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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08657
Pioneer Equity Income Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 2011 through October 31, 2012
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer Equity
Income Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2012
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Ticker Symbols:
Class A PEQIX
Class B PBEQX
Class C PCEQX
Class R PQIRX
Class Y PYEQX
Class Z PEZQX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 11
Prices and Distributions 12
Performance Update 13
Comparing Ongoing Fund Expenses 19
Schedule of Investments 21
Financial Statements 28
Notes to Financial Statements 38
Report of Independent Registered Public Accounting Firm 47
Trustees, Officers and Service Providers 48
Pioneer Equity Income Fund | Annual Report | 10/31/12 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 the end of the third quarter, 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 three quarters 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 Equity Income Fund | Annual Report | 10/31/12
Pioneer's investment professionals focus on finding good opportunities in both
equity and bond markets using the same disciplined investment approach we have
used since 1928. Our strategy is to identify undervalued individual securities
with the greatest potential for success, carefully weighing risk against reward.
Our teams of investment professionals continually monitor and analyze the
relative valuations of different sectors and securities globally to help build
portfolios that we believe can help you achieve your investment goals.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Equity Income Fund | Annual Report | 10/31/12 3
Portfolio Management Discussion | 10/31/12
In the following interview, John Carey, Executive Vice President and Head of
U.S. Core Value at Pioneer Investments, discusses the investment environment
during the 12 months ended October 31, 2012, and Pioneer Equity Income Fund's
performance during the period. Mr. Carey is responsible for the day-to-day
management of Pioneer Equity Income Fund.
Q How would you describe the market for equities during the 12 months ended
October 31, 2012, particularly for the types of equities deemed appropriate
for the Fund?
A Looking at the two different six-month periods between November 1, 2011, and
October 31, 2012, one sees a similar pattern. In the first month of each
six-month timeframe (namely, in November 2011 and May 2012), the stock
market took a tumble, then rose fairly steadily during the rest of the
period. The overall result for the full 12 months ended October 31, 2012,
was an impressive market advance, but along the way there were those two
difficult setbacks, along with a lot of minor pull-backs. Some of the issues
that concerned investors during the Fund's 2011 fiscal year troubled them
likewise during the 2012 fiscal year.
The European debt situation, our own debt situation here in the U. S., the
continued turmoil in the Middle East, and signs of economic slowdown in some
of the formerly rapidly-growing emerging markets, particularly China and
Brazil, appeared again and again in headline news stories. As the 2012
calendar year wore on, Americans also focused on the November elections and
what the outcome might mean for the so-called "fiscal cliff," that is, the
tax increases and automatic spending cuts scheduled to take effect in
January 2013 without some modification or postponement by the Federal
government. Nonetheless, the stock market on balance moved higher during the
12-month period ended October 31, 2012, as investors "climbed the wall of
worry" and found themselves attracted to what appeared to be reasonable
share prices for companies that were still experiencing good earnings
growth.
4 Pioneer Equity Income Fund | Annual Report | 10/31/12
Q How did the Fund perform in that environment during the 12 months ended
October 31, 2012?
A Pioneer Equity Income Fund's Class A shares returned 10.09% at net asset
value during the 12 months ended October 31, 2012, while the Fund's
benchmark, the Russell 1000 Value Index (the Russell Index), returned
16.89%. During the same period, the average return of the 303 mutual funds
in Lipper's Equity Income Funds category was 13.18%.
Q Could you please talk in more detail about the Fund's performance during the
12 months ended October 31, 2012, and also during the six-month period
between the Fund's semiannual and annual reporting periods? Specifically,
what were the main reasons for the Fund's underperformance of the benchmark
Russell Index?
A Throughout the 12 months ended October 31, 2012, including during the last
six months, the Fund showed negative performance attribution relative to the
benchmark Russell Index from both sector allocations and stock selections.
The Fund's positioning in the financials sector was the largest source of
benchmark-relative underperformance during the 12 months ended October 31,
2012, and also figured significantly in the Fund's underperformance during
the final six months of the period. (The Fund's Class A shares at net asset
value returned 1.65% during the final six months of the annual reporting
period, while the Russell Index returned 4.72%.) Out of concern for the
prospects for sustainable improvement in earnings, we had largely avoided
having the Fund own "money-center banks" during the latter part of the 2011
calendar year and early in the 2012 calendar year, when the stocks of such
banks rose strongly; and, finally feeling more confident about them, we only
invested the Fund in them as they embarked on a months-long period of
backing and filling.
The Fund's investments in health care and consumer staples also were notable
detractors from benchmark-relative performance during both the 12- and
six-month periods ended October 31, 2012. With respect to health care, the
Fund was underweight relative to the benchmark in the above-average
performing sector, and our stock selections in the sector showed an
overweight to names in health care equipment and supplies and an underweight
to pharmaceuticals, which performed better.
Pioneer Equity Income Fund | Annual Report | 10/31/12 5
In consumer staples, the Fund correctly had a large overweight to the
above-average performing sector, but the preponderance of the portfolio's
investments was in food products, which underperformed other industries
within the sector.
The Fund did show positive performance attribution relative to the Russell
Index from the energy and information technology sectors during both the 12-
and six-month periods ended October 31, 2012. In each sector, the Fund's
holdings--and stocks the Fund did not own--benefited benchmark-relative
performance.
In energy, the Fund owned Marathon Petroleum, which did extremely well, and
did not own Occidental Petroleum, which performed disappointingly. In
information technology, the portfolio held such names as Microsoft, Analog
Devices, and Automatic Data Processing, which, while not sterling
performers, at least held their own; and managed to avoid altogether
Hewlett-Packard and Dell, which both showed dismal performance.
Otherwise, the Fund had some stand-out individual stock picks here and there
during the period: Valspar in materials; Cedar Fair in consumer
discretionary; and Snap-On in industrials. Overall, though, the portfolio's
outperforming areas and stocks were not enough to offset its underperforming
assets.
Q Could you please discuss changes that you made to the Fund's portfolio
during the 12 months ended October 31, 2012?
A In the first half of the Fund's fiscal year, between November 1, 2011, and
April 30, 2012, we were very active. The changes that we saw in the stock
market, along with our desire to boost the distributable dividend* income
from the portfolio, led us to make a large number of purchases and a
sizeable, though smaller, number of sales during the first six-month period
of the Fund's fiscal year. The effect on the portfolio during the first six
months of the 12-month period was a net increase of nearly 20 positions. In
sum, we took initial portfolio stakes in 38 stocks and liquidated
investments in 19.
The vast majority of new positions added to the portfolio during the first
six months of the period were United States-headquartered companies. Among
the additions during the first six months of the period was Microsoft, which
may not be the first stock that comes to mind when thinking of income-
producing "value plays," yet the price-to-earnings multiple on today's
Microsoft has been well below the average multiple for stocks in the
* Dividends are not guaranteed.
6 Pioneer Equity Income Fund | Annual Report | 10/31/12
Standard & Poor's 500 Index (the S&P 500), and the company's dividend yield
is above average relative to the yield on the S&P 500. Also added during the
first six months of the period was Ford Motor, an impressive recovery story
over the past several years.
Among sales from the Fund's portfolio during the first six months of the
period were stocks we thought had reached reasonable price objectives or
that appeared less compelling with respect to near- and intermediate-term
prospects than stocks we wished to purchase. In the former category, for
example, were Bristol-Myers Squibb, American Water Works, and Southern; and
in the latter category were PepsiCo, Walgreen, and Applied Materials.
After the repositioning in the first half of the fiscal year ended October
31, 2012, the Fund showed less, though still meaningful, change in the
second half of the period. We added 13 positions to the portfolio between
May 1, 2012, and October 31, 2012, while liquidating 17, including some of
the positions we had purchased in the first half of the fiscal year.
Among the new entries was DE Master Blenders, a Dutch-based coffee-and-tea
supplier. DE Master Blenders and Hillshire Brands, a U.S.-based meat and
baked-goods company, are the two parts of the Fund's former holding Sara
Lee, which reconfigured itself into the separate companies in June 2012.
Similarly, Kraft Foods, which the Fund acquired during the final six months
of the fiscal year, split apart into Mondelez International, a snack,
beverage, and confectioner, and the new Kraft Foods, which continues to
produce such mainstays as Oscar Mayer meats and Kraft cheeses.
Examples of other additions to the portfolio during the final six months of
the fiscal year include Johnson Matthey, a prominent refiner of precious
metals and producer of specialty chemicals; Kimberly-Clark, a world leader
in disposable diapers, paper tissues and towels, and hospital supplies;
Johnson & Johnson, a major name in several different areas of health care,
including consumer products, pharmaceuticals, surgical equipment, and
orthopedic appliances; and John Wiley & Sons, a noted publisher of
scientific and technical books and journals.
Among liquidations from the Fund over the final six months of the period
were stocks we thought had reached fair value, including Timken, SunTrust,
and Discover Financial; stocks about which we had come to question the
company's earnings-growth prospects, including Intel, Sysco, and Windstream;
and those that we just regarded as less-compelling investment cases than
stocks of companies we wished to add to the portfolio. Some, too, were
recent purchases about which we had second thoughts after
Pioneer Equity Income Fund | Annual Report | 10/31/12 7
further reflection on management strategies and business results. BP and
Vodafone, both added during the first six months of the Fund's fiscal year,
were examples of the latter.
Q In the Fund's semiannual report of April 30, 2012, you described the
environment for dividend-paying stocks as positive. The Fund typically
emphasizes such stocks. Would you still describe the environment for
dividend payers as positive as of October 31, 2012?
A We still believe that dividends can make up a meaningful part of an
investor's total return on stocks over time. Appreciation of the underlying
shares will make up the rest--in cases, that is, where the shares do in fact
rise during an investor's holding period. As we write this letter, companies
continue to pay dividends, many at generous levels, especially taking into
account the extra dividends that some companies are paying in addition to
their regular quarterly dividends. However, there is investor concern over
possible increases in the Federal tax rates on dividends come January 2013,
if we do indeed go over the "fiscal cliff " due to the inability of our
leaders and representatives in Washington, D.C., to reach some kind of new
agreement on taxes and budgetary policy.
Prior to 2003, dividends were taxed at the Federal level based on a person's
full ordinary income tax rate. Subsequent to the tax law enacted that year,
the maximum Federal rate on qualified dividends has been 15%. All we would
note--since we have no special insight into what will happen in
Washington--is that companies before 2003 paid dividends and that many
companies were in the habit, just as they are now, of regularly raising
their dividends. We cannot know what companies will do this time around
should taxes on dividends go back up, though we observe that many companies
seem to take pride in their long dividend-paying records. It is our
expectation that dividends will not become extinct, even if companies may,
in a setting of higher taxes, think as well about alternative uses of cash
they feel is not needed in their business.
Q Given the various potential headwinds facing the global economy as we head
towards the end of calendar year 2012 and look into 2013, what is your
outlook?
A At the moment we are not predicting recession, though that is a possibility
in the event we do go careening off the "fiscal cliff." Our expectation--
which we hasten to say may not be fulfilled at all--is that a way will be
found in Washington to avert the drastic budget cuts and sharp tax increases
for which the term "fiscal cliff " is the shorthand. Even assuming
8 Pioneer Equity Income Fund | Annual Report | 10/31/12
that, however, we think that the outlook over the next couple of years is
for moderate rather than robust growth. While both homebuilding and
commercial construction have been showing signs of improvement that could
develop into full-fledged recovery, and while consumers have once again been
spending on various retail goods, the recessionary conditions in Europe and
the slowdown in the emerging markets are beginning to dampen growth of U.S.
exports. Hence, a somewhat better domestic economy could be offset by
decline or at least declining growth in the overseas businesses of U.S.
companies. There also remain possible geopolitical shocks in the event that
someone miscalculates--or consciously embarks on a troublemaking
trajectory--in the tense regions of the Middle East, Asia, and Africa.
With our cautious outlook, we believe it is as important as ever to
emphasize companies for the portfolio that we think have financial and
management resilience as well as growth prospects. Dividends can be a sign
of above-average financial capabilities, stable earnings and cash flows, and
management commitment to shareholders. There are, of course, no guarantees
whatsoever that dividends are sure indicators of any of those qualities, but
they strike us as a potentially worthwhile first thing to establish about
companies before doing additional research.
Thank you as always for your support.
Please refer to the Schedule of Investments on pages 21-27 for a full listing of
Fund securities.
Pioneer Equity Income Fund | Annual Report | 10/31/12 9
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
Past performance is no guarantee of future results, and there is no guarantee
that the market forecast discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These opinions should not
be relied upon for any other purposes.
10 Pioneer Equity Income Fund | Annual Report | 10/31/12
Portfolio Summary | 10/31/12
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 90.1%
International Common Stocks 8.8%
Depositary Receipts for International Stocks 1.1%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 17.2%
Consumer Staples 16.7%
Materials 11.2%
Health Care 9.9%
Energy 8.7%
Utilities 8.6%
Information Technology 7.7%
Industrials 7.6%
Telecommunication Services 6.4%
Consumer Discretionary 6.0%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Valspar Corp. 3.73%
--------------------------------------------------------------------------------
2. The Gorman-Rupp Co. 2.63
--------------------------------------------------------------------------------
3. DE Master Blenders 1753 NV 2.38
--------------------------------------------------------------------------------
4. US Bancorp 2.15
--------------------------------------------------------------------------------
5. The Hershey Co. 2.06
--------------------------------------------------------------------------------
6. HJ Heinz Co. 2.06
--------------------------------------------------------------------------------
7. Verizon Communications, Inc. 2.06
--------------------------------------------------------------------------------
8. The Chubb Corp. 1.95
--------------------------------------------------------------------------------
9. Cedar Fair LP 1.85
--------------------------------------------------------------------------------
10. Canadian Imperial Bank of Commerce 1.78
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
Pioneer Equity Income Fund | Annual Report | 10/31/12 11
Prices and Distributions | 10/31/12
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/12 10/31/11
--------------------------------------------------------------------------------
A $27.96 $26.19
--------------------------------------------------------------------------------
B $27.77 $26.02
--------------------------------------------------------------------------------
C $27.64 $25.91
--------------------------------------------------------------------------------
R $28.24 $26.45
--------------------------------------------------------------------------------
Y $28.17 $26.38
--------------------------------------------------------------------------------
Z $27.98 $26.21
--------------------------------------------------------------------------------
Distributions per Share: 11/1/11-10/31/12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.8381 $-- $--
--------------------------------------------------------------------------------
B $0.5292 $-- $--
--------------------------------------------------------------------------------
C $0.6455 $-- $--
--------------------------------------------------------------------------------
R $0.7624 $-- $--
--------------------------------------------------------------------------------
Y $0.9322 $-- $--
--------------------------------------------------------------------------------
Z $0.8994 $-- $--
--------------------------------------------------------------------------------
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 13-18.
12 Pioneer Equity Income Fund | Annual Report | 10/31/12
Performance Update | 10/31/12 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund at public offering price, compared
to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2012)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
10 Years 7.28% 6.65%
5 Years 0.17 -1.01
1 Year 10.09 3.75
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.15%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/31/2002 $ 9,425 $ 10,000
10/31/2003 $ 10,922 $ 12,287
10/31/2004 $ 12,705 $ 14,186
10/31/2005 $ 14,087 $ 15,870
10/31/2006 $ 17,131 $ 19,275
10/31/2007 $ 18,882 $ 21,363
10/31/2008 $ 13,219 $ 13,502
10/31/2009 $ 12,914 $ 14,148
10/31/2010 $ 15,543 $ 16,370
10/31/2011 $ 17,294 $ 17,378
10/31/2012 $ 19,038 $ 20,314
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Equity Income Fund | Annual Report | 10/31/12 13
Performance Update | 10/31/12 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 6.30% 6.30%
5 Years -0.82 -0.82
1 Year 8.83 4.83
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.17%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/31/2002 $ 10,000 $ 10,000
10/31/2003 $ 11,490 $ 12,287
10/31/2004 $ 13,253 $ 14,186
10/31/2005 $ 14,564 $ 15,869
10/31/2006 $ 17,557 $ 19,275
10/31/2007 $ 19,191 $ 21,363
10/31/2008 $ 13,322 $ 13,502
10/31/2009 $ 12,887 $ 14,148
10/31/2010 $ 15,366 $ 16,370
10/31/2011 $ 16,920 $ 17,378
10/31/2012 $ 18,414 $ 20,314
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.
14 Pioneer Equity Income Fund | Annual Report | 10/31/12
Performance Update | 10/31/12 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 6.45% 6.45%
5 Years -0.60 -0.60
1 Year 9.26 9.26
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.91%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/31/2002 $ 10,000 $ 10,000
10/31/2003 $ 11,493 $ 12,287
10/31/2004 $ 13,263 $ 14,186
10/31/2005 $ 14,587 $ 15,869
10/31/2006 $ 17,600 $ 19,275
10/31/2007 $ 19,249 $ 21,363
10/31/2008 $ 13,374 $ 13,502
10/31/2009 $ 12,958 $ 14,148
10/31/2010 $ 15,479 $ 16,370
10/31/2011 $ 17,097 $ 17,378
10/31/2012 $ 18,680 $ 20,314
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not reflect
the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. "If Held"
results represent the percent change in net asset value per share. Returns would
have been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Equity Income Fund | Annual Report | 10/31/12 15
Performance Update | 10/31/12 Class R Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 7.06% 7.06%
5 Years -0.09 -0.09
1 Year 9.76 9.76
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.48%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/31/2002 $ 10,000 $ 10,000
10/31/2003 $ 11,558 $ 12,287
10/31/2004 $ 13,433 $ 14,186
10/31/2005 $ 14,861 $ 15,869
10/31/2006 $ 18,043 $ 19,275
10/31/2007 $ 19,864 $ 21,363
10/31/2008 $ 13,878 $ 13,502
10/31/2009 $ 13,532 $ 14,148
10/31/2010 $ 16,241 $ 16,370
10/31/2011 $ 18,021 $ 17,378
10/31/2012 $ 19,779 $ 20,314
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class R shares for the period prior to the
commencement of operations of Class R shares on April 1, 2003, is based on the
performance of Class A shares, reduced to reflect the higher distribution and
service fees of Class R shares. For the period beginning on April 1, 2003, the
actual performance of Class R shares is reflected. Class R shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
16 Pioneer Equity Income Fund | Annual Report | 10/31/12
Performance Update | 10/31/12 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 7.74% 7.74%
5 Years 0.60 0.60
1 Year 10.47 10.47
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/31/2002 $ 5,000,000 $ 5,000,000
10/31/2003 $ 5,822,424 $ 6,143,742
10/31/2004 $ 6,805,503 $ 7,093,151
10/31/2005 $ 7,575,154 $ 7,934,747
10/31/2006 $ 9,248,930 $ 9,637,297
10/31/2007 $ 10,234,358 $ 10,681,394
10/31/2008 $ 7,193,323 $ 6,750,880
10/31/2009 $ 7,060,491 $ 7,073,895
10/31/2010 $ 8,541,761 $ 8,184,949
10/31/2011 $ 9,543,991 $ 8,689,191
10/31/2012 $ 10,542,912 $ 10,156,850
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Equity Income Fund | Annual Report | 10/31/12 17
Performance Update | 10/31/12 Class Z Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 7.49% 7.49%
5 Years 0.51 0.51
1 Year 10.31 10.31
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.85%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/31/2002 $ 10,000 $ 10,000
10/31/2003 $ 11,589 $ 12,287
10/31/2004 $ 13,481 $ 14,186
10/31/2005 $ 14,947 $ 15,869
10/31/2006 $ 18,177 $ 19,275
10/31/2007 $ 20,064 $ 21,363
10/31/2008 $ 14,095 $ 13,502
10/31/2009 $ 13,830 $ 14,148
10/31/2010 $ 16,712 $ 16,370
10/31/2011 $ 18,661 $ 17,378
10/31/2012 $ 20,586 $ 20,314
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for Class Z shares for periods prior to the inception of Class
Z shares on July 6, 2007, reflects the NAV performance of the Fund's Class A
shares. The performance does not reflect differences in expenses, including the
Rule 12b-1 fees applicable to Class A shares. Since fees for Class A shares are
generally higher than those of Class Z shares, the performance for Class Z
shares prior to their inception on July 6, 2007, would have been higher than the
performance shown. Class Z shares are not subject to sales charges and are
available for limited groups of eligible investors. All results are historical
and assume the reinvestment of dividends and capital gains. Other share classes
are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
18 Pioneer Equity Income Fund | Annual Report | 10/31/12
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on actual returns from May 1, 2012, through October 31, 2012.
---------------------------------------------------------------------------------------
Share Class A B C R Y Z
---------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/12
---------------------------------------------------------------------------------------
Ending Account $1,016.53 $1,010.30 $1,012.60 $1,014.89 $1,018.25 $1,017.90
Value (after expenses)
on 10/31/12
---------------------------------------------------------------------------------------
Expenses Paid $5.78 $11.32 $9.41 $7.14 $3.91 $4.41
During Period*
---------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.14%, 2.24%,
1.86%, 1.41%, 0.77%, and 0.87%, for Class A, Class B, Class C, Class R,
Class Y and Class Z shares, respectively, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half year
period).
Pioneer Equity Income Fund | Annual Report | 10/31/12 19
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2012, through October 31, 2012.
-------------------------------------------------------------------------------------------
Share Class A B C R Y Z
-------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/12
-------------------------------------------------------------------------------------------
Ending Account $1,019.41 $1,013.88 $1,015.79 $1,018.05 $1,021.27 $1,020.76
Value (after expenses)
on 10/31/12
-------------------------------------------------------------------------------------------
Expenses Paid $5.79 $11.34 $9.42 $7.15 $3.91 $4.42
During Period*
-------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.14%, 2.24%,
1.86%, 1.41%, 0.77%, and 0.87%, for Class A, Class B, Class C, Class R,
Class Y and Class Z shares, respectively, multiplied by the average account
value over the period, multiplied by 184/366 (to reflect the one-half year
period).
20 Pioneer Equity Income Fund | Annual Report | 10/31/12
Schedule of Investments | 10/31/12
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS -- 99.9%
ENERGY -- 8.8%
Integrated Oil & Gas -- 3.3%
117,500 Chevron Corp. $ 12,949,675
179,800 Exxon Mobil Corp. 16,392,366
317,200 QEP Resources, Inc. 9,198,800
---------------
$ 38,540,841
--------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 3.2%
139,160 ConocoPhillips $ 8,050,406
224,800 EQT Corp. 13,629,624
511,800 Marathon Oil Corp. 15,384,708
---------------
$ 37,064,738
--------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 1.1%
245,900 Marathon Petroleum Corp. $ 13,507,287
--------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.2%
483,800 Spectra Energy Corp. $ 13,967,306
---------------
Total Energy $ 103,080,172
--------------------------------------------------------------------------------
MATERIALS -- 11.2%
Diversified Chemicals -- 1.7%
317,600 EI du Pont de Nemours & Co. $ 14,139,552
105,000 LyondellBasell Industries NV 5,605,950
---------------
$ 19,745,502
--------------------------------------------------------------------------------
Specialty Chemicals -- 4.3%
200,454 Johnson Matthey Plc $ 7,271,518
782,800 Valspar Corp. 43,860,286
---------------
$ 51,131,804
--------------------------------------------------------------------------------
Paper Packaging -- 1.1%
700,000 Boise, Inc. $ 5,873,000
227,500 Sonoco Products Co. 7,082,075
---------------
$ 12,955,075
--------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.7%
255,100 Compass Minerals International, Inc. $ 20,114,635
--------------------------------------------------------------------------------
Gold -- 0.9%
187,600 Newmont Mining Corp. $ 10,233,580
--------------------------------------------------------------------------------
Steel -- 0.8%
260,000 Cliffs Natural Resources, Inc. $ 9,430,200
--------------------------------------------------------------------------------
Paper Products -- 0.7%
233,100 International Paper Co. $ 8,351,973
---------------
Total Materials $ 131,962,769
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/12 21
Schedule of Investments | 10/31/12 (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
CAPITAL GOODS -- 6.1%
Industrial Conglomerates -- 1.7%
959,984 General Electric Co. $ 20,217,263
--------------------------------------------------------------------------------
Industrial Machinery -- 4.4%
400,000 Kaydon Corp. $ 8,944,000
154,252 Snap-on, Inc. 11,928,307
1,146,943 The Gorman-Rupp Co.+ 30,967,461
---------------
$ 51,839,768
---------------
Total Capital Goods $ 72,057,031
--------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 1.5%
Office Services & Supplies -- 0.7%
202,600 Mine Safety Appliances Co. $ 7,820,360
--------------------------------------------------------------------------------
Diversified Support Services -- 0.8%
300,000 G&K Services, Inc. $ 9,675,000
---------------
Total Commercial Services & Supplies $ 17,495,360
--------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 1.6%
Auto Parts & Equipment -- 0.8%
389,100 Johnson Controls, Inc. $ 10,019,325
--------------------------------------------------------------------------------
Automobile Manufacturers -- 0.8%
837,700 Ford Motor Co. $ 9,348,732
---------------
Total Automobiles & Components $ 19,368,057
--------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.8%
Leisure Facilities -- 1.8%
607,087 Cedar Fair LP $ 21,764,069
---------------
Total Consumer Services $ 21,764,069
--------------------------------------------------------------------------------
MEDIA -- 0.8%
Movies & Entertainment -- 0.5%
400,000 Regal Entertainment Group $ 6,144,000
--------------------------------------------------------------------------------
Publishing -- 0.3%
88,100 John Wiley & Sons, Inc. $ 3,821,778
---------------
Total Media $ 9,965,778
--------------------------------------------------------------------------------
RETAILING -- 1.8%
Distributors -- 1.0%
188,800 Genuine Parts Co. $ 11,815,104
--------------------------------------------------------------------------------
Home Improvement Retail -- 0.8%
144,000 The Home Depot, Inc. $ 8,838,720
---------------
Total Retailing $ 20,653,824
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Annual Report | 10/31/12
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.5%
Food Retail -- 0.5%
1,000,000 J Sainsbury Plc $ 5,719,521
---------------
Total Food & Staples Retailing $ 5,719,521
--------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 13.9%
Soft Drinks -- 2.0%
353,400 Dr. Pepper Snapple Group, Inc. $ 15,143,190
234,000 The Coca-Cola Co. 8,700,120
---------------
$ 23,843,310
--------------------------------------------------------------------------------
Packaged Foods & Meats -- 11.9%
443,300 Campbell Soup Co. $ 15,635,191
2,289,000 DE Master Blenders 1753 NV* 27,979,097
457,800 Hillshire Brands Co. 11,907,378
420,550 HJ Heinz Co. 24,185,830
210,000 Kellogg Co. 10,987,200
57,500 Kraft Foods Group, Inc.* 2,615,100
100,000 McCormick & Co., Inc. 6,162,000
172,500 Mondelez International, Inc. 4,578,150
352,400 The Hershey Co. 24,262,740
323,000 Unilever NV (A.D.R.) 11,850,870
---------------
$ 140,163,556
---------------
Total Food, Beverage & Tobacco $ 164,006,866
--------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.3%
Household Products -- 2.3%
135,000 Kimberly-Clark Corp. $ 11,265,750
222,400 The Clorox Co. 16,079,520
---------------
$ 27,345,270
---------------
Total Household & Personal Products $ 27,345,270
--------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.1%
Health Care Equipment -- 2.9%
244,100 Becton Dickinson and Co. $ 18,473,488
94,700 Medtronic, Inc. 3,937,626
1,079,500 Smith & Nephew Plc 11,404,726
---------------
$ 33,815,840
--------------------------------------------------------------------------------
Health Care Distributors -- 1.2%
509,300 Owens & Minor, Inc. $ 14,499,771
---------------
Total Health Care Equipment & Services $ 48,315,611
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/12 23
Schedule of Investments | 10/31/12 (continued)
----------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 5.8%
Pharmaceuticals -- 5.8%
313,900 Abbott Laboratories $ 20,566,728
251,700 Johnson & Johnson 17,825,394
353,405 Merck & Co., Inc. 16,125,870
562,500 Pfizer, Inc. 13,989,375
--------------
$ 68,507,367
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 68,507,367
----------------------------------------------------------------------------------
BANKS -- 8.5%
Diversified Banks -- 6.2%
219,400 Bank of Montreal $ 12,970,928
267,000 Canadian Imperial Bank of Commerce 20,972,374
761,700 US Bancorp 25,296,057
397,400 Wells Fargo & Co. 13,388,406
--------------
$ 72,627,765
----------------------------------------------------------------------------------
Regional Banks -- 1.1%
220,800 PNC Financial Services Group, Inc. $ 12,848,352
----------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.2%
1,028,800 New York Community Bancorp, Inc. $ 14,259,168
--------------
Total Banks $ 99,735,285
----------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.3%
Other Diversified Financial Services -- 1.3%
727,800 Bank of America Corp. $ 6,783,096
223,000 Citigroup, Inc. 8,337,970
--------------
$ 15,121,066
----------------------------------------------------------------------------------
Specialized Finance -- 0.5%
100,000 Deutsche Boerse AG $ 5,413,558
----------------------------------------------------------------------------------
Asset Management & Custody Banks -- 2.0%
400,000 Ares Capital Corp. $ 6,984,000
405,100 Federated Investors, Inc. (Class B) 9,414,524
117,000 T. Rowe Price Group, Inc. 7,597,980
--------------
$ 23,996,504
----------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.5%
200,000 LPL Financial Holdings, Inc. $ 5,840,000
--------------
Total Diversified Financials $ 50,371,128
----------------------------------------------------------------------------------
INSURANCE -- 3.3%
Property & Casualty Insurance -- 3.3%
297,587 The Chubb Corp. $ 22,908,247
218,500 The Travelers Companies, Inc. 15,500,390
--------------
$ 38,408,637
--------------
Total Insurance $ 38,408,637
----------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Annual Report | 10/31/12
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
REAL ESTATE -- 1.2%
Mortgage REITs -- 0.4%
264,300 Ares Commercial Real Estate Corp. $ 4,461,384
--------------------------------------------------------------------------------
Office REITs -- 0.8%
144,500 Alexandria Real Estate Equities, Inc. $ 10,177,135
---------------
Total Real Estate $ 14,638,519
--------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.4%
Data Processing & Outsourced Services -- 0.4%
83,700 Automatic Data Processing, Inc. $ 4,837,023
--------------------------------------------------------------------------------
Systems Software -- 1.0%
400,000 Microsoft Corp. $ 11,414,000
---------------
Total Software & Services $ 16,251,023
--------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.4%
Communications Equipment -- 0.1%
90,000 Cisco Systems, Inc. $ 1,542,600
--------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.8%
419,300 Molex, Inc. $ 8,989,792
--------------------------------------------------------------------------------
Technology Distributors -- 0.5%
96,000 Anixter International, Inc.* $ 5,627,520
---------------
Total Technology Hardware & Equipment $ 16,159,912
--------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 5.0%
Semiconductor Equipment -- 0.2%
86,033 Cabot Microelectronics Corp. $ 2,563,783
--------------------------------------------------------------------------------
Semiconductors -- 4.8%
449,700 Analog Devices, Inc. $ 17,587,767
303,300 Linear Technology Corp. 9,481,158
550,500 Microchip Technology, Inc. 17,258,175
354,200 Xilinx, Inc. 11,603,592
---------------
$ 55,930,692
---------------
Total Semiconductors & Semiconductor Equipment $ 58,494,475
--------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 6.0%
Integrated Telecommunication Services -- 6.0%
588,400 AT&T, Inc. $ 20,352,756
513,000 CenturyLink, Inc. 19,688,940
2,400,000 Singapore Telecommunications, Ltd. 6,334,945
541,584 Verizon Communications, Inc. 24,176,310
---------------
$ 70,552,951
---------------
Total Telecommunication Services $ 70,552,951
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/12 25
Schedule of Investments | 10/31/12 (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
UTILITIES -- 8.6%
Electric Utilities -- 1.8%
287,150 American Electric Power Co., Inc. $ 12,760,946
127,600 Duke Energy Corp. 8,382,044
---------------
$ 21,142,990
--------------------------------------------------------------------------------
Gas Utilities -- 3.9%
370,500 AGL Resources, Inc. $ 15,127,515
332,700 National Fuel Gas Co. 17,533,290
655,000 Questar Corp. 13,257,200
---------------
$ 45,918,005
--------------------------------------------------------------------------------
Multi-Utilities -- 2.9%
90,000 Alliant Energy Corp. $ 4,023,000
438,500 Ameren Corp. 14,417,880
263,372 Consolidated Edison, Inc. 15,902,401
---------------
$ 34,343,281
---------------
Total Utilities $ 101,404,276
--------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $928,892,907) $ 1,176,257,901
--------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.9%
(Cost $928,892,907) (a) $ 1,176,257,901
--------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.1% $ 1,028,174
--------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 1,177,286,075
================================================================================
* Non-income producing security.
(A.D.R.) American Depositary Receipts.
+ Investment held by the Fund representing 5% or more of the
outstanding voting stock of such company.
(a) At October 31, 2012, the net unrealized gain on investments
based on cost for federal income tax purposes of $914,877,413
was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $287,108,606
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (25,728,118)
------------
Net unrealized gain $261,380,488
============
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2012 aggregated $633,847,394 and $561,236,215,
respectively.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Annual Report | 10/31/12
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services) are categorized as
Level 3. See Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of October 31, 2012, in valuing
the Fund's assets:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Common Stocks $1,176,257,901 $-- $-- $1,176,257,901
--------------------------------------------------------------------------------
Total $1,176,257,901 $-- $-- $1,176,257,901
================================================================================
During the year ended October 31, 2012, there were no transfers between Levels
1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/12 27
Statement of Assets and Liabilities | 10/31/12
ASSETS:
Investment in securities of unaffiliated issuers, at value
(cost $921,566,565) $1,145,290,440
Investment in securities of affiliated issuers, at value (cost $7,326,342) 30,967,461
---------------------------------------------------------------------------------------------
Total investments in securities, at value (cost $928,892,907) $1,176,257,901
Foreign currency (cost $106,420) 106,735
Receivables --
Investment securities sold 6,126,140
Fund shares sold 2,324,547
Dividends 1,399,046
Other 29,029
---------------------------------------------------------------------------------------------
Total assets $1,186,243,398
=============================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 5,565,438
Fund shares repurchased 2,187,098
Due to custodian 563,285
Due to affiliates 542,214
Accrued expenses 98,570
Unrealized depreciation on forward foreign currency settlement contracts 718
---------------------------------------------------------------------------------------------
Total liabilities $ 8,957,323
=============================================================================================
NET ASSETS:
Paid-in capital $ 961,523,894
Undistributed net investment income 22,989,224
Accumulated net realized loss on investments (54,592,587)
Net unrealized gain on investments 247,364,994
Net unrealized gain on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 550
---------------------------------------------------------------------------------------------
Total net assets $1,177,286,075
=============================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $679,253,519/24,295,825 shares) $ 27.96
Class B (based on $16,136,136/580,970 shares) $ 27.77
Class C (based on $77,218,661/2,793,386 shares) $ 27.64
Class R (based on $79,557,109/2,817,531 shares) $ 28.24
Class Y (based on $322,567,246/11,450,920 shares) $ 28.17
Class Z (based on $2,553,404/91,247 shares) $ 27.98
MAXIMUM OFFERING PRICE:
Class A ($27.96 (divided by) 94.25%) $ 29.67
=============================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Equity Income Fund | Annual Report | 10/31/12
Statement of Operations
For the Year Ended 10/31/12
INVESTMENT INCOME:
Dividends (including income from affiliated issuers of $452,558) $ 56,917,311
Interest 38,362
Income from securities loaned, net 25,102
--------------------------------------------------------------------------------------------------
Total investment income $ 56,980,775
--------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 6,849,647
Transfer agent fees and expenses
Class A 599,320
Class B 81,754
Class C 62,617
Class R 5,484
Class Y 7,308
Class Z 810
Distribution fees
Class A 1,688,526
Class B 187,531
Class C 743,057
Class R 414,547
Shareholder communications expense 1,518,620
Administrative reimbursement 325,673
Custodian fees 34,385
Registration fees 122,269
Professional fees 95,496
Printing expense 48,366
Fees and expenses of nonaffiliated Trustees 42,421
Miscellaneous 72,845
--------------------------------------------------------------------------------------------------
Total expenses $ 12,900,676
--------------------------------------------------------------------------------------------------
Net investment income $ 44,080,099
==================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on:
Investments $ 102,606,909
Class action 1,271
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 1,699 $ 102,609,879
--------------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $ (37,738,141)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (3,772) $ (37,741,913)
--------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $ 64,867,966
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 108,948,065
==================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/12 29
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/12 10/31/11
-------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 44,080,099 $ 17,433,851
Net realized gain on investments, class action and
foreign currency transactions 102,609,879 63,129,867
Change in net unrealized gain (loss) on investments
and foreign currency transactions (37,741,913) 20,458,269
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 108,948,065 $ 101,021,987
-------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.84 and $0.41 per share, respectively) $ (20,733,747) $ (10,220,493)
Class B ($0.53 and $0.15 per share, respectively) (362,646) (163,053)
Class C ($0.65 and $0.22 per share, respectively) (1,772,601) (599,437)
Class R ($0.76 and $0.33 per share, respectively) (2,287,440) (959,053)
Class Y ($0.93 and $0.52 per share, respectively) (9,837,012) (3,695,328)
Class Z ($0.90 and $0.52 per share, respectively) (61,864) (22,247)
-------------------------------------------------------------------------------------------
Total distributions to shareowners $ (35,055,310) $ (15,659,611)
-------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 279,258,877 $ 362,649,722
Reinvestment of distributions 29,753,217 13,084,371
Cost of shares repurchased (246,592,051) (342,916,354)
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 62,420,043 $ 32,817,739
-------------------------------------------------------------------------------------------
Net increase in net assets $ 136,312,798 $ 118,180,115
NET ASSETS:
Beginning of year 1,040,973,277 922,793,162
-------------------------------------------------------------------------------------------
End of year $1,177,286,075 $1,040,973,277
-------------------------------------------------------------------------------------------
Undistributed net investment income $ 22,989,224 $ 14,318,663
===========================================================================================
The accompanying notes are an integral part of these financial statements.
30 Pioneer Equity Income Fund | Annual Report | 10/31/12
-----------------------------------------------------------------------------------------
'12 Shares '12 Amount '11 Shares '11 Amount
-----------------------------------------------------------------------------------------
Class A
Shares sold 4,797,702 $ 130,166,656 7,731,170 $ 201,031,990
Reinvestment of distributions 702,510 19,113,473 369,238 9,449,125
Less shares repurchased (5,258,739) (143,878,140) (9,409,943) (241,235,449)
-----------------------------------------------------------------------------------------
Net increase (decrease) 241,473 $ 5,401,989 (1,309,535) $ (30,754,334)
=========================================================================================
Class B
Shares sold or exchanged 48,972 $ 1,321,876 61,047 $ 1,569,674
Reinvestment of distributions 12,690 342,580 5,871 150,388
Less shares repurchased (316,454) (8,521,967) (603,080) (15,541,805)
-----------------------------------------------------------------------------------------
Net decrease (254,792) $ (6,857,511) (536,162) $ (13,821,743)
=========================================================================================
Class C
Shares sold 642,057 $ 17,278,593 542,345 $ 13,931,967
Reinvestment of distributions 44,420 1,196,619 16,112 408,809
Less shares repurchased (621,179) (16,701,282) (642,327) (16,490,430)
-----------------------------------------------------------------------------------------
Net increase (decrease) 65,298 $ 1,773,930 (83,870) $ (2,149,654)
=========================================================================================
Class R
Shares sold 676,519 $ 18,362,330 862,987 $ 22,565,673
Reinvestment of distributions 81,851 2,248,710 36,149 936,944
Less shares repurchased (896,312) (24,682,037) (737,876) (19,008,273)
-----------------------------------------------------------------------------------------
Net increase (decrease) (137,942) $ (4,070,997) 161,260 $ 4,494,344
=========================================================================================
Class Y
Shares sold 4,053,760 $ 110,897,090 4,698,435 $ 122,189,647
Reinvestment of distributions 247,623 6,790,042 82,991 2,117,150
Less shares repurchased (1,897,740) (52,293,684) (1,919,671) (50,361,539)
-----------------------------------------------------------------------------------------
Net increase 2,403,643 $ 65,393,448 2,861,755 $ 73,945,258
=========================================================================================
Class Z
Shares sold 44,663 $ 1,232,332 51,645 $ 1,360,771
Reinvestment of distributions 2,256 61,793 867 21,955
Less shares repurchased (18,763) (514,941) (10,526) (278,858)
-----------------------------------------------------------------------------------------
Net increase 28,156 $ 779,184 41,986 $ 1,103,868
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/12 31
Financial Highlights
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/12 10/31/11 10/31/10 10/31/09 10/31/08
---------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 26.19 $ 23.92 $ 20.24 $ 21.28 $ 33.10
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 1.05 $ 0.48 $ 0.46 $ 0.58 $ 0.75
Net realized and unrealized gain (loss) on investments 1.56 2.20 3.63 (1.12) (10.03)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.61 $ 2.68 $ 4.09 $ (0.54) $ (9.28)
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.84) (0.41) (0.40) (0.50) (0.67)
Net realized gain -- -- -- -- (1.81)
Tax return of capital -- -- -- -- (0.06)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.77 $ 2.27 $ 3.69 $ (1.04) $ (11.82)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.96 $ 26.19 $ 23.92 $ 20.24 $ 21.28
===========================================================================================================================
Total return* 10.09% 11.26% 20.36% (2.30)% (29.99)%
Ratio of net expenses to average net assets+ 1.14% 1.15% 1.19% 1.23% 1.11%
Ratio of net investment income to average net assets+ 3.86% 1.78% 1.93% 2.98% 2.67%
Portfolio turnover rate 49% 24% 15% 28% 19%
Net assets, end of period (in thousands) $679,254 $630,087 $606,693 $566,439 $639,388
Ratios with reduction for fees paid indirectly:
Total expenses 1.14% 1.15% 1.19% 1.23% 1.10%
Net investment income 3.86% 1.78% 1.93% 2.98% 2.68%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Equity Income Fund | Annual Report | 10/31/12
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/12 10/31/11 10/31/10 10/31/09 10/31/08
---------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 26.02 $ 23.77 $ 20.10 $ 21.14 $ 32.88
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.97 $ 0.43 $ 0.38 $ 0.51 $ 0.57
Net realized and unrealized gain (loss) on investments 1.31 1.97 3.47 (1.23) (10.02)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.28 $ 2.40 $ 3.85 $ (0.72) $ (9.45)
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.53) (0.15) (0.18) (0.32) (0.44)
Net realized gain -- -- -- -- (1.81)
Tax return of capital -- -- -- -- (0.04)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.75 $ 2.25 $ 3.67 $ (1.04) $ (11.74)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.77 $ 26.02 $ 23.77 $ 20.10 $ 21.14
===========================================================================================================================
Total return* 8.83% 10.12% 19.23% (3.26)% (30.58)%
Ratio of net expenses to average net assets+ 2.24% 2.17% 2.17% 2.20% 1.96%
Ratio of net investment income to average net assets+ 2.81% 0.78% 0.98% 2.08% 1.83%
Portfolio turnover rate 49% 24% 15% 28% 19%
Net assets, end of period (in thousands) $16,136 $21,744 $32,604 $42,950 $ 66,530
Ratios with reduction for fees paid indirectly:
Total expenses 2.24% 2.17% 2.17% 2.20% 1.96%
Net investment income 2.81% 0.78% 0.98% 2.08% 1.83%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/12 33
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/12 10/31/11 10/31/10 10/31/09 10/31/08
---------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 25.91 $ 23.66 $ 20.01 $ 21.04 $ 32.75
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.84 $ 0.27 $ 0.32 $ 0.47 $ 0.55
Net realized and unrealized gain (loss) on investments 1.54 2.20 3.55 (1.16) (9.94)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.38 $ 2.47 $ 3.87 $ (0.69) $ (9.39)
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.65) (0.22) (0.22) (0.34) (0.47)
Net realized gain -- -- -- -- (1.81)
Tax return of capital -- -- -- -- (0.04)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.73 $ 2.25 $ 3.65 $ (1.03) $ (11.71)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.64 $ 25.91 $ 23.66 $ 20.01 $ 21.04
===========================================================================================================================
Total return* 9.26% 10.45% 19.46% (3.11)% (30.52)%
Ratio of net expenses to average net assets+ 1.86% 1.91% 1.96% 2.04% 1.87%
Ratio of net investment income to average net assets+ 3.13% 1.02% 1.17% 2.21% 1.92%
Portfolio turnover rate 49% 24% 15% 28% 19%
Net assets, end of period (in thousands) $77,219 $70,683 $66,536 $68,719 $ 88,291
Ratios with reduction for fees paid indirectly:
Total expenses 1.86% 1.91% 1.96% 2.04% 1.87%
Net investment income 3.13% 1.02% 1.17% 2.21% 1.92%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Equity Income Fund | Annual Report | 10/31/12
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/12 10/31/11 10/31/10 10/31/09 10/31/08
---------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 26.45 $ 24.14 $ 20.43 $ 21.45 $ 33.34
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 1.03 $ 0.36 $ 0.44 $ 0.49 $ 0.68
Net realized and unrealized gain (loss) on investments 1.52 2.28 3.62 (1.07) (10.09)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.55 $ 2.64 $ 4.07 $ (0.58) $ (9.41)
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.76) (0.33) (0.35) (0.44) (0.62)
Net realized gain -- -- -- -- (1.81)
Tax return of capital -- -- -- -- (0.05)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.79 $ 2.31 $ 3.72 $ (1.02) $ (11.89)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.24 $ 26.45 $ 24.14 $ 20.43 $ 21.45
===========================================================================================================================
Total return* 9.76% 10.96% 20.03% (2.50)% (30.14)%
Ratio of net expenses to average net assets+ 1.41% 1.48% 1.44% 1.44% 1.33%
Ratio of net investment income to average net assets+ 3.62% 1.46% 1.68% 2.71% 2.44%
Portfolio turnover rate 49% 24% 15% 28% 19%
Net assets, end of period (in thousands) $79,557 $78,159 $67,450 $68,904 $ 64,559
Ratios with reduction for fees paid indirectly:
Total expenses 1.41% 1.48% 1.44% 1.44% 1.33%
Net investment income 3.62% 1.46% 1.68% 2.71% 2.44%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at the end of each period.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/12 35
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/12 10/31/11 10/31/10 10/31/09 10/31/08
---------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 26.38 $ 24.09 $ 20.37 $ 21.41 $ 33.28
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 1.05 $ 0.44 $ 0.49 $ 0.42 $ 0.67
Net realized and unrealized gain (loss) on investments 1.67 2.37 3.74 (0.87) (9.89)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.72 $ 2.81 $ 4.22 $ (0.45) $ (9.22)
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.93) (0.52) (0.51) (0.59) (0.77)
Net realized gain -- -- -- -- (1.81)
Tax return of capital -- -- -- -- (0.07)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.79 $ 2.29 $ 3.71 $ (1.04) $ (11.87)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.17 $ 26.38 $ 24.09 $ 20.37 $ 21.41
===========================================================================================================================
Total return* 10.47% 11.73% 20.98% (1.85)% (29.72)%
Ratio of net expenses to average net assets+ 0.77% 0.75% 0.72% 0.75% 0.72%
Ratio of net investment income to average net assets+ 4.20% 2.16% 2.38% 3.10% 3.09%
Portfolio turnover rate 49% 24% 15% 28% 19%
Net assets, end of period (in thousands) $322,567 $238,647 $148,995 $110,148 $ 29,157
Ratios with reduction for fees paid indirectly:
Total expenses 0.77% 0.75% 0.72% 0.75% 0.72%
Net investment income 4.20% 2.16% 2.38% 3.10% 3.09%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at the end of each period.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
36 Pioneer Equity Income Fund | Annual Report | 10/31/12
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/12 10/31/11 10/31/10 10/31/09 10/31/08
---------------------------------------------------------------------------------------------------------------------------
Class Z
Net asset value, beginning of period $26.21 $23.95 $20.27 $ 21.30 $ 33.12
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.93 $ 0.30 $ 0.38 $ 0.45 $ 0.80
Net realized and unrealized gain (loss) on investments 1.74 2.48 3.80 (0.91) (9.98)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.67 $ 2.78 $ 4.18 $ (0.46) $ (9.18)
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.90) (0.52) (0.50) (0.57) (0.76)
Net realized gain -- -- -- -- (1.81)
Tax return of capital -- -- -- -- (0.07)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.77 $ 2.26 $ 3.68 $ (1.03) $ (11.82)
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $27.98 $26.21 $23.95 $ 20.27 $ 21.30
===========================================================================================================================
Total return* 10.31% 11.67% 20.84% (1.88)% (29.75)%
Ratio of net expenses to average net assets+ 0.87% 0.85% 0.81% 0.79% 0.76%
Ratio of net investment income to average net assets+ 3.98% 2.05% 2.25% 3.24% 3.03%
Portfolio turnover rate 49% 24% 15% 28% 19%
Net assets, end of period (in thousands) $2,553 $1,653 $ 505 $ 233 $ 75
Ratios with reduction for fees paid indirectly:
Total expenses 0.87% 0.85% 0.81% 0.95% 0.76%
Net investment income 3.98% 2.05% 2.25% 3.08% 3.03%
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at the end of each period.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/12 37
Notes to Financial Statements | 10/31/12
1. Organization and Significant Accounting Policies
Pioneer Equity Income Fund (the Fund) is a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is current
income and long-term growth of capital from a portfolio consisting primarily of
income producing equity securities of U.S. corporations.
The Fund offers six classes of shares designated as Class A, Class B, Class C,
Class R, Class Y and Class Z shares. Effective as of the close of business on
December 31, 2009, Class B shares are no longer offered to new or existing
shareholders, except that dividends and/or capital gain distributions may
continue to be reinvested in Class B shares, and shareholders may exchange their
Class B shares for Class B shares of other Pioneer funds, as permitted by
existing exchange privileges. Each class of shares represents an interest in the
same portfolio of investments of the Fund and has identical rights (based on
relative net asset values) to assets and liquidation proceeds. Share classes can
bear different rates of class-specific fees and expenses such as transfer agent
and distribution fees. Differences in class-specific fees and expenses will
result in differences in net investment income and, therefore, the payment of
different dividends from net investment income earned by each class. The Amended
and Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y or Class Z shares. Class B shares convert to Class
A shares approximately eight years after the date of purchase.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
38 Pioneer Equity Income Fund | Annual Report | 10/31/12
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities that have traded on an exchange are valued
at the last sale price on the principal exchange where they are traded.
Securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued at the mean
between the last bid and asked prices. Short-term fixed income securities
with remaining maturities of sixty days or less generally are valued at
amortized cost. Shares of money market mutual funds are valued at their 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 independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by or at the
direction or with the approval of the Valuation Committee using fair value
methods pursuant to procedures adopted by the Board of Trustees. The
Valuation Committee is comprised of certain members of 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 significantly from exchange prices and such differences could be
material. PIM is responsible for monitoring developments that may impact
fair valued securities and for discussing and assessing fair values on an
ongoing basis, and at least quarterly, with the Valuation Committee.
At October 31, 2012, there were no securities that were valued using fair
value methods (other than securities that were valued using prices supplied
by independent pricing services). Inputs used when applying fair value
methods to value a security may include credit ratings, the financial
condition of the company, current market conditions and comparable
securities.
Pioneer Equity Income Fund | Annual Report | 10/31/12 39
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis. Dividend and
interest income are reported net of unrecoverable foreign taxes withheld at
the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
October 31, 2012, the Fund did not have any interest and penalties related
to unrecognized tax positions, which, if applicable, would be recorded as an
income tax expense in the Statement of Operations. Tax years for the prior
three fiscal years remain subject to examination by federal and state tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain on investment transactions,
or as from paid-in capital, depending on the type of book/tax differences
that may exist.
At October 31, 2012, the Fund reclassified $354,228 to decrease
undistributed net investment income and $354,228 to decrease accumulated net
realized loss on investments to reflect permanent book/tax differences. The
reclassification has no impact on the net asset value of the Fund and is
designed to present the Fund's capital accounts on a tax basis.
At October 31, 2012, the Fund had a net capital loss carryforward of
$54,425,123 which will expire in 2017 if not utilized.
The tax character of distributions paid during the years ended October 31,
2012 and October 31, 2011 was as follows:
----------------------------------------------------------------------------
2012 2011
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $35,055,310 $15,659,611
----------------------------------------------------------------------------
Total $35,055,310 $15,659,611
============================================================================
40 Pioneer Equity Income Fund | Annual Report | 10/31/12
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2012:
----------------------------------------------------------------------------
2012
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 8,806,266
Capital loss carryforward (54,425,123)
Net unrealized gain 261,381,038
----------------------------------------------------------------------------
Total $215,762,181
============================================================================
The difference between book-basis and tax-basis net unrealized gain is
attributable to the tax deferral of losses on wash sales, the tax basis
adjustments on partnerships, and REIT holdings.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $79,800 in underwriting commissions on the sale of Class A shares
during the year ended October 31, 2012.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day. During the period, the Fund recognized gains of $1,271 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, Class C and Class R shares of the Fund,
respectively (see Note 4). Class Y and Class Z shares do not pay
distribution fees. All expenses and fees paid to the transfer agent, Pioneer
Investment Management Shareholder Services, Inc. (PIMSS), for its services
are allocated among the classes of shares based on the number of accounts in
each class and the ratable allocation of related out-of-pocket expenses (see
Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class B, Class C, Class R, Class Y
and Class Z shares can reflect different transfer agent and distribution
expense rates.
Pioneer Equity Income Fund | Annual Report | 10/31/12 41
E. Risks
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political or regulatory developments or other
risks affecting those industries or sectors. The Fund's prospectus contains
unaudited information regarding the Fund's principal risks. Please refer to
that document when considering the Fund's principal risks.
F. 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 8).
G. 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.
H. Securities Lending
The Fund may lend securities in its portfolio to certain broker-dealers or
other institutional investors. When entering into a securities loan
transaction, the Fund typically receives cash collateral from the borrower
equal to at least the value of the securities loaned, which is invested in
temporary investments. Credit Suisse AG, New York Branch, as the Fund's
securities lending agent, manages the Fund's securities lending collateral.
The income earned on the investment of collateral is shared with the
borrower and the lending agent in payment of any rebate due to the borrower
with respect to the securities loan, and in compensation for the lending
agent's services to the Fund. The Fund also continues to receive payments in
lieu of dividends or interest on the securities loaned. Gain or loss on the
value of the loaned securities that may occur during the term of the loan
will be for the account of the Fund. The amount of the collateral is
required to be adjusted daily to
42 Pioneer Equity Income Fund | Annual Report | 10/31/12
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. As of May 8,
2012, the Pioneer funds ended their involvement in the securities lending
program.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.60% of
the Fund's average daily net assets up to $10 billion and 0.575% on assets over
$10 billion. For the year ended October 31, 2012, the effective management fee
(excluding waivers and/or assumption of expenses) was equivalent to 0.60% of the
Fund's average daily net assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting, and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$74,222 in management fees, administrative costs and certain other
reimbursements payable to PIM at October 31, 2012.
Effective March 5, 2012, PIM has retained Brown Brothers Harriman & Co. to
provide certain sub-administration and accounting services to the Fund.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the year ended October 31, 2012, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 933,807
Class B 25,172
Class C 78,742
Class R 195,860
Class Y 282,004
Class Z 3,035
--------------------------------------------------------------------------------
Total $1,518,620
================================================================================
Pioneer Equity Income Fund | Annual Report | 10/31/12 43
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $450,300 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at October 31, 2012.
4. Distribution and Service Plans
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B, Class C and
Class R shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average
daily net assets attributable to Class A shares as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of
the average daily net assets attributable to Class B and Class C shares. The fee
for Class B and Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class C
shares. Pursuant to the Plan, the Fund further pays PFD 0.50% of the average
daily net assets attributable to Class R shares for distribution services.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $17,692 in distribution fees payable to PFD at October 31, 2012.
The Fund also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Fund a
service fee of up to 0.25% of the Fund's average daily net assets attributable
to Class R shares held by such plans.
In addition, redemptions of each class of shares (except Class R, Class Y and
Class Z shares) may be subject to a contingent deferred sales charge (CDSC). A
CDSC of 1.00% may be imposed on redemptions of certain net asset value purchases
of Class A shares within 12 months of purchase. Class B shares redeemed within
five years of purchase are subject to a CDSC at declining rates beginning at
4.00%, based on the lower of cost or market value of shares being redeemed.
Redemptions of Class C shares within one year of purchase are subject to a CDSC
of 1.00%, based on the lower of cost or market value of shares being redeemed.
Shares purchased as part of an exchange remain subject to any CDSC that applied
to the original purchase of those shares. There is no CDSC for Class R, Class Y
or Class Z shares. Proceeds from the CDSCs are paid to PFD. For the year ended
October 31, 2012, CDSCs in the amount of $22,669 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended October 31, 2012, the Fund's expenses
were not reduced under such arrangements.
44 Pioneer Equity Income Fund | Annual Report | 10/31/12
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 October 31, 2012, the Fund had no borrowings under
a credit facility.
7. Affiliated Companies
The Fund's investments in certain companies may exceed 5% of the outstanding
voting stock of those companies. Such companies are deemed affiliates of the
Fund for financial reporting purposes. The following summarizes transactions
with affiliates of the Fund for the year ended October 31, 2012:
----------------------------------------------------------------------------------------
Beginning Corporate Ending
Balance Purchases Sales Actions Balance Dividend
Affiliates (shares) (shares) (shares) (shares) (shares) Income Value
----------------------------------------------------------------------------------------
The Gorman-
Rupp Co. 1,190,943 -- (44,000) -- 1,146,943 $452,558 $30,967,461
8. Forward Foreign Currency Contracts
At October 31, 2012, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average number of contracts open
during the year ended October 31, 2012 was 150,327. At October 31, 2012, the
Fund had no outstanding portfolio hedges. At October 31, 2012, the Fund's gross
forward currency settlement contracts receivable and payable were $106,016 and
$106,734, respectively, resulting in a net payable of $718.
Pioneer Equity Income Fund | Annual Report | 10/31/12 45
9. Additional Disclosures about Derivative Instruments and Hedging Activities
Values of derivative instruments as of October 31, 2012 were as follows:
--------------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives 2012 Liabilities Derivatives 2012
Hedging Instruments -------------------------- ----------------------------
Under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
--------------------------------------------------------------------------------------------------
Unrealized Loss on
Forward Foreign Currency
Settlement Contracts Receivables $-- Payables $718
--------------------------------------------------------------------------------------------------
Total $-- $718
--------------------------------------------------------------------------------------------------
The effect of derivative instruments on the Statement of Operations for the year
ended October 31, 2012 was as follows:
---------------------------------------------------------------------------------------------------------
Derivatives Not Change in
Accounted for as Realized Unrealized
Hedging Instruments Gain on Gain or (Loss)
Under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
---------------------------------------------------------------------------------------------------------
Forward Foreign Currency Net realized gain on forward foreign $(24,699)
Settlement Contracts currency contracts and other assets
and liabilities denominated in foreign
currencies
Forward Foreign Currency Change in unrealized loss on forward $(718)
Settlement Contracts foreign currency contracts and other
assets and liabilities denominated in
foreign currencies
46 Pioneer Equity Income Fund | Annual Report | 10/31/12
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of
Pioneer Equity Income Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Equity Income Fund (the "Fund"), including the schedule of investments, as of
October 31, 2012, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of October 31, 2012, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Equity Income Fund at October 31, 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
December 26, 2012
Pioneer Equity Income Fund | Annual Report | 10/31/12 47
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.
48 Pioneer Equity Income Fund | Annual Report | 10/31/12
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (61) Trustee since 2006. Chairman and Chief Executive Officer, Director, Broadridge
Chairman of the Board and Serves until a successor Quadriserv, Inc. (technology products for Financial Solutions, Inc.
Trustee trustee is elected or earlier securities lending industry) (2008 - (investor communications
retirement or removal. present); private investor (2004 - 2008); and securities processing
and Senior Executive Vice President, The provider for financial
Bank of New York (financial and securities services industry) (2009 -
services) (1986 - 2004) present); Director,
Quadriserv, Inc. (2005 -
present); and
Commissioner, New Jersey
State Civil Service
Commission (2011 -
present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (68) Trustee since 2005. Managing Partner, Federal City Capital Director of Enterprise
Trustee Serves until a successor Advisors (corporate advisory services Community Investment, Inc.
trustee is elected or earlier company) (1997 - 2004 and 2008 - present); (privately-held affordable
retirement or removal. Interim Chief Executive Officer, Oxford housing finance company)
Analytica, Inc. (privately held research (1985 - 2010); Director of
and consulting company) (2010); Executive Oxford Analytica, Inc.
Vice President and Chief Financial (2008 - present); Director
Officer, I-trax, Inc. (publicly traded of The Swiss Helvetia
health care services company) (2004 - Fund, Inc. (closed-end
2007); and Executive Vice President and fund) (2010 - present);
Chief Financial Officer, Pedestal Inc. and Director of New York
(internet-based mortgage trading company) Mortgage Trust (publicly
(2000 - 2002) traded mortgage REIT)
(2004 - 2009, 2012 -
present)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (67) Trustee since 2008. William Joseph Maier Professor of Trustee, Mellon
Trustee Serves until a successor Political Economy, Harvard University Institutional Funds
trustee is elected or earlier (1972 - present) Investment Trust and
retirement or removal. Mellon Institutional Funds
Master Portfolio (oversaw
17 portfolios in fund
complex) (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/12 49
Independent Trustees (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (65) Trustee since 1990. Founding Director, Vice President and None
Trustee Serves until a successor Corporate Secretary, The Winthrop Group,
trustee is elected or earlier Inc. (consulting firm) (1982-present);
retirement or removal. 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 1990. President and Chief Executive Officer, Director of New America
Trustee Serves until a successor Newbury, Piret & Company, Inc. (investment High Income Fund, Inc.
trustee is elected or earlier banking firm) (1981 - present) (closed-end investment
retirement or removal. company) (2004 - present);
and member, Board of
Governors, Investment
Company Institute (2000 -
2006)
------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (83) Trustee since 1993. Senior Counsel, Sullivan & Cromwell LLP Director, The Swiss
Trustee Serves until a successor (law firm) (1998 - present); and Partner, Helvetia Fund, Inc.
trustee is elected or earlier Sullivan & Cromwell LLP (prior to 1998) (closed-end investment
retirement or removal. company); and Director,
Invesco, Ltd. (formerly
AMVESCAP, PLC) (investment
manager) (1997-2005)
------------------------------------------------------------------------------------------------------------------------------------
50 Pioneer Equity Income Fund | Annual Report | 10/31/12
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (86)* Trustee since 1990. Non-Executive Chairman and a director of None
Trustee, President and Chief Serves until a successor Pioneer Investment Management USA Inc.
Executive Officer of the Fund trustee is elected or earlier ("PIM-USA"); Chairman and a director of
retirement or removal. Pioneer; Chairman and Director of Pioneer
Institutional Asset Management, Inc. (since
2006); Director of Pioneer Alternative
Investment Management Limited (Dublin)
(until October 2011); President and a
director of Pioneer Alternative Investment
Management (Bermuda) Limited and affiliated
funds; Deputy Chairman and a director of
Pioneer Global Asset Management S.p.A.
("PGAM") (until April 2010); Director of
Nano-C, Inc. (since 2003); Director of Cole
Management Inc. (2004 - 2011); Director of
Fiduciary Counseling, Inc. (until December
2011); President of all of the Pioneer
Funds; and Retired Partner, Wilmer Cutler
Pickering Hale and Dorr LLP
------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (53)* Trustee since 2007. Director, CEO and President of PIM-USA None
Trustee and Executive Vice Serves until a successor (since February 2007); Director and
President trustee is elected or earlier President of Pioneer and Pioneer
retirement or removal. Institutional Asset Management, Inc. (since
February 2007); Executive Vice President of
all of the Pioneer Funds (since March
2007); Director of PGAM (2007 - 2010); Head
of New Europe Division, PGAM (2000 - 2005);
Head of New Markets Division, PGAM (2005 -
2007)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are
officers or directors of the Fund's investment adviser and certain of its
affiliates.
Pioneer Equity Income Fund | Annual Report | 10/31/12 51
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (47) Since 2003. Serves at the Vice President and Associate General None
Secretary 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 the Fund Governance Director of Pioneer since None
Assistant Secretary discretion of the Board. December 2006 and Assistant Secretary of
all the Pioneer Funds since June 2010;
Manager - Fund Governance of Pioneer from
December 2003 to November 2006; and Senior
Paralegal of Pioneer from January 2000 to
November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (49) Since 2010. Serves at the Counsel of Pioneer since June 2007 and None
Assistant Secretary discretion of the Board. Assistant Secretary of all the Pioneer
Funds since June 2010; and Vice President
and Counsel at State Street Bank from
October 2004 to June 2007
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (52) Since 2008. Serves at the Vice President - Fund Treasury of Pioneer; None
Treasurer and Chief Financial discretion of the Board. Treasurer of all of the Pioneer Funds
and Accounting Officer of the since March 2008; Deputy Treasurer of
Fund 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 the Assistant Vice President - Fund Treasury None
Assistant Treasurer discretion of the Board. of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (54) Since 2002. Serves at the Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer discretion of the Board. Pioneer; and Assistant Treasurer of all of
the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (32) Since 2009. Serves at the Fund Administration Manager - Fund None
Assistant Treasurer discretion of the Board. Treasury of Pioneer since November 2008;
Assistant Treasurer of all of the Pioneer
Funds since January 2009; and Client
Service Manager - Institutional Investor
Services at State Street Bank from March
2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
52 Pioneer Equity Income Fund | Annual Report | 10/31/12
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (59) Since 2010. Serves at the Chief Compliance Officer of Pioneer and of None
Chief Compliance Officer discretion of the Board. 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 of None
Anti-Money Laundering discretion of the Board. Pioneer and Anti-Money Laundering Officer
Officer of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/12 53
This page for your notes.
54 Pioneer Equity Income Fund | Annual Report | 10/31/12
This page for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/12 55
This page for your notes.
56 Pioneer Equity Income Fund | Annual Report | 10/31/12
This page for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/12 57
This page for your notes.
58 Pioneer Equity Income Fund | Annual Report | 10/31/12
This page for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/12 59
This page for your notes.
60 Pioneer Equity Income Fund | Annual Report | 10/31/12
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
LOGO] Pioneer
Investment(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(c) 2012 Pioneer Investments 19439-06-1212
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Audit Fees
Fees for audit services provided to the Fund, including fees
associated with the filings to update its Form N-2 and
issuance of comfort letters, totaled approximately $34,557
in 2012 and $36,386 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 or other services
provided to the Fund during the fiscal years ended October
31, 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 approximately $8,290 and $8,290 for 2012 and
2011, respectively.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
Other Fees
There were no fees for other services provided to the Fund
during the fiscal years ended October 31, 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 October 31, 2012 and 2011,
there were no services provided to an affiliate that required
the Fund's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and affiliates, as
previously defined, totaled approximately $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 Equity Income Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date December 28, 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 December 28, 2012
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 28, 2012
* Print the name and title of each signing officer under his or her signature.