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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21823
Pioneer Series Trust V
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: August 31
Date of reporting period: September 1, 2011 through August 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 Global
Equity Fund
--------------------------------------------------------------------------------
Annual Report | August 31, 2012
--------------------------------------------------------------------------------
Ticker Symbols:
Class A GLOSX
Class B GBSLX
Class C GCSLX
Class Y PGSYX
[LOGO] PIONEER
Invesments (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 27
Notes to Financial Statements 35
Report of Independent Registered Public Accounting Firm 45
Trustees, Officers and Service Providers 47
Pioneer Global Equity Fund | Annual Report | 8/31/12 1
President's Letter
Dear Shareowner,
The U.S. economy showed signs of an economic slowdown in the second quarter,
reflecting higher savings by consumers and reduced spending by corporations, in
large part due to concerns about both the U.S. outlook and the deteriorating
situation in Europe. Some 40% - 45% of U.S. corporate earnings come from
overseas, with a large portion of that from Europe. While large U.S.
corporations generally remain in excellent financial health - cash, borrowing
capacity, and margins are all strong - they are holding back on hiring and
investments due to concerns about Europe, China, and U.S. regulations, fiscal
policies, taxes, and politics. Many investors share those concerns, and are
maintaining a cautious approach to the markets.
Despite this tough backdrop, the markets had a surprisingly strong first half of
2012. The Standard & Poor's 500 Index returned 9.5% over the six months ended
June 30, 2012. In the U.S. bond markets, interest rates generally declined, with
riskier sectors faring the best. The broad bond market, as measured by the
Barclays Capital Aggregate Bond Index, returned 2.4% during the same six-month
period, while the high-yield bond market, as measured by the Bank of America
Merrill Lynch High Yield Master II Index, returned 7.1%.
Given the major macroeconomic and political issues facing the markets in the
second half of the year, we certainly expect continuing volatility. But we also
see some positive economic data that give us hope for better news in the second
half of 2012. While the unemployment rate remains unacceptably high at over 8%,
employment and incomes continue to trend upward. Lower oil prices have acted
like an effective tax cut for consumers. Home construction, sales, and
refinancings have increased, and auto sales are holding up as well.
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.
* Diversification does not assure a profit or protect against loss in a
declining market.
2 Pioneer Global Equity Fund | Annual Report | 8/31/12
Pioneer's investment professionals focus on finding good opportunities in both
equity and bond markets using the same disciplined investment approach we have
used since 1928. Our strategy is to identify undervalued individual securities
with the greatest potential for success, carefully weighing risk against reward.
Our teams of investment professionals continually monitor and analyze the
relative valuations of different sectors and securities globally to help build
portfolios that we believe can help you achieve your investment goals.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Global Equity Fund | Annual Report | 8/31/12 3
Portfolio Management Discussion | 8/31/12
In the following interview, Marco Pirondini, Head of Equities, U.S., at Pioneer
and portfolio manager of Pioneer Global Equity Fund, discusses the factors that
influenced the Fund's performance during the 12-month period ended August 31,
2012.
Q How did the Fund perform during the 12 months ended August 31, 2012?
A Pioneer Global Equity Fund's Class A shares returned 5.50% at net asset
value during the 12 months ended August 31, 2012, while the Fund's
benchmark, the Morgan Stanley Capital International (MSCI) World Index1,
returned 8.77%. During the same 12-month period, the average return of the
65 mutual funds in Lipper's Global Large Cap Core funds category was 7.78%.
Q How would you characterize the investment environment in the global equity
markets during the 12 months ended August 31, 2012, and how did you manage
the Fund in that environment?
A Equity markets worldwide were volatile during the 12-month period. Market
volatility was ignited in the late summer 2011 by the intense U.S.
debt-ceiling debate that engendered fresh doubts regarding the United
States' ability to deal with its budget imbalances. In the aftermath of the
debate, Standard & Poor's lowered the country's credit rating, a move which
shook the global markets. Then, in the final three months of 2011, market
watchers' focus moved to the worsening banking crisis in Europe, amid
worries that European banks might soon lack the resources to finance their
business activities.
Beginning in December 2011, however, we saw a much improved tone for global
equities, as the European Central Bank (ECB) lowered interest rates and
launched major initiatives to deal with European banks' financing issues. In
coordination with the U.S. Federal Reserve (the Fed), the ECB established
longer-term refinancing operations that provided Europe's
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.
4 Pioneer Global Equity Fund | Annual Report | 8/31/12
banks with more than one trillion euros worth of additional liquidity. The
coordinated actions eased the European debt crisis, for a time, and provided
an improved environment for global stocks.
Unfortunately, by the spring of 2012, market observers had grown worried
that the refinancing activities in Europe would not prove sufficient to
avert a full-blown credit crisis in Europe's peripheral countries, such as
Greece, Portugal and Spain. Meanwhile, the macroeconomic picture for the
global economy continued to deteriorate. Growth in export-driven economies
declined significantly, which produced underperformance in the emerging
markets and Europe. Europe, in fact, had already entered recession before
the Fund's fiscal year ended. We also witnessed a modest decline in the U.S.
economic situation towards the end of the 12-month period. Equity markets
rallied toward the end of the period, however, after the ECB's president
vowed to do whatever is necessary to resolve the European debt crisis. In
the wake of the announcement, many investors felt reassured that the global
economy would avoid "worst case" scenarios and resume a gradual recovery.
With regard to managing the Fund, early in the period we increased the
portfolio's exposure to defensive sectors, accumulating a significant
overweight position in health care, while decreasing exposure to financials.
In view of central bank policy actions that we believe have created an
improved environment for riskier assets, including stocks, we rebuilt the
Fund's position in financials later in the period.
Q Would you review your overall investment approach in managing the Fund?
A In managing the Fund, we examine mid- and large-capitalization stocks
worldwide, including those in the emerging markets. From there, we strive to
build a diversified* portfolio. In selecting securities for the portfolio,
we look for "growth at a reasonable price," and so there is a strong value
component to our analysis. We seek to invest the Fund's assets in companies
that we believe can benefit from operating efficiencies, as reflected in
factors such as increased market share and revenues, as well as those that
employ their capital efficiently. In particular, we seek to invest in
companies with strong free cash flow, because that usually provides
companies with the flexibility to make share buybacks, reinvest in their
businesses, make acquisitions and raise dividends**. We also look to add
stocks of companies with attractive dividend yields as well as those trading
at below-market valuations.
* Diversification does not ensure a profit or protect against loss in a
declining market.
** Dividends are not guaranteed.
Pioneer Global Equity Fund | Annual Report | 8/31/12 5
Finally, we attempt to assess not only the potential price gains for each
stock in the portfolio, but also the potential for a decline in stock price
if circumstances for the company become unfavorable. We prefer to have the
Fund own companies with the highest potential upsides relative to their
downsides.
Q What investment decisions hurt the Fund's benchmark-relative performance
during the 12 months ended August 31, 2012?
A Stock selection was a factor in the Fund's underperformance of the MSCI
World Index during the period, with overall stock selection results in the
consumer discretionary and financials sectors detracting the most from
relative performance.
Individual holdings that detracted from the Fund's relative performance
during the period came from various sectors, and included Gafisa, a real
estate company in Brazil, which was hurt by investor concerns regarding the
firm's weakened financial position in a slowing Brazilian economy. We
ultimately sold the Fund's holdings in Gafisa. In addition, the Fund's
position in the U.K. alternative asset management firm Man Group detracted
from relative returns, as the company experienced performance problems in
some of its investment funds. We also eliminated the Fund's position in Man
Group. Lastly, some of the Fund's holdings in the materials sector detracted
from performance. The underperformers included China Resources Cement,
Centamin Egypt (a gold mining firm) and Anglogold Ashanti, all of which were
hurt by the more restrained outlook for global economic growth.
Q What individual holdings contributed to the Fund's performance during the 12
months ended August 31, 2012?
A In information technology, the Fund's position in Samsung Electronics
represented the most important driver of positive performance within the
sector. Samsung, along with Apple, has become a global leader in the
profitable smartphone business. In financials, the Fund's holdings in
Capital One helped performance, as the company benefited from improving
trends in the credit card sub-sector. The Fund's holdings in Wal-Mart also
contributed to performance during the period, as the company has moved into
positive territory in same-store sales during the past three quarterly
periods.
6 Pioneer Global Equity Fund | Annual Report | 8/31/12
Q What is your outlook and how is the outlook reflected in the Fund's
positioning?
A We believe that the global economic outlook is generally positive, based on
the fact that policy actions taken by central banks worldwide have been
extremely stimulative and generally have kept short-term interest rates
negative when adjusted for inflation. Thus far, the actions taken by central
banks have worked in a positive way and helped the global economy to
improve. That said, we view the overall situation to be very risky because
of the deterioration that we have witnessed in the global economic cycle. We
remain hopeful, however, that the central bank actions will reverse the
deterioration. Rising tensions in the Middle East also represent a risk to
global growth because of the possibility of oil price shocks.
At present, we see value in the pharmaceuticals industry (within health
care), and have built a material overweight in the portfolio to that area,
while keeping corresponding underweights to utilities and consumer staples.
We also believe that information technology stocks look attractive on a
relative value basis, and feel that inexpensive valuations in the sector
should support improved performance for technology companies, especially
when compared with companies in more cyclical sectors such as materials and
consumer discretionary.
Please refer to the Schedule of Investments on pages 17-26 for a full listing of
fund securities.
Pioneer Global Equity Fund | Annual Report | 8/31/12 7
Investing in foreign and/or emerging markets securities involves certain risks,
including risks relating to interest rates, currency exchange rates, economic
and political conditions.
Investments in mid-sized companies may offer the potential for higher returns,
but are also subject to greater short-term price fluctuations than larger, more
established companies.
The Fund invests in a limited number of securities and, as a result, the Fund's
performance may be more volatile than the performance of funds holding more
securities.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes.
8 Pioneer Global Equity Fund | Annual Report | 8/31/12
Portfolio Summary | 8/31/12
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 20.7%
Health Care 15.1%
Information Technology 14.4%
Energy 11.5%
Industrials 10.8%
Consumer Staples 8.2%
Consumer Discretionary 7.6%
Materials 5.1%
Telecommunication Services 3.5%
Utilities 3.1%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United States 45.7%
United Kingdom 7.2%
Switzerland 7.1%
Germany 6.9%
Japan 4.1%
France 3.9%
Italy 3.6%
Canada 2.6%
China 2.6%
Hong Kong 2.4%
Korea, Republic of 1.7%
Ireland 1.4%
Netherlands 1.4%
Philippines 1.4%
Indonesia 1.1%
Singapore 1.1%
Other (individually less than 1%) 5.8%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Microsoft Corp. 3.11%
--------------------------------------------------------------------------------
2. Novartis AG 3.05
--------------------------------------------------------------------------------
3. Apple, Inc. 2.77
--------------------------------------------------------------------------------
4. Capital One Financial Corp. 2.52
--------------------------------------------------------------------------------
5. Oracle Corp. 2.20
--------------------------------------------------------------------------------
6. Marathon Petroleum Corp. 2.11
--------------------------------------------------------------------------------
7. The Walt Disney Co. 2.01
--------------------------------------------------------------------------------
8. Chevron Corp. 1.90
--------------------------------------------------------------------------------
9. Pfizer, Inc. 1.85
--------------------------------------------------------------------------------
10. BP Plc 1.84
--------------------------------------------------------------------------------
* 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 Global Equity Fund | Annual Report | 8/31/12 9
Prices and Distributions | 8/31/12
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/12 8/31/11
--------------------------------------------------------------------------------
A $9.64 $9.27
--------------------------------------------------------------------------------
B $9.48 $9.08
--------------------------------------------------------------------------------
C $9.47 $9.09
--------------------------------------------------------------------------------
Y $9.69 $9.32
--------------------------------------------------------------------------------
Distributions per Share: 9/1/11-8/31/12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.1278 $ -- $ --
--------------------------------------------------------------------------------
B $0.0166 $ -- $ --
--------------------------------------------------------------------------------
C $0.0319 $ -- $ --
--------------------------------------------------------------------------------
Y $0.1791 $ -- $ --
--------------------------------------------------------------------------------
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. It is not possible to invest
directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 11-14.
10 Pioneer Global Equity Fund | Annual Report | 8/31/12
Performance Update | 8/31/12 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Equity Fund at public offering price, compared
to that of the Morgan Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of August 31, 2012)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 1.56% 0.67%
5 Years -2.83 -3.97
1 Year 5.50 -0.61
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.69% 1.32%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global
Equity Fund MSCI World Index
12/31/2005 $ 9,425 $ 10,000
8/31/2006 $ 10,547 $ 10,949
8/31/2007 $ 12,085 $ 12,807
8/31/2008 $ 10,794 $ 11,261
8/31/2009 $ 9,085 $ 9,323
8/31/2010 $ 8,982 $ 9,467
8/31/2011 $ 9,923 $ 10,836
8/31/2012 $ 10,470 $ 11,716
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 January 1, 2014, 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 Global Equity Fund | Annual Report | 8/31/12 11
Performance Update | 8/31/12 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Equity Fund, compared to that of the Morgan
Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of August 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 0.65% 0.65%
5 Years -3.70 -3.70
1 Year 4.60 0.60
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.99% 2.22%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global
Equity Fund MSCI World Index
12/31/2005 $ 10,000 $ 10,000
8/31/2006 $ 11,111 $ 10,949
8/31/2007 $ 12,617 $ 12,807
8/31/2008 $ 11,172 $ 11,261
8/31/2009 $ 9,320 $ 9,323
8/31/2010 $ 9,133 $ 9,467
8/31/2011 $ 9,992 $ 10,836
8/31/2012 $ 10,452 $ 11,716
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 January 1, 2014, 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 Global Equity Fund | Annual Report | 8/31/12
Performance Update | 8/31/12 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Equity Fund, compared to that of the Morgan
Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of August 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 0.65% 0.65%
5 Years -3.71 -3.71
1 Year 4.56 4.56
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.50% 2.22%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global
Equity Fund MSCI World Index
12/31/2005 $ 10,000 $ 10,000
8/31/2006 $ 11,111 $ 10,949
8/31/2007 $ 12,628 $ 12,807
8/31/2008 $ 11,179 $ 11,261
8/31/2009 $ 9,326 $ 9,323
8/31/2010 $ 9,139 $ 9,467
8/31/2011 $ 9,997 $ 10,836
8/31/2012 $ 10,453 $ 11,716
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). "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 January 1, 2014, 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 Global Equity Fund | Annual Report | 8/31/12 13
Performance Update | 8/31/12 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer Global Equity Fund, compared to that of the Morgan
Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of August 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 1.85% 1.85%
5 Years -2.46 -2.46
1 Year 6.09 6.09
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
0.97% 0.82%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Global
Equity Fund MSCI World Index
12/31/2005 $ 5,000,000 $ 5,000,000
8/31/2006 $ 5,595,596 $ 5,474,445
8/31/2007 $ 6,411,652 $ 6,403,612
8/31/2008 $ 5,726,587 $ 5,630,699
8/31/2009 $ 4,836,744 $ 4,661,475
8/31/2010 $ 4,808,018 $ 4,733,454
8/31/2011 $ 5,335,128 $ 5,417,874
8/31/2012 $ 5,659,822 $ 5,857,774
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for periods prior to the inception of the Fund's Class Y
shares on December 31, 2008 reflects the NAV performance of the Fund's Class A
shares. The performance does not reflect differences in expenses, including the
Rule 12b-1 fees applicable to Class A shares. Since fees for Class A shares are
generally higher than those of Class Y shares, the performance for Class Y
shares prior to their inception would have been higher than the performance
shown. Class Y shares are not subject to sales charges and are available for
limited groups of eligible investors, including institutional investors. All
results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through January 1, 2014, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitations beyond such time. Please see
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14 Pioneer Global Equity Fund | Annual Report | 8/31/12
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 and
redemption fees.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global Equity Fund
Based on actual returns from March 1, 2012, through August 31, 2012.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 3/1/12
--------------------------------------------------------------------------------
Ending Account $969.76 $965.30 $965.29 $972.95
Value (after expenses)
on 8/31/12
--------------------------------------------------------------------------------
Expenses Paid $6.44 $10.87 $10.87 $3.97
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.30%, 2.20%,
2.20%, and 0.80% for Class A, Class B, Class C, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/366 (to reflect the one-half year period).
Pioneer Global Equity Fund | Annual Report | 8/31/12 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 Global Equity Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2012, through August 31, 2012.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 3/1/12
--------------------------------------------------------------------------------
Ending Account $1,018.60 $1,014.08 $1,014.08 $1,021.11
Value (after expenses)
on 8/31/12
--------------------------------------------------------------------------------
Expenses Paid $6.60 $11.14 $11.14 $4.06
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.30%, 2.20%,
2.20%, and 0.80% for Class A, Class B, Class C, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/366 (to reflect the one-half year period).
16 Pioneer Global Equity Fund | Annual Report | 8/31/12
Schedule of Investments | 8/31/12
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
PREFERRED STOCK -- 0.6%
UTILITIES -- 0.6%
Multi-Utilities -- 0.6%
19,600 RWE AG $ 737,713
--------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $696,410) $ 737,713
--------------------------------------------------------------------------------
COMMON STOCKS -- 97.4%
ENERGY -- 11.4%
Oil & Gas Drilling -- 1.6%
34,300 Ensco Plc $ 1,967,791
--------------------------------------------------------------------------------
Integrated Oil & Gas -- 7.3%
326,645 BP Plc $ 2,284,669
21,100 Chevron Corp. 2,366,576
41,800 Eni S.p.A. 924,230
20,700 Lukoil OAO (A.D.R.) 1,176,174
31,200 Royal Dutch Shell Plc 1,125,932
27,300 Total SA 1,360,422
-------------
$ 9,238,003
--------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.4%
38,200 McMoRan Exploration Co.* $ 482,466
--------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 2.1%
50,700 Marathon Petroleum Corp.* $ 2,623,725
-------------
Total Energy $ 14,311,985
--------------------------------------------------------------------------------
MATERIALS -- 4.8%
Diversified Chemicals -- 1.0%
35,500 Huntsman Corp. $ 510,490
14,800 LyondellBasell Industries NV 722,832
-------------
$ 1,233,322
--------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 0.7%
4,200 CF Industries Holdings, Inc. $ 869,442
--------------------------------------------------------------------------------
Construction Materials -- 0.7%
126,000 Indocement Tunggal Prakarsa Tbk PT $ 268,620
491,500 Semen Gresik Persero Tbk PT 640,024
-------------
$ 908,644
--------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.2%
7,000 Freeport-McMoRan Copper & Gold, Inc. $ 252,770
--------------------------------------------------------------------------------
Gold -- 2.0%
33,600 Barrick Gold Corp. $ 1,294,272
25,200 Newmont Mining Corp. 1,277,136
-------------
$ 2,571,408
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/12 17
Schedule of Investments | 8/31/12 (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Steel -- 0.2%
15,500 Vale SA (A.D.R.) $ 253,735
-------------
Total Materials $ 6,089,321
--------------------------------------------------------------------------------
CAPITAL GOODS -- 9.5%
Aerospace & Defense -- 1.1%
32,600 Spirit Aerosystems Holdings, Inc.* $ 810,436
6,327 United Technologies Corp. 505,211
-------------
$ 1,315,647
--------------------------------------------------------------------------------
Construction & Engineering -- 1.0%
47,100 KBR, Inc. $ 1,275,939
--------------------------------------------------------------------------------
Electrical Components & Equipment -- 0.5%
9,400 Rockwell Automation, Inc. $ 677,364
--------------------------------------------------------------------------------
Heavy Electrical Equipment -- 0.5%
35,300 ABB, Ltd. $ 612,710
--------------------------------------------------------------------------------
Industrial Conglomerates -- 4.0%
7,800 3M Co. $ 722,280
3,551,200 Alliance Global Group, Inc. 995,481
86,400 General Electric Co. 1,789,344
189,500 Shanghai Industrial Holdings, Ltd. 521,763
11,000 Siemens AG 1,043,020
-------------
$ 5,071,888
--------------------------------------------------------------------------------
Construction & Farm Machinery &
Heavy Trucks -- 1.7%
3,400 Cummins, Inc. $ 330,174
9,300 Joy Global, Inc. 496,434
100,900 The Manitowoc Co., Inc. 1,299,592
-------------
$ 2,126,200
--------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.7%
846,800 Noble Group, Ltd. $ 816,596
-------------
Total Capital Goods $ 11,896,344
--------------------------------------------------------------------------------
TRANSPORTATION -- 1.2%
Air Freight & Logistics -- 0.2%
8,900 Oesterreichische Post AG $ 298,100
--------------------------------------------------------------------------------
Marine -- 0.5%
100 AP Moeller - Maersk A/S $ 652,055
--------------------------------------------------------------------------------
Highways & Railtracks -- 0.5%
1,413,700 Yuexiu Transport Infrastructure, Ltd. $ 615,986
-------------
Total Transportation $ 1,566,141
--------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 3.4%
Auto Parts & Equipment -- 1.0%
303,686 China XD Plastics Co., Ltd.* $ 1,314,960
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Equity Fund | Annual Report | 8/31/12
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Tires & Rubber -- 0.8%
32,400 Bridgestone Corp. $ 756,504
21,800 Pirelli & Co., S.p.A. 239,260
-------------
$ 995,764
--------------------------------------------------------------------------------
Automobile Manufacturers -- 1.6%
14,800 Daimler AG $ 724,638
31,300 Toyota Motor Corp. 1,244,135
-------------
$ 1,968,773
-------------
Total Automobiles & Components $ 4,279,497
--------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.0%
Apparel, Accessories & Luxury Goods -- 1.0%
4,500 Christian Dior SA $ 638,717
9,500 Cie Financiere Richemont SA 581,402
-------------
$ 1,220,119
-------------
Total Consumer Durables & Apparel $ 1,220,119
--------------------------------------------------------------------------------
MEDIA -- 2.0%
Movies & Entertainment -- 2.0%
50,600 The Walt Disney Co. $ 2,503,182
-------------
Total Media $ 2,503,182
--------------------------------------------------------------------------------
RETAILING -- 1.2%
Department Stores -- 0.2%
7,800 Macy's, Inc. $ 314,418
--------------------------------------------------------------------------------
Home Improvement Retail -- 0.6%
12,500 The Home Depot, Inc. $ 709,375
--------------------------------------------------------------------------------
Automotive Retail -- 0.4%
4,100 USS Co., Ltd. $ 440,777
-------------
Total Retailing $ 1,464,570
--------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.6%
Drug Retail -- 0.7%
17,100 CVS Caremark Corp. $ 778,905
4,200 Walgreen Co. 150,192
-------------
$ 929,097
--------------------------------------------------------------------------------
Food Retail -- 0.6%
16,500 FamilyMart Co., Ltd. $ 795,849
--------------------------------------------------------------------------------
Hypermarkets & Super Centers -- 1.3%
22,100 Wal-Mart Stores, Inc. $ 1,604,460
-------------
Total Food & Staples Retailing $ 3,329,406
--------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 5.5%
Brewers -- 0.6%
9,300 Anheuser-Busch InBev NV (A.D.R.) $ 782,874
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/12 19
Schedule of Investments | 8/31/12 (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Soft Drinks -- 0.2%
4,700 Monster Beverage Corp.* $ 276,971
--------------------------------------------------------------------------------
Agricultural Products -- 0.3%
32,200 GrainCorp, Ltd. $ 307,344
--------------------------------------------------------------------------------
Packaged Foods & Meats -- 1.5%
30,800 Nestle SA $ 1,913,898
--------------------------------------------------------------------------------
Tobacco -- 2.9%
32,200 Altria Group, Inc. $ 1,093,512
34,500 Imperial Tobacco Group Plc 1,344,033
40,000 Japan Tobacco, Inc. 1,207,336
-------------
$ 3,644,881
-------------
Total Food, Beverage & Tobacco $ 6,925,968
--------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 2.0%
Health Care Equipment -- 1.7%
11,100 Baxter International, Inc. $ 651,348
26,400 Covidien Plc 1,479,720
-------------
$ 2,131,068
--------------------------------------------------------------------------------
Managed Health Care -- 0.3%
8,500 Aetna, Inc. $ 326,485
-------------
Total Health Care Equipment & Services $ 2,457,553
--------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY
& LIFE SCIENCES -- 13.1%
Biotechnology -- 1.8%
14,500 Amgen, Inc. $ 1,216,840
9,400 Cubist Pharmaceuticals, Inc.* 434,280
10,000 Vertex Pharmaceuticals, Inc.* 533,300
-------------
$ 2,184,420
--------------------------------------------------------------------------------
Pharmaceuticals -- 10.5%
8,100 Bayer AG $ 628,280
80,400 GlaxoSmithKline Plc 1,818,116
8,100 Jazz Pharmaceuticals Plc* 368,631
32,900 Johnson & Johnson, Inc. 2,218,447
64,400 Novartis AG 3,793,017
96,300 Pfizer, Inc. 2,297,718
3,700 Roche Holding AG 673,191
8,557 Sanofi SA 698,926
18,400 Teva Pharmaceutical Industries,
Ltd. (A.D.R.) 728,272
-------------
$ 13,224,598
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global Equity Fund | Annual Report | 8/31/12
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.8%
17,600 Thermo Fisher Scientific, Inc. $ 1,009,360
-------------
Total Pharmaceuticals, Biotechnology
& Life Sciences $ 16,418,378
--------------------------------------------------------------------------------
BANKS -- 9.0%
Diversified Banks -- 8.2%
5,297,600 Bank Pembangunan Daerah Jawa Tbk PT
Barat Dan Banten Tbk PT $ 545,272
2,200,900 China Construction Bank Corp. 1,451,547
681,700 China Minsheng Banking Corp., Ltd. 557,264
331,900 Commerzbank AG* 523,905
697,200 Intesa Sanpaolo S.p.A. 1,090,815
35,100 Itau Unibanco Holding SA (A.D.R.) 554,931
19,700 National Australia Bank, Ltd. 514,380
101,000 Oversea-Chinese Banking Corp., Ltd. 753,123
219,300 Philippine National Bank* 360,956
18,200 Royal Bank of Canada, Inc. 1,018,661
37,900 Societe Generale SA 998,205
15,300 Standard Chartered Plc 338,370
11,450 The Toronto-Dominion Bank, Inc. 936,723
43,800 United Overseas Bank, Ltd. 671,215
-------------
$ 10,315,367
--------------------------------------------------------------------------------
Regional Banks -- 0.8%
15,700 PNC Financial Services Group, Inc. $ 975,912
-------------
Total Banks $ 11,291,279
--------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 6.8%
Other Diversified Financial Services -- 1.2%
52,700 Citigroup, Inc. $ 1,565,717
--------------------------------------------------------------------------------
Multi-Sector Holdings -- 0.6%
705,900 First Pacific Co., Ltd. $ 758,473
--------------------------------------------------------------------------------
Specialized Finance -- 1.6%
38,600 Deutsche Boerse AG $ 1,987,251
--------------------------------------------------------------------------------
Consumer Finance -- 2.5%
55,500 Capital One Financial Corp. $ 3,137,415
--------------------------------------------------------------------------------
Asset Management & Custody Banks -- 0.9%
14,600 Ares Capital Corp. $ 252,142
25,600 Invesco, Ltd. 606,208
10,300 The Carlyle Group LP 270,014
-------------
$ 1,128,364
-------------
Total Diversified Financials $ 8,577,220
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/12 21
Schedule of Investments | 8/31/12 (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
INSURANCE -- 3.4%
Multi-line Insurance -- 2.6%
17,854 Allianz SE $ 1,959,864
5,400 Zurich Insurance Group AG 1,296,727
-------------
$ 3,256,591
--------------------------------------------------------------------------------
Reinsurance -- 0.8%
7,000 Muenchener Rueckversicherungs AG $ 1,036,336
-------------
Total Insurance $ 4,292,927
--------------------------------------------------------------------------------
REAL ESTATE -- 0.5%
Diversified REIT's -- 0.5%
600 United Urban Investment Corp. $ 671,077
-------------
Total Real Estate $ 671,077
--------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 6.0%
Internet Software & Services -- 0.7%
1,300 Google, Inc.* $ 890,617
--------------------------------------------------------------------------------
Systems Software -- 5.3%
125,719 Microsoft Corp. $ 3,874,661
86,600 Oracle Corp. 2,740,890
-------------
$ 6,615,551
-------------
Total Software & Services $ 7,506,168
--------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 5.8%
Communications Equipment -- 1.5%
75,400 Cisco Systems, Inc. $ 1,438,632
8,100 Qualcomm, Inc. 497,826
-------------
$ 1,936,458
--------------------------------------------------------------------------------
Computer Hardware -- 3.1%
5,185 Apple, Inc. $ 3,449,269
27,700 Hewlett-Packard Co. 467,576
-------------
$ 3,916,845
--------------------------------------------------------------------------------
Computer Storage & Peripherals -- 0.3%
9,300 SanDisk Corp.* $ 383,346
--------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.5%
203,500 Hon Hai Precision Industry Co., Ltd. $ 580,946
--------------------------------------------------------------------------------
Technology Distributors -- 0.4%
14,100 Avnet, Inc.* $ 454,161
-------------
Total Technology Hardware & Equipment $ 7,271,756
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Equity Fund | Annual Report | 8/31/12
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 2.5%
Semiconductors -- 2.5%
4,200 AMS AG* $ 375,164
3,500 Samsung Electronics Co., Ltd. (G.D.R.) 1,913,654
14,900 SK Hynix, Inc. 280,351
18,700 Xilinx, Inc. 634,117
-------------
$ 3,203,286
-------------
Total Semiconductors &
Semiconductor Equipment $ 3,203,286
--------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 3.5%
Integrated Telecommunication Services -- 2.5%
16,700 AT&T, Inc. $ 611,888
15,000 CenturyLink, Inc. 633,900
933,000 PCCW, Ltd. 359,033
1,996,000 Telecom Italia S.p.A. 1,577,343
-------------
$ 3,182,164
--------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.0%
216,300 Vodafone Group Plc $ 623,619
21,100 Vodafone Group Plc (A.D.R.) 610,212
-------------
$ 1,233,831
-------------
Total Telecommunication Services $ 4,415,995
--------------------------------------------------------------------------------
UTILITIES -- 2.2%
Multi-Utilities -- 1.8%
39,800 Ameren Corp. $ 1,302,256
40,000 GDF Suez, Ltd. 982,826
-------------
$ 2,285,082
--------------------------------------------------------------------------------
Water Utilities -- 0.4%
699,000 Manila Water Co., Inc. $ 449,112
-------------
Total Utilities $ 2,734,194
--------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $113,682,985) $ 122,426,366
--------------------------------------------------------------------------------
Principal Floating S&P/Moody's
Amount ($) Rate (c) Ratings
(unaudited) (unaudited)
--------------------------------------------------------------------------------
CORPORATE BONDS -- 1.0%
MATERIALS -- 0.2%
Paper Packaging -- 0.2%
335,000 BB-/B1 Sealed Air Corp., 6.875%,
7/15/33 (144A) $ 309,875
-------------
Total Materials $ 309,875
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/12 23
Schedule of Investments | 8/31/12 (continued)
--------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
--------------------------------------------------------------------------------------------
BANKS -- 0.8%
Diversified Banks -- 0.8%
EURO 300,000 5.02 BBB+/Ba2 BNP Paribas SA, Floating Rate
Note, 4/29/49 (Perpetual) $ 286,790
EURO 600,000 8.05 BB+/Ba2 Intesa Sanpaolo S.p.A., Floating
Rate Note, 6/29/49 (Perpetual) 649,428
18,000 BBB/Ba2 NBP Capital Trust III, 7.375%,
10/29/49 (Perpetual) 11,880
------------
$ 948,098
------------
Total Banks $ 948,098
--------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $1,133,402) $ 1,257,973
--------------------------------------------------------------------------------------------
Shares
--------------------------------------------------------------------------------------------
RIGHTS/WARRANTS - 0.0%+
FOOD, BEVERAGE & TOBACCO -- 0.0%+
Agricultural Products -- 0.0%+
2,927 GrainCorp, Ltd. $ 1,269
--------------------------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $0) $ 1,269
--------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.0%
(Cost $115,512,796) (a) (b) $124,423,321
--------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 1.0% $ 1,281,831
--------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $125,705,152
============================================================================================
(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
August 31, 2012, the value of these securities amounted to $309,875 or
0.2% of total net assets.
(A.D.R.) American Depositary Receipt.
(G.D.R.) Global Depositary Receipts.
* Non-income producing security.
+ Amount rounds to less than 0.1%.
(a) At August 31, 2012, the net unrealized gain on investments based on
cost for federal income tax purposes of $116,929,562 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $11,412,947
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (3,919,188)
-----------
Net unrealized gain $ 7,493,759
===========
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Equity Fund | Annual Report | 8/31/12
(b) Distributions of investments by country of issue, as a percentage of
total investment in securities (excluding temporary cash investments),
is as follows:
United States 45.7%
United Kingdom 7.2%
Switzerland 7.1%
Germany 6.9%
Japan 4.1%
France 3.9%
Italy 3.6%
Canada 2.6%
China 2.6%
Hong Kong 2.4%
Korea, Republic Of 1.7%
Ireland 1.4%
Netherlands 1.4%
Philippines 1.4%
Indonesia 1.1%
Singapore 1.1%
Other (individually less than 1%) 5.8%
-------
100.0%
=======
Principal amounts are denominated in U.S. Dollars unless otherwise noted:
EURO Euro
(c) Debt obligation with a variable interest rate. Rate shown is rate at end of
period.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2012 aggregated $188,729,238 and $204,313,271,
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.) See Notes to Financial Statements - Note 1A.
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 following is a summary of the inputs used as of August 31, 2012, in valuing
the Fund's assets:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Common Stocks (U.S.) $59,639,893 $ -- $ -- $ 59,639,893
Common Stocks (Foreign) 4,058,322 58,728,151 -- 62,786,473
Preferred Stock -- 737,713 -- 737,713
Corporate Bonds -- 1,257,973 -- 1,257,973
Rights/Warrants -- 1,269 -- 1,269
--------------------------------------------------------------------------------
Total $63,698,215 $60,725,106 $ -- $124,423,321
================================================================================
Other Financial Instruments* $ (54,500) $ 107,024 $ -- $ 52,524
================================================================================
* Other financial instruments include foreign exchange and futures contracts.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/12 25
Schedule of Investments | 8/31/12 (continued)
Following is a reconciliation of assets using significant unobservable inputs
(Level 3):
--------------------------------------------------------------------------------
Common
Stocks
--------------------------------------------------------------------------------
Balance as of 8/31/11 $ 141,625
Realized gain (loss)1 (141,625)
Change in unrealized appreciation (depreciation)2 --
Net purchases (sales) --
Transfers in and out of Level3 --
--------------------------------------------------------------------------------
Balance as of 8/31/12 $ --
================================================================================
1 Realized gain (loss) on these securities is included in the net realized
gain (loss) from 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.
3 Transfers are calculated on the beginning of period values.
During the year ended August 31, 2012, there were no transfers between
levels.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Equity Fund | Annual Report | 8/31/12
Statement of Assets and Liabilities | 8/31/12
ASSETS:
Investment in securities (cost $115,512,796) $ 124,423,321
Futures collateral 156,250
Foreign currencies, at value (cost $133,253) 133,266
Receivables --
Investment securities sold 4,517,618
Fund shares sold 52,063
Dividends and foreign taxes withheld 367,470
Interest 22,597
Due from Broker 98,654
Due from Pioneer Investment Management, Inc. 42,111
Forward foreign currency contracts, net 119,179
Variation margin 7,500
Other 13,627
----------------------------------------------------------------------------------
Total assets $ 129,953,656
----------------------------------------------------------------------------------
LIABILITIES:
Payables --
Due to Bank $ 298,497
Investment securities purchased 3,624,495
Fund shares repurchased 101,774
Dividends 12
Due to affiliates 71,710
Accrued expenses 152,016
----------------------------------------------------------------------------------
Total liabilities $ 4,248,504
----------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 179,072,650
Undistributed net investment income 1,532,192
Accumulated net realized loss on investments and foreign
currency transactions (63,855,229)
Net unrealized gain on investments 8,910,525
Net unrealized gain on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 99,514
Net unrealized loss on futures contracts (54,500)
----------------------------------------------------------------------------------
Total net assets $ 125,705,152
==================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $56,970,319/5,909,169 shares) $ 9.64
Class B (based on $2,838,287/299,439 shares) $ 9.48
Class C (based on $5,682,449/599,840 shares) $ 9.47
Class Y (based on $60,214,097/6,215,627 shares) $ 9.69
MAXIMUM OFFERING PRICE:
Class A ($9.64 (divided by) 94.25% ) $ 10.23
==================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/12 27
Statement of Operations
For the Year Ended 8/31/12
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $301,533) $ 3,601,440
Interest 123,558
Income from securities loaned, net 52,615
--------------------------------------------------------------------------------------
Total investment income $ 3,777,613
--------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 940,507
Transfer agent fees
Class A 219,468
Class B 35,059
Class C 22,868
Class Y 573
Distribution fees
Class A 145,272
Class B 34,123
Class C 59,680
Shareholder communications expense 87,977
Administrative reimbursements 36,197
Custodian fees 50,957
Registration fees 74,216
Professional fees 51,119
Printing expense 47,875
Fees and expenses of nonaffiliated trustees 7,303
Miscellaneous 2,299
--------------------------------------------------------------------------------------
Total expenses $ 1,815,493
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (391,694)
--------------------------------------------------------------------------------------
Net expenses $ 1,423,799
--------------------------------------------------------------------------------------
Net investment income $ 2,353,814
--------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on:
Investments $(9,348,841)
Futures contracts (90,249)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (753,760) $(10,192,850)
--------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $12,973,916
Futures contracts (54,500)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 812,982 $ 13,732,398
--------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $ 3,539,548
--------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 5,893,362
======================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Global Equity Fund | Annual Report | 8/31/12
Statements of Changes in Net Assets
---------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/12 8/31/11
---------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 2,353,814 $ 2,029,374
Net realized gain (loss) on investments, futures
contracts and foreign currency transactions (10,192,850) 18,511,727
Change in net unrealized gain (loss) on investments,
futures contracts and foreign currency transactions 13,732,398 (5,907,659)
----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 5,893,362 $ 14,633,442
----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.13 and $0.06 per share, respectively) $ (808,115) $ (415,946)
Class B ($0.02 and $0.00 per share, respectively) (6,659) --
Class C ($0.03 and $0.00 per share, respectively) (20,815) --
Class Y ($0.18 and $0.11 per share, respectively) (1,109,955) (711,220)
----------------------------------------------------------------------------------------
Total distributions to shareowners $ (1,945,544) $ (1,127,166)
----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 8,241,391 $ 9,623,090
Reinvestment of distributions 823,564 411,202
Cost of shares repurchased (18,550,214) (24,160,771)
----------------------------------------------------------------------------------------
Net decrease in net assets resulting from Fund
share transactions $ (9,485,259) $ (14,126,479)
----------------------------------------------------------------------------------------
Net decrease in net assets $ (5,537,441) $ (620,203)
NET ASSETS:
Beginning of year 131,242,593 131,862,796
----------------------------------------------------------------------------------------
End of year $125,705,152 $ 131,242,593
========================================================================================
Undistributed net investment income $ 1,532,192 $ 1,931,305
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/12 29
Statement of Changes in Net Assets (continued)
--------------------------------------------------------------------------------------------
'12 Shares '12 Amount '11 Shares '11 Amount
--------------------------------------------------------------------------------------------
CLASS A
Shares sold 353,272 $ 3,701,073 670,887 $ 6,600,343
Reinvestment of distributions 88,144 774,789 40,574 398,443
Less shares repurchased (1,083,925) (10,114,432) (1,438,891) (14,151,064)
--------------------------------------------------------------------------------------------
Net decrease (642,509) $ (5,638,570) (727,430) $ (7,152,278)
============================================================================================
CLASS B
Shares sold or exchanged 18,790 $ 195,120 35,442 $ 339,937
Reinvestment of distributions 749 6,512 -- --
Less shares repurchased (179,983) (1,638,775) (248,775) (2,390,105)
--------------------------------------------------------------------------------------------
Net decrease (160,444) $ (1,437,143) (213,333) $ (2,050,168)
============================================================================================
CLASS C
Shares sold 109,039 $ 1,039,083 161,657 $ 1,577,172
Reinvestment of distributions 2,206 19,171 -- --
Less shares repurchased (219,894) (1,992,027) (189,333) (1,831,876)
--------------------------------------------------------------------------------------------
Net decrease (108,649) $ (933,773) (27,676) $ (254,704)
============================================================================================
CLASS Y
Shares sold 305,575 $ 3,306,115 112,886 $ 1,105,638
Reinvestment of distributions 2,624 23,092 1,295 12,759
Less shares repurchased (524,778) (4,804,980) (594,937) (5,787,726)
--------------------------------------------------------------------------------------------
Net decrease (216,579) $ (1,475,773) (480,756) $ (4,669,329)
============================================================================================
The accompanying notes are an integral part of these financial statements.
30 Pioneer Global Equity Fund | Annual Report | 8/31/12
Financial Highlights
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/12 8/31/11 8/31/10 8/31/09 8/31/08
---------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.27 $ 8.44 $ 8.56 $ 10.42 $ 12.53
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.17 $ 0.13 $ 0.08 $ 0.07 $ 0.14
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 0.33 0.76 (0.17) (1.76) (1.38)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.50 $ 0.89 $ (0.09) $ (1.69) $ (1.24)
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income (0.13) (0.06) (0.03) (0.17) (0.11)
Net realized gain -- -- -- -- (0.76)
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.13) $ (0.06) $ (0.03) $ (0.17) $ (0.87)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.37 $ 0.83 $ (0.12) $ (1.86) $ (2.11)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.64 $ 9.27 $ 8.44 $ 8.56 $ 10.42
===========================================================================================================================
Total return* 5.50% 10.48% (1.13)% (15.83)% $ (10.68)%
Ratio of net expenses to average net assets+ 1.30% 1.30% 1.30% 1.30% 1.31%
Ratio of net investment income to average net assets+ 1.71% 1.23% 0.82% 0.69% 1.30%
Portfolio turnover rate 152% 194% 114% 120% 137%
Net assets, end of period (in thousands) $ 56,970 $ 60,701 $ 61,466 $ 70,718 $ 3,060
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 1.72% 1.67% 1.71% 2.25% 4.61%
Net investment income (loss) 1.29% 0.86% 0.41% (0.26)% (2.00)%
Ratios with waiver of fees by the Adviser and reduction for
fees paid indirectly:
Net expenses 1.30% 1.30% 1.30% 1.30% 1.30%
Net investment income 1.71% 1.23% 0.82% 0.69% 1.31%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/12 31
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/12 8/31/11 8/31/10 8/31/09 8/31/08
-----------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 9.08 $ 8.30 $ 8.47 $ 10.28 $ 12.37
-----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.16 $ 0.07 $ 0.00(a) $ (0.02) $ 0.03
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 0.26 0.71 (0.17) (1.70) (1.36)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.42 $ 0.78 $ (0.17) $ (1.72) $ (1.33)
-----------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income (0.02) -- -- (0.09) --
Net realized gain -- -- -- -- (0.76)
-----------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.02) $ -- $ -- $ (0.09) $ (0.76)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.40 $ 0.78 $ (0.17) $ (1.81) $ (2.09)
-----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.48 $ 9.08 $ 8.30 $ 8.47 $ 10.28
=============================================================================================================================
Total return* 4.60% 9.40% (2.01)% (16.57)% (11.46)%
Ratio of net expenses to average net assets+ 2.20% 2.20% 2.20% 2.20% 2.21%
Ratio of net investment income (loss) to average net assets+ 0.79% 0.29% (0.11)% (0.01)% 0.41%
Portfolio turnover rate 152% 194% 114% 120% 137%
Net assets, end of period (in thousands) $ 2,838 $ 4,175 $ 5,587 $ 7,994 $ 1,403
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 3.14% 2.97% 2.93% 4.14% 5.37%
Net investment loss (0.15)% (0.49)% (0.84)% (1.95)% (2.75)%
Ratios with waiver of fees by the Adviser and reduction for
fees paid indirectly:
Net expenses 2.20% 2.20% 2.20% 2.20% 2.20%
Net investment income (loss) 0.79% 0.29% (0.11)% (0.01)% 0.42%
=============================================================================================================================
(a) Amount rounds to less than $0.01 per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Global Equity Fund | Annual Report | 8/31/12
----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/12 8/31/11 8/31/10 8/31/09 8/31/08
----------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.09 $ 8.31 $ 8.48 $ 10.26 $ 12.39
----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.10 $ 0.04 0.00(b) $ (0.04) $ 0.03
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 0.31 0.74 (0.17) (1.68) (1.36)
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.41 $ 0.78 $ (0.17) $ (1.72) $ (1.33)
----------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income (0.03) -- -- (0.06) (0.04)
Net realized gain -- -- -- -- (0.76)
----------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.03) $ -- $ -- $ (0.06) $ (0.80)
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.38 $ 0.78 $ (0.17) $ (1.78) $ (2.13)
----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.47 $ 9.09 $ 8.31 $ 8.48 $ 10.26
======================================================================================================================
Total return* 4.56% 9.39% (2.00)% (16.58)% (11.47)%
Ratio of net expenses to average net assets+ 2.20% 2.20% 2.20% 2.20% 2.21%
Ratio of net investment income (loss) to average net assets+ 0.82% 0.35% (0.07)% 0.00%(a) 0.35%
Portfolio turnover rate 152% 194% 114% 120% 137%
Net assets, end of period (in thousands) $ 5,682 $ 6,439 $ 6,118 $ 6,910 $ 818
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 2.53% 2.48% 2.54% 3.76% 5.45%
Net investment income (loss) 0.49% 0.07% (0.41)% (1.56)% (2.89)%
Ratios with waiver of fees by the Adviser and reduction for
fees paid indirectly:
Net expenses 2.20% 2.20% 2.20% 2.20% 2.20%
Net investment income (loss) 0.82% 0.35% (0.07)% 0.00%(a) 0.36%
======================================================================================================================
(a) Amount rounds to less than 0.01%.
(b) Amount rounds to less than $0.01 per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Equity Fund | Annual Report | 8/31/12 33
Financial Highlights (continued)
-------------------------------------------------------------------------------------------------------------------------
Year Year Year 12/31/08 (a)
Ended Ended Ended to
8/31/12 8/31/11 8/31/10 8/31/09
-------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.32 $ 8.49 $ 8.59 $ 7.25
-------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.21 $ 0.18 $ 0.12 $ 0.06
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 0.34 0.76 (0.17) 1.28
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.55 $ 0.94 $ (0.05) $ 1.34
-------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income (0.18) (0.11) (0.05) --
Net increase (decrease) in net asset value $ 0.37 $ 0.83 $ (0.10) $ 1.34
-------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.69 $ 9.32 $ 8.49 $ 8.59
-------------------------------------------------------------------------------------------------------------------------
Total return* 6.09% 10.96% (0.59)% 18.48%(b)
Ratio of net expenses to average net assets+ 0.80% 0.80% 0.80% 0.80%**
Ratio of net investment income to average net assets+ 2.22% 1.74% 1.33% 2.57%**
Portfolio turnover rate 152% 194% 114% 120%
Net assets, end of period (in thousands) $60,214 $59,927 $58,692 $60,071
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 0.97% 0.95% 0.96% 1.10%**
Net investment income 2.05% 1.59% 1.17% 2.27%**
Ratios with waiver of fees by the Adviser and reduction for
fees paid indirectly:
Net expenses 0.80% 0.80% 0.80% 0.80%**
Net investment income 2.22% 1.74% 1.33% 2.57%**
=========================================================================================================================
(a) Class Y shares were first publicly offered on December 31, 2008. (b) Not
annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Global Equity Fund | Annual Report | 8/31/12
Notes to Financial Statements | 8/31/12
1. Organization and Significant Accounting Policies
Pioneer Global Equity Fund, formerly Pioneer Global Select Equity Fund (the
Fund), is one of four portfolios comprising Pioneer Series Trust V, a Delaware
statutory trust. The Fund is registered under the Investment Company Act of 1940
as a diversified, open-end management investment company. The Fund commenced
operations on December 15, 2005. The Fund's investment objective is to seek
long-term capital growth.
The Fund offers four classes of shares designated as Class A, Class B, Class C
and Class Y shares. Class Y shares were first publicly offered on December 31,
2008. Effective as of the close of business on December 31, 2009, Class B shares
are no longer offered to new or existing shareholders, except that dividends
and/or capital gain distributions may continue to be reinvested in Class B
shares, and shareholders may exchange their Class B shares for Class B shares of
other Pioneer funds, as permitted by existing exchange privileges. Each class of
shares represents an interest in the same portfolio of investments of the Fund
and has identical rights (based on relative net asset values) to assets and
liquidation proceeds. Share classes can bear different rates of class-specific
fees and expenses such as transfer agent and distribution fees. Differences in
class-specific fees and expenses will result in differences in net investment
income and, therefore, the payment of different dividends from net investment
income earned by each class. The Amended and Restated Declaration of Trust of
the Fund gives the Board the flexibility to specify either per-share voting or
dollar-weighted voting when submitting matters for shareholder approval. Under
per-share voting, each share of a class of the Fund is entitled to one vote.
Under dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y shares. Class B shares
convert to Class A shares approximately eight years after the date of purchase.
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 Global Equity Fund | Annual Report | 8/31/12 35
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 August 31, 2012, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services). Inputs used when applying fair value methods to value a security
may include credit ratings, the financial condition of the company, current
market conditions and comparable securities.
36 Pioneer Global Equity Fund | Annual Report | 8/31/12
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis. Dividend and
interest income are reported net of unrecoverable foreign taxes withheld at
the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareowners. Therefore, no federal income tax provision is
required. As of August 31, 2012, the Fund did not have any interest and
penalties related to unrecognized tax positions, which, if applicable,
would be recorded as an income tax expense in the Statement of Operations.
Tax years for the prior three fiscal years remain subject to examination
by federal and state tax authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain on investment transactions,
or as from paid-in capital, depending on the type of book/tax differences
that may exist.
At August 31, 2012, the Fund reclassified $807,383 to decrease undistributed
net investment income and $807,383 to decrease accumulated net realized loss
on investments and foreign currency transactions to reflect permanent
book/tax differences. The reclassification has no impact on the net asset
value of the Fund and is designed to present the Fund's capital accounts on
a tax basis.
At August 31, 2012, the Fund was permitted to carry forward indefinitely
$5,252,129 of short term losses and $3,192,601 of long term losses under the
Regulated Investment Company Modernization Act of 2010 without limitation.
Additionally, at August 31, 2012, the Fund had a net capital loss
carryforward of $54,047,100, which will expire in 2016 if not utilized. The
entire amount of which resulted from the reorganization with Pioneer Europe
Select Equity Fund on June 12, 2009 and may be subject to limitations
imposed by the Internal Revenue Code.
Pioneer Global Equity Fund | Annual Report | 8/31/12 37
The tax character of distributions paid during the years ended August 31, 2012
and August 31, 2011 were as follows:
--------------------------------------------------------------------------------
2012 2011
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $1,945,544 $1,127,166
--------------------------------------------------------------------------------
Total $1,945,544 $1,127,166
================================================================================
The following shows the components of distributable earnings on a federal income
tax basis at August 31, 2012:
--------------------------------------------------------------------------------
2012
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,638,083
Capital loss carryforward (62,491,830)
Unrealized appreciation 7,486,249
--------------------------------------------------------------------------------
Total $ (53,367,498)
================================================================================
The difference between book-basis and tax-basis net unrealized gain is
attributable to the tax deferral of losses on wash sales, the mark-to-market
of foreign currency contracts and futures contracts and adjustments on
partnerships.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $4,783 in underwriting commissions on the sale of Class A shares
during the year ended August 31, 2012.
D. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates. Net realized gains and losses on foreign currency
transactions, if any, represent, among other things, the net realized gains
and losses on foreign currency contracts, disposition of foreign currencies
and the difference between the amount of income accrued and the U.S. dollars
actually received. Further, the effects of changes in foreign currency
exchange rates on investments are not segregated in the statement of
operations from the effects of changes in market price of those securities
but are included with the net realized and unrealized gain or loss on
investments.
38 Pioneer Global Equity Fund | Annual Report | 8/31/12
E. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized gains or losses are recorded in
the Fund's financial statements. The Fund records realized gains and losses
at the time a portfolio hedge is offset by entry into a closing transaction
or extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (see Note 6).
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively (see Note 4). Class Y shares do not pay distribution fees. 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. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making the Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
Pioneer Global Equity Fund | Annual Report | 8/31/12 39
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 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 August 31, 2012, the Fund had no
securities on loan.
I. Futures Contracts
The Fund may enter into futures transactions to hedge against changes in
interest rates, securities prices and currency rates or to seek to increase
total return. Futures contracts are types of derivatives. All futures
contracts entered into by the Fund are traded on a futures exchange. The
amount of cash deposited with the broker as collateral at August 31, 2012
was $156,250. Upon entering into a futures contract, the Fund is required to
deposit with a broker an amount of cash or securities equal to the minimum
"initial margin" requirements of the associated futures exchange. Subsequent
payments for futures contracts ("variation margin") are paid or received by
the Fund, depending on the daily fluctuation in the value of the contracts,
and are recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund realizes a gain or loss equal to the difference
between the opening and closing value of the contract. The use of futures
contracts involves, to varying degrees, elements of market and counterparty
risks, which may exceed the amounts recognized by the Fund. Changes in value
of the contracts may not directly correlate to the changes in value of the
underlying securities. These risks may decrease the effectiveness of the
Fund's hedging strategies and potentially result in a loss. The average
number of contracts open during the year ended August 31, 2012 was 42.
40 Pioneer Global Equity Fund | Annual Report | 8/31/12
At August 31, 2012, open futures contracts were as follows.
-----------------------------------------------------------------------------------------
Number of
Contracts Settlement Unrealized
Type Long/(Short) Month Value Loss
-----------------------------------------------------------------------------------------
CBOE Volatility Index Futures 25 10/12 $ 530,000 $ (17,500)
CBOE Volatility Index Futures (50) 12/12 (1,190,000) (37,000)
-----------------------------------------------------------------------------------------
Total (25) $ (54,500)
-----------------------------------------------------------------------------------------
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary of
UniCredit, manages the Fund's portfolio. Management fees are calculated daily at
the annual rate of 0.75% of the Fund's average daily net assets up to $500
million, 0.70% of the next $500 million and 0.65% on assets over $1 billion. For
the year ended August 31, 2012, the effective management fee (excluding waivers
and/or assumption of expenses) was equivalent to 0.75% of the Fund's average
daily net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund to
the extent required to reduce Fund expenses to 1.30%, 2.20%, 2.20%, and 0.80% of
the average daily net assets attributable to Class A, Class B, Class C and Class
Y shares, respectively. Fees waived and expenses reimbursed during the year
ended August 31, 2012 are reflected on the Statement of Operations. These
expense limitations are in effect through January 1, 2014. 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
$42,354 in management fees, administrative costs and certain other
reimbursements payable to PIM at August 31, 2012.
Effective March 5, 2012, PIM has retained Brown Brothers Harriman & Co. to
provide certain sub-administrator and accounting services to the Fund.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the year ended August 31, 2012, such out-of-pocket expenses by class of
shares were as follows:
Pioneer Global Equity Fund | Annual Report | 8/31/12 41
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 70,475
Class B 5,064
Class C 10,729
Class Y 1,709
--------------------------------------------------------------------------------
Total: $ 46,649
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $28,115 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at August 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 $1,241 in distribution fees payable to PFD at August 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 that are redeemed within five years
of purchase are subject to a CDSC at declining rates beginning at 4.00%, based
on the lower of cost or market value of shares being redeemed. Redemptions of
Class C shares within one year of purchase are subject to a CDSC of 1.00%, based
on the lower of cost or market value of shares being redeemed. Shares purchased
as part of an exchange remain subject to any CDSC that applied to the original
purchase of those shares. There is no CDSC for Class Y shares. Proceeds from the
CDSCs are paid to PFD. For the year ended August 31, 2012, CDSCs in the amount
of $3,138 were paid to PFD.
5. Expense Offsets Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS, which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended August 31, 2012, the Fund's expenses were
not reduced under such arrangements.
42 Pioneer Global Equity Fund | Annual Report | 8/31/12
6. Forward Foreign Currency Contracts
At August 31, 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 Fund's gross forward currency
settlement contracts receivable and payable were $5,828,041 and $5,815,886
respectively, resulting in a net receivable of $12,155. The average value of
contracts open during the year ended August 31, 2012 was $18,017,638.
Open portfolio hedges at August 31, 2012 were as follows:
--------------------------------------------------------------------------------------------------
Net In Net
Contracts Exchange Settlement Unrealized
Currency to Deliver for USD Date Value Gain (Loss)
--------------------------------------------------------------------------------------------------
EUR (Euro) 5,000,000 $ 6,144,945 9/28/12 $ 6,290,653 $ 6,290,653
EUR (Euro) (5,000,000) (6,324,250) 9/28/12 (6,290,653) (6,290,653)
EUR (Euro) 6,324,250 6,324,250 9/28/12 6,324,250 6,324,250
EUR (Euro) (6,144,945) (6,144,945) 9/28/12 (6,144,945) (6,144,945)
GBP (Pound Sterling) 4,000,000 6,260,212 9/28/12 6,351,444 6,351,444
GBP (Pound Sterling) (4,000,000) (6,260,696) 9/28/12 (6,351,444) (6,351,444)
GBP (Pound Sterling) 6,260,696 6,260,696 9/28/12 6,260,696 6,260,696
GBP (Pound Sterling) (6,260,212) (6,260,212) 9/28/12 (6,260,212) (6,260,212)
JPY (Japanese Yen) (400,000,000) (5,040,697) 1/15/13 (5,113,462) (5,113,462)
JPY (Japanese Yen) 5,040,697 5,040,697 1/15/13 5,040,697 5,040,697
--------------------------------------------------------------------------------------------------
Total $ 107,024
==================================================================================================
7. Additional Disclosures about Derivative Instruments and Hedging Activities
Values of derivative instruments as of August 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
Currency Contracts* Receivables $119,179 Payables $ --
Futures Contracts** Receivables $ -- Payables $(54,500)
--------------------------------------------------------------------------------
Total $119,179 $(54,500)
--------------------------------------------------------------------------------
* Forward Foreign Currency Contracts are shown as a net receivable on the
Statement of Assets and Liabilities.
** Reflects the unrealized depreciation on futures contracts (see Note 1I). The
current day's variation margin is separately disclosed on the Statement of
Assets and Liabilities.
Pioneer Global Equity Fund | Annual Report | 8/31/12 43
The effect of derivative instruments on the Statement of Operations for the year
ended August 31, 2012 was as follows:
----------------------------------------------------------------------------------------
Derivatives Not Change in
Accounted for as Realized Gain Unrealized
Hedging Instruments or (Loss) 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 (loss)
Currency Contracts on forward foreign
currency contracts and
other assets and
liabilities denominated
in foreign currencies $49,336
Forward Foreign Change in unrealized
Currency Contracts gain on forward foreign
currency contracts and
other assets and
liabilities denominated
in foreign currencies $847,691
Futures Contracts Net realized loss on
futures contracts $(90,249)
Futures Contracts Change in net unrealized
loss on futures
contracts $(54,500)
44 Pioneer Global Equity Fund | Annual Report | 8/31/12
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust V
and the Shareowners of Pioneer Global Equity Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Global Equity Fund, one of the
portfolios constituting Pioneer Series Trust V (the "Trust") as of August 31,
2012 and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the periods indicated therein.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Trust's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Trust's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of August 31, 2012 by correspondence with the custodian and
brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Global Equity Fund at August 31, 2012, the results of its operations for
the year then ended, the changes in its net assets for each of the two years in
the period then ended, and the financial highlights for each of the periods
indicated therein, in conformity with U.S. generally accepted accounting
principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
October 24, 2012
Pioneer Global Equity Fund | Annual Report | 8/31/12 45
ADDITIONAL INFORMATION (unaudited)
For the year ended August 31, 2012, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax
Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate up to
the maximum amount of such dividends allowable under the Act, as taxed at a
maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2012 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 46.38%.
46 Pioneer Global Equity Fund | Annual Report | 8/31/12
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy voting policies and procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and Officers are listed on the following pages, together
with their principal occupations during at least the past five years.
Trustees who are interested persons of the Fund within the meaning of the 1940
Act are referred to as Interested Trustees. Trustees who are not interested
persons of the Fund are referred to as Independent Trustees. Each of the
Trustees serves as a trustee of each of the 56 U.S. registered investment
portfolios for which Pioneer serves as investment adviser (the "Pioneer Funds").
The address for all Trustees and all officers of the Fund is 60 State Street,
Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Global Equity Fund | Annual Report | 8/31/12 47
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (61) Trustee since 2006. Serves until Chairman and Chief Director, Broadridge Financial
Chairman of the Board and a successor trustee is elected Executive Officer, Solutions, Inc. (investor
Trustee or earlier retirement or Quadriserv, Inc. communications and securities
removal. (technology products for processing provider for financial
securities lending services industry) (2009 -
industry) (2008 - present); present); Director, Quadriserv,
private investor (2004 - Inc. (2005 - present); and
2008); and Senior Executive Commissioner, New Jersey State
Vice President, The Bank of Civil Service Commission (2011 -
New York (financial and present)
securities services) (1986
- 2004)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (68) Trustee since 2005. Serves until Managing Partner, Federal Director of Enterprise Community
Trustee a successor trustee is elected City Capital Advisors Investment, Inc. (privately-held
or earlier retirement or (corporate advisory affordable housing finance
removal. services company) (1997 - company) (1985 - 2010); Director
2004 and 2008 - present); of Oxford Analytica, Inc. (2008 -
Interim Chief Executive present); Director of The Swiss
Officer, Oxford Analytica, Helvetia Fund, Inc. (closed-end
Inc. (privately held fund) (2010 - present); and
research and consulting Director of New York Mortgage
company) (2010); Executive Trust (publicly traded mortgage
Vice President and Chief REIT) (2004 - 2009, 2012 - present)
Financial Officer, I-trax,
Inc. (publicly traded
health care services
company) (2004 - 2007); and
Executive Vice President
and Chief Financial Officer,
Pedestal Inc.
(internet-based mortgage
trading company) (2000 -
2002)
------------------------------------------------------------------------------------------------------------------------------------
48 Pioneer Global Equity Fund | Annual Report | 8/31/12
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (64) Trustee since 2005. Serves Chairman, Bush International, Director of Marriott
Trustee until a successor trustee is LLC (international financial International, Inc. (2008
elected or earlier retirement advisory firm) (1991 - present); - present); Director of
or removal. Senior Managing Director, Brock Discover Financial
Capital Group, LLC (strategic Services (credit card
business advisors) (2010 - issuer and electronic
present); Managing Director, payment services) (2007 -
Federal Housing Finance Board present); Former Director
(oversight of Federal Home Loan of Briggs & Stratton Co.
Bank system) (1989 - 1991); (engine manufacturer)
Vice President and Head of (2004 - 2009); Former
International Finance, Federal Director of UAL
National Mortgage Association Corporation (airline
(1988 - 1989); U.S. Alternate holding company) (2006 -
Executive Director, 2010); Director of ManTech
International Monetary Fund International Corporation
(1984 - 1988); Executive (national security,
Assistant to Deputy Secretary defense, and intelligence
of the U.S. Treasury, U.S. technology firm) (2006 -
Treasury Department (1982 - present); Member, Board of
1984); and Vice President and Governors, Investment
Team Leader in Corporate Company Institute (2007 -
Banking, Bankers Trust Co. present); Member, Board of
(1976 - 1982) Governors, Independent
Directors Council (2007 - present);
Former Director of Brady Corporation
(2000 - 2007); Former Director of
Mortgage Guaranty Insurance
Corporation (1991 - 2006); Former
Director of Millennium
Chemicals, Inc. (commodity
chemicals) (2002 - 2005);
Former Director, R.J.
Reynolds Tobacco Holdings,
Inc. (tobacco) (1999-2005); and
Former Director of Texaco, Inc.
(1997 - 2001)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Equity Fund | Annual Report | 8/31/12 49
Independent Trustees (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (67) Trustee since 2008. Serves until William Joseph Maier Professor Trustee, Mellon
Trustee a successor trustee is elected of Political Economy, Harvard Institutional Funds
or earlier retirement or University (1972 - present) Investment Trust and
removal. Mellon Institutional
Funds Master Portfolio
(oversaw 17 portfolios in
fund complex) (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (65) Trustee since 2005. Serves until Founding Director, Vice None
Trustee a successor trustee is elected President and Corporate
or earlier retirement or Secretary, The Winthrop Group,
removal. Inc. (consulting firm)
(1982-present); Desautels
Faculty of Management, McGill
University (1999 - present);
and Manager of Research
Operations and Organizational
Learning, Xerox PARC, Xerox's
advance research center
(1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (64) Trustee since 2005. Serves until President and Chief Executive Director of New America
Trustee a successor trustee is elected Officer, Newbury, Piret & High Income Fund, Inc.
or earlier retirement or Company, Inc. (investment (closed-end investment
removal. banking firm) (1981 - present) company) (2004 -
present); and member,
Board of Governors,
Investment Company
Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (83) Trustee since 2005. Serves until Senior Counsel, Sullivan & Director, The Swiss
Trustee a successor trustee is elected Cromwell LLP (law firm) (1998 - Helvetia Fund, Inc.
or earlier retirement or present); and Partner, (closed-end investment
removal. Sullivan & Cromwell LLP (prior company); and Director,
to 1998) Invesco, Ltd. (formerly
AMVESCAP, PLC)
(investment manager)
(1997-2005)
------------------------------------------------------------------------------------------------------------------------------------
50 Pioneer Global Equity Fund | Annual Report | 8/31/12
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (86)* Trustee since 2005. Serves until Non-Executive Chairman and a None
Trustee, President a successor trustee is elected director of Pioneer Investment
and Chief Executive or earlier retirement or Management USA Inc.
Officer of the Funds removal. ("PIM-USA"); Chairman and a
director of Pioneer; Chairman
and Director of Pioneer
Institutional Asset Management,
Inc. (since 2006); Director of
Pioneer Alternative Investment
Management Limited (Dublin)
(until October 2011); President
and a director of Pioneer
Alternative Investment
Management (Bermuda) Limited
and affiliated funds; Deputy
Chairman and a director of
Pioneer Global Asset Management
S.p.A. ("PGAM") (until April
2010); Director of Nano-C, Inc.
(since 2003); Director of Cole
Management Inc. (2004 - 2011);
Director of Fiduciary
Counseling, Inc. (until
December 2011); President of
all of the Pioneer Funds; and
Retired Partner, Wilmer Cutler
Pickering Hale and Dorr LLP
------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (53)* Trustee since 2007. Serves until Director, CEO and President of None
Trustee and Executive a successor trustee is elected PIM-USA (since February 2007);
Vice President or earlier retirement or Director and President of
removal. Pioneer and Pioneer
Institutional Asset Management,
Inc. (since February 2007);
Executive Vice President of all
of the Pioneer Funds (since
March 2007); Director of PGAM
(2007 - 2010); Head of New
Europe Division, PGAM (2000 -
2005); Head of New Markets
Division, PGAM (2005 - 2007)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are
officers or directors of the Fund's investment adviser and certain of its
affiliates.
Pioneer Global Equity Fund | Annual Report | 8/31/12 51
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (47) Since 2010. Serves at the Vice President and Associate None
Secretary discretion of the Board. General Counsel of Pioneer since
January 2008 and Secretary of
all of the Pioneer Funds since
June 2010; Assistant Secretary
of all of the Pioneer Funds from
September 2003 to May 2010; and
Vice President and Senior
Counsel of Pioneer from July
2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (51) Since 2010. Serves at the Fund Governance Director of None
Assistant Secretary discretion of the Board. Pioneer since December 2006 and
Assistant Secretary of all the
Pioneer Funds since June 2010;
Manager - Fund Governance of
Pioneer from December 2003 to
November 2006; and Senior
Paralegal of Pioneer from
January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (49) Since 2010. Serves at the Counsel of Pioneer since June None
Assistant Secretary discretion of the Board. 2007 and Assistant Secretary of
all the Pioneer Funds since June
2010; and Vice President and
Counsel at State Street Bank
from October 2004 to June 2007
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (52) Since 2008. Serves at the Vice President - Fund Treasury None
Treasurer and Chief discretion of the Board. of Pioneer; Treasurer of all of
Financial and Accounting the Pioneer Funds since March
Officer of the Funds 2008; Deputy Treasurer of
Pioneer from March 2004 to
February 2008; and Assistant
Treasurer of all of the Pioneer
Funds from March 2004 to
February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (47) Since 2005. Serves at the Assistant Vice President - Fund None
Assistant Treasurer discretion of the Board. Treasury of Pioneer; and
Assistant Treasurer of all of
the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
52 Pioneer Global Equity Fund | Annual Report | 8/31/12
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (54) Since 2005. Serves at the Fund Accounting Manager - Fund None
Assistant Treasurer discretion of the Board. Treasury of Pioneer; and
Assistant Treasurer of all of
the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (32) Since 2009. Serves at the Fund Administration Manager - None
Assistant Treasurer discretion of the Board. Fund Treasury of Pioneer since
November 2008; Assistant
Treasurer of all of the Pioneer
Funds since January 2009; and
Client Service Manager -
Institutional Investor Services
at State Street Bank from March
2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (59) Since 2010. Serves at the Chief Compliance Officer of None
Chief Compliance Officer discretion of the Board. Pioneer and of all the Pioneer
Funds since March 2010; Director
of Adviser and Portfolio
Compliance at Pioneer since
October 2005; and Senior
Compliance Officer for Columbia
Management Advisers, Inc. from
October 2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Equity Fund | Annual Report | 8/31/12 53
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
Investment(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 19431-06-1012
Pioneer High Income
Municipal Fund
--------------------------------------------------------------------------------
Annual Report | August 31, 2012
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PIMAX
Class C HICMX
Class Y HIMYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 26
Notes to Financial Statements 33
Report of Independent Registered Public Accounting Firm 40
Trustees, Officers and Service Providers 41
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 1
President's Letter
Dear Shareowner,
The U.S. economy showed signs of an economic slowdown in the second quarter,
reflecting higher savings by consumers and reduced spending by corporations, in
large part due to concerns about both the U.S. outlook and the deteriorating
situation in Europe. Some 40% - 45% of U.S. corporate earnings come from
overseas, with a large portion of that from Europe. While large U.S.
corporations generally remain in excellent financial health - cash, borrowing
capacity, and margins are all strong - they are holding back on hiring and
investments due to concerns about Europe, China, and U.S. regulations, fiscal
policies, taxes, and politics. Many investors share those concerns, and are
maintaining a cautious approach to the markets.
Despite this tough backdrop, the markets had a surprisingly strong first half of
2012. The Standard & Poor's 500 Index returned 9.5% over the six months ended
June 30, 2012. In the U.S. bond markets, interest rates generally declined, with
riskier sectors faring the best. The broad bond market, as measured by the
Barclays Capital Aggregate Bond Index, returned 2.4% during the same six-month
period, while the high-yield bond market, as measured by the Bank of America
Merrill Lynch High Yield Master II Index, returned 7.1%.
Given the major macroeconomic and political issues facing the markets in the
second half of the year, we certainly expect continuing volatility. But we also
see some positive economic data that give us hope for better news in the second
half of 2012. While the unemployment rate remains unacceptably high at over 8%,
employment and incomes continue to trend upward. Lower oil prices have acted
like an effective tax cut for consumers. Home construction, sales, and
refinancings have increased, and auto sales are holding up as well.
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.
* Diversification does not assure a profit or protect against loss in a
declining market.
2 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
Pioneer's investment professionals focus on finding good opportunities in both
equity and bond markets using the same disciplined investment approach we have
used since 1928. Our strategy is to identify undervalued individual securities
with the greatest potential for success, carefully weighing risk against reward.
Our teams of investment professionals continually monitor and analyze the
relative valuations of different sectors and securities globally to help build
portfolios that we believe can help you achieve your investment goals.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 3
Portfolio Management Discussion | 8/31/12
High-yield municipal bonds produced solid returns during the 12 months ended
August 31, 2012, as investors increasingly looked for greater yield
opportunities during a period of very low interest rates. In the following
interview, Timothy Pynchon, senior vice president at Pioneer and lead portfolio
manager of Pioneer High Income Municipal Fund, discusses the factors that
affected the municipal bond market and influenced the performance of the Fund
over the 12-month period. Mr. Pynchon is responsible for the day-to-day
management of the Fund and is supported by David Eurkus, senior vice president
at Pioneer.
Q How did the Fund perform during the 12 months ended August 31, 2012?
A Pioneer High Income Municipal Fund Class A shares returned 11.24% at net
asset value during the 12 months ended August 31, 2012, while the Fund's
benchmark, the Barclays Capital High Yield Municipal Bond Index (the
Barclays Index), returned 15.40%. During the same period, the average return
of the 118 mutual funds in Lipper's High Yield Municipal Debt Funds category
was 14.98%.
Q How would you describe the investment environment for high-yield municipal
bonds during the 12 months ended August 31, 2012, and how did you manage the
Fund in that environment?
A Lower-rated, higher-yielding municipal bonds rallied during most of the
12-month period. With one notable exception (which we discuss below), the
Fund was very well positioned to benefit from the rally throughout the
period.
In general, high-yield municipal bonds performed very well during the
12-month period, and the project revenue bonds in which the Fund's assets
were concentrated performed exceptionally well. Throughout the 12 months
ended August 31, 2012, interest rates remained low and the absolute level of
yields deriving from investment-grade securities declined as the
investment-grade sector rallied and security prices rose. As the drop in
investment-grade yields occurred, investors' interest in higher-yielding
opportunities held strong, including opportunities in the tax-advantaged
municipal bond sector. At the same time, the flow of new high-yield
municipal issuances into the market remained relatively low, partly in
response to a nationwide effort by public entities to hold down their debts.
As a consequence, higher-yielding municipal bonds -- many of which had been
selling at discounted prices -- performed particularly well.
4 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
Although concerns about the strength of the nation's economy waxed and waned
during the 12-month period, in general, investors believed the economy to be
recovering, albeit at a slower-than-desired pace. The prevailing belief in a
recovering economy instilled confidence in the credit sectors in general,
including the high-yield municipal bond sector.
In managing the Fund's portfolio during the period, we held to our historic
emphasis on revenue bonds, which are secured by dedicated revenue streams
from specific projects. We believe that investments in revenue bonds may be
more reliable over the longer term than investments in general obligation
bonds, which are not always backed by dedicated sources of revenues and
quite often are dependent upon the fiscal health of the municipal
governments issuing the bonds.
The one exception to an otherwise strong fiscal year of performance for the
Fund was the portfolio's exposure to bonds backed by airport-related
revenues linked to AMR Corporation, the parent company of American Airlines.
In late November 2011, AMR surprised the markets by filing for bankruptcy
protection. The event caused all AMR-related debt to plunge in value,
including Fund holdings tied to two airports in Texas and one in Illinois
that were dependent on revenues from AMR operations. After the bankruptcy
filing, we sold all of the Fund's AMR-related holdings. Nevertheless, the
AMR bankruptcy filing led to the Fund's underperformance of the Barclays
Index over the full 12 months ended August 31, 2012.
Q Aside from AMR Corporation, what other investments had notably strong
effects on the Fund's performance, either positive or negative, during the
12 months ended August 31, 2012?
A The Fund's investments performed strongly across-the-board, with the notable
exception of the AMR-related debt, during the 12-month period. Groups that
performed particularly well for the Fund included bonds backed by continuing
care retirement community developments (CCRCs), airport bonds, and
securities backed by settlements from tobacco liability lawsuits.
The portfolio's position in Skyline at First Hill, a Seattle development,
was one notably strong performer in the CCRC group. We invested the Fund in
the bonds when they were selling at about 65% of their par (face) value in
2011; by the close of the Fund's fiscal year on August 31, 2012, the bonds
had appreciated and were selling at around their par value.
Virtually all of the Fund's investments were held in project revenue bonds
during the period. While we believe that some municipalities may encounter
financial difficulties in the years ahead, we also feel that bonds secured
by dedicated revenue sources that can be analyzed and assessed
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 5
represent the best and most prudent opportunity for investing in municipal
bonds. We place special emphasis on intensive credit research for each
potential investment before it is added to the portfolio.
At the end of the Fund's fiscal year on August 31, 2012, less than 1% of the
Fund's assets were invested in general obligation debt. Securities backed by
health care communities represented 43.4% of the Fund's net assets, with
transportation and pollution control revenue bonds accounting for 13.5% and
10.3% of net assets, respectively. The Fund's effective duration, which is a
measure of price sensitivity to changes in interest rates, was 6.93 years as
of August 31, 2012.
Q What is your investment outlook?
A While the November 2012 presidential election injects some uncertainty into
the market outlook, we remain positive about the high-yield municipal bond
market. Irrespective of the election's outcome, we believe the tax-exempt
municipal bond sector will continue to be an important part of the capital
markets. Even after the price gains experienced by the high-yield municipal
market during the recent 12-month period, we believe there is still good
value to be found in that market.
We think the U.S. economy will continue to grow, although at a muddling-
along pace, as evidenced by the 1.7% gross domestic product annualized
growth rate announced for the second calendar quarter of 2012 (through June
30). The current environment makes individual credit research even more
important, and we believe that may play to our strength at Pioneer, where we
place great emphasis on credit research to ensure that all of the Fund's
investments are backed by reliable revenue streams.
6 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
Please refer to the Schedule of Investments on pages 15-25 for a full listing of
Fund securities.
Investments in high-yield or lower-rated securities are subject to greater-than-
average risk.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
A portion of the Fund's income may be subject to state, federal, and/or
alternative minimum tax. Capital gains, if any, are subject to a capital gains
tax.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Prepayment risk is the chance that mortgage-backed bonds will be paid off early
if falling interest rates prompt homeowners to refinance their mortgages. Forced
to reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation associated with falling interest rates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
Past performance is not a guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These opinions should not
be relied upon for any other purposes.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 7
Portfolio Summary | 8/31/12
Portfolio Quality
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
B 12.2%
BB 9.5%
BBB 4.6%
CCC 4.3%
AA 0.3%
Not Rated 69.1%
Bond ratings are ordered highest to lowest in portfolio. Based on Standard &
Poor's measures, AAA (highest possible rating) through BBB are considered
investment grade; BB or lower ratings are considered non-investment grade. Cash
equivalents and some bonds may not be rated.
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Health 43.0%
Transportation 13.4%
Various Revenues 12.8%
Special Revenues 10.9%
Pollution Control Revenue 10.2%
Education 6.9%
Insured 1.6%
Housing 1.1%
General Obligation 0.1%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of debt holdings)*
1. Sanger Industrial Development Corp., 8.0%, 7/1/38 3.21%
--------------------------------------------------------------------------------
2. Jefferson County Industrial Development Corp. Texas, 8.25%, 7/1/32 2.76
--------------------------------------------------------------------------------
3. Illinois Finance Authority, 8.125%, 2/15/40 2.27
--------------------------------------------------------------------------------
4. Greater Orlando Aviation Authority, 6.5%, 11/15/36 1.87
--------------------------------------------------------------------------------
5. West Virginia Hospital Finance Authority, 9.125%, 10/1/41 1.83
--------------------------------------------------------------------------------
6. New York City Industrial Development Agency, 5.25%, 12/1/32 1.67
--------------------------------------------------------------------------------
7. Capital Trust Agency, Inc., 7.75%, 1/1/41 1.51
--------------------------------------------------------------------------------
8. Public Finance Authority, 8.25%, 6/1/46 1.51
--------------------------------------------------------------------------------
9. Pennsylvania Economic Development Financing Authority, 8.0%, 5/1/29 1.51
--------------------------------------------------------------------------------
10. Illinois Finance Authority, 8.25%, 5/15/45 1.50
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
8 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
Prices and Distributions | 8/31/12
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/12 8/31/11
--------------------------------------------------------------------------------
A $7.94 $7.58
--------------------------------------------------------------------------------
C $7.94 $7.58
--------------------------------------------------------------------------------
Y $7.84 $7.49
--------------------------------------------------------------------------------
Distributions per Share: 9/1/11-8/31/12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.4500 $ -- $ --
--------------------------------------------------------------------------------
C $0.3951 $ -- $ --
--------------------------------------------------------------------------------
Y $0.4629 $ -- $ --
--------------------------------------------------------------------------------
Index Definitions
--------------------------------------------------------------------------------
The Barclays Capital High Yield Municipal Bond Index measures the performance of
the high-yield municipal bond market. Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. 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 shown on pages 10-12.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 9
Performance Update | 8/31/12 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment in Pioneer High Income Municipal Fund at public offering price,
compared to that of the Barclays Capital High Yield Municipal Bond Index.
Average Annual Total Returns
(As of August 31, 2012)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) 2.71% 1.91%
5 Years 2.89 1.95
1 Year 11.24 6.19
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.88%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High Income Barclays Capital High Yield
Municipal Fund Municipal Bond Index
10/31/2006 $ 9,550 $ 10,000
8/31/2007 $ 9,662 $ 10,076
8/31/2008 $ 9,184 $ 9,635
8/31/2009 $ 7,861 $ 8,750
8/31/2010 $ 9,838 $ 10,682
8/31/2011 $ 10,018 $ 11,051
8/31/2012 $ 11,144 $ 12,752
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 4.50% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
Performance Update | 8/31/12 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer High Income Municipal Fund, compared to that of the
Barclays Capital High Yield Municipal Bond Index.
Average Annual Total Returns
(As of August 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) 1.84% 1.84%
5 Years 2.04 2.04
1 Year 10.42 10.42
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.63%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer High Income Barclays Capital High Yield
Municipal Fund Municipal Bond Index
10/31/2006 $ 10,000 $ 10,000
8/31/2007 $ 10,026 $ 10,076
8/31/2008 $ 9,430 $ 9,635
8/31/2009 $ 7,999 $ 8,750
8/31/2010 $ 9,928 $ 10,682
8/31/2011 $ 10,046 $ 11,051
8/31/2012 $ 11,094 $ 12,752
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). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 11
Performance Update | 8/31/12 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer High Income Municipal Fund, compared to that of the
Barclays Capital High Yield Municipal Bond Index.
Average Annual Total Returns
(As of August 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(10/17/06) 2.59% 2.59%
5 Years 2.81 2.81
1 Year 11.43 11.43
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.67%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer High Income Barclays Capital High Yield
Municipal Fund Municipal Bond Index
10/31/2006 $ 5,000,000 $ 5,000,000
8/31/2007 $ 5,040,643 $ 5,037,963
8/31/2008 $ 4,765,972 $ 4,817,672
8/31/2009 $ 4,084,381 $ 4,374,981
8/31/2010 $ 5,094,276 $ 5,340,982
8/31/2011 $ 5,197,079 $ 5,525,277
8/31/2012 $ 5,790,897 $ 6,376,035
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
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 High Income
Municipal Fund
Based on actual returns from March 1, 2012, through August 31, 2012.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 3/1/12
--------------------------------------------------------------------------------
Ending Account Value $1,120.35 $1,114.79 $1,119.80
(after expenses) on 8/31/12
--------------------------------------------------------------------------------
Expenses Paid $4.74 $8.66 $3.57
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.89%, 1.63%
and 0.67% for Class A, Class C and Class Y shares, respectively, multiplied
by the average account value over the period, multiplied by 184/366 (to
reflect the one-half year period).
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 13
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer High Income
Municipal Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2012, through August 31, 2012.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 3/1/12
--------------------------------------------------------------------------------
Ending Account Value $1,020.66 $1,016.94 $1,021.77
(after expenses) on 8/31/12
--------------------------------------------------------------------------------
Expenses Paid $4.52 $8.26 $3.40
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.89%, 1.63%
and 0.67% for Class A, Class C and Class Y shares, respectively, multiplied
by the average account value over the period, multiplied by 184/366 (to
reflect the one-half year period).
14 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
Schedule of Investments | 8/31/12
-------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 99.2%
Alabama -- 0.6%
2,000,000 NR/NR Huntsville-Redstone Village Special
Care Facilities Financing Authority,
6.875%, 1/1/43 $ 2,145,200
2,580,000 NR/NR Huntsville-Redstone Village Special
Care Facilities Financing Authority,
7.5%, 1/1/47 2,954,513
---------------
$ 5,099,713
-------------------------------------------------------------------------------------------------------
Alaska -- 1.2%
12,600,000 NR/B2 Northern Tobacco Securitization Corp.,
5.0%, 6/1/46 $ 10,150,938
-------------------------------------------------------------------------------------------------------
Arizona -- 1.0%
750,000 NR/NR Pima County Industrial Development
Authority, 8.5%, 7/1/39 $ 859,628
4,000,000 NR/NR San Luis Facility Development Corp.,
8.375%, 5/1/27 4,054,880
1,500,000 NR/NR Tempe Industrial Development Authority,
6.25%, 12/1/42 1,617,210
1,600,000 NR/NR Tempe Industrial Development Authority,
6.25%, 12/1/46 1,725,024
---------------
$ 8,256,742
-------------------------------------------------------------------------------------------------------
California -- 9.6%
4,000,000 NR/NR California County Tobacco Securitization
Agency, 5.0%, 6/1/47 $ 3,042,320
5,410,000 B-/NR California County Tobacco Securitization
Agency, 5.125%, 6/1/38 4,479,588
4,000,000 NR/B2 California County Tobacco Securitization
Agency Merced County A, 5.25%, 6/1/45 3,248,200
6,500,000 B-/NR California County Tobacco Securitization
Agency Sonoma County Corp.,
5.25%, 6/1/45 5,320,900
9,250,000 NR/B2 California County Tobacco Securitization
Agency, 5.65%, 6/1/41 8,038,342
2,000,000 BB/NR California Municipal Finance Authority,
5.75%, 7/1/30 2,023,780
6,300,000 BB/NR California Municipal Finance Authority,
6.0%, 7/1/42 6,364,638
1,000,000 NR/NR California Municipal Finance Authority,
6.625%, 1/1/32 1,027,950
2,000,000 NR/NR California Municipal Finance Authority,
6.875%, 1/1/42 2,055,280
2,000,000 NR/NR California Statewide Communities
Development Authority, 7.5%, 6/1/42 2,283,240
315,559 NR/NR California Statewide Communities
Development Authority, 9.0%, 12/1/38 (d) 2,840
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 15
Schedule of Investments | 8/31/12 (continued)
-------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------
California -- (continued)
25,000,000 BBB-/Baa3 Foothill-Eastern Transportation Corridor
Agency, 0.0%, 1/15/33 (e) $ 7,394,000
10,000,000 BBB-/Baa3 Foothill-Eastern Transportation Corridor
Agency, 0.0%, 1/15/34 (e) 2,780,100
10,000,000 BBB-/Baa3 Foothill-Eastern Transportation Corridor
Agency, 0.0%, 1/15/36 (e) 2,460,700
1,495,000 B-/B3 Golden State Tobacco Securitization
Corp., 5.75%, 6/1/47 1,266,340
6,500,000 B-/B3 Golden State Tobacco Securitization
Corp., 6/1/37 5,156,645
4,000,000 AA-/Aa3 Pittsburg Unified School District,
0.0%, 9/1/38 (e) 667,920
3,925,000 AA-/Aa3 Pittsburg Unified School District,
0.0%, 9/1/39 (e) 605,706
2,500,000 AA-/Aa3 Pittsburg Unified School District,
0.0%, 9/1/41 (e) 486,450
1,925,000 AA-/Aa3 Pittsburg Unified School District,
0.0%, 9/1/42 (e) 349,176
11,395,000 B-/Caa1 Tobacco Securitization Authority of
Northern California, 5.375%, 6/1/38 9,256,045
3,000,000 B-/B3 Tobacco Securitization Authority of
Northern California, 5.5%, 6/1/45 2,414,340
9,595,000 BB+/B3 Tobacco Securitization Authority of
Southern California, 5.0%, 6/1/37 7,789,125
---------------
$ 78,513,625
-------------------------------------------------------------------------------------------------------
Colorado -- 2.6%
1,040,000 NR/NR Colorado Educational & Cultural
Facilities Authority, 5.625%, 12/1/36 $ 767,541
3,165,000 NR/NR Colorado Health Facilities Authority,
7.125%, 6/1/47 3,393,893
38,000,000 BBB-/Baa2 E-470 Public Highway Authority,
0.0%, 9/1/40 (e) 8,014,960
1,500,000 BBB-/Baa2 E-470 Public Highway Authority,
0.0%, 9/1/41 (e) 296,850
8,000,000 NR/NR Kremmling Memorial Hospital District,
7.125%, 12/1/45 8,938,960
---------------
$ 21,412,204
-------------------------------------------------------------------------------------------------------
Florida -- 12.6%
5,000,000 NR/NR Alachua County Health Facilities Authority,
8.125%, 11/15/41 $ 5,777,000
9,000,000 NR/NR Alachua County Health Facilities Authority,
8.125%, 11/15/46 10,364,040
11,000,000 NR/Ba3 Capital Trust Agency, Inc.,
7.75%, 1/1/41 12,254,220
5,900,000 NR/NR Collier County Industrial Development
Authority, 14.0%, 5/15/15 5,955,932
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
-------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Florida -- (continued)
1,820,000 NR/NR County of Liberty Florida,
8.25%, 7/1/28 $ 1,844,188
2,290,000 NR/NR County of Palm Beach Florida,
2.0%, 6/1/16 2,310,931
10,380,000 NR/NR Florida Development Finance Corp.,
7.625%, 6/15/41 11,991,391
5,000,000 NR/NR Florida Development Finance Corp.,
7.75%, 6/15/42 5,638,700
7,170,000 BB+/NR Florida Keys College Campus Foundation,
Inc., 7.0%, 11/1/42 7,558,256
14,965,000 NR/NR Greater Orlando Aviation Authority,
6.5%, 11/15/36 15,107,018
2,830,000 NR/NR Hillsborough County Industrial
Development Authority, 6.5%, 7/1/29 2,831,585
1,410,000 NR/NR Hillsborough County Industrial
Development Authority, 6.7%, 7/1/21 1,411,692
2,380,000 NR/NR Hillsborough County Industrial
Development Authority, 6.75%, 7/1/29 2,381,809
6,200,000 BB/NR Lee County Industrial Development
Authority Florida, 5.375%, 6/15/37 6,054,300
3,000,000 BB/NR Lee County Industrial Development
Authority Florida, 5.75%, 6/15/42 3,010,830
4,365,000 NR/NR Sarasota County Health Facilities
Authority, 5.625%, 7/1/27 3,618,891
2,285,000 NR/NR Sarasota County Health Facilities
Authority, 5.75%, 7/1/37 1,798,249
3,640,000 NR/NR Sarasota County Health Facilities
Authority, 5.75%, 7/1/45 2,787,949
---------------
$ 102,696,981
-------------------------------------------------------------------------------------------------------
Georgia -- 3.1%
6,000,000 CCC+/NR Clayton County Development Authority,
8.75%, 6/1/29 $ 7,382,460
7,000,000 CCC+/NR Clayton County Development Authority,
9.0%, 6/1/35 7,689,430
3,650,000 NR/NR Fulton County Residential Care Facilities
for the Elderly Authority, 5.0%, 7/1/27 3,608,354
7,000,000 NR/NR Fulton County Residential Care Facilities
for the Elderly Authority, 5.125%, 7/1/42 6,644,260
---------------
$ 25,324,504
-------------------------------------------------------------------------------------------------------
Hawaii -- 0.3%
1,300,000 NR/NR Hawaii State Department of Budget &
Finance, 7.5%, 11/15/15 $ 1,309,126
1,000,000 NR/NR Hawaii State Department of
Budget & Finance, 9.0%, 11/15/44 1,203,790
---------------
$ 2,512,916
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 17
Schedule of Investments | 8/31/12 (continued)
-------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Illinois -- 10.2%
3,750,000 CCC+/B2 County of Cook Illinois,
6.5%, 10/15/40 $ 3,892,988
7,000,000 NR/NR Illinois Finance Authority,
5.625%, 2/15/37 7,033,180
7,790,000 NR/NR Illinois Finance Authority,
6.0%, 11/15/39 (d) 1,870,145
4,500,000 BB/NR Illinois Finance Authority,
6.25%, 11/15/35 4,591,755
3,250,000 CCC+/B2 Illinois Finance Authority,
6.5%, 10/15/40 3,373,922
5,085,000 NR/NR Illinois Finance Authority,
7.625%, 5/15/25 5,996,334
1,750,000 NR/NR Illinois Finance Authority,
8.0%, 5/15/30 1,910,755
3,295,000 NR/NR Illinois Finance Authority,
8.0%, 5/15/40 3,869,648
3,965,000 NR/NR Illinois Finance Authority,
8.0%, 5/15/46 4,656,496
17,000,000 NR/NR Illinois Finance Authority, Nursing Homes
Green Fields, 8.125%, 2/15/40 18,381,930
2,250,000 BB/NR Illinois Finance Authority, Nursing Homes
Park Place, 8.125%, 5/15/40 2,440,192
7,275,000 NR/NR Illinois Finance Authority,
8.25%, 2/15/46 7,896,867
11,135,000 BB/NR Illinois Finance Authority,
8.25%, 5/15/45 12,158,863
3,135,000 NR/NR Southwestern Illinois Development
Authority, 5.625%, 11/1/26 2,675,064
2,500,000 NR/NR Southwestern Illinois Development
Authority, 6.625%, 6/1/37 2,619,050
---------------
$ 83,367,189
-------------------------------------------------------------------------------------------------------
Indiana -- 4.2%
1,000,000 NR/NR City of Carmel Indiana,
6.0%, 11/15/22 $ 989,390
1,550,000 NR/NR City of Carmel Indiana,
7.0%, 11/15/27 1,605,196
1,750,000 NR/NR City of Carmel Indiana,
7.0%, 11/15/32 1,759,118
6,000,000 NR/NR City of Carmel Indiana,
7.125%, 11/15/42 6,031,020
5,750,000 NR/NR City of Carmel Indiana,
7.125%, 11/15/47 5,738,098
3,500,000 NR/NR City of Crown Point Indiana,
8.0%, 11/15/39 4,091,465
715,000 B-/Caa2 City of East Chicago Indiana,
5.5%, 9/1/28 670,177
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
-------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Indiana -- (continued)
3,575,000 NR/NR City of Terre Haute Indiana,
6.0%, 8/1/39 $ 3,523,162
2,435,000 NR/NR County of St. Joseph Indiana,
6.0%, 5/15/38 2,487,328
2,340,000 NR/NR Vigo County Hospital Authority,
5.8%, 9/1/47 (144A) 2,414,833
4,000,000 BB/NR Vigo County Hospital Authority,
8.0%, 9/1/41 4,838,560
---------------
$ 34,148,347
-------------------------------------------------------------------------------------------------------
Iowa -- 1.1%
745,000 NR/NR Iowa Finance Authority,
5.0%, 11/15/12 $ 745,425
1,315,000 NR/NR Iowa Finance Authority,
5.0%, 11/15/21 1,254,181
1,445,000 NR/NR Iowa Finance Authority,
5.5%, 11/15/27 1,380,380
4,365,000 BB/NR Iowa Finance Authority,
5.5%, 11/15/37 3,977,475
2,000,000 B+/B2 Iowa Tobacco Settlement Authority,
5.6%, 6/1/34 1,851,240
---------------
$ 9,208,701
-------------------------------------------------------------------------------------------------------
Kentucky -- 0.3%
2,000,000 NR/NR Kentucky Economic Development
Finance Authority, 7.375%, 5/15/46 $ 2,263,540
-------------------------------------------------------------------------------------------------------
Louisiana -- 0.8%
5,800,000 NR/NR Tensas Parish Law Enforcement District,
8.5%, 10/1/26 $ 6,151,016
-------------------------------------------------------------------------------------------------------
Maryland -- 0.5%
4,115,000 NR/NR County of Howard Maryland,
5.25%, 4/1/27 $ 4,159,854
-------------------------------------------------------------------------------------------------------
Massachusetts -- 1.2%
1,116,746 NR/NR Massachusetts Development Finance
Agency, 0.0% 11/15/56 (e) $ 5,829
224,523 NR/NR Massachusetts Development Finance
Agency, 5.5%, 11/15/46 143,082
1,235,770 NR/NR Massachusetts Development Finance
Agency, 6.25%, 11/15/26 1,044,695
2,224,798 NR/NR Massachusetts Development Finance
Agency, 6.25%, 11/15/39 1,696,698
751,584 NR/NR Massachusetts Development Finance
Agency, 6.25%, 11/15/46 559,021
2,000,000 NR/NR Massachusetts Development Finance
Agency, 6.75%, 10/15/37 2,101,940
2,500,000 NR/NR Massachusetts Development Finance
Agency, 7.25%, 6/1/16 (d) 1,573,600
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 19
Schedule of Investments | 8/31/12 (continued)
-------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
500,000 NR/NR Massachusetts Development Finance
Agency, 7.5%, 6/1/29 (d) $ 261,075
880,000 NR/NR Massachusetts Development Finance
Agency, 7.625%, 10/15/37 994,022
2,000,000 NR/NR Massachusetts Development Finance
Agency, 7.875%, 6/1/44 (d) 1,042,780
3,500,000 NR/NR Massachusetts Health & Educational
Facilities Authority, 6.5%, 1/15/38 (d) 17,640
---------------
$ 9,440,382
-------------------------------------------------------------------------------------------------------
Michigan -- 4.5%
160,000 NR/NR Doctor Charles Drew Academy,
5.7%, 11/1/36 $ 116,491
5,485,000 BBB-/NR Flint International Academy,
5.75%, 10/1/37 5,610,606
4,635,000 NR/NR Michigan Public Educational Facilities
Authority, 5.875%, 6/1/37 4,625,498
320,000 BB/NR Michigan Public Educational Facilities
Authority, 7.25%, 4/1/20 348,838
2,020,000 BB/NR Michigan Public Educational Facilities
Authority, 8.0%, 4/1/40 2,256,582
2,750,000 NR/NR Michigan State Hospital Finance
Authority, 5.5%, 11/15/35 2,762,760
3,175,000 NR/NR Michigan Strategic Fund,
7.25%, 1/1/39 3,450,431
4,000,000 6.62 NR/NR Michigan Strategic Fund, Floating
Rate Note, 11/1/41 4,383,720
7,135,000 6.75 A/A2 Michigan Strategic Fund, Floating
Rate Note, 3/1/40 8,070,327
5,805,000 B-/NR Michigan Tobacco Settlement Finance
Authority, 6.0%, 6/1/34 4,878,928
---------------
$ 36,504,181
-------------------------------------------------------------------------------------------------------
Minnesota -- 1.7%
10,000,000 NR/NR Bloomington Port Authority,
9.0%, 12/1/35 $ 11,885,200
1,500,000 NR/NR City of Brooklyn Park Minnesota,
9.25%, 3/1/39 1,745,055
---------------
$ 13,630,255
-------------------------------------------------------------------------------------------------------
Missouri -- 1.2%
2,000,000 BB/NR Community Memorial Hospital District,
6.68%, 12/1/34 $ 1,923,720
4,500,000 NR/NR Kirkwood Industrial Development
Authority, 8.25%, 5/15/45 5,364,900
2,125,000 NR/NR St Louis County Industrial Development
Authority, 6.125%, 8/15/42 2,156,854
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
-------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Missouri -- (continued)
500,000 NR/Ca St. Louis Industrial Development
Authority, 7.2%, 12/15/28 (d) $ 149,500
1,365,000 NR/Ca St. Louis Industrial Development
Authority, 7.25%, 12/15/35 (d) 408,135
---------------
$ 10,003,109
-------------------------------------------------------------------------------------------------------
New Jersey -- 2.0%
9,000,000 NR/NR New Jersey Economic Development
Authority, 10.5%, 6/1/32 (144A) $ 9,939,330
6,000,000 NR/NR New Jersey Economic Development
Authority, 6.625%, 1/1/37 6,141,060
---------------
$ 16,080,390
-------------------------------------------------------------------------------------------------------
New Mexico -- 0.3%
2,000,000 NR/NR County of Otero New Mexico,
8.25%, 12/1/23 $ 2,010,840
-------------------------------------------------------------------------------------------------------
New York -- 7.3%
3,650,000 B-/Caa2 New York City Industrial Development
Agency, 5.125%, 5/15/30 $ 3,528,090
13,750,000 BB/B2 New York City Industrial Development
Agency, 5.25%, 12/1/32 13,513,362
10,300,000 BB/NR Seneca Nation Indians Capital
Improvements Authority, 5.0%,
12/1/23 (144A) 10,461,401
5,930,000 NR/NR The Erie County Industrial Development
Agency, 6.0%, 11/15/36 6,052,751
8,000,000 NR/NR The Erie County Industrial Development
Agency Series B, 9.25%, 10/1/30 9,216,160
10,000,000 NR/NR The Erie County Industrial Development
Agency Series A, 9.25%, 10/1/30 11,520,200
1,795,000 NR/NR The Erie County Industrial Development
Agency Series C, 9.25%, 10/1/30 2,070,281
4,000,000 BB+/NR Westchester Tobacco Asset Securitization
New York, 5.125%, 6/1/45 3,276,000
---------------
$ 59,638,245
-------------------------------------------------------------------------------------------------------
North Carolina -- 0.9%
1,665,000 NR/NR North Carolina Medical Care
Commission, 7.75%, 3/1/31 $ 1,908,739
4,725,000 NR/NR North Carolina Medical Care
Commission, 7.75%, 3/1/41 5,363,631
---------------
$ 7,272,370
-------------------------------------------------------------------------------------------------------
Ohio -- 1.9%
3,560,000 B-/B3 Buckeye Tobacco Settlement Financing
Authority, 5.75%, 6/1/34 $ 2,857,007
4,645,000 B-/B3 Buckeye Tobacco Settlement Financing
Authority, 5.875%, 6/1/30 3,854,839
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 21
Schedule of Investments | 8/31/12 (continued)
-------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Ohio -- (continued)
4,495,000 B-/B3 Buckeye Tobacco Settlement Financing
Authority, 5.875%, 6/1/47 $ 3,631,960
3,000,000 B-/B3 City of Cleveland Ohio, 5.375%, 9/15/27 2,996,850
1,970,000 B-/Caa2 State of Ohio, 5.65%, 3/1/33 1,862,674
---------------
$ 15,203,330
-------------------------------------------------------------------------------------------------------
Pennsylvania -- 3.0%
8,800,000 B-/Caa2 Pennsylvania Economic Development
Financing Authority, 6.0%, 6/1/31 $ 8,682,168
2,005,000 CCC+/Caa3 Pennsylvania Economic Development
Financing Authority, 7.5%, 5/1/20 2,262,242
10,575,000 CCC+/Caa3 Pennsylvania Economic Development
Financing Authority, 8.0%, 5/1/29 12,223,854
1,000,000 BB+/NR Philadelphia Authority for Industrial
Development, 6.625%, 12/15/41 1,086,740
---------------
$ 24,255,004
-------------------------------------------------------------------------------------------------------
Rhode Island -- 1.5%
2,100,000 NR/NR Central Falls Detention Facility Corp.,
7.25%, 7/15/35 $ 1,807,890
9,100,000 NR/NR Rhode Island Health & Educational
Building Corp., 8.375%, 1/1/46 10,669,477
---------------
$ 12,477,367
-------------------------------------------------------------------------------------------------------
Texas -- 14.9%
10,125,000 5.40 CC/Ca Brazos River Authority, Floating Rate
Note, 10/1/29 $ 3,834,844
1,000,000 B-/B3 City of Houston Texas Airport System
Revenue, 6.125%, 7/15/27 999,890
234,442 NR/NR Gulf Coast Industrial Development
Authority, 7.0%, 12/1/36 (d) 2,204
9,685,000 BBB/Baa2 Harris County-Houston Sports Authority,
0.0%, 11/15/31 (e) 3,196,437
7,635,000 BBB/Baa2 Harris County-Houston Sports Authority,
0.0%, 11/15/32 (e) 2,375,478
1,120,000 BBB/Baa2 Harris County-Houston Sports Authority,
0.0%, 11/15/33 (e) 328,798
765,000 BBB/Baa2 Harris County-Houston Sports Authority,
0.0%, 11/15/34 (e) 210,643
1,690,000 BBB/Baa2 Harris County-Houston Sports Authority,
0.0%, 11/15/35 (e) 435,817
425,000 BBB/Baa2 Harris County-Houston Sports Authority,
0.0%, 11/15/35 (e) 109,068
10,000,000 BBB/Baa2 Harris County-Houston Sports Authority,
0.0%, 11/15/38 (e) 2,154,000
10,000,000 BBB/Baa2 Harris County-Houston Sports Authority,
0.0%, 11/15/39 (e) 2,027,800
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
-------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Texas -- (continued)
1,290,000 BBB/Baa2 Harris County-Houston Sports Authority,
0.0%, 11/15/41 (e) $ 222,280
1,600,000 NR/NR HFDC of Central Texas, Inc.,
7.75%, 11/15/29 1,162,064
6,825,000 NR/NR HFDC of Central Texas, Inc.,
7.75%, 11/15/44 4,965,256
24,000,000 NR/NR Jefferson County Industrial Development
Corp. Texas, 8.25%, 7/1/32 22,364,880
1,580,000 BB/NR Kinney County Public Facilities Corp.,
7.0%, 11/1/25 1,597,001
5,000,000 NR/NR Red River Health Facilities Development
Corp., 7.25%, 12/15/47 5,305,100
2,000,000 NR/NR Red River Health Facilities Development
Corp., 8.0%, 11/15/46 2,284,080
26,000,000 NR/NR Sanger Industrial Development Corp.,
8.0%, 7/1/38 25,999,994
1,980,000 BB/Ba Tarrant County Cultural Education
Facilities Finance Corp., 7.5%, 11/15/16 1,983,386
1,775,000 BB/NR Tarrant County Cultural Education
Facilities Finance Corp., 8.0%, 11/15/28 1,999,875
2,250,000 NR/NR Tarrant County Cultural Education Facilities
Finance Corp., 8.0%, 11/15/29 2,508,998
5,000,000 NR/NR Tarrant County Cultural Education Facilities
Finance Corp., 8.125%, 11/15/39 5,567,150
8,350,000 NR/NR Tarrant County Cultural Education Facilities
Finance Corp., 8.125%, 11/15/44 9,479,672
5,000,000 NR/NR Tarrant County Cultural Education Facilities
Finance Corp. Series A, 8.25%, 11/15/44 5,609,250
5,000,000 NR/NR Tarrant County Cultural Education Facilities
Finance Corp., Retirement Facilities Revenue,
8.25%, 11/15/44 5,587,700
1,000,000 D/NR Texas Midwest Public Facility Corp.,
9.0%, 10/1/30 (d) 403,020
8,000,000 NR/NR Travis County Health Facilities
Development Corp., 7.125%, 1/1/46 8,381,200
---------------
$ 121,095,885
-------------------------------------------------------------------------------------------------------
Utah -- 1.7%
925,000 BB/NR City of Spanish Fork City Utah, 5.55%,
11/15/21 (144A) $ 951,418
3,150,000 NR/NR City of Spanish Fork City Utah, 5.7%,
11/15/36 (144A) 3,169,562
1,510,000 NR/NR Utah State Charter School Finance
Authority, 7.25%, 5/15/21 1,631,570
1,985,000 NR/NR Utah State Charter School Finance
Authority, 8.125%, 5/15/31 2,211,250
5,145,000 NR/NR Utah State Charter School Finance
Authority, 8.5%, 5/15/41 5,838,443
---------------
$ 13,802,243
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 23
Schedule of Investments | 8/31/12 (continued)
-------------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount ($) (unaudited) (unaudited) Value
-------------------------------------------------------------------------------------------------------
Virginia -- 0.6%
6,945,000 B-/B2 Tobacco Settlement Financing Corp.
Virginia, 5.0%, 6/1/47 $ 4,963,661
-------------------------------------------------------------------------------------------------------
Washington -- 2.6%
1,750,000 NR/NR Washington State Housing Finance
Commission, 5.25%, 1/1/17 $ 1,778,998
8,500,000 NR/NR Washington State Housing Finance
Commission, 5.625%, 1/1/27 8,569,020
10,860,000 NR/NR Washington State Housing Finance
Commission, 5.625%, 1/1/38 10,850,335
---------------
$ 21,198,353
-------------------------------------------------------------------------------------------------------
West Virginia -- 1.8%
12,000,000 NR/NR West Virginia Hospital Finance Authority,
9.125%, 10/1/41 $ 14,767,800
-------------------------------------------------------------------------------------------------------
Wisconsin -- 4.0%
10,325,000 NR/NR Public Finance Authority, 8.25%, 6/1/46 $ 12,244,106
8,750,000 NR/NR Public Finance Authority, 8.375%, 6/1/20 8,852,550
2,480,000 NR/NR Public Finance Authority, 8.375%, 6/1/37 2,575,629
7,250,000 NR/NR Public Finance Authority, 8.625%, 6/1/47 7,621,345
2,000,000 NR/NR Wisconsin Health & Educational
Facilities Authority, 7.0%, 12/1/31 1,467,860
---------------
$ 32,761,490
-------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $730,864,645) $ 808,371,175
-------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED
DEBT OBLIGATION -- 0.1%
1,175,000 0.00 NR/NR Non-Profit Preferred Funding Trust I,
Floating Rate Note, 9/15/37 (144A) $ 744,574
-------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED
DEBT OBLIGATION
(Cost $1,172,365) $ 744,574
-------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN
SECURITIES -- 99.3%
(Cost $732,037,010) (a) $ 809,115,749
-------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.7% $ 6,034,552
-------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 815,150,301
=======================================================================================================
NR Not rated by either S&P or Moody's.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At August
31, 2012, the value of these securities amounted to $27,681,118 or 3.4%
of total net assets.
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
(a) At August 31, 2012, the net unrealized gain on investments based on cost
for federal income tax purposes of $731,973,000 was as follows:
Aggregate gross unrealized gain for all investments in which there
is an excess of value over tax cost $ 93,586,307
Aggregate gross unrealized loss for all investments in which there
is an excess of tax cost over value (16,443,558)
------------
Net unrealized gain $ 77,142,749
============
(b) The concentration of investments by type of obligation/market sector is
as follows:
Revenue Bonds:
Health 43.0%
Transportation 13.4
Various Revenues 12.8
Special Revenues 10.9
Pollution Control Revenue 10.2
Education 6.9
Insured 1.6
Housing 1.1
General Obligation 0.1
--------------------------------------------------------------------------------
100.0%
================================================================================
(c) Debt obligation with a variable interest rate. Rate shown is rate at
period end.
(d) Security is in default and is non-income producing.
(e) Security issued with a zero coupon. Income is recognized through
accretion of discount.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2012 aggregated $411,105,922 and $416,208,077,
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) as Level 3. See
Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of August 31, 2012, in valuing
the Fund's assets:
-------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------
Municipal Bonds $-- $808,371,175 $-- $808,371,175
Municipal Collateralized Debt Obligation -- 744,574 -- 744,574
-------------------------------------------------------------------------------------------
Total $-- $809,115,749 $-- $809,115,749
===========================================================================================
During the year ended August 31, 2012, there were no transfers between levels.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 25
Statement of Assets and Liabilities | 8/31/12
ASSETS:
Investment in securities, at value (cost $732,037,010) $809,115,749
Cash 10,502,746
Receivables --
Investment securities sold 11,360,144
Fund shares sold 3,967,922
Interest 14,193,728
Other 38,209
--------------------------------------------------------------------------------
Total assets $849,178,498
================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 29,516,120
Fund shares repurchased 3,437,728
Dividends 859,121
Due to affiliates 109,101
Accrued expenses 106,127
--------------------------------------------------------------------------------
Total liabilities $ 34,028,197
================================================================================
NET ASSETS:
Paid-in capital $805,500,539
Undistributed net investment income 2,968,496
Accumulated net realized loss on investments (70,397,473)
Net unrealized gain on investments 77,078,739
--------------------------------------------------------------------------------
Total net assets $815,150,301
================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $373,038,666/47,009,021 shares) $ 7.94
Class C (based on $265,447,867/33,439,957 shares) $ 7.94
Class Y (based on $176,663,768/22,529,763 shares) $ 7.84
MAXIMUM OFFERING PRICE:
Class A ($7.94 (divided by) 95.5%) $ 8.31
================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
Statement of Operations
For the Year Ended 8/31/12
INVESTMENT INCOME:
Interest $ 55,078,152
----------------------------------------------------------------------------------------------
Total investment income $ 55,078,152
----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 3,792,750
Transfer agent fees
Class A 83,231
Class C 40,206
Class Y 7,107
Distribution fees
Class A 903,983
Class C 2,456,842
Shareholder communications expense 424,490
Administrative reimbursement 222,961
Custodian fees 16,886
Registration fees 95,106
Professional fees 95,297
Printing expense 47,061
Interest expense 13,372
Fees and expenses of nonaffiliated Trustees 29,270
Miscellaneous 93,933
----------------------------------------------------------------------------------------------
Total expenses $ 8,322,495
----------------------------------------------------------------------------------------------
Net investment income $ 46,755,657
----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $ (48,600,216)
----------------------------------------------------------------------------------------------
Change in net unrealized gain on investments $ 74,917,059
----------------------------------------------------------------------------------------------
Net gain on investments $ 26,316,843
----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 73,072,500
==============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 27
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/12 8/31/11
--------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 46,755,657 $ 46,670,665
Net realized loss on investments (48,600,216) (11,110,342)
Change in net unrealized gain (loss) on investments 74,917,059 (19,956,783)
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 73,072,500 $ 15,603,540
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.45 and $0.52 per share, respectively) $ (21,800,656) $ (23,970,994)
Class C ($0.40 and $0.46 per share, respectively) (12,938,091) (13,170,041)
Class Y ($0.46 and $0.53 per share, respectively) (10,347,762) (8,328,485)
--------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (45,086,509) $ (45,469,520)
--------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 357,337,828 $ 641,124,820
Reinvestment of distributions 32,534,258 33,713,271
Cost of shares repurchased (424,526,655) (396,302,944)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ (34,654,569) $ 278,535,147
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (6,668,578) $ 248,669,167
NET ASSETS:
Beginning of year 821,818,879 573,149,712
--------------------------------------------------------------------------------------------------
End of year $ 815,150,301 $ 821,818,879
--------------------------------------------------------------------------------------------------
Undistributed net investment income $ 2,968,496 $ 1,632,475
--------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
------------------------------------------------------------------------------------------------
'12 Shares '12 Amount '11 Shares '11 Amount
------------------------------------------------------------------------------------------------
CLASS A
Shares sold 24,812,011 $ 186,195,866 44,404,439 $ 335,670,830
Reinvestment of distributions 2,268,621 16,933,920 2,533,975 19,113,357
Less shares repurchased (30,082,711) (221,684,126) (35,985,432) (271,793,681)
------------------------------------------------------------------------------------------------
Net increase (decrease) (3,002,079) $ (18,554,340) 10,952,982 $ 82,990,506
================================================================================================
CLASS C
Shares sold 10,210,281 $ 76,722,170 16,070,267 $ 122,778,656
Reinvestment of distributions 1,182,530 8,840,084 1,243,136 9,376,715
Less shares repurchased (10,256,515) (75,810,384) (8,133,819) (60,947,257)
------------------------------------------------------------------------------------------------
Net increase 1,136,296 $ 9,751,870 9,179,584 $ 71,208,114
================================================================================================
CLASS Y
Shares sold 12,738,784 $ 94,419,792 24,449,133 $ 182,675,334
Reinvestment of distributions 914,996 6,760,254 700,304 5,223,199
Less shares repurchased (17,562,747) (127,032,145) (8,578,076) (63,562,006)
------------------------------------------------------------------------------------------------
Net increase (decrease) (3,908,967) $ (25,852,099) 16,571,361 $ 124,336,527
================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 29
Financial Highlights
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/12 8/31/11 8/31/10 8/31/09 8/31/08
---------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 7.58 $ 7.97 $ 6.84 $ 8.70 $ 9.72
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.47 $ 0.53 $ 0.55 $ 0.56 $ 0.54
Net realized and unrealized gain (loss) on investments 0.34 (0.40) 1.12 (1.86) (1.01)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 0.81 $ 0.13 $ 1.67 $ (1.30) $ (0.47)
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.45) (0.52) (0.55) (0.56) (0.55)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.36 $ (0.39) $ 1.12 $ (1.86) $ (1.02)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.94 $ 7.58 $ 7.97 $ 6.84 $ 8.70
===========================================================================================================================
Total return* 11.24% 1.83% 25.15% (14.41)% (4.95)%
Ratio of net expenses to average net assets+ 0.89% 0.88% 0.90% 0.90% 0.90%
Ratio of net investment income to average net assets+ 6.25% 6.98% 7.08% 8.32% 5.92%
Portfolio turnover rate 54% 65% 15% 50% 59%
Net assets, end of period (in thousands) $373,039 $378,883 $311,324 $38,312 $38,717
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Total expenses 0.89% 0.88% 0.95% 1.28% 1.21%
Net investment income 6.25% 6.98% 7.03% 7.95% 5.61%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 0.89% 0.88% 0.90% 0.90% 0.90%
Net investment income 6.25% 6.98% 7.08% 8.32% 5.92%
===========================================================================================================================
* 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.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
30 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/12 8/31/11 8/31/10 8/31/09 8/31/08
---------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 7.58 $ 7.96 $ 6.83 $ 8.68 $ 9.71
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.41 $ 0.47 $ 0.49 $ 0.50 $ 0.46
Net realized and unrealized gain (loss) on investments 0.35 (0.39) 1.12 (1.85) (1.03)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 0.76 $ 0.08 $ 1.61 $ (1.35) $ (0.57)
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.40) (0.46) (0.48) (0.50) (0.46)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.36 $ (0.38) $ 1.13 $ (1.85) $ (1.03)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.94 $ 7.58 $ 7.96 $ 6.83 $ 8.68
===========================================================================================================================
Total return* 10.42% 1.19% 24.11% (15.17)% (5.94)%
Ratio of net expenses to average net assets+ 1.63% 1.63% 1.69% 1.80% 1.80%
Ratio of net investment income to average net assets+ 5.50% 6.24% 6.31% 7.44% 5.11%
Portfolio turnover rate 54% 65% 15% 50% 59%
Net assets, end of period (in thousands) $265,448 $244,848 $184,068 $22,319 $20,915
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Total expenses 1.63% 1.63% 1.69% 1.98% 1.95%
Net investment income 5.50% 6.24% 6.31% 7.26% 4.96%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 1.63% 1.63% 1.69% 1.80% 1.80%
Net investment income 5.50% 6.24% 6.31% 7.44% 5.11%
===========================================================================================================================
* 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.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 31
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/12 8/31/11 8/31/10 8/31/09 8/31/08
---------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 7.49 $ 7.88 $ 6.80 $ 8.63 $ 9.69
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.48 $ 0.53 $ 0.57 $ 0.55 $ 0.53
Net realized and unrealized gain (loss) on investments 0.33 (0.39) 1.08 (1.83) (1.05)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 0.81 $ 0.14 $ 1.65 $ (1.28) $ (0.52)
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.46) (0.53) (0.56) (0.55) (0.54)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.35 $ (0.39) $ 1.09 $ (1.83) $ (1.06)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 7.84 $ 7.49 $ 7.88 $ 6.80 $ 8.63
===========================================================================================================================
Total return* 11.43% 2.02% 24.73% (14.30)% (5.45)%
Ratio of net expenses to average net assets+ 0.67% 0.67% 0.67% 0.99% 1.00%
Ratio of net investment income to average net assets+ 6.46% 7.21% 7.32% 8.23% 5.80%
Portfolio turnover rate 54% 65% 15% 50% 59%
Net assets, end of period (in thousands) $176,664 $198,089 $77,757 $ 2,317 $ 1,142
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Total expenses 0.67% 0.67% 0.67% 1.04% 1.00%
Net investment income 6.46% 7.21% 7.32% 8.18% 5.80%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 0.67% 0.67% 0.67% 0.99% 0.99%
Net investment income 6.46% 7.21% 7.32% 8.23% 5.81%
===========================================================================================================================
* 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.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
32 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
Notes to Financial Statements | 8/31/12
1. Organization and Significant Accounting Policies
Pioneer High Income Municipal Fund (the Fund) is one of four portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as an open-end management
investment company. The Fund is non-diversified. The investment objective of the
Fund is to maximize total return through a combination of income that is exempt
from regular federal income tax and capital appreciation.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses, and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements which are consistent with
those policies generally accepted in the investment company industry:
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 33
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Fixed income
securities with remaining maturity of more than sixty days are valued at
prices supplied by independent pricing services, which consider such factors
as market prices, market events, quotations from one or more brokers,
Treasury spreads, yields, maturities and ratings. Valuations may be
supplemented by dealers and other sources, as required. Short-term fixed
income securities with remaining maturities of sixty days or less generally
are valued at amortized cost.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued using fair value
methods pursuant to procedures adopted by the Board of Trustees. The Fund
may use fair value methods if it is determined that a significant event has
occurred after the close of the exchange or market on which the security
trades and prior to the determination of the Fund's net asset value.
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 August 31, 2012, there were no securities that were valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services). Inputs used when applying fair value methods
to value a security may include credit ratings, the financial condition of
the company, current market conditions and comparable securities.
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis with a
corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income, exempt interest income, and net realized capital
gains, if any, to its shareowners. Therefore, no federal income tax
provision is required. As of August 31, 2012, the Fund did not have any
interest and penalties related to unrecognized tax positions, which, if
applicable, would be recorded as an income tax expense in the Statement of
Operations. Tax years for the prior three fiscal years remain subject to
examination by federal and state tax authorities.
34 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
The amounts and characterizations of distributions to shareowners for financial
reporting purposes are determined in accordance with federal income tax rules.
Therefore, the sources of the Fund's distributions may be shown in the
accompanying financial statements as from or in excess of net investment income
or as from net realized gain on investment transactions, or as from paid-in
capital, depending on the type of book/tax differences that may exist.
At August 31, 2012, the Fund reclassified $333,127 to decrease net investment
income and $333,127 to decrease accumulated net realized loss on investments to
reflect permanent book/tax differences. The reclassification has no impact on
the net asset value of the Fund and is designed to present the Fund's capital
accounts on a tax basis.
At August 31, 2012, the Fund was permitted to carry forward indefinitely
$27,441,641 of short-term losses and $34,306,684 of long-term losses under the
Regulated Investment Company Modernization Act of 2010 without limitation.
Additionally, at August 31, 2012, the Fund had a net capital loss carryforward
of $8,649,148 of which the following amounts will expire in 2017 and 2018 if not
utilized: $2,640,380 in 2017 and $6,008,768 in 2018. Since new losses are
required to be utilized prior to losses incurred in pre-enactment tax years,
pre-enactment capital loss carryforwards may be more likely to expire unused.
The tax character of distributions paid during the years ended August 31, 2012
and August 31, 2011 was as follows:
--------------------------------------------------------------------------------
2012 2011
--------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $42,419,842 $44,826,596
Ordinary income 2,666,667 642,924
--------------------------------------------------------------------------------
Total $45,086,509 $45,469,520
================================================================================
The following shows the components of distributable earnings on a federal income
tax-basis at August 31, 2012:
--------------------------------------------------------------------------------
2012
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 3,763,607
Capital loss carryforward (70,397,473)
Dividend payable (859,121)
Net unrealized gain 77,142,749
--------------------------------------------------------------------------------
Total $ 9,649,762
================================================================================
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 35
The difference between book-basis and tax-basis net unrealized gain is
attributable to adjustments related to interest on defaulted bonds, the tax
treatment of premium and amortization and tax-basis adjustments on
partnerships.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $202,138 in underwriting commissions on the sale of Class A shares
during the year ended August 31, 2012.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
The Fund declares, as daily dividends, substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, and Class Y shares can
reflect different transfer agent and distribution expense rates.
E. Risks
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries 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.
36 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary of
UniCredit, manages the Fund's portfolio. Management fees are calculated daily at
the annual rate of 0.50% of the Fund's average daily net assets up to $500
million; 0.475% on the next $500 million; and 0.45% on assets over $1 billion.
For the year ended August 31, 2012, the effective management fee (excluding
waivers and/or assumption of expenses) was equivalent to 0.49% of the Fund's
average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses (excluding
taxes, commissions, interest and extraordinary expenses) of the Fund to the
extent required to reduce Fund expenses to 0.90% and 1.80% of the average daily
net assets attributable to Class A shares and Class C shares, respectively.
Class Y shares do not have an expense limitation. These expense limitations are
in effect through January 1, 2014. 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
$41,794 in management fees, administrative costs and certain other
reimbursements payable to PIM at August 31, 2012.
Effective March 5, 2012, PIM has retained Brown Brothers Harriman & Co. to
provide certain sub-administration and accounting services to the Fund.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the year ended August 31, 2012, such out-of-pocket expenses by class of shares
were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 153,217
Class C 116,842
Class Y 154,431
--------------------------------------------------------------------------------
Total $ 424,490
================================================================================
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 37
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $47,771 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at August 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 and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets
attributable to Class A shares as compensation for personal services and/or
account maintenance services or distribution services with regard to Class A
shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $19,536 in distribution fees payable to
PFD at August 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. 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
year ended August 31, 2012, CDSCs in the amount of $156,076 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended August 31, 2012, the Fund's expenses were
not reduced under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the
38 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
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 year ended August 31, 2012, the Fund's average daily amount of
borrowings outstanding during the period was $13,531,250. The related weighted
average annualized interest rate for the period was 1.58%, and the total
interest expense on such borrowings was $13,372 which is included in
interest expense, located on the statement of operations. As of August 31,
2012, there were no borrowings outstanding.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 39
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust V and the
Shareowners of Pioneer High Income Municipal Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of Pioneer High Income Municipal Fund,
one of the portfolios constituting Pioneer Series Trust V (the "Trust") as of
August 31, 2012, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
We were not engaged to perform an audit of the Trust's internal control over
financial reporting. Our audits included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Trust's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of August 31, 2012 by correspondence with the custodian
and brokers. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer High Income Municipal Fund at August 31, 2012, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
October 24, 2012
40 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
ADDITIONAL INFORMATION (unaudited)
The percentage of the Fund's ordinary income distributions that is exempt from
nonresident alien (NRA) tax withholding resulting from qualified interest income
was 100%.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 41
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy voting policies and procedures of the Funds are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Funds voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to share-
owners at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and Officers are listed on the following pages, together
with their principal occupations during at least the past five years. Trustees
who are interested persons of the Fund within the meaning of the 1940 Act are
referred to as Interested Trustees. Trustees who are not interested persons of
the Fund are referred to as Independent Trustees. Each of the Trustees serves as
a trustee of each of the 56 U.S. registered investment portfolios for which
Pioneer serves as investment adviser (the "Pioneer Funds"). The address for all
Trustees and all officers of the Fund is 60 State Street, Boston, Massachusetts
02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
42 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
Independent Trustees
-----------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
-----------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (61) Trustee since 2006. Chairman and Chief Executive Officer, Director, Broadridge
Chairman of the Board Serves until a Quadriserv, Inc. (technology products Financial Solutions, Inc.
and Trustee successor for securities lending industry) (2008 (investor communications and
trustee is elected or - present); private investor (2004 - securities processing
earlier 2008); and Senior Executive Vice provider for financial
retirement or President, The Bank of New York services industry) (2009 -
removal. (financial and securities services) present); Director,
(1986 - 2004) Quadriserv, Inc. (2005 -
present); and Commissioner,
New Jersey State Civil
Service Commission (2011 -
present)
-----------------------------------------------------------------------------------------------------------------------------
David R. Bock (68) Trustee since 2006. Managing Partner, Federal City Capital Director of Enterprise
Trustee Serves until a Advisors (corporate advisory services Community Investment, Inc.
successor company) (1997 - 2004 and 2008 - (privately-held affordable
trustee is elected or present); Interim Chief Executive housing finance company) (1985
earlier Officer, Oxford Analytica, Inc. - 2010); Director of Oxford
retirement or (privately held research and Analytica, Inc. (2008 -
removal. consulting company) (2010); Executive present); Director of The
Vice President and Chief Financial Swiss Helvetia Fund, Inc.
Officer, I-trax, Inc. (publicly traded (closed-end fund) (2010 -
health care services company) (2004 - present); and Director of New
2007); and Executive Vice President York Mortgage Trust (publicly
and Chief Financial Officer, Pedestal traded mortgage REIT) (2004 -
Inc. (internet-based mortgage trading 2009, 2012 - present)
company) (2000 - 2002)
-----------------------------------------------------------------------------------------------------------------------------
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 43
Independent Trustees (continued)
-----------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
-----------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (64) Trustee since 2006. Chairman, Bush International, LLC Director of Marriott
Trustee Serves until a (international financial advisory firm) International, Inc. (2008 -
successor (1991 - present); Senior Managing present); Director of
trustee is elected or Director, Brock Capital Group, LLC Discover Financial Services
earlier (strategic business advisors) (2010 - (credit card issuer and
retirement or present); Managing Director, Federal electronic payment services)
removal. Housing Finance Board (oversight of (2007 - present); Former
Federal Home Loan Bank system) (1989 - Director of Briggs & Stratton
1991); Vice President and Head of Co. (engine manufacturer)
International Finance, Federal (2004 - 2009); Former
National Mortgage Association (1988 - Director of UAL Corporation
1989); U.S. Alternate Executive (airline holding company)
Director, International Monetary Fund (2006 - 2010); Director of
(1984 - 1988); Executive Assistant to ManTech International
Deputy Secretary of the U.S. Treasury, Corporation (national secu-
U.S. Treasury Department (1982 - rity, defense, and
1984); and Vice President and Team intelligence technology firm)
Leader in Corporate Banking, Bankers (2006 - present); Member,
Trust Co. (1976 - 1982) Board of Governors,
Investment Company Institute
(2007 - present); Member,
Board of Governors,
Independent Directors Council
(2007 - present); Former
Director of Brady Corporation
(2000 - 2007); Former
Director of Mortgage Guaranty
Insurance Corporation (1991 -
2006); Former Director of
Millennium Chemicals, Inc.
(commodity chemicals) (2002 -
2005); Former Director, R.J.
Reynolds Tobacco Holdings,
Inc. (tobacco) (1999-2005);
and Former Director of
Texaco, Inc. (1997 - 2001)
-----------------------------------------------------------------------------------------------------------------------------
44 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
-----------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
-----------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (67) Trustee since 2008. William Joseph Maier Professor of Trustee, Mellon Institutional
Trustee Serves until a Political Economy, Harvard University Funds Investment Trust and
successor (1972 - present) Mellon Institutional Funds
trustee is elected or Master Portfolio (oversaw 17
earlier portfolios in fund complex)
retirement or (1989-2008)
removal.
-----------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (65) Trustee since 2006. Founding Director, Vice President and None
Trustee Serves until a Corporate Secretary, The Winthrop
successor Group, Inc. (consulting firm)
trustee is elected or (1982-present); Desautels Faculty of
earlier Management, McGill University (1999 -
retirement or present); and Manager of Research
removal. Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
-----------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (64) Trustee since 2006. President and Chief Executive Officer, Director of New America High
Trustee Serves until a Newbury, Piret & Company, Inc. Income Fund, Inc. (closed-end
successor (investment banking firm) (1981 - investment company) (2004 -
trustee is elected or present) present); and member, Board
earlier of Governors, Investment
retirement or Company Institute (2000 -
removal. 2006)
-----------------------------------------------------------------------------------------------------------------------------
Stephen K. West (83) Trustee since 2006. Senior Counsel, Sullivan & Cromwell Director, The Swiss Helvetia
Trustee Serves until a LLP (law firm) (1998 - present); and Fund, Inc. (closed-end
successor Partner, Sullivan & Cromwell LLP investment company); and
trustee is elected or (prior to 1998) Director, Invesco, Ltd.
earlier (formerly AMVESCAP, PLC)
retirement or (investment manager)
removal. (1997-2005)
-----------------------------------------------------------------------------------------------------------------------------
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 45
Interested Trustees
-----------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position held with the Fund Length of Service Principal Occupation Held by Trustee
-----------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (86)* Trustee since 2006. Non-Executive Chairman and a director None
Trustee, President and Chief Serves until a of Pioneer Investment Management USA
Executive Officer of successor Inc. ("PIM-USA"); Chairman and a
the Funds trustee is elected or director of Pioneer; Chairman and
earlier Director of Pioneer Institutional
retirement or Asset Management, Inc. (since 2006);
removal. Director of Pioneer Alternative
Investment Management Limited (Dublin)
(until October 2011); President and a
director of Pioneer Alternative
Investment Management (Bermuda)
Limited and affiliated funds; Deputy
Chairman and a director of Pioneer
Global Asset Management S.p.A.
("PGAM") (until April 2010); Director
of Nano-C, Inc. (since 2003); Director
of Cole Management Inc. (2004 - 2011);
Director of Fiduciary Counseling, Inc.
(until December 2011); President of
all of the Pioneer Funds; and Retired
Partner, Wilmer Cutler Pickering Hale
and Dorr LLP
-----------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (53)* Trustee since 2007. Director, CEO and President of PIM-USA None
Trustee and Executive Serves until a (since February 2007); Director and
Vice President successor President of Pioneer and Pioneer
trustee is elected or Institutional Asset Management, Inc.
earlier (since February 2007); Executive Vice
retirement or President of all of the Pioneer Funds
removal. (since March 2007); Director of PGAM
(2007 - 2010); Head of New Europe
Division, PGAM (2000 - 2005); Head of
New Markets Division, PGAM (2005 -
2007)
-----------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are
officers or directors of the Fund's investment adviser and certain of its
affiliates.
46 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
Fund Officers
-----------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position held with the Fund Length of Service Principal Occupation Held by Officer
-----------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (47) Since 2010. Serves at Vice President and Associate General None
Secretary the discretion of the Counsel of Pioneer since January 2008
Board. and Secretary of all of the Pioneer
Funds since June 2010; Assistant
Secretary of all of the Pioneer Funds
from September 2003 to May 2010; and
Vice President and Senior Counsel of
Pioneer from July 2002 to December
2007
-----------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (51) Since 2010. Serves at Fund Governance Director of Pioneer None
Assistant Secretary the discretion of the since December 2006 and Assistant
Board. Secretary of all the Pioneer Funds
since June 2010; Manager - Fund
Governance of Pioneer from December
2003 to November 2006; and Senior
Paralegal of Pioneer from January 2000
to November 2003
-----------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (49) Since 2010. Serves at Counsel of Pioneer since June 2007 and None
Assistant Secretary the discretion of the Assistant Secretary of all the Pioneer
Board. Funds since June 2010; and Vice
President and Counsel at State Street
Bank from October 2004 to June 2007
-----------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (52) Since 2008. Serves at Vice President - Fund Treasury of None
Treasurer and Chief the discretion of the Pioneer; Treasurer of all of the
Financial and Accounting Board. Pioneer Funds since March 2008; Deputy
Officer of the Funds Treasurer of Pioneer from March 2004
to February 2008; and Assistant
Treasurer of all of the Pioneer Funds
from March 2004 to February 2008
-----------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (47) Since 2006. Serves at Assistant Vice President - Fund None
Assistant Treasurer the discretion of the Treasury of Pioneer; and Assistant
Board. Treasurer of all of the Pioneer Funds
-----------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (54) Since 2006. Serves at Fund Accounting Manager - Fund None
Assistant Treasurer the discretion of the Treasury of Pioneer; and Assistant
Board. Treasurer of all of the Pioneer Funds
-----------------------------------------------------------------------------------------------------------------------------
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 47
Fund Officers (continued)
-----------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position held with the Fund Length of Service Principal Occupation Held by Officer
-----------------------------------------------------------------------------------------------------------------------------
David F. Johnson (32) Since 2009. Serves at Fund Administration Manager - Fund None
Assistant Treasurer the discretion of the Treasury of Pioneer since November
Board. 2008; Assistant Treasurer of all of
the Pioneer Funds since January 2009;
and Client Service Manager -
Institutional Investor Services at
State Street Bank from March 2003 to
March 2007
-----------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (59) Since 2010. Serves at Chief Compliance Officer of Pioneer and None
Chief Compliance Officer the discretion of the of all the Pioneer Funds since March
Board. 2010; Director of Adviser and
Portfolio Compliance at Pioneer since
October 2005; and Senior Compliance
Officer for Columbia Management
Advisers, Inc. from October 2003 to
October 2005
-----------------------------------------------------------------------------------------------------------------------------
48 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
This page for your notes.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 49
This page for your notes.
50 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
This page for your notes.
Pioneer High Income Municipal Fund | Annual Report | 8/31/12 51
This page for your notes.
52 Pioneer High Income Municipal Fund | Annual Report | 8/31/12
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
Investment(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 21203-05-1012
Pioneer Disciplined
Value Fund
--------------------------------------------------------------------------------
Annual Report | August 31, 2012
--------------------------------------------------------------------------------
Ticker Symbols:
Class A SERSX
Class C PRVCX
Class Y PRUYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 19
Notes to Financial Statements 26
Report of Independent Registered Public Accounting Firm 33
Trustees, Officers and Service Providers 35
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 1
President's Letter
Dear Shareowner,
The U.S. economy showed signs of an economic slowdown in the second quarter,
reflecting higher savings by consumers and reduced spending by corporations, in
large part due to concerns about both the U.S. outlook and the deteriorating
situation in Europe. Some 40% - 45% of U.S. corporate earnings come from
overseas, with a large portion of that from Europe. While large U.S.
corporations generally remain in excellent financial health - cash, borrowing
capacity, and margins are all strong - they are holding back on hiring and
investments due to concerns about Europe, China, and U.S. regulations, fiscal
policies, taxes, and politics. Many investors share those concerns, and are
maintaining a cautious approach to the markets.
Despite this tough backdrop, the markets had a surprisingly strong first half of
2012. The Standard & Poor's 500 Index returned 9.5% over the six months ended
June 30, 2012. In the U.S. bond markets, interest rates generally declined, with
riskier sectors faring the best. The broad bond market, as measured by the
Barclays Capital Aggregate Bond Index, returned 2.4% during the same six-month
period, while the high-yield bond market, as measured by the Bank of America
Merrill Lynch High Yield Master II Index, returned 7.1%.
Given the major macroeconomic and political issues facing the markets in the
second half of the year, we certainly expect continuing volatility. But we also
see some positive economic data that give us hope for better news in the second
half of 2012. While the unemployment rate remains unacceptably high at over 8%,
employment and incomes continue to trend upward. Lower oil prices have acted
like an effective tax cut for consumers. Home construction, sales, and
refinancings have increased, and auto sales are holding up as well.
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.
* Diversification does not assure a profit or protect against loss in a
declining market.
2 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
Pioneer's investment professionals focus on finding good opportunities in both
equity and bond markets using the same disciplined investment approach we have
used since 1928. Our strategy is to identify undervalued individual securities
with the greatest potential for success, carefully weighing risk against reward.
Our teams of investment professionals continually monitor and analyze the
relative valuations of different sectors and securities globally to help build
portfolios that we believe can help you achieve your investment goals.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 3
Portfolio Management Discussion | 8/31/12
In the following interview, John Peckham, CFA, Co-Head of Equity Research, U.S.,
at Pioneer, discusses the market environment for value stocks during the 12
months ended August 31, 2012, and the performance of Pioneer Disciplined Value
Fund in that environment. Mr. Peckham, along with Paul Cloonan, Co-Head of
Equity Research, U.S., at Pioneer; Ashesh (Ace) Savla, senior quantitative
research analyst at Pioneer; and Brian Popiel, fundamental research analyst at
Pioneer, are responsible for the day-to-day management of the Fund.
Q How would you describe the investment environment for value stocks during
the 12-month period ended August 31, 2012?
A The U.S. stock market environment was exciting, nerve-wracking, and
profitable during the 12 months ended August 31, 2012. Looking back over
the year, the market suffered through three significant pullbacks (October
2011, November 2011, and May 2012), and enjoyed two meaningful rallies
(December 2011 through March 2012, and June through August 2012).
Fortunately, positive performance during the longer-term rallies more than
offset the negative performance of the shorter-term declines, and the
broad U.S. stock market, as measured by the Standard & Poor's 500 Index
(the S&P 500), returned 17.98% for the full 12-month period ended August
31, 2012.
In a change from recent history, large-cap value stocks generated returns
that were in-line with large-cap growth stocks and the broader market (as
measured by the S&P 500). The Russell 1000 Value Index, the Fund's
benchmark, returned 17.30% for the 12-month period, while the Russell 1000
Growth Index returned 17.37%. The higher dividend yields* of value stocks
compared with growth stocks were an important reason why value kept pace
with growth on a total return basis during the full reporting period.
The top-performing sectors in large-cap value over the past year were
consumer discretionary and telecom services, while the two
worst-performing sectors were materials and energy. The stabilization in
the housing market, continued improving business fundamentals in media,
and the somewhat surprising resilience of the retail industry drove
performance in the consumer discretionary sector. In telecom services,
performance was largely driven by the chase for yield, but we would note
that fundamentals improved at the margin for the phone companies. In
contrast, the commodity sectors (energy and materials) lagged due to
market concerns about slowing global economic growth.
* Dividends are not guaranteed.
4 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
Q How did the Fund perform in that environment during the 12 months ended
August 31, 2012?
A Pioneer Disciplined Value Fund's Class A shares returned 14.81% at net
asset value during the 12 months ended August 31, 2012, while the Fund's
benchmark, the Russell 1000 Value Index (the Russell Index), returned
17.30%. During the same period, the average return of the 459 mutual funds
in Lipper's Large-Cap Value Funds category was 14.61%.
Q What were the main drivers of the Fund's benchmark-relative
underperformance during the 12 months ended August 31, 2012?
A From a sector allocation perspective, being underweight to the
outperforming telecom services sector was a drag on the Fund's performance
relative to the Russell Index during the 12-month period, as was a modest
Fund overweight to information technology. For the most part, however,
stock selection was the main reason for the Fund's benchmark-relative
underperformance during the period, particularly selection results in
materials and information technology.
While stock picks in financials actually performed well overall, the
Fund's worst-performing stocks during the period included two banks,
Citigroup and JPMorgan Chase. In addition, media company Viacom, oil & gas
explorer Apache, and tech giant Hewlett-Packard (HP) were among the
worst-performing stock picks for the Fund during the 12-month period.
In the case of Citigroup, we bought the stock shortly before regulators
denied the company's request to increase its dividend and buy back stock.
The Fund's investment in JPMorgan Chase was a significant disappointment
over the 12-month period. The company's large trading loss shook our
confidence in management, and we elected to sell the Fund's entire
position.
Viacom's stock weakened after the company's cable TV ratings began to
deteriorate.
In the cases of Apache and HP, the stocks were statistically cheap, and we
believed the companies' management teams had credible plans to improve
valuations within a reasonable time period. Unfortunately, the management
teams failed to make adequate progress, and we decided to sell them. We
would note that the low natural gas prices that prevailed during the
12-month period certainly affected Apache, and continuing problems in the
printer and PC markets hurt HP's performance.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 5
Q What sector allocations or individual investments aided the Fund's
performance during the 12 months ended August 31, 2012?
A On a sector basis, the Fund generated its strongest benchmark-relative
performance during the 12-month period from both an overweight to and
strong stock picks within consumer discretionary. Solid stock picks also
drove above-benchmark Fund returns in health care. Overall stock selection
results in financials likewise benefited the Fund's relative performance.
The Fund's top five stock picks during the 12-month period were biotech
company Amgen, cable TV operator Comcast, credit card firm Discover,
department store retailer Macy's, and super regional bank Wells Fargo.
Amgen was a new addition to the Fund this year and returned more than 54%
after the company initiated a dividend and improved its drug pipeline.
Comcast returned more than 59%, as the cable business continued its strong
performance and the company began to reap the benefits from its NBC
Universal acquisition.
Discover continued its march higher, returning more than 55% as credit
performance continued to improve and the company grew market and wallet
share. In addition, Discover expanded its mobile payments platform through
a partnership with PayPal. Wells Fargo was another standout among the
Fund's financials holdings, posting a 33% gain during the period. The
company benefited from the general recovery among bank stocks and its
exposure to a U.S. housing market that appears to have stabilized.
Macy's returned more than 58%, as the company's increased focus on local
market merchandising produced impressive gains in same-store sales.
Q Could you discuss some of the changes to the Fund that took place during
the 12 months ended August 31, 2012?
A We bolstered the Fund's portfolio management team this year, adding John
Peckham, CFA, and Brian Popiel. Mr. Peckham is Co-Head of Equity Research,
U.S., and a portfolio manager on Pioneer's Value Fund and Fundamental
Value Fund portfolios. Mr. Popiel is a senior fundamental research analyst
and covers the financials sector for Pioneer. Mr. Peckham and Mr. Popiel
join Mr. Savla, who has been a manager on the Fund since its launch and is
a member of Pioneer's quantitative research analysis and portfolio
management teams; and Paul Cloonan, Co-Head of Equity Research, U.S., and
portfolio manager at Pioneer, and a member of the Fund's management team
since 2010.
6 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
The Fund's investment strategy remains the same. We focus on identifying
the top value ideas generated by Pioneer's seasoned fundamental research
team and use quantitative research and analysis to inform the stock
selection and portfolio construction process. We emphasize bottom-up stock
picking rather than top-down sector calls to drive the Fund's performance.
Q What is your outlook?
A We remain optimistic about the prospects for large-cap value stocks. We
believe that valuations remain reasonable, that dividend yields are
attractive, and that investor sentiment remains far from euphoric. We
continue to have little difficulty finding what we believe to be good
businesses selling at attractive prices. We note that value stocks have
materially underperformed growth stocks since the 2008 financial crisis,
and so we think there may be scope for value to catch up to growth in the
coming years.
While the macroeconomic backdrop remains uncertain, we believe the U.S.
economy will continue to grow at a moderate pace and that Europe will not
fall into an abyss. We also believe that the emerging markets will avoid a
hard economic landing. Recent central bank actions around the globe have
removed a degree of tail risk, and we are hopeful that the world's
political leaders will achieve the fiscal reforms necessary to support
global growth.
We thank you for your continued investment in the Fund.
Please refer to the Schedule of Investments on pages 15-18 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.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These opinions should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 7
Portfolio Summary | 8/31/12
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 92.2%
International Common Stocks 6.2%
Depositary Receipts for International Stocks 1.6%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 24.2%
Health Care 14.7%
Energy 14.7%
Consumer Discretionary 11.0%
Industrials 9.2%
Information Technology 8.3%
Consumer Staples 7.0%
Telecommunication Services 4.3%
Materials 3.8%
Utilities 2.8%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Chevron Corp. 4.63%
--------------------------------------------------------------------------------
2. Pfizer, Inc. 4.30
--------------------------------------------------------------------------------
3. Wells Fargo & Co. 3.96
--------------------------------------------------------------------------------
4. Exxon Mobil Corp. 3.49
--------------------------------------------------------------------------------
5. Citigroup, Inc. 3.39
--------------------------------------------------------------------------------
6. Discover Financial Services, Inc. 3.35
--------------------------------------------------------------------------------
7. Microsoft Corp. 3.11
--------------------------------------------------------------------------------
8. AT&T, Inc. 3.10
--------------------------------------------------------------------------------
9. Merck & Co, Inc. 2.81
--------------------------------------------------------------------------------
10. Johnson & Johnson Co. 2.78
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or
sell any securities listed.
8 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
Prices and Distributions | 8/31/12
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/12 8/31/11
--------------------------------------------------------------------------------
A $8.69 $8.16
--------------------------------------------------------------------------------
C $8.68 $8.16
--------------------------------------------------------------------------------
Y $8.83 $8.28
--------------------------------------------------------------------------------
Distributions per Share: 9/1/11-8/31/12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.0872 $0.1925 $0.2982
--------------------------------------------------------------------------------
C $0.0127 $0.1925 $0.2982
--------------------------------------------------------------------------------
Y $0.1133 $0.1925 $0.2982
--------------------------------------------------------------------------------
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. It is not possible to invest
directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 10-12.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 9
Performance Update | 8/31/12 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Disciplined Value Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of August 31, 2012)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
Life-of-Class
(12/15/05) 3.29% 2.38%
5 Years -0.01 -1.18
1 Year 14.81 8.18
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.70% 1.27%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Disciplined Russell 1000
Value Fund Value Index
12/31/2005 $ 9,425 $ 10,000
8/31/2006 $ 10,181 $ 11,098
8/31/2007 $ 11,835 $ 12,524
8/31/2008 $ 10,257 $ 10,688
8/31/2009 $ 8,888 $ 8,522
8/31/2010 $ 9,064 $ 8,945
8/31/2011 $ 10,306 $ 10,230
8/31/2012 $ 11,832 $ 11,999
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 the contractual expense limitation currently in
effect through January 1, 2014, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
Performance Update | 8/31/12 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Disciplined Value Fund, compared to that of the
Russell 1000 Value Index.
Average Annual Total Returns
(As of August 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(7/16/08) 3.30% 3.30%
1 Year 13.62 13.62
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.43% 2.17%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Disciplined Russell 1000
Value Fund Value Index
7/31/2008 $ 10,000 $ 10,000
8/31/2008 $ 10,148 $ 10,170
8/31/2009 $ 8,717 $ 8,109
8/31/2010 $ 8,810 $ 8,511
8/31/2011 $ 9,925 $ 9,734
8/31/2012 $ 11,276 $ 11,418
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). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2014, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 11
Performance Update | 8/31/12 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer Disciplined Value Fund, compared to that of the
Russell 1000 Value Index.
Average Annual Total Returns
(As of August 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
(12/15/05) 3.49% 3.49%
5 Years 0.26 0.26
1 Year 15.20 15.20
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.04% 0.92%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Disciplined Russell 1000
Value Fund Value Index
12/31/2005 $ 5,000,000 $ 5,000,000
8/31/2006 $ 5,398,990 $ 5,548,797
8/31/2007 $ 6,276,091 $ 6,262,058
8/31/2008 $ 5,450,402 $ 5,343,904
8/31/2009 $ 4,729,740 $ 4,260,867
8/31/2010 $ 4,836,623 $ 4,472,278
8/31/2011 $ 5,519,068 $ 5,114,855
8/31/2012 $ 6,357,936 $ 5,999,685
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class Y shares for the period prior to the inception
of Class Y shares on July 31, 2008, is based on the net asset value performance
of the Fund's Class A shares, which has not been restated to reflect any
differences in expenses, including Rule 12b-1 fees applicable to Class A shares.
Since fees for Class A shares generally are higher than those of Class Y shares,
the performance of Class Y shares prior to their inception would have been
higher than the performance shown.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2014, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
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 Disciplined Value Fund
Based on actual returns from March 1, 2012, through August 31, 2012.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 3/1/12
--------------------------------------------------------------------------------
Ending Account $1,024.81 $1,020.02 $1,026.74
Value (after expenses)
on 8/31/12
--------------------------------------------------------------------------------
Expenses Paid $6.36 $10.92 $4.59
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%,
and 0.90% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/366 (to reflect the one-half year period).
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 13
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Disciplined Value Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2012, through August 31, 2012.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 3/1/12
--------------------------------------------------------------------------------
Ending Account $1,018.85 $1,014.33 $1,020.61
Value (after expenses)
on 8/31/12
--------------------------------------------------------------------------------
Expenses Paid $6.34 $10.89 $4.57
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%,
and 0.90% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/366 (to reflect the one-half year period).
14 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
Schedule of Investments | 8/31/12
----------------------------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 99.7%
ENERGY -- 14.7%
Oil & Gas Drilling -- 1.8%
14,072 Ensco Plc $ 807,311
----------------------------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 10.6%
18,236 Chevron Corp. $ 2,045,351
17,670 Exxon Mobil Corp. 1,542,591
13,157 Occidental Petroleum Corp. 1,118,477
---------------
$ 4,706,419
----------------------------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 2.3%
35,777 Marathon Oil Corp. $ 995,316
---------------
Total Energy $ 6,509,046
----------------------------------------------------------------------------------------------------------------
MATERIALS -- 3.8%
Fertilizers & Agricultural Chemicals -- 2.3%
17,710 The Mosaic Co. $ 1,025,586
----------------------------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.5%
18,700 Freeport-McMoRan Copper & Gold, Inc. $ 675,257
---------------
Total Materials $ 1,700,843
----------------------------------------------------------------------------------------------------------------
CAPITAL GOODS -- 7.2%
Aerospace & Defense -- 2.3%
13,018 United Technologies Corp. $ 1,039,487
----------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 2.8%
6,025 3M Co. $ 557,915
32,100 General Electric Co. 664,791
---------------
$ 1,222,706
----------------------------------------------------------------------------------------------------------------
Industrial Machinery -- 2.1%
20,097 Ingersoll-Rand Plc $ 939,736
---------------
Total Capital Goods $ 3,201,929
----------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 2.0%
Railroads -- 2.0%
7,340 Union Pacific Corp. $ 891,370
---------------
Total Transportation $ 891,370
----------------------------------------------------------------------------------------------------------------
MEDIA -- 7.1%
Broadcasting -- 1.8%
21,814 CBS Corp. (Class B) $ 792,721
----------------------------------------------------------------------------------------------------------------
Cable & Satellite -- 2.6%
34,132 Comcast Corp. $ 1,144,446
----------------------------------------------------------------------------------------------------------------
Movies & Entertainment -- 2.7%
24,692 The Walt Disney Co. $ 1,221,513
---------------
Total Media $ 3,158,680
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 15
Schedule of Investments | 8/31/12 (continued)
----------------------------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------------------------
RETAILING -- 3.9%
Department Stores -- 2.3%
25,210 Macy's, Inc. $ 1,016,215
----------------------------------------------------------------------------------------------------------------
Home Improvement Retail -- 1.6%
12,642 The Home Depot, Inc. $ 717,434
---------------
Total Retailing $ 1,733,649
----------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.6%
Drug Retail -- 2.6%
25,162 CVS Caremark Corp. $ 1,146,129
---------------
Total Food & Staples Retailing $ 1,146,129
----------------------------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.5%
Packaged Foods & Meats -- 1.9%
24,216 Campbell Soup Co. $ 850,950
----------------------------------------------------------------------------------------------------------------
Tobacco -- 2.6%
33,324 Altria Group, Inc. $ 1,131,683
---------------
Total Food, Beverage & Tobacco $ 1,982,633
----------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 2.2%
Managed Health Care -- 2.2%
17,675 UnitedHealth Group, Inc. $ 959,752
---------------
Total Health Care Equipment & Services $ 959,752
----------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 12.5%
Biotechnology -- 2.6%
13,988 Amgen, Inc. $ 1,173,873
----------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 9.9%
18,214 Johnson & Johnson Co. $ 1,228,170
28,894 Merck & Co., Inc. 1,243,887
79,627 Pfizer, Inc. 1,899,900
---------------
$ 4,371,957
---------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 5,545,830
----------------------------------------------------------------------------------------------------------------
BANKS -- 6.5%
Diversified Banks -- 4.0%
51,462 Wells Fargo & Co. $ 1,751,252
----------------------------------------------------------------------------------------------------------------
Regional Banks -- 2.5%
17,962 PNC Financial Services Group, Inc. $ 1,116,518
---------------
Total Banks $ 2,867,770
----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 11.7%
Other Diversified Financial Services -- 3.4%
50,459 Citigroup, Inc. $ 1,499,137
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
----------------------------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------------------------
Consumer Finance -- 5.9%
20,157 Capital One Financial Corp. $ 1,139,475
38,225 Discover Financial Services, Inc. 1,480,454
---------------
$ 2,619,929
----------------------------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 2.4%
44,669 Invesco, Ltd. $ 1,057,762
---------------
Total Diversified Financials $ 5,176,828
----------------------------------------------------------------------------------------------------------------
INSURANCE -- 6.0%
Life & Health Insurance -- 1.5%
19,400 MetLife, Inc. $ 662,122
----------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 4.5%
13,965 ACE, Ltd. $ 1,029,639
26,205 The Allstate Corp. 976,922
---------------
$ 2,006,561
---------------
Total Insurance $ 2,668,683
----------------------------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 3.1%
Systems Software -- 3.1%
44,610 Microsoft Corp. $ 1,374,880
---------------
Total Software & Services $ 1,374,880
----------------------------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 2.2%
Computer Hardware -- 2.2%
1,488 Apple, Inc. $ 989,877
---------------
Total Technology Hardware & Equipment $ 989,877
----------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 3.0%
Semiconductor Equipment -- 1.5%
11,565 ASML Holding NV (A.D.R.) $ 656,545
----------------------------------------------------------------------------------------------------------------
Semiconductors -- 1.5%
16,610 Analog Devices, Inc. $ 660,081
---------------
Total Semiconductors & Semiconductor Equipment $ 1,316,626
----------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.3%
Integrated Telecommunication Services -- 4.3%
37,407 AT&T, Inc. $ 1,370,592
12,568 Verizon Communications, Inc. 539,670
---------------
$ 1,910,262
---------------
Total Telecommunication Services $ 1,910,262
----------------------------------------------------------------------------------------------------------------
UTILITIES -- 2.4%
Electric Utilities -- 2.4%
24,700 American Electric Power Co., Inc. $ 1,061,853
---------------
Total Utilities $ 1,061,853
----------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 17
Schedule of Investments | 8/31/12 (continued)
Shares Value
----------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $38,124,592) $ 44,196,640
----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.7%
(Cost $38,124,592) (a) $ 44,196,640
----------------------------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.3% $ 117,781
----------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 44,314,421
================================================================================================================
(A.D.R.) American Depositary Receipts.
(a) At August 31, 2012, the net unrealized gain on investments based
on cost for federal income tax purposes of $38,171,185 was as
follows:
Aggregate gross unrealized gain for all investments in which there is $ 6,390,865
an excess of value over tax cost
Aggregate gross unrealized loss for all investments in which there is (365,410)
an excess of tax cost over value
-----------------
Net unrealized gain $ 6,025,455
=================
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2012 aggregated $42,315,137 and $49,946,881, 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) as Level 3. See
Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of August 31, 2012, in valuing
the Fund's assets:
-------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------------
Common Stocks $44,196,640 $ -- $ -- $44,196,640
-------------------------------------------------------------------------------------------------
Total $44,196,640 $ -- $ -- $44,196,640
=================================================================================================
During the year ended August 31, 2012, there were no transfers between levels.
The accompanying notes are an integral part of these financial statements.
18 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
Statement of Assets and Liabilities | 8/31/12
ASSETS:
Investment in securities, at value (cost $38,124,592) $ 44,196,640
Cash 96,141
Receivables --
Fund shares sold 10,264
Dividends 123,717
Due from Pioneer Investment Management, Inc. 24,588
Other 24,501
-----------------------------------------------------------------------------------------
Total assets $ 44,475,851
-----------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 88,069
Due to affiliates 25,499
Accrued expenses 47,862
-----------------------------------------------------------------------------------------
Total liabilities $ 161,430
-----------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 39,263,218
Undistributed net investment income 410,651
Accumulated net realized loss on investments (1,431,496)
Net unrealized gain on investments 6,072,048
-----------------------------------------------------------------------------------------
Total net assets $ 44,314,421
-----------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $2,083,675/239,798 shares) $ 8.69
Class C (based on $617,771/71,150 shares) $ 8.68
Class Y (based on $41,612,975/4,713,685 shares) $ 8.83
MAXIMUM OFFERING PRICE:
Class A ($8.69 (divided by) 94.25%) $ 9.22
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 19
Statement of Operations
For the Year Ended 8/31/12
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $3,882) $ 1,127,072
Interest 84
Income from securities loaned, net 2,772
----------------------------------------------------------------------------------------------------------------
Total investment income $ 1,129,928
----------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 294,593
Transfer agent fees
Class A 4,274
Class C 1,734
Class Y 487
Distribution fees
Class A 4,104
Class C 6,314
Shareholder communication expense 3,172
Administrative reimbursements 13,082
Custodian fees 9,749
Registration fees 59,810
Professional fees 45,996
Printing expense 31,928
Fees and expenses of nonaffiliated Trustees 7,109
Miscellaneous 4,850
----------------------------------------------------------------------------------------------------------------
Total expenses $ 487,202
Less fees waived and expenses reimbursed by Pioneer Investment
Management, Inc. (64,889)
----------------------------------------------------------------------------------------------------------------
Net expenses $ 422,313
----------------------------------------------------------------------------------------------------------------
Net investment income $ 707,615
----------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $ (1,397,977)
----------------------------------------------------------------------------------------------------------------
Change in net unrealized gain on investments $ 6,895,504
----------------------------------------------------------------------------------------------------------------
Net gain on investments $ 5,497,527
----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 6,205,142
================================================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/12 8/31/11
----------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 707,615 $ 507,403
Net realized gain (loss) on investments (1,397,977) 2,738,999
Change in net unrealized gain (loss) on investments 6,895,504 (395,951)
----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 6,205,142 $ 2,850,451
----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.09 and $0.07 per share, respectively) $ (15,803) $ (9,441)
Class C ($0.01 and $0.00* per share, respectively) (1,132) (323)
Class Y ($0.11 and $0.10 per share, respectively) (604,696) (376,968)
Net realized gain:
Class A ($0.49 and $0.79 per share, respectively) (82,992) (92,143)
Class C ($0.49 and $0.79 per share, respectively) (42,010) (48,851)
Class Y ($0.49 and $0.79 per share, respectively) (2,577,701) (2,899,846)
----------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (3,324,334) $ (3,427,572)
----------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 3,552,222 $ 22,253,365
Reinvestment of distributions 93,899 83,249
Cost of shares repurchased (9,934,443) (4,718,006)
----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund share transactions $ (6,288,322) $ 17,618,608
----------------------------------------------------------------------------------------------------------------
Net increase in net assets $ (3,407,514) $ 17,041,487
NET ASSETS:
Beginning of period 47,721,935 30,680,448
----------------------------------------------------------------------------------------------------------------
End of period $ 44,314,421 $ 47,721,935
----------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 410,651 $ 325,464
================================================================================================================
* Rounds to less than $0.01 per share
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 21
Statement of Changes in Net Assets (continued)
--------------------------------------------------------------------------------------------------------------
'12 Shares '12 Amount '11 Shares '11 Amount
--------------------------------------------------------------------------------------------------------------
CLASS A
Shares sold 171,130 $ 1,408,673 105,522 $ 912,806
Reinvestment of distributions 8,586 64,204 6,845 55,201
Less shares repurchased (106,348) (885,908) (58,251) (496,626)
--------------------------------------------------------------------------------------------------------------
Net increase 73,368 $ 586,969 54,116 $ 471,381
==============================================================================================================
CLASS C
Shares sold 46,931 $ 399,187 37,652 $ 329,948
Reinvestment of distributions 4,011 29,695 3,491 28,048
Less shares repurchased (62,307) (521,695) (19,148) (164,822)
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) (11,365) $ (92,813) 21,995 $ 193,174
==============================================================================================================
CLASS Y
Shares sold 218,024 $ 1,744,362 2,331,206 $ 21,010,611
Reinvestment of distributions -- -- -- --
Less shares repurchased (1,019,600) (8,526,840) (455,774) (4,056,558)
--------------------------------------------------------------------------------------------------------------
Net increase (decrease) (801,576) $ (6,782,478) 1,875,432 $ 16,954,053
==============================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/12 8/31/11 8/31/10 8/31/09 8/31/08
--------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 8.16 $ 7.95 $ 8.19 $ 9.60 $ 11.99
--------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.11 $ 0.07 $ 0.06 $ 0.09 $ 0.11
Net realized and unrealized gain (loss) on
investments 1.00 1.00 0.12 (1.39) (1.62)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
investment operations $ 1.11 $ 1.07 $ 0.18 $ (1.30) $ (1.51)
--------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.09) (0.07) (0.07) (0.11) (0.11)
Net realized gain (0.49) (0.79) (0.35) -- (0.77)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.53 $ 0.21 $ (0.24) $ (1.41) $ (2.39)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.69 $ 8.16 $ 7.95 $ 8.19 $ 9.60
================================================================================================================================
Total return* 14.81% 13.69% 1.98% (13.34)% (13.34)%
Ratio of net expenses to average net assets 1.25% 1.25% 1.25% 1.25% 1.25%
Ratio of net investment income to average net
assets 1.23% 0.95% 0.78% 1.34% 1.07%
Portfolio turnover rate 94% 91% 112% 114% 116%
Net assets, end of period (in thousands) $ 2,084 $ 1,358 $ 892 $ 526 $ 520
Ratios with no waiver of fees and assumption of
expenses by the Adviser:
Total expenses 1.71% 1.68% 1.76% 13.37% 16.02%
Net investment income (loss) 0.77% 0.52% 0.27% (10.78)% (13.70)%
================================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 23
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year 7/17/08 (a)
Ended Ended Ended Ended to
8/31/12 8/31/11 8/31/10 8/31/09 8/31/08
------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 8.16 $ 7.96 $ 8.23 $ 9.61 $ 9.34
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.03 $ (0.01) $ (0.02) $ 0.03 $ 0.01
Net realized and unrealized gain (loss) on
investments 0.99 1.00 0.12 (1.39) 0.26
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
investment operations $ 1.02 $ 0.99 $ 0.10 $ (1.36) $ 0.27
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.01) (0.00)(c) (0.02) (0.02) --
Net realized gain (0.49) (0.79) (0.35) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.52 $ 0.20 $ (0.27) $ (1.38) $ 0.27
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.68 $ 8.16 $ 7.96 $ 8.23 $ 9.61
====================================================================================================================================
Total return* 13.62% 12.65% 1.07% (14.10)% 2.89%(b)
Ratio of net expenses to average net assets 2.15% 2.15% 2.15% 1.99% 2.15%**
Ratio of net investment income (loss) to average
net assets 0.35% 0.05% (0.12)% 0.59% 0.40%**
Portfolio turnover rate 94% 91% 112% 114% 116%(b)
Net assets, end of period (in thousands) $ 618 $ 673 $ 482 $ 265 $ 257
Ratios with no waiver of fees and assumption of
expenses by the Adviser:
Total expenses 2.34% 2.41% 2.40% 13.76% 25.47%**
Net investment income (loss) 0.16% (0.21)% (0.37)% (11.18)% (22.92)%**
====================================================================================================================================
(a) Class C shares were first publicly offered on July 17, 2008.
(b) Not annualized.
(c) Rounds to less than ($0.01) per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
----------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year 7/31/08 (a)
Ended Ended Ended Ended to
8/31/12 8/31/11 8/31/10 8/31/09 8/31/08
----------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 8.28 $ 8.05 $ 8.27 $ 9.62 $ 9.57
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.13 $ 0.10 $ 0.09 $ 0.06 $ 0.02
Net realized and unrealized gain (loss) on
investments 1.02 1.02 0.11 (1.34) 0.03
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
investment operations $ 1.15 $ 1.12 $ 0.20 $ (1.28) $ 0.05
----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.11) (0.10) (0.07) (0.07) --
Net realized gain (0.49) (0.79) (0.35) -- --
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.55 $ 0.23 $ (0.22) $ (1.35) $ 0.05
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.83 $ 8.28 $ 8.05 $ 8.27 $ 9.62
==================================================================================================================================
Total return* 15.20% 14.11% 2.26% (13.22)% 0.52%(b)
Ratio of net expenses to average net assets 0.90% 0.90% 0.90% 0.90% 0.90%**
Ratio of net investment income to average net
assets 1.59% 1.30% 1.14% 1.41% 2.37%**
Portfolio turnover rate 94% 91% 112% 114% 116%(b)
Net assets, end of period (in thousands) $ 41,613 $ 45,691 $ 29,306 $ 23,037 $ 251
Ratios with no waiver of fees and assumption of
expenses by the Adviser:
Total expenses 1.03% 1.02% 1.22% 1.88% 10.11%**
Net investment income (loss) 1.46% 1.19% 0.82% 0.43% (6.84)%**
==================================================================================================================================
(a) Class Y shares were first publicly offered on July 31, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at each beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 25
Notes to Financial Statements | 8/31/12
1. Organization and Significant Accounting Policies
Pioneer Disciplined Value Fund (the Fund) is one of four portfolios comprising
Pioneer Series Trust V, a Delaware statutory trust. The Fund is registered under
the Investment Company Act of 1940 as a diversified, open-end management
investment company. Pioneer Investment Management Inc. (PIM), the Fund's
investment adviser, paid all organizational costs of the Fund. The Fund's
investment objective is long-term capital growth.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Class C shares were first publicly offered on July 17, 2008. Class Y
shares were first publicly offered on July 31, 2008. Each class of shares
represents an interest in the same portfolio of investments of the Fund and has
identical rights (based on relative net asset values) to assets and liquidation
proceeds. Share classes can bear different rates of class-specific fees and
expenses such as transfer agent and distribution fees. Differences in
class-specific fees and expenses will result in differences in net investment
income and, therefore, the payment of different dividends from net investment
income earned by each class. The Amended and Restated Declaration of Trust of
the Fund gives the Board the flexibility to specify either per-share voting or
dollar-weighted voting when submitting matters for shareholder approval. Under
per-share voting, each share of a class of the Fund is entitled to one vote.
Under dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
26 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value
of the Fund is computed once daily, on each day the New York Stock
Exchange (NYSE) is open, as of the close of regular trading on the NYSE.
In computing the net asset value, securities that have traded on an
exchange are valued at the last sale price on the principal exchange where
they are traded. Securities that have not traded on the date of valuation,
or securities for which sale prices are not available, generally are
valued at the mean between the last bid and asked prices. Short-term fixed
income securities with remaining maturities of sixty days or less
generally are valued at amortized cost. Money market mutual funds are
valued at net asset value.
Trading in foreign securities is substantially completed each day at
various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times.
Securities for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued using fair value
methods pursuant to procedures adopted by the Board of Trustees. The Fund
may use fair value methods if it is determined that a significant event
has occurred after the close of the exchange or market on which the
security trades and prior to the determination of the Fund's net asset
value. Examples of a significant event might include political or economic
news, corporate restructurings, natural disasters, terrorist activity or
trading halts. Thus, the valuation of the Fund's securities may differ
from exchange prices.
At August 31, 2012, there were no securities that were valued using fair
value methods (other than securities that were valued using prices
supplied by independent pricing services). Inputs used when applying fair
value methods to value a security may include credit ratings, the
financial condition of the company, current market conditions and
comparable securities.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income is recorded
on the accrual basis. Dividend and interest income are reported net of
unrecoverable foreign taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 27
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareowners. Therefore, no federal income tax provision is
required. As of August 31, 2012, the Fund did not have any interest and
penalties related to unrecognized tax positions, which, if applicable,
would be recorded as an income tax expense in the Statement of Operations.
Tax years for the prior three fiscal years are subject to examination by
federal and state tax authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may
be shown in the accompanying financial statements as from or in excess of
net investment income or as from net realized gain on investment
transactions, or as from paid-in capital, depending on the type of
book/tax differences that may exist.
At August 31, 2012, the Fund reclassified $797 to decrease undistributed
net investment income and $797 to decrease accumulated net realized loss
on investments to reflect permanent book/tax differences. The
reclassification has no impact on the net asset value of the Fund and is
designed to present the Fund's capital accounts on a tax basis.
At August 31, 2012, the Fund was permitted to carry forward indefinitely
$1,384,903 of short-term losses under the Regulated Investment Company
Modernization Act of 2010 without limitation.
The tax character of distributions paid during the years ended August 31,
2012 and August 31, 2011 was as follows:
--------------------------------------------------------------------------------
2012 2011
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 1,682,420 $ 2,703,287
Long-term capital gain 1,641,914 724,285
--------------------------------------------------------------------------------
Total $ 3,324,334 $ 3,427,572
================================================================================
The following shows the components of distributable earnings on a federal
income tax-basis at August 31, 2012:
--------------------------------------------------------------------------------
2012
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 410,651
Capital loss carryforward (1,384,903)
Net unrealized gain 6,025,455
--------------------------------------------------------------------------------
Total $ 5,051,203
================================================================================
28 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
The difference between book-basis and tax-basis net unrealized gain is
attributable to the tax deferral of losses on wash sales.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned $3,636 in underwriting commissions on the sale of
Class A shares during the year ended August 31, 2012.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset
value attributable to Class A and Class C shares of the Fund, respectively
(see Note 4). Class Y shares do not pay distribution fees. All expenses
and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services are allocated among
the classes of shares based on the number of accounts in each class and
the ratable allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, and Class Y shares can
reflect different transfer agent and distribution expense rates.
E. Risks
Small and mid-sized companies may offer the potential for higher returns,
but are also subject to greater short-term price fluctuations than larger,
more established companies. The Fund's prospectus contains information
regarding the Fund's principal risks. Please refer to that document when
considering the Fund's principal risks.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 29
F. 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 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 August 31, 2012, the Fund
had no securities on loan.
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 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. There were
no securities on loan as of August 31, 2012.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.65% of
the Fund's average daily net assets up to $1 billion, 0.60% of the next $4
billion and 0.55% on assets over $5 billion. For the year ended August 31, 2012,
the effective management fee (excluding waivers and/or assumption of expenses)
was equivalent to 0.65% of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund to
the extent required to reduce Fund expenses to 1.25%, 2.15%, and 0.90% of the
average daily net assets attributable to Class A, Class C, and Class Y shares,
respectively. Fees waived and expenses reimbursed during the year ended August
31, 2012 are reflected on the Statement of Operations. These expense limitations
are in effect through January 1, 2014. There can be no assurance that PIM will
extend the expense limitation agreement for a class of shares beyond the date
referred to above.
30 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
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
$24,998 in management fees, administrative costs and certain other
reimbursements payable to PIM at August 31, 2012.
Effective March 5, 2012, PIM has retained Brown Brothers Harriman & Co. to
provide certain sub-administration and accounting services to the Fund.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the year ended August 31, 2012, such out-of-pocket expenses by class of shares
were as follows:
--------------------------------------------------------------------------------
Shareholder Communications
--------------------------------------------------------------------------------
Class A $ 2,459
Class C 194
Class Y 519
--------------------------------------------------------------------------------
Total $ 3,172
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $439 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at August 31, 2012.
4. Distribution Plan
The Fund has adopted a distribution plan (the Plan) pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A and Class C
shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the
average daily net assets attributable to Class C shares. The fee for Class C
shares consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class C shares. Included in "Due to
affiliates" reflected on the Statement of Assets and Liabilities is $62 in
distribution fees payable to PFD at August 31, 2012.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 31
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. 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
year ended August 31, 2012, CDSCs in the amount of $130 were paid to PFD.
32 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust V and
the Shareowners of Pioneer Disciplined Value Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Disciplined Value Fund, one of the
portfolios constituting Pioneer Series Trust V (the "Trust") as of August 31
2012 and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the periods indicated therein.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Trust's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Trust's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of August 31, 2012 by correspondence with the custodian and
brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Disciplined Value Fund at August 31, 2012, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the periods
indicated therein, in conformity with U.S. generally accepted accounting
principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
October 24, 2012
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 33
ADDITIONAL INFORMATION (unaudited)
For the year ended August 30, 2012, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax
Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate up to
the maximum amount of such dividends allowable under the Act, as taxed at a
maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2011 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 57.44%.
The percentage of the Fund's ordinary income distributions that is exempt from
nonresident alien (NRA) tax withholding resulting from qualified short term
gains was 59.97%.
34 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy voting policies and procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and Officers are listed on the following pages, together
with their principal occupations during at least the past five years. Trustees
who are interested persons of the Fund within the meaning of the 1940 Act are
referred to as Interested Trustees. Trustees who are not interested persons of
the Fund are referred to as Independent Trustees. Each of the Trustees serves as
a trustee of each of the 56 U.S. registered investment portfolios for which
Pioneer serves as investment adviser (the "Pioneer Funds"). The address for all
Trustees and all officers of the Fund is 60 State Street, Boston, Massachusetts
02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 35
Independent Trustees
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held with the Fund Length of Service Principal Occupation Held by Trustee
---------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (61) Trustee since Chairman and Chief Executive Officer, Director, Broadridge Financial
Chairman of the Board and 2006. Serves Quadriserv, Inc. (technology products for Solutions, Inc. (investor
Trustee until a successor securities lending industry) (2008 - communications and securities
trustee is present); private investor (2004 - 2008); and processing provider for
elected or Senior Executive Vice President, The Bank of financial services industry)
earlier New York (financial and securities services) (2009 - present);
retirement or (1986 - 2004)
removal.
---------------------------------------------------------------------------------------------------------------------------------
David R. Bock (68) Trustee since Managing Partner, Federal City Capital Director, Quadriserv, Inc.
Trustee 2005. Serves Advisors (corporate advisory services (2005 - present); and
until a successor company) (1997 - 2004 and 2008 - present); Commissioner, New Jersey State
trustee is Interim Chief Executive Officer, Oxford Civil Service Commission (2011
elected or Analytica, Inc. (privately held research and - present) Director of
earlier consulting company) (2010); Executive Vice Enterprise Community
retirement or President and Chief Financial Officer, I-trax, Investment, Inc.
removal. Inc. (publicly traded health care services (privately-held affordable
company) (2004 - 2007); and Executive Vice housing finance company) (1985 -
President and Chief Financial Officer, 2010); Director of Oxford
Pedestal Inc. (internet-based mortgage Analytica, Inc. (2008 -
trading company) (2000 - 2002) present); Director of The Swiss
Helvetia Fund, Inc. (closed-end
fund) (2010 - present); and
Director of New York Mortgage
Trust (publicly traded mortgage
REIT) (2004 - 2009, 2012 -
present)
---------------------------------------------------------------------------------------------------------------------------------
36 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held with the Fund Length of Service Principal Occupation Held by Trustee
---------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (64) Trustee since Chairman, Bush International, LLC Director of Marriott
Trustee 2005. Serves (international financial advisory firm) (1991 - International, Inc. (2008 -
until a successor present); Senior Managing Director, Brock present); Director of Discover
trustee is Capital Group, LLC (strategic business Financial Services (credit card
elected or advisors) (2010 - present); Managing issuer and electronic payment
earlier Director, Federal Housing Finance Board services) (2007 - present);
retirement or (oversight of Federal Home Loan Bank system) Former Director of Briggs &
removal. (1989 - 1991); Vice President and Head of Stratton Co. (engine
International Finance, Federal National manufacturer) (2004 - 2009);
Mortgage Association (1988 - 1989); U.S. Former Director of UAL
Alternate Executive Director, International Corporation (airline holding
Monetary Fund (1984 - 1988); Executive company) (2006 - 2010);
Assistant to Deputy Secretary of the U.S. Director of ManTech
Treasury, U.S. Treasury Department (1982 - International Corporation
1984); and Vice President and Team Leader in (national security, defense,
Corporate Banking, Bankers Trust Co. (1976 - and intelligence technology
1982) firm) (2006 - present); Member,
Board of Governors, Investment
Company Institute (2007 -
present); Member, Board of
Governors, Independent
Directors Council (2007 -
present); Former Director of
Brady Corporation (2000 -
2007); Former Director of
Mortgage Guaranty Insurance
Corporation (1991 - 2006);
Former Director of Millennium
Chemicals, Inc. (commodity
chemicals) (2002 - 2005);
Former Director, R.J. Reynolds
Tobacco Holdings, Inc.
(tobacco) (1999-2005); and
Former Director of Texaco, Inc.
(1997 - 2001)
---------------------------------------------------------------------------------------------------------------------------------
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 37
Independent Trustees (continued)
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held with the Fund Length of Service Principal Occupation Held by Trustee
---------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (67) Trustee since William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee 2008. Serves until Economy, Harvard University (1972 - present) Funds Investment Trust and
a successor Mellon Institutional Funds
trustee is elected Master Portfolio (oversaw 17
or earlier portfolios in fund complex)
retirement or (1989-2008)
removal
---------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (65) Trustee since Founding Director, Vice President and None
Trustee 2005. Serves until Corporate Secretary, The Winthrop Group, Inc.
a successor (consulting firm) (1982-present); Desautels
trustee is elected Faculty of Management, McGill University
or earlier (1999 - present); and Manager of Research
retirement or Operations and Organizational Learning, Xerox
removal. PARC, Xerox's advance research center
(1990-1994)
---------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (64) Trustee since President and Chief Executive Officer, Director of New America High
Trustee 2005. Serves until Newbury, Piret & Company, Inc. (investment Income Fund, Inc. (closed-end
a successor banking firm) (1981 - present) investment company) (2004 -
trustee is elected present); and member, Board of
or earlier Governors, Investment Company
retirement or Institute (2000 - 2006)
removal.
---------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (83) Trustee since Senior Counsel, Sullivan & Cromwell LLP (law Director, The Swiss Helvetia
Trustee 2005. Serves until firm) (1998 - present); and Partner, Sullivan Fund, Inc. (closed-end
a successor & Cromwell LLP (prior to 1998) investment company); and
trustee is elected Director, Invesco, Ltd.
or earlier (formerly AMVESCAP, PLC)
retirement or (investment manager)
removal. (1997-2005)
---------------------------------------------------------------------------------------------------------------------------------
38 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
Interested Trustees
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
held with the Fund Length of Service Principal Occupation Held by Trustee
---------------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (86)* Trustee since Non-Executive Chairman and a director of None
Trustee, President and 2005. Serves Pioneer Investment Management USA Inc.
Chief Executive Officer until a successor ("PIM-USA"); Chairman and a director of
of the Funds trustee is Pioneer; Chairman and Director of Pioneer
elected or Institutional Asset Management, Inc. (since
earlier 2006); Director of Pioneer Alternative
retirement or Investment Management Limited (Dublin)
removal. (until October 2011); President and a
director of Pioneer Alternative Investment
Management (Bermuda) Limited and affiliated
funds; Deputy Chairman and a director of
Pioneer Global Asset Management S.p.A.
("PGAM") (until April 2010); Director of
Nano-C, Inc. (since 2003); Director of Cole
Management Inc. (2004 - 2011); Director of
Fiduciary Counseling, Inc. (until December
2011); President of all of the Pioneer
Funds; and Retired Partner, Wilmer Cutler
Pickering Hale and Dorr LLP
---------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury Trustee since Director, CEO and President of PIM-USA None
(53)* 2007. Serves (since February 2007); Director and
Trustee and Executive until a successor President of Pioneer and Pioneer
Vice President trustee is Institutional Asset Management, Inc. (since
elected or February 2007); Executive Vice President of
earlier all of the Pioneer Funds (since March 2007);
retirement or Director of PGAM (2007 - 2010); Head of New
removal. Europe Division, PGAM (2000 - 2005); Head of
New Markets Division, PGAM (2005 - 2007)
---------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are
officers or directors of the Fund's investment adviser and certain of its
affiliates.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 39
Fund Officers
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
held with the Fund Length of Service Principal Occupation Held by Officer
---------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley Since 2010. Vice President and Associate General Counsel None
(47) Serves at the of Pioneer since January 2008 and Secretary
Secretary discretion of the of all of the Pioneer Funds since June 2010;
Board. Assistant Secretary of all of the Pioneer
Funds from September 2003 to May 2010; and
Vice President and Senior Counsel of Pioneer
from July 2002 to December 2007
---------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (51) Since 2010. Fund Governance Director of Pioneer since None
Assistant Secretary Serves at the December 2006 and Assistant Secretary of all
discretion of the the Pioneer Funds since June 2010; Manager -
Board. Fund Governance of Pioneer from December
2003 to November 2006; and Senior Paralegal
of Pioneer from January 2000 to November
2003
---------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (49) Since 2010. Counsel of Pioneer since June 2007 and None
Assistant Secretary Serves at the Assistant Secretary of all the Pioneer Funds
discretion of the since June 2010; and Vice President and
Board. Counsel at State Street Bank from October
2004 to June 2007
---------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (52) Since 2008. Vice President - Fund Treasury of Pioneer; None
Treasurer and Chief Serves at the Treasurer of all of the Pioneer Funds since
Financial and Accounting discretion of the March 2008; Deputy Treasurer of Pioneer from
Officer of the Funds Board. March 2004 to February 2008; and Assistant
Treasurer of all of the Pioneer Funds from
March 2004 to February 2008
---------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (47) Since 2005. Assistant Vice President - Fund Treasury of None
Assistant Treasurer Serves at the Pioneer; and Assistant Treasurer of all of
discretion of the the Pioneer Funds
Board.
---------------------------------------------------------------------------------------------------------------------------------
40 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
held with the Fund Length of Service Principal Occupation Held by Officer
---------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (54) Since 2005. Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer Serves at the Pioneer; and Assistant Treasurer of all of
discretion of the the Pioneer Funds
Board.
---------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (32) Since 2009. Fund Administration Manager - Fund Treasury None
Assistant Treasurer Serves at the of Pioneer since November 2008; Assistant
discretion of the Treasurer of all of the Pioneer Funds since
Board. January 2009; and Client Service Manager -
Institutional Investor Services at State
Street Bank from March 2003 to March 2007
---------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (59) Since 2010. Chief Compliance Officer of Pioneer and of None
Chief Compliance Officer Serves at the all the Pioneer Funds since March 2010;
discretion of the Director of Adviser and Portfolio Compliance
Board. at Pioneer since October 2005; and Senior
Compliance Officer for Columbia Management
Advisers, Inc. from October 2003 to October
2005
---------------------------------------------------------------------------------------------------------------------------------
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 41
This page for your notes.
42 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
This page for your notes.
Pioneer Disciplined Value Fund | Annual Report | 8/31/12 43
This page for your notes.
44 Pioneer Disciplined Value Fund | Annual Report | 8/31/12
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
Investment(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 19429-06-1012
Pioneer Disciplined
Growth Fund
--------------------------------------------------------------------------------
Annual Report | August 31, 2012
--------------------------------------------------------------------------------
Ticker Symbols:
Class A SRSGX
Class C PRGCX
Class Y PRGYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 20
Notes to Financial Statements 27
Report of Independent Registered Public Accounting Firm 34
Trustees, Officers and Service Providers 36
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 1
President's Letter
Dear Shareowner,
The U.S. economy showed signs of an economic slowdown in the second quarter,
reflecting higher savings by consumers and reduced spending by corporations, in
large part due to concerns about both the U.S. outlook and the deteriorating
situation in Europe. Some 40% - 45% of U.S. corporate earnings come from
overseas, with a large portion of that from Europe. While large U.S.
corporations generally remain in excellent financial health - cash, borrowing
capacity, and margins are all strong - they are holding back on hiring and
investments due to concerns about Europe, China, and U.S. regulations, fiscal
policies, taxes, and politics. Many investors share those concerns, and are
maintaining a cautious approach to the markets.
Despite this tough backdrop, the markets had a surprisingly strong first half of
2012. The Standard & Poor's 500 Index returned 9.5% over the six months ended
June 30, 2012. In the U.S. bond markets, interest rates generally declined, with
riskier sectors faring the best. The broad bond market, as measured by the
Barclays Capital Aggregate Bond Index, returned 2.4% during the same six-month
period, while the high-yield bond market, as measured by the Bank of America
Merrill Lynch High Yield Master II Index, returned 7.1%.
Given the major macroeconomic and political issues facing the markets in the
second half of the year, we certainly expect continuing volatility. But we also
see some positive economic data that give us hope for better news in the second
half of 2012. While the unemployment rate remains unacceptably high at over 8%,
employment and incomes continue to trend upward. Lower oil prices have acted
like an effective tax cut for consumers. Home construction, sales, and
refinancings have increased, and auto sales are holding up as well.
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.
* Diversification does not assure a profit or protect against loss in a
declining market.
2 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
Pioneer's investment professionals focus on finding good opportunities in both
equity and bond markets using the same disciplined investment approach we have
used since 1928. Our strategy is to identify undervalued individual securities
with the greatest potential for success, carefully weighing risk against reward.
Our teams of investment professionals continually monitor and analyze the
relative valuations of different sectors and securities globally to help build
portfolios that we believe can help you achieve your investment goals.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 3
Portfolio Management Discussion | 8/31/12
In the following interview, Paul Cloonan discusses the investment environment
for growth stocks and the performance of Pioneer Disciplined Growth Fund in
that environment during the 12 months ended August 31, 2012. Mr. Cloonan,
Co-Head of Equity Research, U.S., at Pioneer; Ashesh Savla, senior
quantitative research analyst at Pioneer; and Carol Lintz, fundamental
research analyst at Pioneer, are responsible for the day-to-day management of
the Fund.
Q Growth stocks, as measured by the Russell 1000 Growth Index, performed very
well during the 12-month period ended August 31, 2012. What would you say
were the main reasons for the strong performance of the asset class during
the 12-month period?
A Despite rather sluggish economic growth in the U.S. and in many other
countries, U.S. equity markets delivered strong returns over the 12-month
period ended August 31, 2012. Investors became more interested in equities
during the period due to their valuations relative to other asset classes.
Investors also became less risk-averse while pursuing the potential for
higher returns in equity markets. The Russell 1000 Growth Index (the Russell
Index), the Fund's benchmark, advanced by 17.37% during the 12-month period,
led by information technology, and by the shares of Apple in particular.
Apple gained 73% during the period, as the company continued to enjoy
tremendous success in mobile devices, with products such as the iPad and
iPhone achieving industry-leading growth and profitability.
Outside of information technology, there were a number of other sectors that
experienced positive trends and strong equity returns during the 12-month
period. Media stocks also were in favor, as the demand for television
advertising remained solid and media companies demonstrated pricing power in
the sale of their content through both traditional distributors (cable and
satellite TV operators) as well as online distributors, such as Netflix and
Amazon.com. Biotechnology stocks also were an area of strong returns during
the period, as promising pipelines for new drug development attracted
investors. The biotech industry also has been active with mergers and
acquisitions (M&As), as larger pharmaceutical companies have been seeking
growth opportunities to offset revenue declines from "patent cliffs" (that
is, the expiration of drug patents, which open up the companies to
competition from generic pharmaceutical manufacturers).
4 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
Q How did the Fund perform in that environment during the 12 months ended
August 31, 2012?
A Pioneer Disciplined Growth Fund's Class A shares returned 17.46% at net asset
value during the 12 months ended August 31, 2012, while the Fund's benchmark,
the Russell Index, returned 17.37%. During the same period, the average
return of the 717 mutual funds in Lipper's Large-Cap Growth Funds category
was 14.09%.
Q The Fund performed in line with the Russell Index during the 12 months ended
August 31, 2012. What were the main drivers of the Fund's benchmark-relative
performance during the period?
A The Fund's stock selection results in the media, financials and semiconductor
groups performed well relative to the benchmark during the 12-month period,
while stock selection in materials and retailing underperformed the
benchmark. The Fund realized strong returns from media positions such as
Comcast, Walt Disney and CBS during the period. In information technology,
the Fund's performance, like that of the Russell Index, also benefited from
Apple's success during the 12-month period, as the company continues to be
the largest holding in the Fund's portfolio. In the outperforming biotech
industry, the Fund's position in Alexion Pharmaceuticals was a particularly
strong performer, increasing by 85% during the period.
Q What other individual security selections contributed to the Fund's
performance relative to the Russell Index during the 12 months ended August
31, 2012?
A As noted previously, the Fund's media positions contributed to
benchmark-relative performance. In media, Comcast was a top contributor to
Fund performance as the company continued to deliver solid growth in free
cash flow, driven by growth in its broadband data services. Comcast has
improved the quality of its network and is pursuing growth in additional
markets, such as data and phone services for small- and medium-sized
businesses.
In financials, the Fund's holding in Discover Financial Services delivered
better-than-expected earnings as the company's credit quality continued to
improve while consumer spending increased. Discover's capital position
remains strong, and that has enabled the company to return cash to
shareholders through share buybacks as well as dividends.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 5
In semiconductors, the Fund's holding in ASML performed well during the
period as the company extended its technology lead over its competition, and
spending on lithography equipment in general continued to be strong. ASML is
the global leader in lithography equipment used in the production of
semiconductors and, as a critical enabler of continued innovation in
semiconductor manufacturing, the company is in a unique position. The
company's position was further validated when Intel, a major customer of
ASML, recently committed $4 billion to ASML via a $3 billion equity
investment in the company, along with a $1 billion contribution to ASML's
technology development spread over the next five years.
Q What individual security selections or investment decisions were
disappointments for the Fund during the 12 months ended August 31, 2012?
A In materials, the Fund's holding in Freeport-McMoRan Copper & Gold
underperformed the benchmark Russell Index, as investors developed concerns
that slowing growth in the emerging markets, particularly China, may depress
demand for commodities such as copper. In addition, Freeport-McMoRan had
experienced some company-specific issues during the period, such as a strike
by workers at one of the company's major mines. We have retained the Fund's
position in Freeport-McMoRan, however, as we believe that the stock's
valuation has been more than discounted to account for the slowdown in the
emerging markets and that the company still has attractive assets, with low
cost production.
In retailing, our sale of Amazon.com had a negative impact on the Fund's
relative performance. The Fund previously had held a position in Amazon, but
we sold the position when it appeared to us that management's heavy
investment in future growth opportunities may significantly depress the
company's profit margins for an extended period. In periods subsequent to our
sale, however, Amazon's stock rebounded somewhat as revenue trends improved.
Q What is your outlook?
A We remain optimistic about the prospects for U.S. equities, although macro
issues such as the U.S. fiscal debate, the sovereign-debt crisis in Europe,
and slowing growth in China may remain headwinds for the equity market in the
near term. We believe our optimism on the longer-term outlook for equities is
supported by attractive equity valuations relative to other asset classes,
and our assumption that the U.S. economy will continue to grow. In addition,
corporate balance sheets and cash flow are strong, which may lead to
increased M&A activity, share repurchases and dividend increases.
6 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
In managing the Fund, we will continue to focus our efforts on stock-picking,
which we believe is the Fund's key competitive advantage and primary
performance driver. Our approach to stock-picking emphasizes bottom-up,
fundamental analysis. We believe our approach is durable and repeatable, and
can deliver reasonable investment results across the business cycle and in a
variety of market conditions.
Please refer to the Schedule of Investments on pages 15-19 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.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These opinions should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 7
Portfolio Summary | 8/31/12
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 91.5%
International Common Stocks 4.3%
Depositary Receipts for International Stocks 2.3%
Exchange Traded Fund 1.9%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Information Technology 31.9%
Consumer Discretionary 15.0%
Consumer Staples 13.0%
Industrials 12.7%
Health Care 12.6%
Financials 5.1%
Energy 4.9%
Materials 4.8%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Apple, Inc. 6.98%
--------------------------------------------------------------------------------
2. Microsoft Corp. 5.51
--------------------------------------------------------------------------------
3. Philip Morris International, Inc. 4.65
--------------------------------------------------------------------------------
4. Google, Inc. 4.10
--------------------------------------------------------------------------------
5. Oracle Corp. 3.53
--------------------------------------------------------------------------------
6. QUALCOMM, Inc. 3.33
--------------------------------------------------------------------------------
7. Starbucks Corp. 2.79
--------------------------------------------------------------------------------
8. United Technologies Corp. 2.72
--------------------------------------------------------------------------------
9. The Walt Disney Co. 2.52
--------------------------------------------------------------------------------
10. Comcast Corp. 2.48
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
securities listed.
8 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
Prices and Distributions | 8/31/12
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 8/31/12 8/31/11
--------------------------------------------------------------------------------
A $10.39 $9.67
--------------------------------------------------------------------------------
C $10.11 $9.48
--------------------------------------------------------------------------------
Y $10.47 $9.73
--------------------------------------------------------------------------------
Distributions per Share: 9/1/11-8/31/12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.0319 $0.2368 $0.5434
--------------------------------------------------------------------------------
C $ -- $0.2368 $0.5434
--------------------------------------------------------------------------------
Y $0.0575 $0.2368 $0.5434
--------------------------------------------------------------------------------
The Russell 1000 Growth Index measures the performance of large-cap U.S. growth
stocks. Index returns assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. It is not possible to invest
directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 10-12.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 9
Performance Update | 8/31/12 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Disciplined Growth Fund at public offering price,
compared to that of the Russell 1000 Growth Index.
Average Annual Total Returns
(As of August 31, 2012)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 5.57% 4.64%
5 Years 3.20 1.98
1 Year 17.46 10.70
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.52% 1.25%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Disciplined Russell 1000
Growth Fund Growth Index
12/31/2005 $ 9,425 $ 10,000
8/31/2006 $ 9,779 $ 10,022
8/31/2007 $ 11,803 $ 11,796
8/31/2008 $ 10,619 $ 10,998
8/31/2009 $ 9,170 $ 9,154
8/31/2010 $ 9,672 $ 9,717
8/31/2011 $ 11,763 $ 12,045
8/31/2012 $ 13,817 $ 14,137
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 the contractual expense limitation currently in
effect through January 1, 2014, for Class A shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
Performance Update | 8/31/12 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Disciplined Growth Fund, compared to that of the
Russell 1000 Growth Index.
Average Annual Total Returns
(As of August 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
7/16/2008 6.29% 6.29%
1 Year 16.41 16.41
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.47% 2.15%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Disciplined Russell 1000
Growth Fund Growth Index
7/31/2008 $ 10,000 $ 10,000
8/31/2008 $ 10,205 $ 10,108
8/31/2009 $ 8,741 $ 8,414
8/31/2010 $ 9,133 $ 8,931
8/31/2011 $ 11,013 $ 11,070
8/31/2012 $ 12,820 $ 12,993
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). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2014, for Class C shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 11
Performance Update | 8/31/12 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer Disciplined Growth Fund, compared to that of the
Russell 1000 Growth Index.
Average Annual Total Returns
(As of August 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
Life-of-Class
12/15/2005 5.78% 5.78%
5 Years 3.48 3.48
1 Year 17.88 17.88
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2011)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
<c>
1.00% 0.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Disciplined Russell 1000
Growth Fund Growth Index
12/31/2 $ 5,000,000 $ 5,000,000
8/31/20 $ 5,188,583 $ 5,010,842
8/31/20 $ 6,262,229 $ 5,897,918
8/31/20 $ 5,634,176 $ 5,498,795
8/31/20 $ 4,882,661 $ 4,577,221
8/31/20 $ 5,164,657 $ 4,858,460
8/31/20 $ 6,304,608 $ 6,022,525
8/31/20 $ 7,431,727 $ 7,068,475
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class Y shares for the period prior to the inception
of Class Y shares on July 31, 2008, is based on the net asset value performance
of the Fund's Class A shares, which has not been restated to reflect any
differences in expenses, including Rule 12b-1 fees applicable to Class A shares.
Since fees for Class A shares generally are higher than those of Class Y shares,
the performance of Class Y shares prior to their inception would have been
higher than the performance shown.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through January 1, 2014, for Class Y shares. There can be no assurance
that Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
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 Disciplined Growth Fund
Based on actual returns from March 1, 2012, through August 31, 2012.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 3/1/12
--------------------------------------------------------------------------------
Ending Account $1,026.75 $1,022.22 $1,028.53
Value (after expenses)
on 8/31/12
--------------------------------------------------------------------------------
Expenses Paid $6.37 $10.93 $4.59
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%
and 0.90% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/366 (to reflect the one-half year period).
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 13
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight
your ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads), 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 Disciplined Growth Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2012, through August 31, 2012.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 3/1/12
--------------------------------------------------------------------------------
Ending Account $1,018.85 $1,014.33 $1,020.61
Value (after expenses)
on 8/31/12
--------------------------------------------------------------------------------
Expenses Paid $6.34 $10.89 $4.57
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15% and
0.90% for Class A, Class C, and Class Y shares, respectively, multiplied by
the average account value over the period, multiplied by 184/366 (to reflect
the one-half year period).
14 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
Schedule of Investments | 8/31/12
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS -- 97.7%
ENERGY -- 5.0%
Oil & Gas Drilling -- 0.9%
7,900 Ensco Plc $ 453,223
--------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 1.7%
10,300 National Oilwell Varco, Inc. $ 811,640
--------------------------------------------------------------------------------
Integrated Oil & Gas -- 1.4%
8,000 Occidental Petroleum Corp. $ 680,080
--------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.0%
18,300 Marathon Oil Corp. $ 509,106
------------
Total Energy $ 2,454,049
--------------------------------------------------------------------------------
MATERIALS -- 4.4%
Fertilizers & Agricultural Chemicals -- 1.5%
12,900 The Mosaic Co. $ 747,039
--------------------------------------------------------------------------------
Specialty Chemicals -- 1.0%
7,800 Ecolab, Inc. $ 499,434
--------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.9%
25,500 Freeport-McMoRan Copper & Gold, Inc. $ 920,805
------------
Total Materials $ 2,167,278
--------------------------------------------------------------------------------
CAPITAL GOODS -- 11.2%
Aerospace & Defense -- 2.7%
16,719 United Technologies Corp. $ 1,335,012
--------------------------------------------------------------------------------
Construction & Engineering -- 1.1%
20,300 KBR, Inc. $ 549,927
--------------------------------------------------------------------------------
Industrial Conglomerates -- 2.4%
12,900 3M Co. $ 1,194,540
--------------------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 2.2%
11,300 Cummins, Inc. $ 1,097,343
--------------------------------------------------------------------------------
Industrial Machinery -- 2.8%
17,500 Ingersoll-Rand Plc $ 818,300
8,600 SPX Corp. 549,540
------------
$ 1,367,840
------------
Total Capital Goods $ 5,544,662
--------------------------------------------------------------------------------
TRANSPORTATION -- 1.5%
Air Freight & Logistics -- 1.5%
10,100 United Parcel Service, Inc. (Class B) $ 745,481
------------
Total Transportation $ 745,481
--------------------------------------------------------------------------------
CONSUMER SERVICES -- 5.6%
Hotels, Resorts & Cruise Lines -- 1.3%
17,500 Marriott International, Inc. $ 659,400
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 15
Schedule of Investments | 8/31/12 (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Restaurants -- 4.3%
2,600 Chipotle Mexican Grill, Inc.* $ 750,464
27,600 Starbucks Corp. 1,369,236
------------
$ 2,119,700
------------
Total Consumer Services $ 2,779,100
--------------------------------------------------------------------------------
MEDIA -- 6.3%
Broadcasting -- 1.4%
19,000 CBS Corp. (Class B) $ 690,460
--------------------------------------------------------------------------------
Cable & Satellite -- 2.4%
36,300 Comcast Corp. $ 1,217,139
--------------------------------------------------------------------------------
Movies & Entertainment -- 2.5%
25,000 The Walt Disney Co. $ 1,236,750
------------
Total Media $ 3,144,349
--------------------------------------------------------------------------------
RETAILING -- 3.0%
Department Stores -- 1.1%
12,900 Macy's, Inc. $ 519,999
--------------------------------------------------------------------------------
Home Improvement Retail -- 1.9%
17,000 The Home Depot, Inc. $ 964,750
------------
Total Retailing $ 1,484,749
--------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 3.9%
Drug Retail -- 2.0%
21,400 CVS Caremark Corp. $ 974,770
--------------------------------------------------------------------------------
Food Retail -- 1.9%
9,700 Whole Foods Market, Inc. $ 938,475
------------
Total Food & Staples Retailing $ 1,913,245
--------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 7.6%
Soft Drinks -- 1.8%
6,300 Fomento Economico Mexicano SAB de CV (A.D.R.) $ 532,350
5,800 Monster Beverage Corp.* 341,794
------------
$ 874,144
--------------------------------------------------------------------------------
Packaged Foods & Meats -- 1.2%
8,100 The Hershey Co. $ 581,742
--------------------------------------------------------------------------------
Tobacco -- 4.6%
25,600 Philip Morris International, Inc. $ 2,286,080
------------
Total Food, Beverage & Tobacco $ 3,741,966
--------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 1.5%
Personal Products -- 1.5%
12,400 The Estee Lauder Companies, Inc. $ 743,380
------------
Total Household & Personal Products $ 743,380
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.8%
Health Care Equipment -- 3.0%
10,600 Baxter International, Inc. $ 622,008
15,700 Covidien Plc 879,985
------------
$ 1,501,993
--------------------------------------------------------------------------------
Health Care Services -- 1.1%
9,000 Express Scripts Holding Co.* $ 563,580
--------------------------------------------------------------------------------
Managed Health Care -- 1.7%
21,500 Aetna, Inc. $ 825,815
------------
Total Health Care Equipment & Services $ 2,891,388
--------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 6.7%
Biotechnology -- 4.3%
5,972 Alexion Pharmaceuticals, Inc.* $ 640,258
11,900 Celgene Corp.* 857,276
10,500 Gilead Sciences, Inc.* 605,745
------------
$ 2,103,279
--------------------------------------------------------------------------------
Pharmaceuticals -- 2.4%
5,300 Allergan, Inc. $ 456,489
11,100 Johnson & Johnson Co. 748,473
------------
$ 1,204,962
------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 3,308,241
--------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.3%
Consumer Finance -- 3.3%
9,600 Capital One Financial Corp. $ 542,688
28,500 Discover Financial Services, Inc. 1,103,805
------------
$ 1,646,493
------------
Total Diversified Financials $ 1,646,493
--------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 15.4%
Internet Software & Services -- 4.9%
2,945 Google, Inc.* $ 2,017,590
28,300 Yahoo!, Inc.* 414,595
------------
$ 2,432,185
--------------------------------------------------------------------------------
Application Software -- 1.5%
9,425 Citrix Systems, Inc.* $ 732,228
--------------------------------------------------------------------------------
Systems Software -- 9.0%
87,821 Microsoft Corp. $ 2,706,643
54,754 Oracle Corp. 1,732,964
------------
$ 4,439,607
------------
Total Software & Services $ 7,604,020
--------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 12.7%
Communications Equipment -- 3.3%
26,600 Qualcomm, Inc. $ 1,634,836
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 17
Schedule of Investments | 8/31/12 (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Computer Hardware -- 7.6%
5,161 Apple, Inc. $ 3,433,305
19,900 Hewlett-Packard Co. 335,912
------------
$ 3,769,217
--------------------------------------------------------------------------------
Computer Storage & Peripherals -- 1.8%
20,800 SanDisk Corp.* $ 857,376
------------
Total Technology Hardware & Equipment $ 6,261,429
--------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 3.8%
Semiconductor Equipment -- 1.3%
10,900 ASML Holding NV (A.D.R.) $ 618,793
--------------------------------------------------------------------------------
Semiconductors -- 2.5%
16,500 Analog Devices, Inc. $ 655,710
17,400 Xilinx, Inc. 590,034
------------
$ 1,245,744
------------
Total Semiconductors & Semiconductor Equipment $ 1,864,537
--------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $38,621,530) $ 48,294,367
--------------------------------------------------------------------------------
EXCHANGE TRADED FUND -- 1.7%
13,200 iShares Dow Jones US Real Estate Index Fund $ 866,316
--------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(Cost $777,629) $ 866,316
--------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.4%
(Cost $39,399,159) (a) $ 49,160,683
--------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.6% $ 281,951
--------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 49,442,634
================================================================================
* Non-income producing security.
(A.D.R.) American Depositary Receipts.
(a) At August 31, 2012, the net unrealized gain on investments based on
cost for federal income tax purposes of $39,455,150 was as follows:
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $10,421,697
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (716,164)
-----------
Net unrealized gain $ 9,705,533
===========
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2012 aggregated $37,883,645 and $47,493,679, respectively.
The accompanying notes are an integral part of these financial statements.
18 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
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) as Level 3. See
Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of August 31, 2012, in valuing
the Fund's assets:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Common Stocks $48,294,367 $ -- $ -- $48,294,367
Exchange Traded Funds 866,316 -- -- 866,316
--------------------------------------------------------------------------------
Total $49,160,683 $ -- $ -- $49,160,683
================================================================================
During the year ended August 31, 2012, there were no transfers between levels.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 19
Statement of Assets and Liabilities | 8/31/12
ASSETS:
Investment in securities (cost $39,399,159) $ 49,160,683
Cash 410,360
Receivables --
Fund shares sold 23,501
Dividends 70,407
Due from Pioneer Investment Management, Inc. 21,832
Other 26,303
--------------------------------------------------------------------------------
Total assets $ 49,713,086
--------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 202,351
Due to affiliates 22,768
Accrued expenses 45,333
--------------------------------------------------------------------------------
Total liabilities $ 270,452
--------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 38,890,462
Undistributed net investment income 157,394
Accumulated net realized gain on investments 633,254
Net unrealized gain on investments 9,761,524
--------------------------------------------------------------------------------
Total net assets $ 49,442,634
================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $9,645,572/928,240 shares) $ 10.39
Class C (based on $1,500,895/148,501 shares) $ 10.11
Class Y (based on $38,296,167/3,657,047 shares) $ 10.47
MAXIMUM OFFERING PRICE:
Class A ($10.39 (divided by) 94.25%) $ 11.02
================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
Statement of Operations
For the Year Ended 8/31/12
INVESTMENT INCOME:
Dividends $ 795,394
Interest 447
Income from securities loaned, net 2,029
--------------------------------------------------------------------------------
Total investment income $ 797,870
--------------------------------------------------------------------------------
EXPENSES:
Management fees $ 330,728
Transfer agent fees
Class A 11,056
Class C 4,075
Class Y 561
Distribution fees
Class A 19,011
Class C 13,938
Shareholder communications expense 8,372
Administrative reimbursements 14,688
Custodian fees 9,163
Registration fees 64,496
Professional fees 45,404
Printing expense 31,268
Fees and expenses of nonaffiliated Trustees 7,144
Miscellaneous 3,886
--------------------------------------------------------------------------------
Total expenses $ 563,790
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (60,619)
--------------------------------------------------------------------------------
Net expenses $ 503,171
--------------------------------------------------------------------------------
Net investment income $ 294,699
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $ 703,573
--------------------------------------------------------------------------------
Change in net unrealized gain on investments $ 7,200,202
--------------------------------------------------------------------------------
Net gain on investments $ 7,903,775
--------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 8,198,474
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 21
Statements of Changes in Net Assets
---------------------------------------------------------------------------------------
Year Ended Year Ended
8/31/12 8/31/11
---------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 294,699 $ 202,061
Net realized gain on investments 703,573 4,200,771
Change in net unrealized gain on investments 7,200,202 963,868
---------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 8,198,474 $ 5,366,700
---------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.03 and $0.03 per share, respectively) $ (23,044) $ (7,817)
Class Y ($0.06 and $0.06 per share, respectively) (258,442) (190,573)
Net realized gain:
Class A ($0.78 and $1.00 per share, respectively) (516,639) (235,344)
Class C ($0.78 and $1.00 per share, respectively) (108,354) (38,263)
Class Y ($0.78 and $1.00 per share, respectively) (3,536,089) (3,283,057)
---------------------------------------------------------------------------------------
Total distributions to shareowners $ (4,442,568) $ (3,755,054)
---------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 8,339,303 $ 28,518,570
Reinvestment of distributions 599,789 205,430
Cost of shares repurchased (16,320,654) (8,273,473)
---------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ (7,381,562) $ 20,450,527
---------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (3,625,656) $ 22,062,173
NET ASSETS:
Beginning of year 53,068,290 31,006,117
---------------------------------------------------------------------------------------
End of year $ 49,442,634 $ 53,068,290
---------------------------------------------------------------------------------------
Undistributed net investment income $ 157,394 $ 150,320
=======================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
---------------------------------------------------------------------------------------
'12 Shares '12 Amount '11 Shares '11 Amount
---------------------------------------------------------------------------------------
CLASS A
Shares sold 627,069 $ 6,060,165 702,324 $ 7,113,542
Reinvestment of distributions 55,075 481,794 19,998 189,680
Less shares repurchased (297,530) (2,887,364) (287,838) (2,895,135)
---------------------------------------------------------------------------------------
Net increase 384,614 $ 3,654,595 434,484 $ 4,408,087
=======================================================================================
CLASS C
Shares sold 78,384 $ 751,628 118,543 $ 1,193,508
Reinvestment of distributions 9,751 83,082 1,359 12,670
Less shares repurchased (74,968) (714,111) (21,370) (213,978)
---------------------------------------------------------------------------------------
Net increase 13,167 $ 120,599 98,532 $ 992,200
=======================================================================================
CLASS Y
Shares sold 159,154 $ 1,527,510 1,927,826 $20,211,520
Reinvestment of distributions 3,952 34,913 322 3,080
Less shares repurchased (1,286,217) (12,719,179) (502,072) (5,164,360)
---------------------------------------------------------------------------------------
Net increase (decrease) (1,123,111) $ (11,156,756) 1,426,076 $15,050,240
=======================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 23
Financial Highlights
------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/12 8/31/11 8/31/10 8/31/09 8/31/08
------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.67 $ 8.82 $ 8.59 $ 9.98 $ 12.25
------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.02 $ (0.01) $ 0.03 $ 0.02 $ 0.02
Net realized and unrealized gain (loss) on investments 1.51 1.89 0.45 (1.39) (1.12)
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.53 $ 1.88 $ 0.48 $ (1.37) $ (1.10)
------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.03) (0.03) (0.03) (0.02) --
Net realized gain (0.78) (1.00) (0.22) -- (1.17)
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.72 $ 0.85 $ 0.23 $ (1.39) $ (2.27)
------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.39 $ 9.67 $ 8.82 $ 8.59 $ 9.98
========================================================================================================================
Total return* 17.46% 21.62% 5.48% (13.64)% (10.03)%
Ratio of net expenses to average net assets 1.25% 1.25% 1.25% 1.25% 1.25%
Ratio of net investment income to average net assets 0.31% 0.18% 0.39% 0.39% 0.22%
Portfolio turnover rate 75% 107% 104% 106% 92%
Net assets, end of period (in thousands) $9,646 $ 5,257 $ 962 $ 667 $ 551
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Total expenses 1.48% 1.52% 1.66% 10.79% 16.35%
Net investment income (loss) 0.08% (0.09)% (0.02)% (9.15)% (14.88)%
========================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
------------------------------------------------------------------------------------------------------------------------
Year Year Year Year 7/17/08 (a)
Ended Ended Ended Ended to
8/31/12 8/31/11 8/31/10 8/31/09 8/31/08
------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.48 $ 8.71 $ 8.54 $ 9.97 $ 9.74
------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.06) $ (0.07) $ (0.05) $ (0.03) $ 0.00(c)
Net realized and unrealized gain (loss) on investments 1.47 1.84 0.44 (1.40) 0.23
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.41 $ 1.77 $ 0.39 $ (1.43) $ 0.23
------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net realized gain (0.78) (1.00) (0.22) -- --
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.63 $ 0.77 $ 0.17 $ (1.43) $ 0.23
------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.11 $ 9.48 $ 8.71 $ 8.54 $ 9.97
========================================================================================================================
Total return* 16.41% 20.58% 4.49% (14.34)% 2.36%(b)
Ratio of net expenses to average net assets 2.15% 2.15% 2.11% 2.15% 1.83%**
Ratio of net investment loss to average net assets (0.58)% (0.72)% (0.48)% (0.52)% (0.05)%**
Portfolio turnover rate 75% 107% 104% 106% 92%(b)
Net assets, end of period (in thousands) $ 1,501 $ 1,283 $ 320 $ 255 $ 256
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Total expenses 2.41% 2.47% 2.36% 11.44% 30.50%**
Net investment loss (0.84)% (1.04)% (0.73)% (9.82)% (28.72)%**
========================================================================================================================
(a) Class C shares were first publicly offered on July 17, 2008.
(b) Not annualized.
(c) Amount rounds to less than $0.01 per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 25
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------
Year Year Year Year 7/31/08 (a)
Ended Ended Ended Ended to
8/31/12 8/31/11 8/31/10 8/31/09 8/31/08
------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.73 $ 8.86 $ 8.62 $ 9.98 $ 9.87
------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.07 $ 0.05 $ 0.07 $ 0.03 $ 0.01
Net realized and unrealized gain (loss) on investments 1.51 1.88 0.43 (1.37) 0.10
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.58 $ 1.93 $ 0.50 $ (1.34) $ 0.11
------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.06) (0.06) (0.04) (0.02) --
Net realized gain (0.78) (1.00) (0.22) -- --
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.74 $ 0.87 $ 0.24 $ (1.36) $ 0.11
------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.47 $ 9.73 $ 8.86 $ 8.62 $ 9.98
========================================================================================================================
Total return* 17.88% 22.07% 5.78% (13.34)% 1.11%(b)
Ratio of net expenses to average net assets 0.90% 0.90% 0.90% 0.90% 0.90%**
Ratio of net investment income to average net assets 0.67% 0.52% 0.72% 0.88% 1.60%**
Portfolio turnover rate 75% 107% 104% 106% 92%(b)
Net assets, end of period (in thousands) $38,296 $46,528 $29,723 $28,173 $ 253
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Total expenses 1.00% 1.00% 1.15% 1.70% 20.69%**
Net investment income (loss) 0.57% 0.42% 0.47% 0.07% (18.19)%**
========================================================================================================================
(a) Class Y shares were first publicly offered on July 31, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
Notes to Financial Statements | 8/31/12
1. Organization and Significant Accounting Policies
Pioneer Disciplined Growth Fund (the Fund) is one of four portfolios comprising
Pioneer Series Trust V, a Delaware statutory trust. The Fund is registered under
the Investment Company Act of 1940 as a diversified, open-end management
investment company. The Fund's investment objective is to seek
long-term capital growth.
The Fund offers three classes of shares designated as Class A, Class C and Class
Y shares. Class C shares were first publicly offered on July 17, 2008. Class Y
shares were first publicly offered on July 31, 2008. Each class of shares
represents an interest in the same portfolio of investments of the Fund and has
identical rights (based on relative net asset values) to assets and liquidation
proceeds. Share classes can bear different rates of class-specific fees and
expenses such as transfer agent and distribution fees. Differences in
class-specific fees and expenses will result in differences in net investment
income and, therefore, the payment of different dividends from net investment
income earned by each class. The Amended and Restated Declaration of Trust of
the Fund gives the Board the flexibility to specify either per-share voting or
dollar-weighted voting when submitting matters for shareholder approval. Under
per-share voting, each share of a class of the Fund is entitled to one vote.
Under dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 27
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities that have traded on an exchange are valued at
the last sale price on the principal exchange where they are traded.
Securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued at the mean between
the last bid and asked prices. Short-term fixed income securities with
remaining maturities of sixty days or less generally are valued at amortized
cost. Money market mutual funds are valued at net asset value.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times.
Securities for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued using fair value
methods pursuant to procedures adopted by the Board of Trustees. The Fund may
use fair value methods if it is determined that a significant event has
occurred after the close of the exchange or market on which the security
trades and prior to the determination of the Fund's net asset value. Examples
of a significant event might include political or economic news, corporate
restructurings, natural disasters, terrorist activity or trading halts. Thus,
the valuation of the Fund's securities may differ from exchange prices.
At August 31, 2012, there were no securities that were valued using fair
value methods (other than securities that were valued using prices supplied
by independent pricing services). Inputs used when applying fair value
methods to value a security may include credit ratings, the financial
condition of the company, current market conditions and comparable
securities.
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in the
exercise of reasonable diligence. Interest income is recorded on the accrual
basis. Dividend and interest income are reported net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
28 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareowners. Therefore, no federal income tax provision is
required. As of August 31, 2012, the Fund did not have any interest and
penalties related to unrecognized tax positions, which, if applicable,
would be recorded as an income tax expense in the Statement of Operations.
Tax years for the prior three fiscal years are subject to examination by
federal and state tax authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
At August 31, 2012, the Fund reclassified $6,139 to decrease net investment
income and $6,139 to increase accumulated net realized gain on investments to
reflect permanent book/tax differences. The reclassification has no impact on
the net asset value of the Fund and is designed to present the Fund's capital
accounts on a tax basis.
The tax character of distributions paid during the years ended August 31,
2012 and August 31, 2011 was as follows:
--------------------------------------------------------------------------------
2012 2011
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $1,544,424 $2,691,667
Long-term capital gain 2,898,144 1,063,387
--------------------------------------------------------------------------------
Total $4,442,568 $3,755,054
================================================================================
The following shows the components of distributable earnings on a federal income
tax-basis at August 31, 2012:
--------------------------------------------------------------------------------
2012
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 157,394
Undistributed long-term gain 689,245
Net unrealized gain 9,705,533
--------------------------------------------------------------------------------
Total $ 10,552,172
================================================================================
The difference between book-basis and tax-basis net unrealized gain is
attributable to the tax deferral of losses on wash sales.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 29
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $4,262 in underwriting commissions on the sale of Class A shares
during the year ended August 31, 2012.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning of
the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, and Class Y shares can
reflect different transfer agent and distribution expense rates.
E. Risks
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making the Fund more susceptible
to any economic, political, or regulatory developments or other risks
affecting those industries 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.
30 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
F. 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 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 August 31, 2012, the Fund had no securities on loan.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary of
UniCredit, manages the Fund's portfolio. Management fees are calculated daily at
the annual rate of 0.65% of the Fund's average daily net assets up to $1
billion, 0.60% of the next $4 billion and 0.55% on assets over $5 billion. For
the year ended August 31, 2012, the effective management fee (excluding waivers
and/or assumption of expenses) was equivalent to 0.65% of the Fund's average
daily net assets.
PIM has contractually agreed to limit ordinary operating expenses of the Fund to
the extent required to reduce Fund expenses to 1.25%, 2.15%, and 0.90% of the
average daily net assets attributable to Class A, Class C, and Class Y shares,
respectively. Fees waived and expenses reimbursed during the year ended August
31, 2012 are reflected on the Statement of Operations. These expense limitations
are in effect through January 1, 2014. There can be no assurance that PIM will
extend the expense limitation agreement for a class of shares beyond the date
referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 31
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $20,729 in management fees, administrative costs and certain
other reimbursements payable to PIM at August 31, 2012.
Effective March 5, 2012, PIM has retained Brown Brothers Harriman & Co. to
provide certain sub-administration and accounting services to the Fund.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the year ended August 31, 2012, such out-of-pocket expenses by class of shares
were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $5,783
Class C 1,641
Class Y 948
--------------------------------------------------------------------------------
Total $8,372
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $1,826 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at August 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 and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets
attributable to Class A shares as compensation for personal services and/or
account maintenance services or distribution services with regard to Class A
shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $213 in distribution fees payable to PFD
at August 31, 2012.
32 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
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. 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
year ended August 31, 2012, CDSCs in the amount of $555 were paid to PFD.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 33
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust V and
the Shareowners of Pioneer Disciplined Growth Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Disciplined Growth Fund, one of the
portfolios constituting Pioneer Series Trust V (the "Trust") as of August 31,
2012 and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the periods indicated therein.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Trust's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Trust's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of August 31, 2012 by correspondence with the custodian and
brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Disciplined Growth Fund at August 31, 2012, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the periods indicated therein, in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
October 24, 2012
34 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
ADDITIONAL INFORMATION (unaudited)
For the year ended August 30, 2012, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax
Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate up to
the maximum amount of such dividends allowable under the Act, as taxed at a
maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2011 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 49.1%.
The percentage of the Fund's ordinary income distributions that is exempt from
nonresident alien (NRA) tax withholding resulting from qualified short term
gains was 81.38%.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 35
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy voting policies and procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and Officers are listed on the following pages, together
with their principal occupations during at least the past five years.
Trustees who are interested persons of the Fund within the meaning of the 1940
Act are referred to as Interested Trustees. Trustees who are not interested
persons of the Fund are referred to as Independent Trustees. Each of the
Trustees serves as a trustee of each of the 56 U.S. registered investment
portfolios for which Pioneer serves as investment adviser (the "Pioneer Funds").
The address for all Trustees and all officers of the Fund is 60 State Street,
Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
36 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (61) Trustee since 2006. Chairman and Chief Executive Officer, Director, Broadridge Financial
Chairman of the Board Serves until a successor Quadriserv, Inc. (technology products Solutions, Inc. (investor
and Trustee trustee is elected or for securities lending industry) (2008 communications and securities
earlier retirement or - present); private investor (2004 - processing provider for financial
removal. 2008); and Senior Executive Vice services industry) (2009 -
President, The Bank of New York present); Director, Quadriserv,
(financial and securities services) (2005 - present); and
(1986 Inc. - 2004) Commissioner, New Jersey State
Civil Service Commission (2011 -
present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (68) Trustee since 2005. Managing Partner, Federal City Capital Director of Enterprise Community
Trustee Serves until a successor Advisors (corporate advisory services Investment, Inc. (privately-held
trustee is elected or company) (1997 - 2004 and 2008 - affordable housing finance company)
earlier retirement or present); Interim Chief Executive (1985 - 2010); Director of Oxford
removal. Officer, Oxford Analytica, Inc. Analytica, Inc. (2008 - present);
(privately held research and consulting Director of The Swiss Helvetia
company) (2010); Executive Vice Fund, Inc. (closed-end fund) (2010
President and Chief Financial Officer, - present); and Director of New
I-trax, Inc. (publicly traded health York Mortgage Trust (publicly
care services company) (2004 - 2007); traded mortgage REIT) (2004 -
and Executive Vice President and Chief 2009, 2012 - present)
Financial Officer, Pedestal Inc.
(internet-based mortgage trading
company) (2000 - 2002)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 37
Independent Trustees (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (64) Trustee since 2005. Chairman, Bush International, LLC Director of Marriott
Trustee Serves until a successor (international financial advisory firm) International, Inc. 2008 -
trustee is elected or (1991 - present); Senior Managing present); Director of Discover
earlier retirement Director, Brock Capital Group, LLC Financial Services (credit card
or removal. (strategic business advisors) (2010 - issuer and electronic payment
present); Managing Director, Federal services) (2007 - present);
Housing Finance Board (oversight of Former Director of Briggs &
Federal Home Loan Bank system) (1989 - Stratton Co. (engine
1991); Vice President and Head of manufacturer) (2004 - 2009);
International Finance, Federal National Former Director of UAL
Mortgage Association (1988 - 1989); U.S. Corporation (airline holding
Alternate Executive Director, company) 2006 - 2010); Director
International Monetary Fund (1984 - of ManTech International
1988); Executive Assistant to Deputy Corporation (national security,
Secretary of the U.S. Treasury, U.S. defense, and intelligence
Treasury Department (1982 - 1984); and technology firm) (2006 -
Vice President and Team Leader in present); Member, Board of
Corporate Banking, Bankers Trust Co. Governors, Investment Company
(1976 - 1982) Institute (2007 - present);
Member, Board of Governors,
Independent Directors Council
(2007 - present); Former Director
of Brady Corporation (2000 -
2007); Former Director of
Mortgage Guaranty Insurance
Corporation (1991 - 2006); Former
Director of Millennium Chemicals,
Inc. (commodity chemicals) (2002
- 2005); Former Director, R.J.
Reynolds Tobacco Holdings, Inc.
(tobacco) (1999- 2005); and
Former Director of Texaco, Inc.
(1997 - 2001)
------------------------------------------------------------------------------------------------------------------------------------
38 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (67) Trustee since 2008. William Joseph Maier Professor of Trustee, Mellon Institutional
Trustee Serves until a successor Political Economy, Harvard University Funds Investment Trust and Mellon
trustee is elected or (1972 - present) Institutional Funds Master
earlier retirement or Portfolio (oversaw 17 portfolios
removal. in fund complex) (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (65) Trustee since 2005. Founding Director, Vice President and None
Trustee Serves until a successor Corporate Secretary, The Winthrop
trustee is elected or Group, Inc. (consulting firm)
earlier retirement or (1982-present); Desautels Faculty of
removal. Management, McGill University (1999 -
present); and Manager of Research
Operations and Organizational Learning,
Xerox PARC, Xerox's advance research
center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (64) Trustee since 2005. President and Chief Executive Officer, Director of New America High
Trustee Serves until a successor Newbury, Piret & Company, Inc. Income Fund, Inc. (closed-end
trustee is elected or (investment banking firm) (1981 - investment company) (2004 -
earlier retirement or present) present); and member, Board of
removal. Governors, Investment Company
Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (83) Trustee since 2005. Senior Counsel, Sullivan & Cromwell LLP Director, The Swiss Helvetia
Trustee Serves until a successor (law firm) (1998 - present); and Fund, Inc. (closed-end investment
trustee is elected or Partner, Sullivan & Cromwell LLP (prior company); and Director, Invesco,
earlier retirement or to 1998) Ltd. (formerly AMVESCAP, PLC)
removal. (investment manager) (1997-2005)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 39
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (86)* Trustee since 2005. Non-Executive Chairman and a director None
Trustee, President and Serves until a successor of Pioneer Investment Management USA
Chief Executive Officer trustee is elected or Inc.("PIM-USA"); Chairman and a
of the Funds earlier retirement or director of Pioneer; Chairman and
removal. Director of Pioneer Institutional
Asset Management,Inc. (since 2006);
Director of Pioneer Alternative
Investment Management Limited (Dublin)
(until October 2011); President and a
director of Pioneer Alternative
Investment Management(Bermuda) Limited
and affiliated funds; Deputy Chairman
and a director of Pioneer Global Asset
Management S.p.A.("PGAM") (until April
2010); Director of Nano-C, Inc. (since
2003); Director of Cole Management Inc.
(2004 - 2011); Director of Fiduciary
Counseling, Inc.(until December 2011);
President of all of the Pioneer Funds;
and Retired Partner, Wilmer Cutler
Pickering Hale and Dorr LLP
------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (53)* Trustee since 2007. Director, CEO and President of PIM-USA None
Trustee and Executive Serves until a successor (since February 2007); Director and
Vice President trustee is elected or President of Pioneer and Pioneer
earlier retirement or Institutional Asset Management, Inc.
removal. (since February 2007); Executive Vice
President of all of the Pioneer Funds
(since March 2007); Director of PGAM
(2007 - 2010); Head of New Europe
Division, PGAM (2000 - 2005); Head of
New Markets Division, PGAM (2005 - 2007)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers
or directors of the Fund's investment adviser and certain of its affiliates.
40 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position held with the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (47) Since 2010. Serves at Vice President and Associate General None
Secretary the discretion of the Board. Counsel of Pioneer since January 2008
and Secretary of all of the Pioneer
Funds since June 2010; Assistant
Secretary of all of the Pioneer Funds
from September 2003 to May 2010; and
Vice President and Senior Counsel of
Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (51) Since 2010. Serves at Fund Governance Director of Pioneer None
Assistant Secretary the discretion of the Board. since December 2006 and Assistant
Secretary of all the Pioneer Funds since
June 2010; Manager - Fund Governance of
Pioneer from December 2003 to November
2006; and Senior Paralegal of Pioneer
from January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (49) Since 2010. Serves at Counsel of Pioneer since June 2007 and None
Assistant Secretary the discretion of the Board. Assistant Secretary of all the Pioneer
Funds since June 2010; and Vice
President and Counsel at State Street
Bank from October 2004 to June 2007
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (52) Since 2008. Serves at Vice President - Fund Treasury of None
Treasurer and Chief the discretion of the Board. Pioneer; Treasurer of all of the Pioneer
Financial and Accounting Funds since March 2008; Deputy Treasurer
Officer of the Funds of Pioneer from March 2004 to February
2008; and Assistant Treasurer of all of
the Pioneer Funds from March 2004 to
February 2008
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 41
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position held with the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (47) Since 2005. Serves at the Assistant Vice President - Fund Treasury None
Assistant Treasurer discretion of the Board. of Pioneer; and Assistant Treasurer of
all of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (54) Since 2005. Serves at the Fund Accounting Manager - Fund Treasury None
Assistant Treasurer discretion of the Board. of Pioneer; and Assistant Treasurer of
all of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (32) Since 2009. Serves at the Fund Administration Manager - Fund None
Assistant Treasurer discretion of the Board. Treasury of Pioneer since November 2008;
Assistant Treasurer of all of the
Pioneer Funds since January 2009; and
Client Service Manager - Institutional
Investor Services at State Street Bank
from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (59) Since 2010. Serves at the Chief Compliance Officer of Pioneer and None
Chief Compliance Officer discretion of the Board. of all the Pioneer Funds since March
2010; Director of Adviser and Portfolio
Compliance at Pioneer since October
2005; and Senior Compliance Officer for
Columbia Management Advisers, Inc. from
October 2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
42 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
This page for your notes.
Pioneer Disciplined Growth Fund | Annual Report | 8/31/12 43
This page for your notes.
44 Pioneer Disciplined Growth Fund | Annual Report | 8/31/12
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
Investment(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 19430-06-1012
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Audit Fees
Fees for audit services provided to the Series, including fees
associated with the filings of its Form N-1A, totaled approximately
$119,982 in 2012 and approximately $124,143 in 2011.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no audit-related services in 2012 or 2011.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Tax Fees
Fees for tax compliance services, primarily for tax returns, totaled
$33,070 in 2012 and $33,160 in 2011.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
Other Fees
There were no other services provided to the Fund during the fiscal
years ended August 31, 2012 and 2011.
(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.
Beginning with non-audit service contracts entered into on or after
May 6, 2003, the effective date of the new SEC pre-approval rules,
the Fund's audit committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the services are
determined to have a direct impact on the operations or financial
reporting of the Fund. For the years ended August 31, 2012 and
2011, there were no services provided to an affiliate that required
the Fund's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and affiliates, as
previously defined, totaled approximately $33,070 in 2012 and
$33,160 in 2011.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust V
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date October 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 October 30, 2012
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date October 30, 2012
* Print the name and title of each signing officer under his or her signature.