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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 811-01835
Pioneer Value Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: September 30
Date of reporting period: October 1, 2011 through September 30, 2012
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer Value Fund
--------------------------------------------------------------------------------
Annual Report | September 30, 2012
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PIOTX
Class B PBOTX
Class C PCOTX
Class Y PVFYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 21
Notes to Financial Statements 29
Report of Independent Registered Public Accounting Firm 38
Trustees, Officers and Service Providers 39
Pioneer Value Fund | Annual Report | 9/30/12 1
President's Letter
Dear Shareowner,
The U.S. stock market rallied sharply through the third quarter of 2012 amid a
sluggish, but nonetheless growing, U.S. economy. We have been cautiously
optimistic about the U.S. from the start of the year, and the economic data
continue to be encouraging. The housing and auto sectors are benefitting from
record-low interest rates. The climate for consumer and business credit has
improved, and inflation appears to be subdued. While corporate profits slowed in
the third quarter, many U.S. companies continue to have strong balance sheets
and to pay attractive dividends* compared to fixed-income securities.
All of these factors contributed to gains for investors who owned riskier
assets, including equities and higher-yielding corporate bonds. Year to date
through September 30, 2012, the Standard & Poor's 500 Index returned 16.35%. In
fixed income, the Bank of America Merrill Lynch High Yield Master II Index was
up by 12.02% during the same period, while the Barclays Capital Aggregate Bond
Index gained 3.99%. Treasury bonds, by contrast, generated a comparatively
sluggish return of 1.70%, as measured by the Barclays Capital Intermediate
Treasuries Index.
Despite this generally positive picture during the first nine months of 2012,
investors face powerful macroeconomic challenges in the months ahead. These
include the threat of a so-called "fiscal cliff" in the U.S. budget process
after the November elections, the European sovereign-debt crisis, and slowing
growth in both Europe and China. Investors can continue to count on market
volatility tied to these factors, although we remain optimistic that the
underlying economic trends are moving in the right direction.
At Pioneer, we have long advocated the benefits of staying diversified** and
investing for the long term. And while diversification alone does not assure a
profit or protect against loss in a declining market, we believe in actively
seeking out opportunities in undervalued securities and sectors around the
globe. 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.
* Dividends are not guaranteed.
** Diversification does not assure a profit or protect against loss in a
declining market.
2 Pioneer Value Fund | Annual Report | 9/30/12
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 Value Fund | Annual Report | 9/30/12 3
Portfolio Management Discussion | 9/30/12
In the following interview, portfolio managers Edward (Ned) T. Shadek, Jr., and
John Peckham discuss the environment for equities during the 12 months ended
September 30, 2012, and how the Pioneer Value Fund performed in that
environment. Mr. Shadek, senior vice president and portfolio manager at Pioneer,
and Mr. Peckham, executive vice president and co-head of equity research, U.S.,
at Pioneer, are responsible for the day-to-day management of the Fund.
Q How would you describe the market environment for equities during the 12
months ended September 30, 2012?
A For the most part, the 12-month period ended September 30, 2012, was a very
good one for the equity market. There were some mini-panics in the market
during the period, but the "up" months outweighed the "down" months overall.
The period began in October 2011 in an environment of very good stock
valuations, as the market at that time was coming off a bottom caused by the
summer 2011 political battle in Washington over raising the United States'
debt ceiling, and the subsequent downgrade of U.S. Treasuries by Standard &
Poor's. The market capitalized on the good valuations and rallied strongly
for most of the final three months of 2011, though the first of the
mini-panics occurred late in 2011, on fears that the European debt crisis
would spin out of control. The panic was quelled, however, by strong
European Central Bank (ECB) action to inject liquidity into the European
banking system through LTROs (long-term refinancing operations), and the
market closed out December 2011 on a high note.
The market had good momentum entering 2012 and, as it had done in the
previous three years, roared out of the gate with a very strong rally in the
first quarter of the year. The rally lasted through April, and then another
mini-panic--again spurred by concerns about the European sovereign-debt
crisis--caused a brief downturn in the markets during the month of May.
Over the final few months of the 12-month period, however, the markets
rallied again as investors gained confidence that the easing actions of the
ECB and other central banks were stabilizing global market conditions and
decreasing the probability that the European Union would fall off the cliff.
4 Pioneer Value Fund | Annual Report | 9/30/12
Q How did the Fund perform in that environment during the 12 months ended
September 30, 2012?
A Pioneer Value Fund Class A shares returned 27.74% at net asset value during
the 12 months ended September 30, 2012, while the Fund's benchmark, the
Russell 1000 Value Index (the Russell Index), returned 30.92%. During the
same period, the average return of the 456 mutual funds in Lipper's
Large-Cap Value Funds category was 27.74%.
Q What were the main reasons for the Fund's underperformance of the benchmark
Russell Index during the 12 months ended September 30, 2012, and what
investment decisions most affected the Fund's relative performance?
A Negative benchmark-relative stock selection results in the utilities,
industrials, telecom services, information technology and health care
sectors were the main reasons for the Fund's underperformance of the Russell
Index during the period. A portfolio overweight to information technology,
which lagged most of the other sectors in the Russell Index during the
period, also proved to be a heavy drag on the Fund's benchmark-relative
returns during the 12-month period.
In utilities, the Fund's position in Exelon was a detractor from
benchmark-relative performance during the period. We had expected the U.S.
power markets to recover quickly and also believed that Exelon would benefit
from its merger with Constellation Energy. Both scenarios failed to play out
and the portfolio's position in the company took a big hit in a short period
of time. We closed the Exelon position in 2012. In industrials, the Fund had
some big investment bets in cyclical companies (Cummins, Rockwell, Emerson)
that were exposed to Chinese markets. China's economy has been slowing, and
so the environment there hurt some of the Fund's investments in the sector.
We ultimately shifted the portfolio out of those positions. Not owning
General Electric (GE) during the beginning portion of the Fund's fiscal year
also hurt benchmark-relative returns. We added GE to the portfolio during
the fiscal year, and it was the Fund's seventh-largest holding as of
September 30, 2012; but our purchase came a bit too late to reverse the
negative impact of not owning GE earlier in the period.
In telecom services, the Fund owned Verizon, which underperformed, rather
than AT&T, which had a strong year, and that decision hurt
benchmark-relative performance. We ended up closing the Fund's Verizon
position and replacing it with Vodafone. In information technology, the
Fund's holdings in Intel and Hewlett-Packard (HP) were, respectively, the
two biggest underperformers in the portfolio relative to the Russell Index
during the period. Regarding Intel, we underestimated the pace of the
slowdown in the personal computers market, which plagued the company's
Pioneer Value Fund | Annual Report | 9/30/12 5
performance during the period. We still view Intel as a dominant franchise,
however, and have maintained the Fund's position. As for HP, the company's
attempt at a turnaround turned out to be much more challenging than we
expected, and deteriorating fundamentals convinced us to eliminate the
Fund's position.
Finally, in health care, we were slow to sell the Fund's position in
Cardinal Health, while we were too early in selling Watson Pharmaceuticals
from the portfolio. Those two decisions detracted from benchmark-relative
returns.
Q What investment decisions aided the Fund's performance during the 12 months
ended September 30, 2012?
A The Fund's holdings in the consumer discretionary, consumer staples,
materials and financials sectors performed well relative to the Russell
Index during the 12-month period. In addition, though benchmark-relative
performance in health care lagged during the period, there were some
individual portfolio holdings in the sector that contributed to the Fund's
absolute return. In fact, in health care, a position in pharmaceutical giant
Pfizer was the single-biggest contributor to the Fund's absolute return
during the period. Pfizer represented the portfolio's largest position as of
September 30, 2012. A position in Amgen, a large biotechnology firm, also
helped the Fund's performance during the period.
In consumer discretionary, the Fund was overweight in media companies
compared with the benchmark, and portfolio holdings such as Comcast, CBS and
NewsCorp performed well during the period. Also in consumer discretionary,
the Fund's position in TJX, which we later sold from the portfolio,
benefited relative performance. In consumer staples, avoiding Procter &
Gamble, which underperformed, helped the Fund's benchmark-relative returns
in the sector, while owning Wal-Mart, a well-timed addition to the portfolio
during the period, also helped relative performance.
In financials, credit card firms such as Capital One and Discover have
continued to fare well, and the Fund's positions in both companies aided
relative returns during the 12-month period (Discover was the second-best
benchmark-relative contributor held in the portfolio during the period).
Wells Fargo, another portfolio holding in financials, benefited from the
general recovery in bank stocks and made a strong contribution to the Fund's
absolute return.
In materials, LyondellBasell was the Fund's best-performing holding relative
to the benchmark over the past 12 months. LyondellBasell was a good
restructuring story and an investment play on the very favorable conditions
for North American natural gas prices that prevailed during the period. We
sold the Fund's position at a profit.
6 Pioneer Value Fund | Annual Report | 9/30/12
Q Could you discuss the Fund's positioning and your outlook?
A The Fund currently has a large-cap, high-quality bias, given what are still
very reasonable stock valuations, especially in an environment of very low
interest rates. Five of the Fund's top 10 holdings as of September 30, 2012,
are big pharmaceutical and energy firms (Pfizer, Merck, Johnson & Johnson,
Marathon Oil, Chevron), as we believe the stocks to be attractively valued.
The pharmaceutical firms in the portfolio have advanced beyond their "patent
cliffs," their stocks are cheap, and they've shown improved fundamentals
while paying strong dividends*. In addition, their management teams have
been acting more responsibly, spending less on expensive research and
development and rationalizing their cost basis. The Fund's energy
positioning moved to an underweight relative to the benchmark after the
Russell Index was reshuffled during the period, but Chevron and Marathon Oil
remain two of the Fund's largest holdings, representing a bet on oil that we
made earlier this year. We do not foresee a massive collapse in oil prices
any time soon, and the energy companies in the portfolio, as is the case
with the pharmaceutical companies, are attractively valued and pay good
dividends.
In general, there remains plenty of uncertainty plaguing market sentiment,
especially that of the pending "fiscal cliff" of U.S. budget cuts and tax
hikes scheduled to occur in January 2013; and there's always the possibility
that the euro zone's troubles could once again come to the forefront.
Uncertainty can lead to short-term market volatility, but in the long run,
we remain optimistic about the prospects for U.S. equities.
The last year has seen outstanding equity market performance. We do not
expect that kind of performance to repeat itself, but overall, stocks of
what we believe to be quality companies are still reasonably valued. We feel
that the Fund is positioned to perform well in a more normal market
environment, as compared with the outperforming market of the past year.
* Dividends are not guaranteed.
Pioneer Value Fund | Annual Report | 9/30/12 7
Please refer to the Schedule of Investments on pages 17-20 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.
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 Value Fund | Annual Report | 9/30/12
Portfolio Summary | 9/30/12
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 90.4%
Depository Receipts for International Stocks 5.2%
International Common Stocks 4.4%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 23.5%
Health Care 18.8%
Energy 15.2%
Information Technology 10.3%
Industrials 8.7%
Consumer Staples 7.3%
Consumer Discretionary 6.8%
Telecommunication Services 4.7%
Materials 4.7%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Pfizer, Inc. 4.88%
--------------------------------------------------------------------------------
2. Chevron Corp. 4.43
--------------------------------------------------------------------------------
3. Microsoft Corp. 4.33
--------------------------------------------------------------------------------
4. Merck & Co., Inc. 3.75
--------------------------------------------------------------------------------
5. Marathon Oil Corp. 3.47
--------------------------------------------------------------------------------
6. PNC Financial Services Group, Inc. 3.42
--------------------------------------------------------------------------------
7. General Electric Co. 3.11
--------------------------------------------------------------------------------
8. Johnson & Johnson, Inc. 3.04
--------------------------------------------------------------------------------
9. Vodafone Group Plc (A.D.R.) 3.00
--------------------------------------------------------------------------------
10. Wells Fargo & Co. 2.99
--------------------------------------------------------------------------------
* 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 Value Fund | Annual Report | 9/30/12 9
Prices and Distributions | 9/30/12
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 9/30/12 9/30/11
--------------------------------------------------------------------------------
A $12.15 $9.67
--------------------------------------------------------------------------------
B $11.07 $8.80
--------------------------------------------------------------------------------
C $10.99 $8.76
--------------------------------------------------------------------------------
Y $12.27 $9.76
--------------------------------------------------------------------------------
Distributions per Share: 10/1/11-9/30/12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.1815 $ -- $ --
--------------------------------------------------------------------------------
B $ -- $ -- $ --
--------------------------------------------------------------------------------
C $0.0730 $ -- $ --
--------------------------------------------------------------------------------
Y $0.2245 $ -- $ --
--------------------------------------------------------------------------------
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns assume reinvestment of dividends and, unlike fund returns,
do not reflect any fees, expenses or sales charges. It is not possible to invest
directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 11-14.
10 Pioneer Value Fund | Annual Report | 9/30/12
Performance Update | 9/30/12 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Value Fund at public offering price, compared to that
of the Russell 1000 Value Index.
Average Annual Total Returns
(As of September 30, 2012)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
10 Years 5.01% 4.39%
5 Years -4.71 -5.84
1 Year 27.74 20.39
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated February 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.02%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Russell
Value Fund 1000 Value Index
9/30/2002 $ 9,425 $ 10,000
9/30/2003 $ 11,589 $ 12,437
9/30/2004 $ 13,564 $ 14,988
9/30/2005 $ 15,437 $ 17,489
9/30/2006 $ 16,655 $ 20,046
9/30/2007 $ 19,569 $ 22,943
9/30/2008 $ 13,551 $ 17,538
9/30/2009 $ 12,265 $ 15,676
9/30/2010 $ 12,721 $ 17,070
9/30/2011 $ 12,035 $ 16,748
9/30/2012 $ 15,374 $ 21,926
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Value Fund | Annual Report | 9/30/12 11
Performance Update | 9/30/12 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Value Fund, compared to that of the Russell 1000
Value Index.
Average Annual Total Returns
(As of September 30, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 3.67% 3.67%
5 Years -6.08 -6.08
1 Year 25.80 21.80
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated February 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.62%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Russell
Value Fund 1000 Value Index
9/30/2002 $ 10,000 $ 10,000
9/30/2003 $ 12,111 $ 12,437
9/30/2004 $ 14,043 $ 14,988
9/30/2005 $ 15,821 $ 17,489
9/30/2006 $ 16,886 $ 20,046
9/30/2007 $ 19,618 $ 22,943
9/30/2008 $ 13,431 $ 17,538
9/30/2009 $ 11,968 $ 15,676
9/30/2010 $ 12,240 $ 17,070
9/30/2011 $ 11,398 $ 16,748
9/30/2012 $ 14,338 $ 21,926
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 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 Value Fund | Annual Report | 9/30/12
Performance Update | 9/30/12 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Value Fund, compared to that of the Russell 1000
Value Index.
Average Annual Total Returns
(As of September 30, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 3.86% 3.86%
5 Years -5.76 -5.76
1 Year 26.38 26.38
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated February 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.14%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Russell
Value Fund 1000 Value Index
9/30/2002 $ 10,000 $ 10,000
9/30/2003 $ 12,161 $ 12,437
9/30/2004 $ 14,064 $ 14,988
9/30/2005 $ 15,837 $ 17,489
9/30/2006 $ 16,895 $ 20,046
9/30/2007 $ 19,650 $ 22,943
9/30/2008 $ 13,463 $ 17,538
9/30/2009 $ 12,047 $ 15,676
9/30/2010 $ 12,366 $ 17,070
9/30/2011 $ 11,558 $ 16,748
9/30/2012 $ 14,607 $ 21,926
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not reflect
the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. "If Held"
results represent the percent change in net asset value per share. Returns would
have been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Value Fund | Annual Report | 9/30/12 13
Performance Update | 9/30/12 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer Value Fund, compared to that of the Russell 1000
Value Index.
Average Annual Total Returns
(As of September 30, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 5.38% 5.38%
5 Years -4.30 -4.30
1 Year 28.29 28.29
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated February 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.61%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Russell
Value Fund 1000 Value Index
9/30/2002 $ 5,000,000 $ 5,000,000
9/30/2003 $ 6,146,935 $ 6,218,354
9/30/2004 $ 7,198,245 $ 7,494,078
9/30/2005 $ 8,234,567 $ 8,744,696
9/30/2006 $ 8,919,265 $ 10,023,197
9/30/2007 $ 10,518,035 $ 11,471,467
9/30/2008 $ 7,309,642 $ 8,769,052
9/30/2009 $ 6,652,108 $ 7,837,840
9/30/2010 $ 6,926,435 $ 8,535,224
9/30/2011 $ 6,580,943 $ 8,374,155
9/30/2012 $ 8,442,523 $ 10,963,142
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 Class Y shares on August
11, 2004, reflects the NAV performance of the Fund's Class A shares. The
performance does not reflect differences in expenses, including 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 to limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14 Pioneer Value Fund | Annual Report | 9/30/12
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Value Fund
Based on actual returns from April 1, 2012, through September 30, 2012.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 4/1/12
--------------------------------------------------------------------------------
Ending Account $1,024.95 $1,016.57 $1,018.70 $1,027.39
Value (after expenses)
on 9/30/12
--------------------------------------------------------------------------------
Expenses Paid $ 5.01 $ 13.36 $ 10.60 $ 3.09
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.99%, 2.65%,
2.10%, and 0.61% for Class A, Class B, Class C, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 183/366 (to reflect the one-half year period).
Pioneer Value Fund | Annual Report | 9/30/12 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) 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 Value Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from April 1, 2012, through September 30, 2012.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 4/1/12
--------------------------------------------------------------------------------
Ending Account $1,020.05 $1,011.75 $1,014.50 $1,021.95
Value (after expenses)
on 9/30/12
--------------------------------------------------------------------------------
Expenses Paid $ 5.00 $ 13.33 $ 10.58 $ 3.08
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.99%, 2.65%,
2.10%, and 0.61% for Class A, Class B, Class C, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 183/366 (to reflect the one-half year period).
16 Pioneer Value Fund | Annual Report | 9/30/12
Schedule of Investments | 9/30/12
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS -- 99.9%
ENERGY -- 15.2%
Oil & Gas Equipment & Services -- 2.1%
398,900 Schlumberger, Ltd. $ 28,852,437
--------------------------------------------------------------------------------
Integrated Oil & Gas -- 9.6%
715,700 BP Plc (A.D.R.) $ 30,317,052
518,300 Chevron Corp. 60,413,048
473,900 Occidental Petroleum Corp. 40,783,834
--------------
$ 131,513,934
--------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 3.5%
1,604,100 Marathon Oil Corp. $ 47,433,237
--------------
Total Energy $ 207,799,608
--------------------------------------------------------------------------------
MATERIALS -- 4.4%
Diversified Chemicals -- 2.0%
536,400 EI du Pont de Nemours & Co. $ 26,964,828
--------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.4%
845,600 Freeport-McMoRan Copper & Gold, Inc. $ 33,468,848
--------------
Total Materials $ 60,433,676
--------------------------------------------------------------------------------
CAPITAL GOODS -- 6.8%
Aerospace & Defense -- 3.7%
451,800 Honeywell International, Inc. $ 26,995,050
304,100 United Technologies Corp. 23,807,989
--------------
$ 50,803,039
--------------------------------------------------------------------------------
Industrial Conglomerates -- 3.1%
1,870,700 General Electric Co. $ 42,483,597
--------------
Total Capital Goods $ 93,286,636
--------------------------------------------------------------------------------
TRANSPORTATION -- 1.9%
Railroads -- 1.9%
1,230,000 CSX Corp. $ 25,522,500
--------------
Total Transportation $ 25,522,500
--------------------------------------------------------------------------------
MEDIA -- 6.8%
Cable & Satellite -- 2.2%
829,800 Comcast Corp. $ 29,681,946
--------------------------------------------------------------------------------
Movies & Entertainment -- 4.6%
1,193,200 News Corp. $ 29,269,196
649,800 The Walt Disney Co. 33,971,544
--------------
$ 63,240,740
--------------
Total Media $ 92,922,686
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these Financial statements.
Pioneer Value Fund | Annual Report | 9/30/12 17
Schedule of Investments | 9/30/12 (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.7%
Hypermarkets & Super Centers -- 2.7%
507,100 Wal-Mart Stores, Inc. $ 37,423,980
--------------
Total Food & Staples Retailing $ 37,423,980
--------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.6%
Soft Drinks -- 1.0%
363,300 The Coca-Cola Co. $ 13,779,969
--------------------------------------------------------------------------------
Tobacco -- 3.6%
753,200 Altria Group, Inc. $ 25,149,348
268,200 Philip Morris International, Inc. 24,121,908
--------------
$ 49,271,256
--------------
Total Food, Beverage & Tobacco $ 63,051,225
--------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.9%
Health Care Equipment -- 2.4%
535,700 Covidien Plc $ 31,831,294
--------------------------------------------------------------------------------
Managed Health Care -- 2.5%
618,300 UnitedHealth Group, Inc. $ 34,260,003
--------------
Total Health Care Equipment & Services $ 66,091,297
--------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 14.0%
Biotechnology -- 2.3%
368,400 Amgen, Inc. $ 31,063,488
--------------------------------------------------------------------------------
Pharmaceuticals -- 11.7%
601,600 Johnson & Johnson Co. $ 41,456,256
1,135,600 Merck & Co., Inc. 51,215,560
2,679,500 Pfizer, Inc. 66,585,575
--------------
$ 159,257,391
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 190,320,879
--------------------------------------------------------------------------------
BANKS -- 6.4%
Diversified Banks -- 3.0%
1,182,100 Wells Fargo & Co. $ 40,817,913
--------------------------------------------------------------------------------
Regional Banks -- 3.4%
739,100 PNC Financial Services Group, Inc. $ 46,637,210
--------------
Total Banks $ 87,455,123
--------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 10.8%
Other Diversified Financial Services -- 5.0%
1,238,500 Citigroup, Inc. $ 40,523,720
675,200 JPMorgan Chase & Co. 27,332,096
--------------
$ 67,855,816
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Value Fund | Annual Report | 9/30/12
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Consumer Finance -- 4.8%
667,100 Capital One Financial Corp. $ 38,031,371
715,800 Discover Financial Services, Inc. 28,438,734
--------------
$ 66,470,105
--------------------------------------------------------------------------------
Investment Banking & Brokerage -- 1.0%
118,400 The Goldman Sachs Group, Inc. $ 13,459,712
--------------
Total Diversified Financials $ 147,785,633
--------------------------------------------------------------------------------
INSURANCE -- 6.3%
Property & Casualty Insurance -- 6.3%
361,900 ACE, Ltd. $ 27,359,640
362,500 The Chubb Corp. 27,651,500
448,000 The Travelers Companies, Inc. 30,580,480
--------------
$ 85,591,620
--------------
Total Insurance $ 85,591,620
--------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 6.4%
Systems Software -- 6.4%
1,983,100 Microsoft Corp. $ 59,056,718
885,700 Oracle Corp. 27,890,693
--------------
$ 86,947,411
--------------
Total Software & Services $ 86,947,411
--------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 2.2%
Communications Equipment -- 2.2%
1,600,100 Cisco Systems, Inc. $ 30,545,909
--------------
Total Technology Hardware & Equipment $ 30,545,909
--------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 1.7%
Semiconductors -- 1.7%
1,020,700 Intel Corp. $ 23,149,476
--------------
Total Semiconductors & Semiconductor Equipment $ 23,149,476
--------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.8%
Integrated Telecommunication Services -- 1.8%
636,500 AT&T, Inc. $ 23,996,050
--------------------------------------------------------------------------------
Wireless Telecommunication Services -- 3.0%
1,438,200 Vodafone Group Plc (A.D.R.) $ 40,981,509
--------------
Total Telecommunication Services $ 64,977,559
--------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,173,924,513) $1,363,305,218
--------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.9%
(Cost $1,173,924,513) (a) $1,363,305,218
--------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.1% $ 929,218
================================================================================
TOTAL NET ASSETS -- 100.0% $1,364,234,436
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Value Fund | Annual Report | 9/30/12 19
Schedule of Investments | 9/30/12 (continued)
(A.D.R.) American Depositary Receipt.
(a) At September 30, 2012, the net unrealized gain on investments based on
cost for federal income tax purposes of $1,175,552,804 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 199,090,658
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (11,338,244)
-------------
Net unrealized gain $ 187,752,414
=============
Purchases and sales of securities (excluding temporary cash investments) for the
year ended September 30, 2012 aggregated $1,022,929,017 and $1,119,601,544,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services) are categorized
as Level 3. See Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of September 30, 2012, in
valuing the Fund's assets:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Common Stocks $1,363,305,218 $ -- $ -- $1,363,305,218
--------------------------------------------------------------------------------
Total $1,363,305,218 $ -- $ -- $1,363,305,218
================================================================================
The accompanying notes are an integral part of these Financial statements.
20 Pioneer Value Fund | Annual Report | 9/30/12
Statement of Assets and Liabilities | 9/30/12
ASSETS:
Investment in securities (cost $1,173,924,513) $ 1,363,305,218
Receivables --
Investment securities sold 10,791,819
Fund shares sold 26,811
Dividends 2,235,785
Other 16,754
---------------------------------------------------------------------------------
Total assets $ 1,376,376,387
=================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 9,363,990
Fund shares repurchased 512,577
Due to Custodian 1,680,002
Dividends 3,688
Due to affiliates 483,771
Accrued expenses 97,923
---------------------------------------------------------------------------------
Total liabilities $ 12,141,951
=================================================================================
NET ASSETS:
Paid-in capital $ 1,823,609,249
Undistributed net investment income 8,436,816
Accumulated net realized loss on investments and
foreign currency transactions (657,192,116)
Net unrealized gain on investments 189,380,705
Net unrealized loss on other assets and liabilities
denominated in foreign currencies (218)
---------------------------------------------------------------------------------
Total net assets $ 1,364,234,436
=================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $1,348,833,962/110,992,705 shares) $ 12.15
Class B (based on $2,739,373/247,547 shares) $ 11.07
Class C (based on $4,244,262/386,125 shares) $ 10.99
Class Y (based on $8,416,839/686,047 shares) $ 12.27
MAXIMUM OFFERING PRICE:
Class A ($12.15 (divided by) 94.25%) $ 12.89
=================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Value Fund | Annual Report | 9/30/12 21
Statement of Operations
For the Year Ended 9/30/12
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $403,379) $ 35,119,293
Interest 1,314
Income from securities loaned, net 14,823
------------------------------------------------------------------------------------------------
Total investment income $ 35,135,430
================================================================================================
EXPENSES:
Management fees
Basic Fee $ 8,061,148
Performance Adjustment (1,535,309)
Transfer agent fees and expenses
Class A 1,533,316
Class B 28,267
Class C 14,072
Class Y 2,171
Distribution fees
Class A 3,318,559
Class B 30,397
Class C 39,325
Shareholder communications expense 1,058,050
Administrative reimbursement 384,391
Custodian fees 40,253
Registration fees 82,266
Professional fees 132,989
Printing expense 39,378
Fees and expenses of nonaffiliated trustees 52,439
Miscellaneous 57,550
------------------------------------------------------------------------------------------------
Total expenses $ 13,339,262
------------------------------------------------------------------------------------------------
Net expenses $ 13,339,262
------------------------------------------------------------------------------------------------
Net investment income $ 21,796,168
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 44,092,493
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (48,369)
Class action 1,941,639 $ 45,985,763
------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $257,744,187
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (397) $257,743,790
------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $303,729,553
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $325,525,721
================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Value Fund | Annual Report | 9/30/12
Statements of Changes in Net Assets
---------------------------------------------------------------------------------------------------
Year Ended Year Ended
9/30/12 9/30/11
---------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 21,796,168 $ 18,720,893
Net realized gain on investments, Class action and foreign
currency transactions 45,985,763 19,737,750
Change in net unrealized gain (loss) on investments and foreign
currency transactions 257,743,790 (91,270,199)
---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $ 325,525,721 $ (52,811,556)
---------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.18 and $0.17 per share, respectively) $ (21,349,076) $ (22,104,873)
Class C ($0.07 and $0.06 per share, respectively) (28,134) (27,722)
Class Y ($0.22 and $0.21 per share, respectively) (181,149) (273,977)
---------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (21,558,359) $ (22,406,572)
---------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 14,434,249 $ 19,338,683
Reinvestment of distributions 20,222,710 20,888,119
Cost of shares repurchased (201,492,304) (220,590,282)
---------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from Fund share
transactions $ (166,835,345) $ (180,363,480)
---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 137,132,017 $ (255,581,608)
NET ASSETS:
Beginning of year 1,227,102,419 1,482,684,027
---------------------------------------------------------------------------------------------------
End of year $1,364,234,436 $1,227,102,419
---------------------------------------------------------------------------------------------------
Undistributed net investment income $ 8,436,815 $ 8,247,376
===================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Value Fund | Annual Report | 9/30/12 23
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------------
'12 Shares '12 Amount '11 Shares '11 Amount
------------------------------------------------------------------------------------------------
CLASS A
Shares sold 1,172,718 $ 12,657,719 1,500,628 $ 17,521,898
Reinvestment of distributions 1,840,145 20,123,847 1,826,737 20,785,131
Less shares repurchased (17,384,526) (195,886,533) (18,514,405) (209,182,823)
------------------------------------------------------------------------------------------------
Net decrease (14,371,663) $ (163,104,967) (15,187,040) $ (170,875,794)
================================================================================================
CLASS B
Shares sold or exchanged 4,222 $ 43,561 45,778 $ 462,747
Less shares repurchased (114,782) (1,176,018) (245,177) (2,530,504)
------------------------------------------------------------------------------------------------
Net decrease (110,560) $ (1,132,457) (199,399) $ (2,067,757)
================================================================================================
CLASS C
Shares sold 58,056 $ 604,405 58,953 $ 604,152
Reinvestment of distributions 2,632 26,124 2,458 25,487
Less shares repurchased (81,122) (822,680) (112,399) (1,151,468)
------------------------------------------------------------------------------------------------
Net decrease (20,434) $ (192,151) (50,988) $ (521,829)
================================================================================================
CLASS Y
Shares sold 97,611 $ 1,128,564 66,098 $ 749,886
Reinvestment of distributions 6,591 72,739 6,759 77,501
Less shares repurchased (314,637) (3,607,073) (669,823) (7,725,487)
------------------------------------------------------------------------------------------------
Net decrease (210,435) $ (2,405,770) (596,966) $ (6,898,100)
================================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Value Fund | Annual Report | 9/30/12
Financial Highlights
-----------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
9/30/12 9/30/11 9/30/10 9/30/09 9/30/08
-----------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.67 $ 10.37 $ 10.12 $ 11.44 $ 18.28
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.19 $ 0.15 $ 0.14 $ 0.17 $ 0.25
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.47 (0.68) 0.24 (1.29) (5.47)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.66 $ (0.53) $ 0.38 $ (1.12) $ (5.22)
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.18) (0.17) (0.13) (0.20) (0.25)
Net realized gain -- -- -- -- (1.37)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.48 $ (0.70) $ 0.25 $ (1.32) $ (6.84)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.15 $ 9.67 $ 10.37 $ 10.12 $ 11.44
===================================================================================================================================
Total return* 27.74%(a) (5.39)% 3.72% (9.49)% (30.75)%
Ratio of net expenses to average net assets + 0.99% 1.02% 1.01% 1.06% 0.94%
Ratio of net investment income to average net assets + 1.63% 1.23% 1.23% 1.89% 1.73%
Portfolio turnover rate 83% 84% 111% 53% 95%
Net assets, end of period (in thousands) $1,348,834 $1,211,647 $1,457,472 $1,649,438 $2,082,427
Ratios with reduction for fees paid indirectly:
Net expenses 0.99% 1.02% 1.01% 1.06% 0.94%
Net investment income 1.63% 1.23% 1.23% 1.89% 1.73%
===================================================================================================================================
* 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 assuming no reduction for fees paid indirectly.
(a) If the Fund had not recognized gains in settlement of class action lawsuits
during the year ended September 30, 2012, the total return would have been
27.58%.
The accompanying notes are an integral part of these financial statements.
Pioneer Value Fund | Annual Report | 9/30/12 25
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
9/30/12 9/30/11 9/30/10 9/30/09 9/30/08
-----------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 8.80 $ 9.45 $ 9.24 $ 10.47 $ 16.87
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.02 $ -- $ 0.01 $ 0.06 $ 0.11
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.25 (0.65) 0.20 (1.21) (5.04)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.27 $ (0.65) $ 0.21 $ (1.15) $ (4.93)
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income -- -- -- (0.08) (0.10)
Net realized gain -- -- -- -- (1.37)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.27 $ (0.65) $ 0.21 $ (1.23) $ (6.40)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.07 $ 8.80 $ 9.45 $ 9.24 $ 10.47
===================================================================================================================================
Total return* 25.80%(a) (6.88)% 2.27% (10.89)% (31.54)%
Ratio of net expenses to average net assets + 2.65% 2.62% 2.46% 2.57% 2.06%
Ratio of net investment income (loss) to average net assets + (0.03)% (0.37)% (0.23)% 0.41% 0.60%
Portfolio turnover rate 83% 84% 111% 53% 95%
Net assets, end of period (in thousands) $ 2,739 $ 3,151 $ 5,271 $ 8,057 $ 13,518
Ratios with reduction for fees paid indirectly:
Net expenses 2.65% 2.62% 2.46% 2.57% 2.04%
Net investment income (loss) (0.03)% (0.37)% (0.23)% 0.41% 0.62%
===================================================================================================================================
* 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 assuming no reduction for fees paid indirectly.
(a) If the Fund had not recognized gains in settlement of class action lawsuits
during the year ended September 30, 2012, the total return would have been
25.57%.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Value Fund | Annual Report | 9/30/12
-----------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
9/30/12 9/30/11 9/30/10 9/30/09 9/30/08
-----------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 8.76 $ 9.43 $ 9.21 $ 10.43 $ 16.84
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.05 $ 0.02 $ 0.01 $ 0.08 $ 0.10
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.25 (0.63) 0.23 (1.19) (5.01)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.30 $ (0.61) $ 0.24 $ (1.11) $ (4.91)
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.07) (0.06) (0.02) (0.11) (0.13)
Net realized gain -- -- -- -- (1.37)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.23 $ (0.67) $ 0.22 $ (1.22) $ (6.41)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.99 $ 8.76 $ 9.43 $ 9.21 $ 10.43
===================================================================================================================================
Total return* 26.38%(a) (6.53)% 2.65% (10.51)% (31.49)%
Ratio of net expenses to average net assets + 2.10% 2.14% 2.16% 2.18% 1.92%
Ratio of net investment income to average net assets + 0.51% 0.11% 0.08% 0.83% 0.76%
Portfolio turnover rate 83% 84% 111% 53% 95%
Net assets, end of period (in thousands) $ 4,244 $ 3,560 $ 4,314 $ 4,371 $ 7,458
Ratios with reduction for fees paid indirectly:
Net expenses 2.10% 2.14% 2.16% 2.18% 1.91%
Net investment income 0.51% 0.11% 0.08% 0.83% 0.77%
===================================================================================================================================
* 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 assuming no reduction for fees paid indirectly.
(a) If the Fund had not recognized gains in settlement of class action lawsuits
during the year ended September 30, 2012, the total return would have been
26.22%.
The accompanying notes are an integral part of these financial statements.
Pioneer Value Fund | Annual Report | 9/30/12 27
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
9/30/12 9/30/11 9/30/10 9/30/09 9/30/08
-----------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.76 $ 10.46 $ 10.21 $ 11.54 $ 18.42
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.24 $ 0.22 $ 0.28 $ 0.30 $ 0.33
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.49 (0.71) 0.14 (1.38) (5.54)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.73 $ (0.49) $ 0.42 $ (1.08) $ (5.21)
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.22) (0.21) (0.17) (0.25) (0.30)
Net realized gain -- -- -- -- (1.37)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.51 $ (0.70) $ 0.25 $ (1.33) $ (6.88)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.27 $ 9.76 $ 10.46 $ 10.21 $ 11.54
===================================================================================================================================
Total return* 28.29%(a) (4.99)% 4.12% (9.00)% (30.50)%
Ratio of net expenses to average net assets + 0.61% 0.61% 0.59% 0.54% 0.53%
Ratio of net investment income to average net assets + 2.01% 1.63% 1.63% 2.51% 2.12%
Portfolio turnover rate 83% 84% 111% 53% 95%
Net assets, end of period (in thousands) $ 8,417 $ 8,745 $ 15,628 $ 39,120 $ 112,571
Ratios with reduction for fees paid indirectly:
Net expenses 0.61% 0.61% 0.59% 0.54% 0.53%
Net investment income 2.01% 1.63% 1.63% 2.51% 2.12%
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
+ Ratios assuming no reduction for fees paid indirectly.
(a) If the Fund had not recognized gains in settlement of class action lawsuits
during the year ended September 30, 2012, the total return would have been
28.09%.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Value Fund | Annual Report | 9/30/12
Notes to Financial Statements | 9/30/12
1. Organization and Significant Accounting Policies
Pioneer Value Fund (the Fund) is a Delaware statutory trust registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The investment objective of the Fund is reasonable income and capital
growth.
The Fund offers four classes of shares designated as Class A, Class B, Class C,
and Class Y shares. 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 gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
Pioneer Value Fund | Annual Report | 9/30/12 29
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 September 30, 2012, there were no securities that were valued using fair
value methods (other than securities that were valued using prices supplied
by independent pricing services). Inputs used when applying fair value
methods to value a security may include credit ratings, the financial
condition of the company, current market conditions and comparable
securities.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in the
exercise of reasonable diligence. Interest income 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.
30 Pioneer Value Fund | Annual Report | 9/30/12
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars.
Amounts denominated in foreign currencies are translated into U.S. dollars
using current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the Statement of Operations from the
effects of changes in market price of those securities but are included with
the net realized and unrealized gain or loss on investments.
C. 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
September 30, 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 September 30, 2012, the Fund reclassified $48,369 to decrease net
investment income and $48,369 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 September 30, 2012, the Fund had a net capital loss carryforward of
$655,563,825, of which the following amounts will expire between 2017 and
2018 if not utilized: $336,018,363 in 2017 and $319,545,462 in 2018.
Pioneer Value Fund | Annual Report | 9/30/12 31
The tax character of distributions paid during the years ended September 30,
2012 and September 30, 2011 were as follows:
--------------------------------------------------------------------------------
2012 2011
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $21,558,359 $22,406,572
--------------------------------------------------------------------------------
Total $21,558,359 $22,406,572
================================================================================
The following shows the components of distributable earnings on a federal income
tax basis at September 30, 2012:
--------------------------------------------------------------------------------
2012
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 8,436,816
Capital loss carryforward (655,563,825)
Unrealized depreciation 187,752,196
--------------------------------------------------------------------------------
Total $(459,374,813)
================================================================================
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
D. 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 7).
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $55,954 in underwriting commissions on the sale of Class A shares
during the year ended September 30, 2012.
32 Pioneer Value Fund | Annual Report | 9/30/12
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. During the year, the Fund recognized gains of $1,941,639 in
settlement of class action lawsuits from several different companies, as
reflected on the Statement of Operations.
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
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making the Fund more susceptible
to any economic, political, or regulatory developments or other risks
affecting those industries and sectors. The Fund's prospectus contains
unaudited information regarding the Fund's principal risks. Please refer to
that document when considering the Fund's principal risks.
H. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian or a subcustodian of the Fund. The Fund's
investment adviser, Pioneer Investment Management, Inc. (PIM), is responsible
for determining that the value of the collateral remains at least equal to
the repurchase price.
Pioneer Value Fund | Annual Report | 9/30/12 33
I. 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 September 30, 2012, the Fund had no securities on loan.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. PIM receives a basic fee that is calculated at the annual rate of
0.60% of the Fund's average daily net assets up to $5 billion, 0.575% on the
next $5 billion and 0.55% on the excess over $10 billion. The basic fee can
increase or decrease by a maximum of 0.10% based on the investment performance
of the Fund's Class A shares as compared to the Russell 1000 Value Index. The
performance comparison is made for a rolling 36-month period. In addition,
Pioneer contractually limits any positive adjustment of the Fund's management
fee to 0.10% of the Fund's average daily net assets on an annual basis (i.e., to
a maximum of 0.70% after the performance adjustment). For the year ended
September 30, 2012, the aggregate performance adjustment resulted in a decrease
to the basic fee of $1,535,309. For the year ended September 30, 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.
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.
34 Pioneer Value Fund | Annual Report | 9/30/12
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $117,916 in management fees, administrative costs and certain
other reimbursements payable to PIM at September 30, 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 September 30, 2012, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $1,040,406
Class B 5,434
Class C 7,893
Class Y 4,317
--------------------------------------------------------------------------------
Total $1,058,050
--------------------------------------------------------------------------------
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $328,059 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at September 30, 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 $37,796 in distribution fees payable to PFD at September 30,
2012.
Pioneer Value Fund | Annual Report | 9/30/12 35
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 September 30, 2012, CDSCs in the
amount of $2,164 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 September 30, 2012, the Fund's expenses
were not reduced under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until January 20, 2012 was in the amount of $165
million. Under such facility, interest on borrowings was payable at the higher
of the London Interbank Offered Rate (LIBOR) on the borrowing date plus 1.25% on
an annualized basis or the Federal Funds Rate on the borrowing date plus 1.25%
on an annualized basis. The credit facility in effect as of February 15, 2012 is
in the amount of $215 million. Under such facility, depending on the type of
loan, interest on borrowings is payable at LIBOR plus 0.90% on an annualized
basis, or the Alternate Base Rate, which is the greater of (a) the facility's
administrative agent's daily announced prime rate on the borrowing date, (b) 2%
plus the Federal Funds Rate on the borrowing date and (c) 2% plus the overnight
Euro dollar rate on the borrowing date. The Funds pay an annual commitment fee
to participate in a credit facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the year ended September 30, 2012, the Fund had no borrowings
under a credit facility.
36 Pioneer Value Fund | Annual Report | 9/30/12
7. Forward Foreign Currency Contracts
At September 30, 2012, the Fund had entered into various forward foreign
currency contracts that obligate the Fund to deliver or take delivery of
currencies at specified future maturity dates. Alternatively, prior to the
settlement date of a forward foreign currency contract, the Fund may close out
such contract by entering into an offsetting contract. The Fund held forward
foreign currency contracts during the month of October 2011. The value of
contracts open during the month of October was $886,875. There were no open
portfolio or settlement hedges at September 30, 2012.
8. Additional Disclosures about Derivative Instruments and Hedging Activities
The effect of derivative instruments on the Statement of Operations for the year
ended September 30, 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 loss on
Currency Contracts forward foreign currency contracts and other
assets and liabilities denominated in
foreign currencies
$(129,527)
Forward Foreign Change in unrealized gain on forward
Currency Contracts foreign currency contracts and other assets
and liabilities denominated in foreign
currencies $(10,716)
9. Pending Litigation
The Fund is currently involved in a litigation matter in Germany. A German
financial intermediary, now deceased, apparently opened an account in the name
of the plaintiffs, a married couple, and later misappropriated the assets. The
plaintiffs filed a lawsuit against the Fund and an affiliate seeking recovery
for the misappropriated assets, alleging negligence and breach of contract. The
Fund believes that these claims are without merit and is defending the matter
vigorously. As of September 30, 2012, it is reasonably possible that an adverse
outcome may result. Currently, the amount of any judgment cannot reasonably be
estimated. Under the terms of an indemnification agreement, PIM and certain
affiliates have agreed to indemnify the Fund for its losses and costs related to
this litigation should there be an adverse outcome.
Pioneer Value Fund | Annual Report | 9/30/12 37
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareowners of
Pioneer Value Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Value Fund ("the Fund"), including the schedule of investments, as of September
30, 2012, 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 Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of September 30, 2012, by correspondence with the custodian.
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 Value Fund at September 30, 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
November 21, 2012
38 Pioneer Value Fund | Annual Report | 9/30/12
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 Value Fund | Annual Report | 9/30/12 39
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 Director, Broadridge Financial
Chairman of the Board Serves until a successor Officer, Quadriserv, Inc. Solutions, Inc. (investor
and Trustee trustee is elected or earlier (technology products for securities communications and securities
retirement or removal. lending industry) (2008 - present); processing provider for financial
private investor (2004 - 2008); and services industry) (2009 - present);
Senior Executive Vice President, Director, Quadriserv, Inc. (2005 -
The Bank of New York (financial and present); and Commissioner, New
securities services) (1986 - 2004) Jersey State Civil Service
Commission (2011 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (68) Trustee since 2005. Managing Partner, Federal City Director of Enterprise Community
Trustee Serves until a successor Capital Advisors (corporate Investment, Inc. (privately-held
trustee is elected or earlier advisory services company) (1997 - affordable housing finance company)
retirement or removal. 2004 and 2008 - present); Interim (1985 - 2010); Director of Oxford
Chief Executive Officer, Oxford Analytica, Inc. (2008 - present);
Analytica, Inc. (privately held Director of The Swiss Helvetia Fund,
research and consulting company) Inc. (closed-end fund) (2010 -
(2010); Executive Vice President present); and Director of New York
and Chief Financial Officer, I-trax, Mortgage Trust (publicly traded
Inc. (publicly traded health care mortgage REIT) (2004 - 2009, 2012 -
services company) (2004 - 2007); present)
and Executive Vice President and
Chief Financial Officer, Pedestal
Inc. (internet-based mortgage
trading company) (2000 - 2002)
------------------------------------------------------------------------------------------------------------------------------------
40 Pioneer Value Fund | Annual Report | 9/30/12
------------------------------------------------------------------------------------------------------------------------------------
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 Funds
Trustee Serves until a successor Political Economy, Harvard Investment Trust and Mellon
trustee is elected or earlier University (1972 - present) Institutional Funds Master Portfolio
retirement or removal. (oversaw 17 portfolios in fund
complex) (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (65) Trustee since 1990. Founding Director, Vice President None
Trustee Serves until a successor and Corporate Secretary, The
trustee is elected or earlier Winthrop Group, Inc. (consulting
retirement or removal. 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 1982. President and Chief Executive Director of New America High Income
Trustee Serves until a successor Officer, Newbury, Piret & Company, Fund, Inc. (closed-end investment
trustee is elected or earlier Inc. (investment banking firm) (1981 company) (2004 - present); and
retirement or removal. - present) member, Board of Governors,
Investment Company Institute (2000 -
2006)
------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (83) Trustee since 1993. Senior Counsel, Sullivan & Cromwell Director, The Swiss Helvetia Fund,
Trustee Serves until a successor LLP (law firm) (1998 - present); and Inc. (closed-end investment
trustee is elected or earlier Partner, Sullivan & Cromwell LLP company); and Director, Invesco,
retirement or removal. (prior to 1998) Ltd. (formerly AMVESCAP, PLC)
(investment manager) (1997-2005)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Value Fund | Annual Report | 9/30/12 41
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 1982. Non-Executive Chairman and a None
Trustee, President and Serves until a successor director of Pioneer Investment
Chief trustee is elected or earlier Management USA Inc. ("PIM-USA");
Executive Officer of the retirement or removal. Chairman and a director of Pioneer;
Fund 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. Director, CEO and President of None
Trustee and Executive Serves until a successor PIM-USA (since February 2007);
Vice President trustee is elected or earlier Director and President of Pioneer
retirement or removal. 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.
42 Pioneer Value Fund | Annual Report | 9/30/12
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 None
Assistant Secretary the discretion of the Board. 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 Vice President - Fund Treasury of None
Treasurer and Chief the discretion of the Board. Pioneer; Treasurer of all of the
Financial and Accounting Pioneer Funds since March 2008;
Officer of the Fund 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 2000. Serves at Assistant Vice President - Fund None
Assistant Treasurer the discretion of the Board. Treasury of Pioneer; and Assistant
Treasurer of all of the Pioneer
Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (54) Since 2002. Serves at Fund Accounting Manager - Fund None
Assistant Treasurer the discretion of the Board. Treasury of Pioneer; and Assistant
Treasurer of all of the Pioneer
Funds
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Value Fund | Annual Report | 9/30/12 43
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 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 Chief Compliance Officer of Pioneer None
Chief Compliance Officer the discretion of the Board. 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
------------------------------------------------------------------------------------------------------------------------------------
Kelley O'Donnell (41) Since 2006. Serves at the Director--Transfer Agency Compliance None
Anti-Money Laundering discretion of the Board. of Pioneer and Anti-Money Laundering
Officer Officer of all the Pioneer
Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
44 Pioneer Value Fund | Annual Report | 9/30/12
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts, new
accounts, prospectuses, applications and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices, account
information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at 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 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 19438-06-1112
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Audit Fees
Fees for audit services provided to the Fund, including fees
associated with the filings of its Form N-1A, totaled
approximately $36,742 in 2012 and approximately $38,686 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 fees for audit-related services provided to the
Fund during the fiscal years ended September 30, 2012 and
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 $8,290 in 2012 and $8,290 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 fees for other services provided to the Fund
during the fiscal years ended September 30, 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.
Non-Audit Services
Beginning with non-audit service contracts entered into on or
after May 6, 2003, the effective date of the new SEC pre-
approval rules, the Fund's audit committee is required to pre-
approve services to affiliates defined by SEC rules to the
extent that the services are determined to have a direct impact
on the operations or financial reporting of the Fund. For the
years ended September 30, 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 $8,290 in 2012 and
$8,290 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 Value Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date November 29, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date November 29, 2012
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date November 29, 2012
* Print the name and title of each signing officer under his or her signature.