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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 811-21108
Pioneer Fundamental Growth Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, 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: March 31
Date of reporting period: April 1, 2007 through September 30, 2007
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.
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PIONEER
-------
FUNDAMENTAL
GROWTH
FUND
PIGFX
Ticker Symbol
Semiannual
Report
9/30/07
[LOGO]PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 21
Notes to Financial Statements 28
Trustees, Officers and Service Providers 34
President's
Dear Shareowner,
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Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. They
were particularly useful guides during the past year, when an otherwise healthy
long-term bull market was buffeted by problems in the mortgage and banking
industries.
Since mid-year, issues tied to poor underwriting practices in the subprime
sector of the mortgage industry and to problems with risk management by banks
and hedge funds have resulted in increased market volatility and rising concern
about risks to U.S. economic growth.
Even against this backdrop, the long-term performance of major asset classes
remained positive. In the 12 months ending September 30, 2007, equity investors
were generally rewarded as, despite several interim corrections, the Standard &
Poor's 500 Index returned 16%, the Dow Jones Industrial Average returned 22%,
and the NASDAQ Composite Index returned 20%. International developed and
emerging markets equities performed even better, reflecting both a weakening
dollar (which boosts returns for U.S. dollar-based investors) and strong local
currency returns, with the MSCI EAFE Developed Market Index returning 25% and
the MSCI Emerging Markets Index returning 59% over the same 12-month period. The
U.S. bond market, as measured by the Lehman Aggregate Bond Index, returned 5% in
the 12 months ending September 30, 2007. The U.S. high-yield bond market, as
measured by the Merrill Lynch High Yield Bond Master II Index, returned 8% for
the same period, reflecting its higher coupon yield.
U.S. economic growth has slowed in the past year, but this was due as much to
the natural maturation of the cyclical expansion, as U.S. factories approached
full utilization and the labor market approached full employment, as it was to
rising commodity prices or short-term interest rates. This slowdown was,
therefore, not entirely unwelcome, as it reduced the threat of higher inflation.
More recently, however, there has been increasing concern that falling home
prices, and/or disruptions in financial markets pose a larger threat to
continuing economic growth. A weaker U.S. dollar has put upward pressure on some
prices, but it has also benefited exporters and companies competing in the
global marketplace.
Although U.S. economic growth has slowed, growth in the rest of the world
remains relatively strong. In Europe, robust GDP growth driven by a positive
operating environment for European companies, especially exporters, has driven
unemployment lower and supported growing consumption, although concerns about
the impact of the strong Euro are a persistent source of worry. Japanese
economic growth continues, albeit at a muted rate, and the country's
deflationary problems are gradually receding. Economic growth in
2
Letter
emerging market countries remains faster than in the developed world as they
persist in "catching up," led by China, which continues its rise as a world
economic power.
The U.S. Federal Reserve and the world's other central banks have pursued
policies aimed at producing low and stable inflation, believed to be the best
backdrop for steady economic growth and low average unemployment over the long
term. Keeping inflation low is also an important support for stock and bond
valuations, and so central bank policies have also been "investor friendly."
Looking forward, the economic outlook appears generally positive, although real
estate prices, subprime mortgage defaults, and the possibility of a systemic
liquidity/credit crunch all represent sources of risk. Central banks responded
to this summer's liquidity squeeze in the inter-bank and commercial paper
markets by acting as "lenders of last resort" and, in September 2007, the Fed
cut rates to limit the risk of credit market problems spreading to the broader
economy. While falling risk tolerances and reducing leverage may depress asset
prices in the short term, valuations look reasonable if "Wall Street" problems
do not spread to the broader "Main Street" economy.
Sudden swings in the markets are always to be expected. Just as staying
diversified and invested are important investment principles, it is also
important to pay attention to asset allocation. As always, we encourage you to
work closely with your financial advisor to find the mix of stocks, bonds and
money market assets that is aligned to your particular risk tolerance and
investment objective.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Fundamental Growth Fund
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PORTFOLIO MANAGEMENT DISCUSSION 9/30/07
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Equities turned in generally solid performance during the six months ended
September 30, 2007, despite severe market volatility in July and early August
brought on by concerns about the sub-prime mortgage and structured finance
markets. Healthy profits and strong balance sheets encouraged investor
confidence in stocks, especially large-cap growth stocks. In the following
interview, Andrew Acheson and Timothy Mulrenan discuss the factors that affected
the performance of Pioneer Fundamental Growth Fund during the six months. Mr.
Acheson and Mr. Mulrenan are co-managers of the Fund.
Q: How did the Fund perform during the six months ended September 30, 2007?
A: The Fund produced a healthy return despite trailing its benchmark and
Lipper peer group average. Pioneer Fundamental Growth Fund Class A shares
generated a total return of 10.57% at net asset value over the six months.
During the same period, the benchmark Russell 1000 Growth Index rose
11.35%, while the average return of the 755 funds in Lipper's Large Cap
Growth category was 13.14%.
Call 1-800-225-6292 or visit www.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.
Q: What was the investment environment like during the six months?
A: We had a favorable backdrop for investing in large-cap growth companies for
most of the period. Company profits continued to grow, although at a
decelerating rate, corporate balance sheets remained solid, equity
valuations were reasonable, and long-term interest rates stayed low by
historical standards. The weakening of the U.S. dollar tended to help the
earnings of those large companies with exposure to foreign economies, most
of which were growing faster than the U.S. economy. The environment was
particularly supportive for large-cap growth stocks, which we emphasize.
After having been outperformed by value stocks for several years, growth
stocks entered the period undervalued relative to value
4
Pioneer Fundamental Growth Fund
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stocks, despite having higher growth rates, higher returns on equity and
healthy balance sheets. Moreover, growth stocks have shown an historical
tendency to outperform when economic growth has decelerated. Large-cap
growth stocks, in particular, had the advantage of geographic diversity,
with exposure to opportunities in foreign markets. While large-cap growth
stocks were affected by the market sell-off in mid-summer that was
precipitated by the aforementioned problems in the subprime mortgage and
structured finance industries, they retained their existing advantages as
the market stabilized and began to recover following intervention by the
U.S. Federal Reserve Board (the Fed). To inject new liquidity into the
financial markets, the Fed lowered key short-term interest rates - first
the discount rate in August, and then both the fed funds rate and the
discount rate in September. The moves encouraged investor confidence that
the nation's central bank was prepared to act in the face of a
deteriorating situation.
Q: What changes did you make in the Fund's portfolio over the six months?
A: We made some changes in the Fund's positioning during the period. We
sharpened our focus on large-cap growth companies with firm business
fundamentals and earnings that we believed could be sustained, even as the
business cycle entered a decelerating period. We emphasized companies that
we believed had strong management teams capable of executing their business
plans. We increased our investments in the Consumer Staples and Health Care
sectors, where we found companies with stronger balance sheets and more
stable growth prospects. At the same time, we shifted focus away from
financials stocks, where we had concerns about some parts of the credit
markets. We also de-emphasized investments in retailing stocks because of
uncertainty about prospects for consumer spending growth.
In the Consumer Staples sector, one of our notable additions was Coca-Cola.
The company has been diversifying away from its heavy emphasis on
carbonated soft drinks by introducing new products that have greater appeal
in the global distribution network it has built. In the Health Care sector,
a major new investment was Thermo Fisher Scientific, which after a
corporate merger has emerged as the premier franchise among producers of
scientific equipment and instruments for the life sciences industries.
5
Pioneer Fundamental Growth Fund
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PORTFOLIO MANAGEMENT DISCUSSION 9/30/07 (continued)
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Among the holdings we liquidated were home improvement retailers Home Depot
and Lowe's, as we saw continued weakness in the residential construction
industry. We also eliminated a few Information Technology stocks because of
deterioration in their prospects. These included: Macrovision, a developer
of copyright software protection for the entertainment industry; Motorola,
the well-known telecommunications equipment company; and Palm, a producer
of hand-held wireless communications devices. We also sold our investment
in TXU, the Texas-based utility, as a group of private investors announced
plans to acquire the company in a leveraged transaction.
Q: What types of investments most influenced the Fund's results during the
period?
A: Cisco Systems and Juniper Networks, two information network equipment
companies, both made large gains during the six months. These two Fund
holdings benefited from increasing investments in network infrastructure to
help facilitate rapidly increasing traffic over the Internet and corporate
networks. In particular, the transmission of more video content over
networks increased the demand for sophisticated infrastructure. Moreover,
Cisco also gained from heavy investment in networking infrastructure in
emerging markets, including in the Middle East.
Among our Energy holdings, National Oil Well Varco was a standout. Its
technology leadership in drilling equipment proved to be a profitable
advantage as energy companies made heavy investments in new drilling
equipment to meet growing demand for oil and gas.
Investments that detracted from results included retailer Ross Stores and
technology corporations Palm and Macrovision. Ross Stores, a major
off-price retailer, was hurt by slowing sales trends in California, a state
where the company has a major presence and where the slumping real estate
market has affected consumer spending. However, we have maintained our
position because we think the company has a strong franchise and good
potential to expand its store base, and is in a position to benefit from
its investments in productivity-enhancing technology. Palm saw its market
share in hand-held, wireless communications devices shrink in the face of
intense competition from the Blackberry products of Research In Motion and
the new iPhone products of Apple.
6
Pioneer Fundamental Growth Fund
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Macrovision suffered major setbacks in its effort to develop profitable
agreements with major entertainment studios for its software product
designed to protect against unauthorized use of copyright-protected
programming.
Q: What is your investment outlook?
A: We are moderately optimistic about opportunities in the equity market,
although we do see some reasons for caution. Our outlook is tempered by
concerns about problems in the housing industry and the potential spillover
effects on employment, personal income and consumption. At the same time,
the persistent weakness of the U.S. dollar could increase inflationary
pressures. In addition, questions still remain as to the full extent of
potential weakness in the credit markets due to concerns about sub-prime
mortgages and structured finance.
Despite those concerns, two major factors encourage a more optimistic view.
First, the global economic expansion continues at a healthy pace, with
major positive impacts in the U.S. Second, stock valuations remain
reasonable, especially in view of the continuing profit growth and solid
balance sheets of corporations.
We intend to maintain our investment discipline within this context,
emphasizing high-quality companies with growth platforms that may allow
them to benefit from the global economy. However, we are likely to continue
to de-emphasize industries and sectors that are highly dependent on
domestic cyclical trends, choosing to focus instead on corporations that
have the potential to sustain their earnings in the face of a deceleration
in the domestic economy.
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.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
7
Pioneer Fundamental Growth Fund
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PORTFOLIO SUMMARY 9/30/07
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
Temporary Cash Investment 4.6%
Depositary Receipts for International Stocks 4.8%
U.S. Common Stocks 90.6%
Sector Distribution
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(As a percentage of equity holdings)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
Energy 4.1%
Consumer Staples 17.3%
Materials 2.3%
Consumer Discretionary 11.9%
Health Care 21.6%
Industrials 12.2%
Information Technology 25.0%
Financials 5.6%
10 Largest Holdings
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(As a percentage ot equity holdings)*
1. Cisco Systems, Inc. 4.99%
2. Microsoft Corp. 4.23
3. Thermo Fisher Scientific, Inc. 3.46
4. CVS Corp. 3.39
5. PepsiCo, Inc. 3.21
6. Medtronic, Inc. 2.89
7. General Electric Co. 2.76
8. Loews Corp. - Carolina Group 2.75
9. Texas Instruments, Inc. 2.72
10. Teva Pharmaceutical Industries, Ltd. (A.D.R.) 2.67
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
8
Pioneer Fundamental Growth Fund
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PRICES AND DISTRIBUTIONS
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Net Asset Value Per Share
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Class 9/30/07 3/31/07
- ----- ------- -------
A $12.45 $11.26
B $12.26 $11.13
C $12.26 $11.13
Distributions Per Share
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4/1/07 - 9/30/07
-----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ----- ------ ------------- -------------
A $ - $ - $ -
B $ - $ - $ -
C $ - $ - $ -
9
Pioneer Fundamental Growth Fund
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PERFORMANCE UPDATE 9/30/07 CLASS A SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Fundamental Growth Fund at public offering price,
compared to that of the Russell 1000 Growth Index.
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Average Annual Total Returns
(As of September 30, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(8/22/02) 10.04% 8.77%
5 Years 13.64 12.31
1 Year 16.44 9.75
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Expense Ratio
(Per prospectus dated August 1, 2007)
Gross Net
5.34% 1.25%
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[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Ivestment
Pioneer Fundamental Russell 1000
Growth Fund Growth Index
8/02 $ 9,425 $10,000
$ 8,481 $ 8,962
9/03 $10,602 $11,285
$11,144 $12,132
9/05 $13,204 $13,539
$13,803 $14,357
9/07 $16,072 $17,136
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 8/1/2010 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in an Index.
10
Pioneer Fundamental Growth Fund
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PERFORMANCE UPDATE 9/30/07 CLASS B SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Fundamental Growth Fund, compared to that of the
Russell 1000 Growth Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of September 30, 2007)
If If
Period Held Redeemed
Life-of-Class
(12/15/05) 9.23% 7.13%
1 Year 15.53 11.53
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Expense Ratio
(Per prospectus dated August 1, 2007)
Gross Net
7.63% 2.15%
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[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Ivestment
Pioneer Fundamental Russell 1000
Growth Fund Growth Index
12/05 $10,000 $10,000
9/06 $10,341 $10,297
9/07 $11,547 $12,290
Call 1-800-225-6292 or visit www.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 continues to be 4%. For more
complete information, please see the prospectus for details.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 8/1/2008 for Class B Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in an Index.
11
Pioneer Fundamental Growth Fund
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PERFORMANCE UPDATE 9/30/07 CLASS C SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Fundamental Growth Fund, compared to that of the
Russell 1000 Growth Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of September 30, 2007)
If If
Period Held Redeemed
Life-of-Class
(12/15/05) 9.23% 9.23%
1 Year 15.53 14.53
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Expense Ratio
(Per prospectus dated August 1, 2007)
Gross Net
6.85% 2.15%
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[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Ivestment
Pioneer Fundamental Russell 1000
Growth Fund Growth Index
12/05 $10,000 $10,000
9/06 $10,331 $10,297
9/07 $11,936 $12,290
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 8/1/2008 for Class C Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in an Index.
12
Pioneer Fundamental Growth Fund
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COMPARING ONGOING FUND EXPENSES
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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 Fundamental Growth Fund
Based on actual returns from April 1, 2007 through September 30, 2007.
Share Class A B C
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Beginning Account Value $1,000.00 $1,000.00 $1,000.00
On 4/1/07
Ending Account Value (after expenses) $1,105.70 $1,101.50 $1,101.50
On 9/30/07
Expenses Paid During Period* $ 6.60 $ 11.33 $ 11.33
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%
and 2.15% for Class A, Class B and Class C shares, respectively, multiplied
by the average account value over the period, multiplied by 183/365 (to
reflect the one-half year period).
13
Pioneer Fundamental Growth Fund
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COMPARING ONGOING FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
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 Fundamental Growth Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from April 1, 2007 through September 30, 2007.
Share Class A B C
- ----------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00
On 4/1/07
Ending Account Value (after expenses) $1,018.80 $1,014.29 $1,014.29
On 9/30/07
Expenses Paid During Period* $ 6.33 $ 10.86 $ 10.86
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%
and 2.15% for Class A, Class B and Class C shares, respectively, multiplied
by the average account value over the period, multiplied by 183/365 (to
reflect the one-half year period).
14
Pioneer Fundamental Growth Fund
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SCHEDULE OF INVESTMENTS 9/30/07 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
COMMON STOCKS - 97.3%
Energy - 4.0%
Integrated Oil & Gas - 2.7%
1,125 ConocoPhillips $ 98,741
400 USX-Marathon Group, Inc. 22,808
----------
$ 121,549
----------
Oil & Gas Equipment & Services - 1.3%
400 National-Oilwell Varco, Inc.* $ 57,800
----------
Total Energy $ 179,349
----------
Materials - 2.3%
Gold - 1.7%
1,700 Newmont Mining Corp. $ 76,041
----------
Industrial Gases - 0.6%
300 Praxair, Inc. $ 25,128
----------
Total Materials $ 101,169
----------
Capital Goods - 10.8%
Aerospace & Defense - 6.0%
1,000 Honeywell International, Inc. $ 59,470
420 L-3 Communications Holdings, Inc. 42,899
700 Northrop Grumman Corp. 54,600
1,365 United Technologies Corp. 109,855
----------
$ 266,824
----------
Industrial Conglomerates - 4.8%
1,015 3M Co. $ 94,984
2,900 General Electric Co. 120,060
----------
$ 215,044
----------
Total Capital Goods $ 481,868
----------
Transportation - 1.1%
Air Freight & Couriers - 1.1%
650 United Parcel Service, Inc. $ 48,815
----------
Total Transportation $ 48,815
----------
The accompanying notes are an integral part of these financial statements. 15
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 9/30/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Consumer Durables & Apparel - 1.3%
Footwear - 1.3%
1,000 Nike, Inc. $ 58,660
----------
Total Consumer Durables & Apparel $ 58,660
----------
Consumer Services - 2.6%
Casinos & Gaming - 2.6%
2,650 International Game Technology $ 114,215
----------
Total Consumer Services $ 114,215
----------
Media - 3.0%
Advertising - 0.5%
500 Omnicom Group $ 24,045
----------
Movies & Entertainment - 2.5%
2,400 News Corp., Inc. $ 52,776
1,495 Viacom, Inc. (Class B)* 58,260
----------
$ 111,036
----------
Total Media $ 135,081
----------
Retailing - 4.7%
Apparel Retail - 4.7%
1,055 Abercrombie & Fitch Co. $ 85,139
1,200 Ross Stores, Inc. 30,768
3,180 TJX Companies, Inc. 92,443
----------
$ 208,350
----------
Total Retailing $ 208,350
----------
Food & Drug Retailing - 3.3%
Drug Retail - 3.3%
3,720 CVS Corp. $ 147,424
----------
Total Food & Drug Retailing $ 147,424
----------
Food, Beverage & Tobacco - 10.6%
Packaged Foods & Meats - 1.0%
700 William Wrigley Jr. Co. $ 44,961
----------
Soft Drinks - 5.4%
1,800 Coca-Cola Co. $ 103,446
1,900 PepsiCo, Inc. 139,194
----------
$ 242,640
----------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Tobacco - 4.2%
980 Altria Group, Inc. $ 68,139
1,450 Loews Corp. - Carolina Group 119,234
----------
$ 187,373
----------
Total Food, Beverage & Tobacco $ 474,974
----------
Household & Personal Products - 2.9%
Household Products - 2.3%
1,480 Procter & Gamble Co. $ 104,103
----------
Personal Products - 0.6%
600 Estee Lauder Co. $ 25,476
----------
Total Household & Personal Products $ 129,579
----------
Health Care Equipment & Services - 7.2%
Health Care Distributors - 0.8%
600 Cardinal Health, Inc. $ 37,518
----------
Health Care Equipment - 5.4%
700 Edwards Lifesciences Group* $ 34,517
2,225 Medtronic, Inc. 125,512
3,900 Thoratec Corp.* 80,691
----------
$ 240,720
----------
Health Care Technology - 1.0%
1,440 IMS Health, Inc. $ 44,122
----------
Total Health Care Equipment & Services $ 322,360
----------
Pharmaceuticals & Biotechnology - 13.8%
Biotechnology - 2.4%
1,000 Cubist Pharmaceuticals, Inc.* $ 21,130
1,730 Gilead Sciences, Inc.* 70,705
465 Vertex Pharmaceuticals, Inc.* 17,861
----------
$ 109,696
----------
Life Sciences Tools & Services - 3.4%
2,600 Thermo Fisher Scientific, Inc.*(b) $ 150,072
----------
Pharmaceuticals - 8.0%
1,925 Eli Lilly & Co. $ 109,590
1,505 Johnson & Johnson 98,879
2,603 Teva Pharmaceutical Industries, Ltd. (A.D.R.) 115,755
The accompanying notes are an integral part of these financial statements. 17
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 9/30/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Pharmaceuticals - (continued)
700 Wyeth $ 31,185
----------
$ 355,409
----------
Total Pharmaceuticals & Biotechnology $ 615,177
----------
Diversified Financials - 3.1%
Asset Management & Custody Banks - 1.1%
200 Franklin Resources, Inc. $ 25,500
250 Legg Mason, Inc. 21,073
----------
$ 46,573
----------
Consumer Finance - 1.3%
1,000 American Express Co. $ 59,370
----------
Investment Banking & Brokerage - 0.7%
425 Merrill Lynch & Co., Inc. $ 30,294
----------
Total Diversified Financials $ 136,237
----------
Insurance - 2.4%
Property & Casualty Insurance - 2.4%
27 Berkshire Hathaway, Inc. (Class B)* $ 106,704
----------
Total Insurance $ 106,704
----------
Software & Services - 6.0%
Data Processing & Outsourced Services - 0.8%
1,800 Western Union Co. $ 37,746
----------
Internet Software & Services - 1.1%
1,800 Yahoo!, Inc.* $ 48,312
----------
Systems Software - 4.1%
6,240 Microsoft Corp. $ 183,830
----------
Total Software & Services $ 269,888
----------
Technology Hardware & Equipment - 11.1%
Communications Equipment - 10.6%
6,550 Cisco Systems, Inc.* $ 216,869
4,675 Corning, Inc.* 115,239
2,635 Juniper Networks, Inc.*(b) 96,467
1,100 Qualcomm, Inc. 46,486
----------
$ 475,061
----------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Computer Storage & Peripherals - 0.5%
800 Network Appliance, Inc.* $ 21,528
----------
Total Technology Hardware & Equipment $ 496,589
----------
Semiconductors - 7.1%
Semiconductors - 7.1%
3,000 Infineon Technologies (A.D.R.)* $ 51,540
3,700 Intel Corp. 95,682
3,100 Marvell Technology Group, Ltd.* 50,747
3,225 Texas Instruments, Inc. 118,003
----------
$ 315,972
----------
Total Semiconductors $ 315,972
----------
TOTAL COMMON STOCKS
(Cost $3,799,316) $4,342,411
----------
TEMPORARY CASH INVESTMENTS - 4.6%
Security Lending Collateral - 4.6%
207,642 Securities Lending Investment Fund, 5.24% $ 207,642
----------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $207,642) $ 207,642
----------
TOTAL INVESTMENT IN SECURITIES - 101.9%
(Cost $4,006,958) (a) $4,550,053
----------
OTHER ASSETS AND LIABILITIES - (1.9)% $ (83,873)
----------
TOTAL NET ASSETS - 100.0% $4,466,180
==========
(A.D.R.) American Depositary Receipt
* Non-income producing security.
(a) At September 30, 2007, the net unrealized gain on investments based on
cost for federal income tax purposes of $4,018,627 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $582,430
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (51,004)
--------
Net unrealized gain $531,426
========
The accompanying notes are an integral part of these financial statements. 19
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 9/30/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
(b) At September 30, 2007, the following securities were out on loan:
Shares Description Value
2,609 Juniper Networks, Inc.* $ 95,516
1,881 Thermo Fisher Scientific, Inc.* 108,571
--------
Total $204,087
========
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended September 30, 2007 aggregated $1,853,792 and $464,453,
respectively.
20 The accompanying notes are an integral part of these financial statements.
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 9/30/07 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (including securities loaned
of $204,087) (cost $4,006,958) $4,550,053
Cash 130,879
Receivables -
Fund shares sold 96
Dividends, interest and foreign taxes withheld 2,375
Due from Pioneer Investment Management, Inc. 5,795
Other 20,098
----------
Total assets $4,709,296
----------
LIABILITIES:
Payables -
Fund shares repurchased $ 90
Upon return of securities loaned 207,642
Due to affiliates 9,131
Accrued expenses 26,253
----------
Total liabilities $ 243,116
----------
NET ASSETS:
Paid-in capital $3,900,482
Accumulated net investment loss (908)
Accumulated net realized gain on investments 23,511
Net unrealized gain on investments 543,095
----------
Total net assets $4,466,180
==========
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $3,446,521/276,727 shares) $ 12.45
==========
Class B (based on $770,855/62,886 shares) $ 12.26
==========
Class C (based on $248,804/20,298 shares) $ 12.26
==========
MAXIMUM OFFERING PRICE:
Class A ($12.45 [divided by] 94.25%) $ 13.21
==========
The accompanying notes are an integral part of these financial statements. 21
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 9/30/07
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $59) $18,375
Interest 3,988
Income from securities loaned, net 20
-------
Total investment income $ 22,383
--------
EXPENSES:
Management fees $12,273
Transfer agent fees and expenses
Class A 1,149
Class B 1,248
Class C 372
Distribution fees
Class B 2,151
Class C 999
Administrative reimbursements 368
Custodian fees 7,626
Registration fees 12,230
Professional fees 18,518
Printing expense 6,466
Fees and expenses of nonaffiliated trustees 3,580
Miscellaneous 1,274
-------
Total expenses $ 68,254
Less management fees waived and
expenses reimbursed by Pioneer Investment
Management, Inc. (44,925)
Less fees paid indirectly (38)
--------
Net expenses $ 23,291
--------
Net investment loss $ (908)
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $ 30,356
--------
Change in net unrealized gain on investments $327,792
--------
Net gain on investments $358,148
--------
Net increase in net assets resulting from operations $357,240
========
22 The accompanying notes are an integral part of these financial statements.
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 9/30/07 and the Year Ended 3/31/07, respectively
Six Months
Ended Year
9/30/07 Ended
(unaudited) 3/31/07
FROM OPERATIONS:
Net investment loss $ (908) $ (2,563)
Net realized gain on investments 30,356 25,781
Change in net unrealized gain on investments 327,792 94,631
---------- ----------
Net increase in net assets resulting
from operations $ 357,240 $ 117,849
---------- ----------
DISTRIBUTIONS TO SHAREOWNERS:
Net realized gain:
Class A ($0.00 and $0.31 per share, respectively) $ - $ (55,690)
Class B ($0.00 and $0.31 per share, respectively) - (6,603)
Class C ($0.00 and $0.31 per share, respectively) - (3,518)
---------- ----------
Total distributions to shareowners $ - $ (65,811)
---------- ----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $1,581,319 $ 746,591
Reinvestment of distributions - 10,640
Cost of shares repurchased (205,059) (118,630)
---------- ----------
Net increase in net assets resulting from
Fund share transactions $1,376,260 $ 638,601
---------- ----------
Net increase in net assets $1,733,500 $ 690,639
NET ASSETS:
Beginning of period 2,732,680 2,042,041
---------- ----------
End of period $4,466,180 $2,732,680
========== ==========
Accumulated net investment loss $ (908) $ -
========== ==========
The accompanying notes are an integral part of these financial statements. 23
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
9/30/07 9/30/07 3/31/07 3/31/07
Shares Amount Shares Amount
(unaudited) (unaudited)
CLASS A
Shares sold 93,098 $1,098,748 40,505 $448,668
Reinvestment of distributions - - 565 6,260
Less shares repurchased (11,255) (132,230) (3,609) (40,157)
------- ---------- ------ --------
Net increase 81,843 $ 966,518 37,461 $414,771
======= ========== ====== ========
CLASS B
Shares sold 35,621 $ 419,504 20,536 $229,453
Reinvestment of distributions - - 340 3,732
Less shares repurchased (5,642) (65,510) (7,231) (78,473)
------- ---------- ------ --------
Net increase 29,979 $ 353,994 13,645 $154,712
======= ========== ====== ========
CLASS C
Shares sold 5,411 $ 63,067 6,123 $ 68,470
Reinvestment of distributions - - 59 648
Less shares repurchased (616) (7,319) - -
------- ---------- ------ --------
Net increase 4,795 $ 55,748 6,182 $ 69,118
======= ========== ====== ========
24 The accompanying notes are an integral part of these financial statements.
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months Ended Year Year Year Year
9/30/07 Ended Ended Ended Ended 8/22/02 (a)
CLASS A (unaudited) 3/31/07 3/31/06 3/31/05 3/31/04 to 3/31/03
Net asset value, beginning of period $11.26 $10.98 $11.28 $11.93 $ 8.99 $ 10.00
------ ------ ------ ------ ------ -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.01 $ 0.01 $(0.01) $ 0.06 $(0.03) $ (0.01)
Net realized and unrealized gain (loss) on investments 1.18 0.58 1.22 0.56 2.97 (1.00)
------ ------ ------ ------ ------ -------
Net increase (decrease) in net assets from investment operations $ 1.19 $ 0.59 $ 1.21 $ 0.62 $ 2.94 $ (1.01)
Distributions to shareowners:
Net investment income - - (0.06) - - -
Net realized gain - (0.31) (1.45) (1.27) - -
------ ------ ------ ------ ------ -------
Net increase (decrease) in net asset value $ 1.19 $ 0.28 $(0.30) $(0.65) $ 2.94 $ (1.01)
------ ------ ------ ------ ------ -------
Net asset value, end of period $12.45 $11.26 $10.98 $11.28 $11.93 $ 8.99
====== ====== ====== ====== ====== =======
Total return* 10.57% 5.41% 11.10% 5.50% 32.70% (10.10)%(b)
Ratio of net expenses to average net assets+ 1.25%** 1.25% 1.29% 1.30% 1.30% 1.30%**
Ratio of net investment income (loss) to average net assets+ 0.11%** 0.03% (0.11)% 0.51% (0.33)% (0.27)%**
Portfolio turnover rate 30%** 65% 102% 236% 41% 6%
Net assets, end of period (in thousands) $3,447 $2,194 $1,729 $1,692 $1,790 $ 1,349
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reductions for fees paid indirectly:
Net expenses 3.90%** 5.34% 6.09% 6.00% 5.38%*** 13.80%**
Net investment loss (2.54)%** (4.06)% (4.91)% (4.20)% (4.41)%*** (12.77)%**
Ratios with waiver of management fees and assumption of expenses
by PIM and reductions for fees paid indirectly:
Net expenses 1.25%** 1.25% 1.29% 1.30% 1.30% 1.30%**
Net investment income (loss) 0.11%** 0.03% (0.11)% 0.51% (0.33)% (0.27)%**
(a) Class A shares commenced operations on August 22, 2002 and were first
publicly offered on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** In the absence of the negative registration fees in the statement of
operations, which relates to a change in estimate for registration fees in
the period ended March 2003, the gross expenses ratio to average net assets
would have been 5.31%. As a result of the expenses limitation arrangement
(see footnote 2), there would be no effect on the per share operating
performance, total return and the net expenses and net investment loss
ratios to average net assets.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 25
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year
9/30/07 Ended 12/15/05 (a)
(unaudited) 3/31/07 to 3/31/06
CLASS B
Net asset value, beginning of period $11.13 $10.95 $ 10.76
------ ------ -------
Increase (decrease) from investment operations:
Net investment loss $(0.03) $(0.06) $ (0.02)
Net realized and unrealized gain
on investments 1.16 0.55 0.21
------ ------ -------
Net increase in net assets from investment
operations $ 1.13 $ 0.49 $ 0.19
Distributions to shareowners:
Net realized gain - (0.31) -
------ ------ -------
Net increase in net asset value $ 1.13 $ 0.18 $ 0.19
------ ------ -------
Net asset value, end of period $12.26 $11.13 $ 10.95
====== ====== =======
Total return* 10.15% 4.50% 1.77%(b)
Ratio of net expenses to average net assets+ 2.15%** 2.15% 2.15%**
Ratio of net investment loss to average
net assets+ (0.79)%** (0.83)% (0.71)%**
Portfolio turnover rate 30%** 65% 102%
Net assets, end of period (in thousands) $ 771 $ 366 $ 211
Ratios with no waiver of management fees
and assumption of expenses by PIM and no
reductions for fees paid indirectly:
Net expenses 5.38%** 7.63% 11.90%**
Net investment loss (4.01)%** (6.31)% (10.46)%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reductions for fees paid indirectly:
Net expenses 2.15%** 2.15% 2.15%**
Net investment loss (0.78)%** (0.83)% (0.71)%**
(a) Class B shares were first publicly offered on December 15, 2005.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
26 The accompanying notes are an integral part of these financial statements.
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended Year
9/30/07 Ended 12/15/05 (a)
(unaudited) 3/31/07 to 3/31/06
CLASS C
Net asset value, beginning of period $11.13 $10.95 $10.76
------ ------ ------
Increase (decrease) from investment operations:
Net investment loss $(0.04) $(0.07) $(0.02)
Net realized and unrealized gain
on investments 1.17 0.56 0.21
------ ------ ------
Net increase in net assets from investment
operations $ 1.13 $ 0.49 $ 0.19
Distributions to shareowners:
Net realized gain - (0.31) -
------ ------ ------
Net increase in net asset value $ 1.13 $ 0.18 $ 0.19
------ ------ ------
Net asset value, end of period $12.26 $11.13 $10.95
====== ====== ======
Total return* 10.15% 4.50% 1.77%(b)
Ratio of net expenses to average net assets+ 2.15%** 2.15% 2.15%**
Ratio of net investment loss to average
net assets+ (0.77)%** (0.86)% (0.80)%**
Portfolio turnover rate 30%** 65% 102%
Net assets, end of period (in thousands) $ 249 $ 173 $ 102
Ratios with no waiver of management fees
and assumption of expenses by PIM and no
reductions for fees paid indirectly:
Net expenses 5.22%** 6.85% 11.50%**
Net investment loss (3.83)%** (5.56)% 10.15)%**
Ratios with waiver of management fees and
assumption of expenses by PIM and
reductions for fees paid indirectly:
Net expenses 2.15%** 2.15% 2.15%**
Net investment loss (0.77)%** (0.86)% (0.80)%**
(a) Class C shares were first publicly offered on December 15, 2005.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 27
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 9/30/07 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Fundamental Growth Fund (the Fund), formerly Pioneer Large Cap Growth
Fund, is a Delaware statutory trust registered under the Investment Company Act
of 1940 as a diversified, open-end management investment company. The Fund was
organized on March 12, 2002, and commenced operations on August 22, 2002. Prior
to August 22, 2002, the Fund had no operations other than those relating to
organizational matters and the initial capitalization of the Fund by Pioneer
Funds Distributor, Inc. (PFD). The Fund's shares, including Class A shares, were
first publicly offered on December 15, 2005. Prior to December 15, 2005 all Fund
shares outstanding were owned by PFD. The Fund's investment objective is to seek
long-term capital growth.
The Fund offers three classes of shares - Class A, Class B and Class C shares.
Shares of Class A, Class B and Class C each represent an interest in the same
portfolio of investments of the Fund and have equal rights to voting,
redemptions, dividends and liquidation proceeds, except that each class of
shares can bear different transfer agent and distribution fees and have
exclusive voting rights with respect to the distribution plans that have been
adopted by Class A, Class B and Class C shareowners, respectively.
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 year.
Actual results could differ from those estimates.
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. Information regarding the Fund's principal risks is
contained in the Fund's prospectus(es). Please refer to those documents when
considering the Fund's investment risks.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are
28
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 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 generally reported, are valued at the mean between the last bid and
asked prices. Securities for which market quotations are not readily
available are valued at their fair values as determined by, or under the
direction of, the Board of Trustees. 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. As of September 30,
2007, there were no securities fair valued. Temporary cash investments are
valued at amortized cost which approximates market value.
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
date in exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis.
Dividends and interest 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.
29
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 9/30/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
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 either from or in excess
of net investment income or net realized gain on investment transactions,
or from paid-in capital, depending on the type of book/tax differences that
may exist.
The Fund has elected to defer $3,404 in capital losses recognized between
November 1, 2006 and March 31, 2007 to its fiscal year ending March 31,
2008.
The tax character of current year distributions will be determined at the
end of the fiscal year. The tax character of distributions paid during the
year ended March 31, 2007 was as follows:
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $19,249
Long-term capital gain 46,562
-------
Total $65,811
=======
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at March 31, 2007.
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Undistributed ordinary income $ 8,228
Post-October Loss Deferred (3,404)
Unrealized appreciation 203,634
--------
Total $208,458
========
- --------------------------------------------------------------------------------
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. PFD,
the principal underwriter for the Fund and a wholly owned indirect
subsidiary of UniCredito Italiano S.p.A. (UniCredito
30
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Italiano), earned $277 in underwriting commissions on the sale of Class A
shares during the six months ended September 30, 2007.
D. Security Lending
The Fund lends securities in the portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
payments in lieu of dividends on the securities loaned. Gain or loss on the
fair value of the loaned securities that may occur during the term of the
loan will be for the account of the Fund. The loans are secured by
collateral of at least 102%, at all times, of the fair value of the
securities loaned. The fair value of the collateral will be adjusted daily
to reflect any price fluctuation in the value of the loaned securities. The
Fund has the right under the lending agreements to recover the securities
from the borrower on demand. The Fund invests cash collateral in the
Securities Lending Investment Fund, which is sponsored by Brown Brothers
Harriman & Co., the Fund's custodian.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian, or subcustodians. 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.
F. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively (see Note 4). Shareowners of each class share all expenses and
fees paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services, which are allocated based on the
number of accounts in
31
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 9/30/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
each class and the ratable allocation of related out-of-pocket expense (see
Note 3). 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 the respective percentage of adjusted net assets at the
beginning of the day.
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, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution fees.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, manages the
Fund's portfolio. Management fees are calculated daily at the annual rate of
0.75% of the Fund's average daily net assets.
PIM has agreed not to impose its management fee and to assume other operating
expenses of the Fund to the extent necessary to limit expenses to 1.25%, 2.15%
and 2.15% of the average daily net assets attributable to Class A, Class B and
Class C shares, respectively. These expense limitations became effective
December 15, 2005 and are in effect through August 1, 2010 for Class A shares
and through August 1, 2008 for Class B and Class C shares. Prior to December 15,
2005, Pioneer had voluntarily agreed not to charge all or a portion of its
management fee and, if necessary, to limit other ordinary operating expenses to
the extent required to reduce Class A expenses to 1.30% of the Fund's average
daily net assets attributable to Class A shares.
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. At September 30, 2007, $8 was payable to PIM
related to management fees, administrative costs and certain other services and
is included in due to affiliates.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in due to affiliates is $8,997 in transfer agent fees
payable to PIMSS at September 30, 2007.
32
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. Distribution Plan
The Fund adopted a Plan of Distribution with respect to Class A, Class B and
Class C shares in accordance with Rule 12b-1 of the Investment Company Act of
1940. Pursuant to the Class A Plan, the Fund pays PFD a service fee of up to
0.25% of the average daily net assets attributable to Class A shares in
reimbursement of its actual expenditures to finance activities primarily
intended to result in the sale of Class A shares. Pursuant to the Class B Plan
and the Class C Plan, the Fund pays PFD 1.00% of the average daily net assets
attributable to each class of shares. The fee consists of a 0.25% service fee
and a 0.75% distribution fee paid as compensation for personal services and/or
account maintenance services or distribution services with regard to Class B and
Class C shares. Included in due to affiliates is $126 in distribution fees
payable to PFD at September 30, 2007.
In addition, redemptions of each class of 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 18 months of
purchase. Class B shares that are redeemed within five years of purchase are
subject to a CDSC at declining rates beginning at 4.00%, based on the lower of
cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%. Proceeds from the
CDSCs are paid to PFD. For the six months ended September 30, 2007, no CDSCs
were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended September 30, 2007, the Fund's
expenses were reduced by $38 under such arrangements.
6. New Pronouncements
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact the adoption of SFAS
157 will have on the Fund's financial statement disclosures.
33
Pioneer Fundamental Growth Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Margaret B.W. Graham Vincent Nave, Treasurer
Daniel K. Kingsbury Dorothy E. Bourassa, Secretary
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at www.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at http://www.sec.gov.
34
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- --------------------------------------------------------------------------------
This page for your notes.
35
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This page for your notes.
36
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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
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
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: www.pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
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;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has considered
whether the provision of non-audit services that were rendered to
the Affiliates (as defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible
with maintaining the principal accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Fundamental Growth Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date November 29, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date November 29, 2007
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date November 29, 2007
* Print the name and title of each signing officer under his or her signature.