost or market value of shares being redeemed. Shares purchased as
part of an exchange remain subject to any CDSC that applied to the original
purchase of those shares. There is no CDSC for Class Y shares. Proceeds from the
CDSCs are paid to PFD. For the six months ended May 31, 2012, CDSCs in the
amount of $2,588 were paid to PFD.
Pioneer International Value Fund | Semiannual Report | 5/31/12 39
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 May 31, 2012, the Fund's
expenses were not reduced under such arrangements.
6. Forward Foreign Currency Contracts
At May 30, 2012, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of contracts open during
the six months ended May 31, 2012 was $5,597,146. At May 31, 2012, the Fund had
no outstanding portfolio hedges. At May 31, 2012, the Fund's gross forward
currency settlement contracts receivable and payable were $3,320,612 and
$3,322,448, respectively, resulting in a net payable of $1,836.
7. 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 May 31, 2012, the Fund had no borrowings
under a credit facility.
40 Pioneer International Value Fund | Semiannual Report | 5/31/12
8. Additional Disclosures about Derivative Instruments and Hedging Activities
Values of derivative instruments as of May 31, 2012 were as follows:
-------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as
Hedging Instruments Asset Derivatives 2012 Liabilities Derivatives 2012
Under Accounting ------------------------------ -----------------------------
Standards Codification Balance Sheet Balance Sheet
(ASC) 815 Location Value Location Value
-------------------------------------------------------------------------------------------
Forward Foreign
Exchange Contracts Receivables* $3,320,612 Payables* $3,322,448
-------------------------------------------------------------------------------------------
Total $3,320,612 $3,322,448
===========================================================================================
* Forward Foreign exchange contracts are shown as a net payable on the Statement
of Assets and Liabilities.
The effect of derivative instruments on the Statement of Operations for the six
months ended May 31, 2012 was as follows:
-------------------------------------------------------------------------------------------------
Derivatives Not Change in
Accounted for as Realized Unrealized
Hedging Instruments Gain on Gain or (Loss)
Under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
-------------------------------------------------------------------------------------------------
Forward Foreign Net realized gain on forward $211,954
Exchange Contracts foreign exchange contracts and
other assets and liabilities
denominated in foreign currencies
Forward Foreign Change in unrealized gain on $(35,653)
Exchange Contracts forward foreign exchange contracts
and other assets and liabilities
denominated in foreign currencies
Pioneer International Value Fund | Semiannual Report | 5/31/12 41
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman John F. Cogan, Jr., President*
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
John F. Cogan, Jr. Mark E. Bradley, Treasurer**
Benjamin M. Friedman Christopher J. Kelley, Secretary
Margaret B.W. Graham
Daniel K. Kingsbury
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at us.pioneerinvestments.com. This information is also available
on the Securities and Exchange Commission's web site at http://www.sec.gov.
* Chief Executive Officer of the Funds.
** Chief Financial and Accounting Officer of the Funds.
42 Pioneer International Value Fund | Semiannual Report | 5/31/12
This page for your notes.
Pioneer International Value Fund | Semiannual Report | 5/31/12 43
This page for your notes.
44 Pioneer International Value Fund | Semiannual Report | 5/31/12
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 http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(c) 2012 Pioneer Investments 19390-06-0712
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 International Value Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date July 30, 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 July 30, 2012
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date July 30, 2012
* Print the name and title of each signing officer under his or her signature.