OMB APPROVAL
OMB Number: 3235-0570
Expires: August 31, 2010
Estimated average burden
hours per response.....18.9
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-01835
Pioneer Value Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
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: September 30
Date of reporting period: October 1, 2006 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.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PIONEER
-------
VALUE
FUND
PIOTX
Ticker Symbol
Annual
Report
9/30/07
[LOGO] Pioneer
Investments(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 21
Notes to Financial Statements 31
Report of Independent Registered Public Accounting Firm 40
Trustees, Officers and Service Providers 41
President's
Dear Shareowner,
- --------------------------------------------------------------------------------
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, 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 Value Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 9/30/07
- --------------------------------------------------------------------------------
In the following discussion, Aaron Clark, lead portfolio manager, reviews recent
market events and describes the factors that affected Pioneer Value Fund's
performance during the annual reporting period ended September 30, 2007.
Q: How did the U.S. stock market perform during the past twelve months?
A: Although the final months of the reporting period were characterized by a
substantial increase in market volatility, U.S. equities delivered a strong
return during the past year. Stock prices were supported by a continued
environment of steady economic growth, better-than-expected corporate
earnings, and - until the last few months of the period - a surge in merger
and acquisition activity. The market experienced two sharp sell-offs, one
in early March and the other during the summer. Both downturns were caused
by concerns that a soft housing market and rising defaults in the sub-prime
mortgage segment would lead to weakness in the broader economy. However, as
has been the case throughout the bull market of the past four-plus years,
investors' nervousness quickly dissipated and stocks soon recovered their
lost ground.
In terms of market segments, value stocks underperformed growth stocks
during the past year. While this provided a headwind to the Fund, large-cap
stocks - our area of focus - outpaced both mid- and small-cap stocks.
Q: Please discuss the Fund's performance versus its benchmark and Lipper
peers.
A: During the 12 months ended September 30, 2007, Class A shares of Pioneer
Value Fund returned 17.49% at net asset value, outpacing the Fund's
benchmark, the Russell 1000 Value Index, which returned 14.45% over the
same period. The Fund also outperformed the 14.63% average return of the
503 funds in its Lipper peer group, Large-Cap Value Funds. While past
performance is no guarantee of future results, we believe our strong
showing during the past year helps illustrate the merit of our
research-driven, value-oriented approach.
4
Pioneer Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 holdings helped performance during the period?
A: Our stock picks generated the largest degree of outperformance in the
health care sector, where Schering-Plough, Bristol-Myers Squibb, and Merck
all performed very well behind better-than-expected earnings and improving
new drug pipelines. Since those are the three largest holdings in the
portfolio, their contribution to the Fund's performance was significant.
Believing all three stocks remain undervalued, we continue to hold them in
the portfolio.
Technology was another area in which our stock selection was effective. The
top performer was Nokia, the Finland-based handset manufacturer that we
purchased in mid-2004 at a price near what proved to be its five-year low.
At the time, investors were concerned about slowing handset sales and
Nokia's shrinking market share, but the company subsequently rolled out
newer, more attractive products, helping it increase sales and regain
share. Also aiding performance was Hewlett-Packard, which has gained ground
as its efforts to cut costs and improve sales in the computer, software,
and service aspects of its business have resulted in rising profit margins.
Our third-best sector was financials. The past year proved very challenging
for financial stocks due to worries over the housing market and sub-prime
mortgages, and so we are pleased to have added value in the sector. Our
leading contributor was Invesco, the global asset management firm. Invesco
hired the former CEO of Franklin Resources, who had helped that company
improve performance, reduce costs, and increase profit margins during his
tenure. Similar results are becoming evident at Invesco, and the market has
responded positively. The second-largest contributor was Unum, a long-time
Fund holding that we initially purchased on the expectation of a
turnaround. Our view has been borne out, as
5
Pioneer Value Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 9/30/07 (continued)
- --------------------------------------------------------------------------------
the company is improving its metrics and has elected to securitize some of
its underperforming assets in order to free up capital that can be put to
work elsewhere. (Securitization is the process of converting assets - most
commonly accounts receivables - into marketable securities such as bonds,
which are in turn backed by current and future revenue from the assets.)
Q: What positions detracted from performance during the period?
A: Our largest degree of underperformance relative to the benchmark occurred
in the energy sector. The Fund was underweight in this group due to our
inability to find more than a few stocks that fit our strict valuation
criteria. The sector has continued to perform well, however, so our lack of
ownership in stocks such as Exxon Mobil - one of the largest individual
holdings in the Russell 1000 Value Index - caused the Fund to lose some
ground versus its benchmark.
Our holdings in the industrials sector lagged, due primarily to our
decision to initiate a position in US Airways in late March. Although we
made the purchase at a price we believed to be very attractive, the stock
continued to decline due to broader investor concerns about rising energy
prices and slower economic growth. We continue to like US Airways as a
long-term holding. The company's market valuation is actually lower than
the amount of cash on its balance sheet, which is just one indication that
its shares are extremely inexpensive.
The consumer staples sector also was a source of underperformance for the
Fund. The leading detractor was Wal-Mart, which was hurt by concerns about
slower consumer spending and rising energy prices. Still, we see reasons
for optimism: the company continues to grow, its outlook for growth
overseas remains excellent, and it continues to earn returns above its cost
of capital - an essential element of value creation.
Q: Have you made any notable changes to the portfolio?
A: Consistent with our long-term approach, we did not make any wholesale
changes to the Fund during the 12-month period. The majority of our buys
and sells were simply incremental changes, reflecting the fact that we are
comfortable with the Fund's positioning. That said, we took advantage of
market volatility to
6
Pioneer Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
add positions as the prices of certain stocks fell into our target price
range. For example, in the February-March correction we purchased shares in
First Marblehead, Washington Mutual, and Freddie Mac. Similarly, we used
the July-August decline to add to our positions in Home Depot, Advanced
Micro Devices, and Gap Stores. Market volatility can be disturbing for
investors, especially those with a short-term approach, but we welcome the
opportunity to purchase discounted shares in companies that we believe are
attractively valued.
Q: Do you have any closing thoughts for investors?
A: We continue to employ fundamental research to build a portfolio of 40-to-60
stocks whose prices do not fully reflect what we believe is the intrinsic
value of the underlying companies. We believe our focus on purchasing
shares of undervalued, higher-quality companies can sustain the Fund
through both up and down markets.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
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 Value Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 9/30/07
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 89.8%
Temporary Cash Investment 4.8%
Depositary Receipts for International Stocks 3.5%
International Common Stocks 1.9%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Financials 25.1%
Healthcare 18.0%
Information Technology 12.1%
Consumer Staples 10.6%
Energy 9.1%
Industrials 7.4%
Telecommunication Services 7.1%
Consumer Discretionary 6.0%
Materials 2.4%
Utilities 2.2%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Schering-Plough Corp. 6.19%
2. Bristol-Myers Squibb Co. 5.47
3. Merck & Co., Inc. 5.28
4. American International Group, Inc. 4.66
5. Verizon Communications, Inc. 4.66
6. Chevron Corp. 4.54
7. Nokia Corp. (A.D.R.) 3.71
8. Unum Group 3.65
9. Altria Group, Inc. 3.29
10. 3M Co. 2.88
* 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 Value Fund
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 9/30/07 9/30/06
- ------- --------- --------
A $18.28 $18.55
B $16.87 $17.36
C $16.84 $17.33
Y $18.42 $18.67
Class 12/10/06 9/30/06
- ------------ ---------- --------
Investor $16.84 $18.56
Class 1/31/07 9/30/06
- ------- --------- --------
R $16.44 $17.87
Distributions Per Share
- --------------------------------------------------------------------------------
10/1/06 - 9/30/07
-------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.2964 $0.1626 $2.7016
B $0.1193 $0.1626 $2.7016
C $0.1327 $0.1626 $2.7016
Y $0.3654 $0.1626 $2.7016
10/1/06 - 12/10/06
------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------------ ------------ --------------- --------------
Investor $ - $0.1626 $2.7016
10/1/06 - 1/31/07
-----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
R $ - $0.1626 $2.7016
- --------------------------------------------------------------------------------
INDEX DEFINITIONS
- --------------------------------------------------------------------------------
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
The index defined here pertains to the "Value of $10,000 Investment" charts on
pages 10-13.
9
Pioneer Value Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 9/30/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Value Fund at public offering price, compared to
that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of September 30, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
10 Years 4.53% 3.91%
5 Years 15.73 14.37
1 Year 17.49 10.75
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated February 1, 2007)
Gross Net
0.94% 0.94%
[THE FOLLOWING DATA WAS REPRESENTED BY A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Russell
Value Value 1000
Fund Index
9/97 9,425 10,000
7,166 10,359
9/99 8,016 12,298
9,322 13,395
9/01 8,495 12,201
7,069 10,133
9/03 8,691 12,603
10,172 15,188
9/05 11,576 17,723
12,490 20,314
9/07 14,675 23,249
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 performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10
Pioneer Value Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 9/30/07 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Value Fund, compared to that of the Russell 1000
Value Index.
Average Annual Total Returns
(As of September 30, 2007)
If If
Period Held Redeemed
10 Years 3.36% 3.36%
5 Years 14.43 14.43
1 Year 16.18 12.29
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated February 1, 2007)
Gross Net
2.03% 2.03%
[THE FOLLOWING DATA WAS REPRESENTED BY A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Russell
Value Value 1000
Fund Index
9/97 10,000 10,000
7,524 10,359
9/99 8,324 12,298
9,556 13,395
9/01 8,616 12,201
7,093 10,133
9/03 8,590 12,603
9,961 15,188
9/05 11,221 17,723
11,977 20,314
9/07 13,915 23,249
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). Effective December 1, 2004, the period during which a CDSC is applied
to withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus
for details.
Note: Shares purchased prior to December 1, 2004 remain subject to the CDSC in
effect at the time you purchased those shares. For performance information for
shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
11
Pioneer Value Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 9/30/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Value Fund, compared to that of the Russell 1000
Value Index.
Average Annual Total Returns
(As of September 30, 2007)
If If
Period Held Redeemed
10 Years 3.37% 3.37%
5 Years 14.47 14.47
1 Year 16.31 16.31
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated February 1, 2007)
Gross Net
2.03% 2.03%
[THE FOLLOWING DATA WAS REPRESENTED BY A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Russell
Value Value 1000
Fund Index
9/97 10,000 10,000
7,539 10,359
9/99 8,343 12,298
9,581 13,395
9/01 8,625 12,201
7,091 10,133
9/03 8,623 12,603
9,972 15,188
9/05 11,229 17,723
11,980 20,314
9/07 13,933 23,249
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). The performance of Class C shares does not
reflect the 1% front-end sales charge in effect prior to February 1, 2004. If
you paid a 1% sales charge, your returns would be lower than those shown above.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12
Pioneer Value Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 9/30/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Value Fund, compared to that of the Russell 1000
Value Index.
Average Annual Total Returns
(As of September 30, 2007)
If If
Period Held Redeemed
10 Years 4.67% 4.67%
5 Years 16.04 16.04
1 Year 17.92 17.92
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated February 1, 2007)
Gross Net
0.55% 0.55%
[THE FOLLOWING DATA WAS REPRESENTED BY A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Russell
Value Value 1000
Fund Index
9/97 10,000 10,000
7,603 10,359
9/99 8,505 12,298
9,891 13,395
9/01 9,013 12,201
7,501 10,133
9/03 9,221 12,603
10,798 15,188
9/05 12,353 17,723
13,380 20,314
9/07 15,779 23,249
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.
Performance for periods prior to the inception of Class Y shares reflects the
NAV performance of the Fund's Class A shares. The performance does not reflect
differences in expenses, including the Rule 12b-1 fees applicable to Class A
shares. Since fees for Class A shares are generally higher than those of Class
Y shares, the performance shown for Class Y shares prior to their inception
(8/11/04) would have been higher. Class Y shares are not subject to sales
charges and are available for limited groups of eligible investors, including
institutional investors. All results are historical and assume the reinvestment
of dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
13
Pioneer Value Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000 Example: an $8,600 account value
[divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Value Fund
Based on actual returns from April 1, 2007 through September 30, 2007.
Share Class A B C Y
- -------------------- ------------ ------------ ------------ ------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value On 4/1/07
Ending Account $1,085.36 $1,079.04 $1,079.84 $1,087.02
Value On 9/30/07
Expenses Paid $ 4.81 $ 10.53 $ 10.22 $ 2.83
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 0.92%, 2.02%,
1.96%, and 0.54% for Class A, Class B, Class C, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 183/365 (to reflect the one-half year period).
14
Pioneer Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Value Fund
Based on a hypothetical 5% return per year before expenses, reflect
ing the period from April 1, 2007 through September 30, 2007.
Share Class A B C Y
- -------------------- ------------ ------------ ------------ ------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value On 4/1/07
Ending Account $1,020.46 $1,014.94 $1,015.24 $1,022.36
Value On 9/30/07
Expenses Paid $ 4.66 $ 10.20 $ 9.90 $ 2.74
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 0.92%, 2.02%,
1.96%, and 0.54%, for Class A, Class B, Class C, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 183/365 (to reflect the one-half year period).
15
Pioneer Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 9/30/07
- --------------------------------------------------------------------------------
Shares Value
COMMON STOCKS - 99.5%
Energy - 9.1%
Integrated Oil & Gas - 9.1%
1,857,025 Chevron Corp. $ 173,780,400
1,242,308 ConocoPhillips 109,037,373
1,165,338 USX-Marathon Group, Inc. 66,447,573
--------------
$ 349,265,346
--------------
Total Energy $ 349,265,346
--------------
Materials - 2.4%
Diversified Metals & Mining - 1.2%
443,141 Freeport-McMoRan Copper & Gold, Inc.
(Class B) (b) $ 46,481,059
--------------
Gold - 1.2%
1,020,866 Newmont Mining Corp. $ 45,663,336
--------------
Total Materials $ 92,144,395
--------------
Capital Goods - 5.0%
Industrial Conglomerates - 5.0%
1,179,960 3M Co. $ 110,420,657
2,015,510 General Electric Co. 83,442,114
--------------
$ 193,862,771
--------------
Total Capital Goods $ 193,862,771
--------------
Transportation - 2.3%
Airlines - 1.4%
2,075,080 US Airways* $ 54,470,850
--------------
Railroads - 0.9%
686,703 Norfolk Southern Corp. $ 35,646,753
--------------
Total Transportation $ 90,117,603
--------------
Retailing - 6.0%
Apparel Retail - 1.9%
3,834,743 Gap, Inc. $ 70,712,661
--------------
Home Improvement Retail - 2.6%
3,106,140 Home Depot, Inc. (b) $ 100,763,182
--------------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Internet Retail - 1.5%
1,838,659 Expedia, Inc.*(b) $ 58,616,449
--------------
Total Retailing $ 230,092,292
--------------
Food & Drug Retailing - 3.5%
Food Retail - 1.6%
2,088,070 Kroger Co. $ 59,551,756
--------------
Hypermarkets & Supercenters - 1.9%
1,714,454 Wal-Mart Stores, Inc. $ 74,835,917
--------------
Total Food & Drug Retailing $ 134,387,673
--------------
Food, Beverage & Tobacco - 4.9%
Packaged Foods & Meats - 1.6%
1,060,138 General Mills, Inc. $ 61,498,605
--------------
Tobacco - 3.3%
1,814,736 Altria Group, Inc. $ 126,178,594
--------------
Total Food, Beverage & Tobacco $ 187,677,199
--------------
Household & Personal Products - 2.1%
Household Products - 2.1%
1,175,360 Kimberly-Clark Corp. $ 82,580,794
--------------
Total Household & Personal Products $ 82,580,794
--------------
Health Care Equipment & Services - 1.1%
Health Care Equipment - 1.1%
2,970,537 Boston Scientific Corp.* $ 41,438,991
--------------
Total Health Care Equipment & Services $ 41,438,991
--------------
Pharmaceuticals & Biotechnology - 16.9%
Pharmaceuticals - 16.9%
7,273,204 Bristol-Myers Squibb Co. $ 209,613,739
3,912,805 Merck & Co., Inc. 202,252,890
7,496,214 Schering-Plough Corp. 237,105,249
--------------
$ 648,971,878
--------------
Total Pharmaceuticals & Biotechnology $ 648,971,878
--------------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 9/30/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
Banks - 5.0%
Thrifts & Mortgage Finance - 5.0%
1,469,552 Freddie Mac $ 86,718,264
3,029,739 Washington Mutual, Inc. 106,980,084
--------------
$ 193,698,348
--------------
Total Banks $ 193,698,348
--------------
Diversified Financials - 11.5%
Asset Management & Custody Banks - 2.0%
5,713,932 Invesco Plc $ 77,305,788
--------------
Consumer Finance - 2.7%
2,824,764 The First Marblehead Corp. $ 107,143,299
--------------
Investment Banking & Brokerage - 1.9%
1,047,712 Merrill Lynch & Co., Inc. $ 74,680,911
--------------
Diversified Financial Services - 4.9%
1,721,159 Bank of America Corp. $ 86,522,663
2,203,096 Citigroup, Inc. 102,818,490
--------------
$ 189,341,153
--------------
Total Diversified Financials $ 448,471,151
--------------
Insurance - 8.3%
Life & Health Insurance - 3.6%
5,712,203 Unum Group $ 139,777,607
--------------
Multi-Line Insurance - 4.7%
2,641,086 American International Group, Inc. $ 178,669,468
--------------
Total Insurance $ 318,447,075
--------------
Technology Hardware & Equipment - 10.8%
Communications Equipment - 4.6%
1,867,626 Motorola, Inc. $ 34,607,110
3,748,107 Nokia Corp. (A.D.R.) 142,165,699
--------------
$ 176,772,809
--------------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Computer Hardware - 6.2%
2,716,869 Dell, Inc.* $ 74,985,584
1,811,215 Hewlett-Packard Co. 90,180,395
624,685 IBM Corp. (b) 73,587,893
--------------
$ 238,753,872
--------------
Total Technology Hardware & Equipment $ 415,526,681
--------------
Semiconductors - 1.3%
Semiconductors - 1.3%
3,658,371 Advanced Micro Devices, Inc.*(b) $ 48,290,497
--------------
Total Semiconductors $ 48,290,497
--------------
Telecommunication Services - 7.1%
Integrated Telecommunication Services - 7.1%
2,230,290 AT&T Corp. $ 94,363,570
4,033,880 Verizon Communications, Inc. 178,620,207
--------------
$ 272,983,777
--------------
Total Telecommunication Services $ 272,983,777
--------------
Utilities - 2.2%
Electric Utilities - 2.2%
1,499,243 Edison International (b) $ 83,133,024
--------------
Total Utilities $ 83,133,024
--------------
TOTAL COMMON STOCKS
(Cost $3,132,210,573) $3,831,089,495
--------------
Principal
Amount
TEMPORARY CASH INVESTMENTS - 5.0%
Repurchase Agreement - 1.1%
$ 40,800,000 UBS Warburg, Inc., 3.85%, dated 9/28/07,
repurchase price of $40,800,000 plus
accrued interest on 10/1/07 collateralized by
$41,565,000 U.S. Treasury Note, 3.625%,
6/15/10 $ 40,800,000
--------------
The accompanying notes are an integral part of these financial statements. 19
Pioneer Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 9/30/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
Time Deposits - 3.9%
68,003,251 Dresdner Bank AG, 5.22%, 10/1/07 $ 68,003,251
71,696,719 Royal Bank of Canada, 5.125%, 10/1/07 71,696,719
10,742,438 Bank of Montreal, 4.75%, 10/1/07 10,742,438
--------------
$ 150,442,408
--------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $191,242,408) $ 191,242,408
--------------
TOTAL INVESTMENT IN SECURITIES - 104.5%
(Cost $3,323,452,981) (a) $4,022,331,903
--------------
OTHER ASSETS AND LIABILITIES - (4.5)% $ (171,893,643)
--------------
TOTAL NET ASSETS - 100.0% $3,850,438,260
==============
(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 $3,333,610,452 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $779,346,991
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (90,625,540)
------------
Net unrealized gain $688,721,451
============
(b) At September 30, 2007, the following securities were out on loan:
Shares Description Value
3,015,744 Advanced Micro Devices, Inc.* $ 39,807,821
202,509 Edison International 11,229,124
100,000 Expedia, Inc.* 3,188,000
2,500 Freeport-McMoRan Copper & Gold, Inc. (Class B) 262,225
2,135,021 Home Depot, Inc. 69,260,081
188,357 IBM Corp. 22,188,455
------------
Total $145,935,706
============
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended September 30, 2007 aggregated $1,391,549,399 and
$2,299,521,193, respectively.
20 The accompanying notes are an integral part of these financial statements.
Pioneer Value Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 9/30/07
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (including securities loaned of
$145,935,706) (cost $3,323,452,981) $4,022,331,903
Receivables -
Fund shares sold 516,690
Dividends, interest and foreign taxes withheld 5,962,409
Other 98,033
--------------
Total assets $4,028,909,035
--------------
LIABILITIES:
Payables -
Investment securities purchased $ 5,632,874
Fund shares repurchased 19,615,211
Upon return of securities loaned 150,442,408
Due to bank 1,908,089
Due to affiliates 628,552
Accrued expenses 243,641
--------------
Total liabilities $ 178,470,775
--------------
NET ASSETS:
Paid-in capital $2,863,069,238
Undistributed net investment income 21,888,750
Accumulated net realized gain on investments and foreign
currency transactions 266,586,356
Net unrealized gain on investments 698,878,922
Net unrealized gain on foreign currency transactions
and other assets and liabilities denominated in
foreign currencies 14,994
--------------
Total net assets $3,850,438,260
==============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $3,569,146,176/195,300,600 shares) $ 18.28
==============
Class B (based on $30,378,436/1,801,087 shares) $ 16.87
==============
Class C (based on $12,605,747/748,782 shares) $ 16.84
==============
Class Y (based on $238,307,901/12,940,967 shares) $ 18.42
==============
MAXIMUM OFFERING PRICE:
Class A ($18.28 [divided by] 94.25%) $ 19.40
==============
The accompanying notes are an integral part of these financial statements. 21
Pioneer Value Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 9/30/07
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $494,345) $104,295,882
Interest 4,915,052
Income from securities loaned, net 427,923
------------
Total investment income $109,638,857
------------
EXPENSES:
Management fees
Basic Fee 25,509,818
Performance Adjustment (4,088,302)
Transfer agent fees and expenses
Class A 5,443,952
Class B 173,069
Class C 41,349
Investor Class 49,463
Class R 551
Class Y 10,060
Distribution fees
Class A 9,429,026
Class B 340,083
Class C 94,715
Class R 167
Administrative reimbursements 917,300
Custodian fees 138,809
Registration fees 57,488
Professional fees 182,415
Printing expense 65,688
Fees and expenses of nonaffiliated trustees 87,168
Miscellaneous 85,480
------------
Total expenses $ 38,538,299
Less fees paid indirectly (275,272)
------------
Net expenses $ 38,263,027
------------
Net investment income $ 71,375,830
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
REDEMPTIONS IN KIND, OPTIONS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) on:
Investments $396,082,919
Redemptions in kind 62,044,798
Written options closed/expired 2,013,829
Other assets and liabilities denominated in
foreign currencies (552,388) $459,589,158
------------ ------------
Change in net unrealized gain on:
Investments $169,416,647
Other assets and liabilities denominated in
foreign currencies 21,052 $169,437,699
------------ ------------
Net gain on investments, redemptions in kind, options and
foreign currency transactions $629,026,857
------------
Net increase in net assets resulting from operations $700,402,687
============
22 The accompanying notes are an integral part of these financial statements.
Pioneer Value Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 9/30/07 and 9/30/06
Year Ended Year Ended
9/30/07 9/30/06
FROM OPERATIONS:
Net investment income $ 71,375,830 $ 64,607,857
Net realized gain on investments, redemptions in
kind, options and foreign currency transactions 459,589,158 545,722,632
Change in net unrealized gain (loss) on investment
foreign currency transactions 169,437,699 (274,712,015)
---------------- --------------
Net increase in net assets resulting
from operations $ 700,402,687 $ 335,618,474
---------------- --------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.30 and $0.25 per share, respectively) $ (65,887,777) $ (53,968,147)
Class B ($0.12 and $0.02 per share, respectively) (255,486) (46,714)
Class C ($0.13 and $0.03 per share, respectively) (77,440) (15,416)
Investor Class ($0.00 and $0.29 per share,
respectively) - (1,986,739)
Class Y ($0.37 and $0.24 per share, respectively) (6,699,766) (4,420,701)
Net realized gain:
Class A ($2.86 and $0.12 per share, respectively) (575,019,963) (26,160,347)
Class B ($2.86 and $0.12 per share, respectively) (5,835,262) (340,908)
Class C ($2.86 and $0.12 per share, respectively) (1,444,227) (64,584)
Investor Class ($2.86 and $0.12 per share,
respectively) (18,158,124) (818,170)
Class R ($2.86 and $0.12 per share, respectively) (17,330) (842)
Class Y ($2.86 and $0.12 per share, respectively) (50,100,370) (2,061,923)
---------------- --------------
Total distributions to shareowners $ (723,495,745) $ (89,884,491)
---------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 215,579,676 $ 256,051,331
Reinvestment of distributions 652,094,865 78,542,681
Cost of shares repurchased (1,009,087,609) (722,484,976)
Redemptions in kind (337,791,016) -
---------------- --------------
Net decrease in net assets resulting from
Fund share transactions $ (479,204,084) $ (387,890,964)
---------------- --------------
Net decrease in net assets $ (502,297,142) $ (142,156,981)
NET ASSETS:
Beginning of year $ 4,352,735,402 $4,494,892,383
---------------- --------------
End of year $ 3,850,438,260 $4,352,735,402
================ ==============
Undistributed net investment income $ 21,888,750 $ 23,985,777
================ ==============
The accompanying notes are an integral part of these financial statements. 23
Pioneer Value Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
CLASS A
Shares sold 8,108,936 $ 141,919,949 7,176,182 $ 128,419,017
Reinvestment of distributions 35,934,857 600,068,674 4,175,332 73,338,120
Conversion of Investor Class
Shares to Class A Shares 7,261,950 122,145,998 - -
Less shares repurchased (45,254,581) (805,326,623) (31,366,142) (562,855,428)
Redemptions in kind (18,498,960) (337,791,016) - -
----------- -------------- ----------- --------------
Net decrease (12,447,798) $ (278,983,018) (20,014,628) $ (361,098,291)
=========== ============== =========== ==============
CLASS B
Shares sold 174,034 $ 2,871,887 247,037 $ 4,146,733
Reinvestment of distributions 361,010 5,547,350 21,488 352,191
Less shares repurchased (872,578) (14,236,202) (1,249,104) (20,901,280)
----------- -------------- ----------- --------------
Net decrease (337,534) $ (5,816,965) (980,579) $ (16,402,356)
=========== ============== =========== ==============
CLASS C
Shares sold 348,047 $ 5,613,238 105,209 $ 1,757,404
Reinvestment of distributions 88,811 1,362,885 4,360 71,345
Less shares repurchased (191,383) (3,124,518) (150,906) (2,543,440)
----------- -------------- ----------- --------------
Net increase (decrease) 245,475 $ 3,851,605 (41,337) $ (714,691)
=========== ============== =========== ==============
INVESTOR CLASS
Shares sold 23 $ 384 1,559 $ 28,334
Reinvestment of distributions 1,000,967 16,646,079 144,180 2,534,381
Conversion of Investor Class
Shares to Class A Shares (7,254,000) (122,145,998) - -
Less shares repurchased (217,458) (3,941,403) (826,285) (14,816,419)
----------- -------------- ----------- --------------
Net decrease (6,470,468) $ (109,440,938) (680,546) $ (12,253,704)
=========== ============== =========== ==============
CLASS R
Shares sold 661 $ 11,290 7,257 $ 123,655
Reinvestment of distributions 1,093 17,328 49 838
Less shares repurchased (7,588) (123,431) (3,463) (61,396)
----------- -------------- ----------- --------------
Net increase (decrease) (5,834) $ (94,813) 3,843 $ 63,097
=========== ============== =========== ==============
CLASS Y
Shares sold 3,748,773 $ 65,162,928 6,888,080 $ 121,576,188
Reinvestment of distributions 1,692,101 28,452,549 127,515 2,245,806
Less shares repurchased (10,387,401) (182,335,432) (6,821,009) (121,307,013)
----------- -------------- ----------- --------------
Net increase (decrease) (4,946,527) $ (88,719,955) 194,586 $ 2,514,981
=========== ============== =========== ==============
24 The accompanying notes are an integral part of these financial statements.
Pioneer Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
9/30/07 9/30/06 9/30/05 9/30/04 9/30/03
CLASS A
Net asset value, beginning of period $ 18.55 $ 17.55 $ 18.83 $ 16.25 $ 15.29
---------- ---------- ---------- ---------- ----------
Increase from investment operations:
Net investment income $ 0.29 $ 0.28 $ 0.14 $ 0.14 $ 0.11
Net realized and unrealized gain on investments and foreign
currency transactions 2.60 1.09 2.26 2.62 3.20
---------- ---------- ---------- ---------- ----------
Net increase from investment operations $ 2.89 $ 1.37 $ 2.40 $ 2.76 $ 3.31
Distributions to shareowners:
Net investment income (0.30) (0.25) (0.12) (0.14) (0.24)
Net realized gain (2.86) (0.12) (3.56) (0.04) (2.11)
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net asset value $ (0.27) $ 1.00 $ (1.28) $ 2.58 $ 0.96
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 18.28 $ 18.55 $ 17.55 $ 18.83 $ 16.25
========== ========== ========== ========== ==========
Total return* 17.49% 7.89% 13.81% 17.04% 22.94%
Ratio of net expenses to average net assets+ 0.92% 0.94% 0.98% 1.02% 1.19%
Ratio of net investment income to average net assets+ 1.65% 1.44% 0.85% 0.72% 0.85%
Portfolio turnover rate 34% 86% 53% 40% 40%
Net assets, end of period (in thousands) $3,569,146 $3,852,832 $3,997,849 $3,745,950 $3,424,962
Ratios assuming reduction for fees paid indirectly:
Net expenses 0.92% 0.94% 0.97% 1.02% 1.19%
Net investment income 1.65% 1.44% 0.86% 0.72% 0.85%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales charges.
Total return would be reduced if sales charges were taken into account.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 25
Pioneer Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
9/30/07 9/30/06 9/30/05 9/30/04 9/30/03
CLASS B
Net asset value, beginning of period $ 17.36 $ 16.40 $ 17.87 $ 15.45 $ 14.71
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.10 $ 0.10 $ (0.04) $ (0.04) $ (0.13)
Net realized and unrealized gain on investments and foreign
currency transactions 2.39 1.00 2.13 2.50 3.08
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 2.49 $ 1.10 $ 2.09 $ 2.46 $ 2.95
Distributions to shareowners:
Net investment income (0.12) (0.02) - - (0.10)
Net realized gain (2.86) (0.12) (3.56) (0.04) (2.11)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.49) $ 0.96 $ (1.47) $ 2.42 $ 0.74
------- ------- ------- ------- -------
Net asset value, end of period $ 16.87 $ 17.36 $ 16.40 $ 17.87 $ 15.45
======= ======= ======= ======= =======
Total return* 16.18% 6.74% 12.66% 15.95% 21.11%
Ratio of net expenses to average net assets+ 2.05% 2.03% 2.03% 1.89% 2.69%
Ratio of net investment income (loss) to average net assets+ 0.53% 0.32% (0.21)% (0.15)% (0.66)%
Portfolio turnover rate 34% 86% 53% 40% 40%
Net assets, end of period (in thousands) $30,378 $37,116 $51,164 $32,440 $21,666
Ratios assuming reduction for fees paid indirectly:
Net expenses 2.02% 2.03% 2.02% 1.89% 2.68%
Net investment income (loss) 0.56% 0.32% (0.20)% (0.15)% (0.65)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales charges.
Total return would be reduced if sales charges were taken into account.
+ Ratios assuming no reduction for fees paid indirectly.
26 The accompanying notes are an integral part of these financial statements.
Pioneer Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
9/30/07 9/30/06 9/30/05 9/30/04 9/30/03
CLASS C
Net asset value, beginning of period $ 17.33 $ 16.39 $ 17.87 $ 15.49 $ 14.69
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.07 $ 0.07 $ (0.04) $ (0.09) $ (0.12)
Net realized and unrealized gain on investments and foreign
currency transactions 2.43 1.02 2.12 2.51 3.13
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 2.50 $ 1.09 $ 2.08 $ 2.42 $ 3.01
Distributions to shareowners:
Net investment income (0.13) (0.03) - - (0.10)
Net realized gain (2.86) (0.12) (3.56) (0.04) (2.11)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.49) $ 0.94 $ (1.48) $ 2.38 $ 0.80
------- ------- ------- ------- -------
Net asset value, end of period $ 16.84 $ 17.33 $ 16.39 $ 17.87 $ 15.49
======= ======= ======= ======= =======
Total return* 16.31% 6.68% 12.60% 15.66% 21.61%
Ratio of net expenses to average net assets+ 1.98% 2.03% 2.08% 2.21% 2.48%
Ratio of net investment income (loss) to average net assets+ 0.58% 0.34% (0.25)% (0.47)% (0.44)%
Portfolio turnover rate 34% 86% 53% 40% 40%
Net assets, end of period (in thousands) $12,606 $ 8,723 $ 8,926 $ 9,168 $ 6,349
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.96% 2.03% 2.07% 2.20% 2.47%
Net investment income (loss) 0.60% 0.34% (0.24)% (0.46)% (0.43)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales charges.
Total return would be reduced if sales charges were taken into account.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 27
Pioneer Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
For the Period
from 10/1/06 12/10/04 (a)
to Year Ended to
12/10/06 (c) 9/30/06 9/30/05
INVESTOR CLASS
Net asset value, beginning of period $18.56 $ 17.57 $ 17.30
------ -------- --------
Increase from investment operations:
Net investment income $ 0.07 $ 0.31 $ 0.15
Net realized and unrealized gain
on investments and foreign
currency transactions 1.07 1.09 1.15
------ -------- --------
Net increase from investment
operations $ 1.14 $ 1.40 $ 1.30
Distributions to shareowners:
Net investment income - (0.29) (0.07)
Net realized gain (2.86) (0.12) (0.96)
------ -------- --------
Net increase (decrease) in net asset value $(1.72) $ 0.99 $ 0.27
------ -------- --------
Net asset value, end of period $16.84 $ 18.56 $ 17.57
====== ======== ========
Total return* 6.36% 8.11% 7.54%(b)
Ratio of net expenses to average
net assets+ 0.75%** 0.72% 0.75%**
Ratio of net investment income to average
net assets+ 1.96%** 1.66% 1.03%**
Portfolio turnover rate 34%(b) 86% 53%(b)
Net assets, end of period (in thousands) $ - $120,077 $125,647
Ratios assuming reduction for fees
paid indirectly:
Net expenses 0.70%** 0.72% 0.74%**
Net investment income 2.01%** 1.66% 1.04%**
(a) Investor Class shares were issued in reorganization on December 10, 2004.
(b) Not annualized.
(c) Investor Class shares were converted to Class A shares on December 10,
2006.
* 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 assuming no reduction for fees paid indirectly.
28 The accompanying notes are an integral part of these financial statements.
Pioneer Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
For the Period
from 10/1/06 Year Ended Year Ended Year Ended 4/1/03 (a)
to 1/31/07 (c) 9/30/06 3/30/05 3/30/04 to 9/30/03
CLASS R
Net asset value, beginning of period $ 17.87 $ 17.10 $ 18.64 $ 16.24 $ 13.91
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.46) $ (0.29) $ (0.18) $ (0.12) $ 0.05
Net realized and unrealized gain on investments and foreign
currency transactions 1.89 1.18 2.20 2.65 2.34
------- ------- ------- ------- -------
Net increase from investment operations $ 1.43 $ 0.89 $ 2.02 $ 2.53 $ 2.39
Distributions to shareowners:
Net investment income - - - (0.09) (0.06)
Net realized gain (2.86) (0.12) (3.56) (0.04) -
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (1.43) $ 0.77 $ (1.54) $ 2.40 $ 2.33
------- ------- ------- ------- -------
Net asset value, end of period $ 16.44 $ 17.87 $ 17.10 $ 18.64 $ 16.24
======= ======= ======= ======= =======
Total return* 8.62% 5.22% 11.65% 15.64% 17.19%(b)
Ratio of net expenses to average net assets+ 2.69%** 3.08% 3.05% 2.79% 1.42%**
Ratio of net investment income (loss) to average net assets+ (0.14)%** (0.66)% (1.17)% (1.02)% 0.71%**
Portfolio turnover rate 34%(b) 86% 53% 40% 40%(b)
Net assets, end of period (in thousands) $ - $ 104 $ 34 $ 10 $ 1
Ratios assuming reduction for fees paid indirectly:
Net expenses 2.61%** 3.08% 3.03% 2.77% 1.42%**
Net investment income (loss) (0.06)%** (0.66)% (1.15)% (1.00)% 0.71%**
(a) Class R shares were first publicly offered on April 1, 2003.
(b) Not annualized.
(c) Class R shares ceased operations on January 31, 2007.
* 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 assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 29
Pioneer Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended 8/11/04 (a)
9/30/07 9/30/06 9/30/05 to 9/30/04
CLASS Y
Net asset value, beginning of period $ 18.67 $ 17.59 $ 18.84 $ 18.16
-------- -------- -------- -------
Increase from investment operations:
Net investment income $ 0.39 $ 0.33 $ 0.12 $ 0.02
Net realized and unrealized gain on investments and foreign
currency transactions 2.59 1.11 2.37 0.66
-------- -------- -------- -------
Net increase from investment operations $ 2.98 $ 1.44 $ 2.49 $ 0.68
Distributions to shareowners:
Net investment income (0.37) (0.24) (0.18) -
Net realized gain (2.86) (0.12) (3.56) -
-------- -------- -------- -------
Net increase (decrease) in net asset value $ (0.25) $ 1.08 $ (1.25) $ 0.68
-------- -------- -------- -------
Net asset value, end of period $ 18.42 $ 18.67 $ 17.59 $ 18.84
======== ======== ======== =======
Total return* 17.92% 8.31% 14.40% 3.74%(b)
Ratio of net expenses to average net assets+ 0.54% 0.55% 0.59% 0.61%**
Ratio of net investment income to average net assets+ 2.04% 1.84% 1.50% 1.37%**
Portfolio turnover rate 34% 86% 53% 40%(b)
Net assets, end of period (in thousands) $238,308 $333,884 $311,272 $ 1,872
Ratios assuming reduction for fees paid indirectly:
Net expenses 0.54% 0.55% 0.59% 0.61%**
Net investment income 2.04% 1.84% 1.51% 1.37%**
(a) Class Y Shares were first publicly offered on August 11, 2004.
* 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.
(b) Not annualized.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
30 The accompanying notes are an integral part of these financial statements.
Pioneer Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 9/30/07
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Value Fund (the Fund), is a Delaware statutory trust registered under
the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is reasonable income
and growth of capital.
The Fund currently offers four classes of shares designated as Class A, Class
B, Class C, and Class Y shares. As planned, Investor Class shares converted to
Class A shares on December 10, 2006. Class R shares were first publicly offered
on April 1, 2003 and ceased operations on January 31, 2007. Class Y shares were
first publicly offered on August 11, 2004. Each class of shares represents an
interest in the same portfolio of investments of the Fund and has equal rights
to voting, redemptions, dividends and liquidation, 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, respectively. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and 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 investment
risks is contained in the Fund's prospectus(es). Please refer to those
documents when considering the Fund's risks.
The following is a summary of significant accounting policies followed by the
Fund in preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
31
Pioneer Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 9/30/07 (continued)
- --------------------------------------------------------------------------------
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. The Fund also may use
the fair value of a security including a non U.S. security when the closing
market price on the principal exchange where the security is traded no
longer reflects the value of the security. At September 30, 2007 there were
no securities fair valued. Temporary cash investments are valued at 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
data in the exercise of reasonable diligence. Interest income is recorded
on the accrual basis. Dividend and interest income are reported net of
unrecoverable foreign taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign
32
Pioneer Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
currencies and the difference between the amount of income accrued and the
U.S. dollars actually received. Further, the effects of changes in foreign
currency exchange rates on investments are not segregated in the statement
of operations from the effects of changes in market price of those
securities but are included with the net realized and unrealized gain or
loss on investments.
C. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
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.
At September 30, 2007, the Fund reclassified $61,215,115 to increase paid
in capital, $552,388 to decrease undistributed net investment income and
$60,662,727 to decrease accumulated net realized gain on investments and
foreign currency transactions to reflect permanent book/tax differences.
This reclassification has no impact on the net asset value of the Fund and
is designed to present the Fund's capital accounts on a tax basis.
The tax character of distributions paid during the years ended September
30, 2007 and September 30, 2006, respectively, were as follows:
2007 2006
------------ -----------
Distributions paid from:
Ordinary income $109,853,484 $61,272,548
Long-term capital gain 613,642,261 28,611,943
------------ -----------
Total $723,495,745 $89,884,491
============ ===========
33
Pioneer Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 9/30/07 (continued)
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a
federal income tax basis at September 30, 2007.
2007
------------
Undistributed ordinary income $ 93,166,332
Undistributed long-term gain 205,466,245
Unrealized appreciation 688,736,445
------------
Total $987,369,022
============
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
D. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a
future date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are recorded in the Fund's
financial statements. The Fund records realized gains and losses at the
time a portfolio hedge is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar. As of September 30, 2007
the Fund had no outstanding settlement or portfolio hedges.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.
(UniCredito Italiano), earned $256,297 in underwriting commissions on the
sale of Class A shares during the year ended September 30, 2007.
34
Pioneer Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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). Class Y shares are not subject to a distribution
plan. 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 each class and the ratable allocation of related out-of-pocket
expenses (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, Class C and Class Y shares can bear different
transfer agent and distribution fees.
G. 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.
H. Security Lending
The Fund lends securities in its 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 in the
fair value of the loaned securities that
35
Pioneer Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 9/30/07 (continued)
- --------------------------------------------------------------------------------
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 amount 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 various Time Deposits, which are sponsored by Brown Brothers
Harriman & Co., the Fund's custodian.
I. Option Writing
When the Fund writes an option, an amount equal to the premium received by
the Fund is recorded as a liability and is subsequently adjusted to the
current fair value of the option written. Premiums received from writing
options that expire unexercised are treated by the Fund on the expiration
date as realized gains from investments. The difference between the premium
and the amount paid on effecting a closing purchase transaction, including
brokerage commissions, is also treated as a realized gain, or, if the
premium is less than the amount paid for the closing purchase transaction,
as a realized loss. If a call option is exercised, the premium is added to
the proceeds from the sale of the underlying security in determining
whether the Fund has realized a gain or loss. The Fund as writer of an
option bears the market risk of an unfavorable change in the price of the
security underlying the written option.
Transactions in written options for the year ended September 30, 2007 are
summarized as follows:
Number of Premiums
Contracts Received
----------- ---------------
Options outstanding at beginning of year - $ -
Options opened 65,837 9,722,772
Options exercised (25,087) (5,601,481)
Options closed (31,400) (3,438,613)
Options expired (9,350) (682,678)
------- ----------
Options outstanding at end of
year - $ -
======= ==========
36
Pioneer Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, manages the
Fund's portfolio. PIM receives a basic fee that is calculated at the annual
rate of 0.60% of the Fund's average daily net assets up to $5 billion, 0.575%
on the next $5 billion and 0.55% on the excess over $10 billion. The basic fee
is subject to a performance adjustment (limited to a maximum of -0.10% applied
to average assets during the measurement period) based on the Fund's investment
performance as compared with the Russell 1000[RegTM] Value Index over a rolling
36-month period. In addition, the fee is further limited to a maximum
annualized rate adjustment of up to 0.10% (a "ceiling") applied to average
assets during the current month. For the year ended September 30, 2007, the
aggregate performance adjustment resulted in a decrease to the basic fee of
$4,088,302. For the year ended September 30, 2007, the net management fee was
equivalent to 0.50% of average daily net assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At September 30, 2007, $160,283 was payable to
PIM related to management fees, administration 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 $394,062 in transfer agent
fees payable to PIMSS at September 30, 2007.
4. Distribution and Service Plans
The Fund adopted a Plan of Distribution with respect to Class A, Class B, and
Class C shares in accordance with Rule 12b-1 under 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
37
Pioneer Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 9/30/07 (continued)
- --------------------------------------------------------------------------------
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
$74,207 in distribution fees payable to PFD at September 30, 2007.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 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 year ended September
30, 2007, CDSCs in the amount of $57,966 were paid to PFD.
5. Commission Recapture and Expense Offset Arrangements
Effective July 15, 2005, the Fund has entered into commission recapture
arrangements with brokers with whom PIM places trades on behalf of the Fund
where they provide services to the Fund in addition to trade execution. These
services included payments of certain expenses on behalf of the Fund. For the
year ended September 30, 2007, expenses were reduced by $15,000 under this
agreement. In addition, 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 year ended September 30,
2007, the Fund's expenses were reduced by $260,272 under such arrangements.
6. Line of Credit
The Fund, along with certain others in the Pioneer Family of Funds (the Funds),
collectively participate in a $200 million committed, unsecured revolving line
of credit facility. Borrowings are used solely for temporary or emergency
purposes. The Fund may borrow up to the lesser of $200 million or the limits
set by its prospectus for borrowings. Interest on collective borrowings is
payable at the Federal Funds Rate plus 1/2%, on an annualized basis. The Funds
pay an annual commitment fee for this facility. The commitment fee is allocated
among such Funds based on their respective borrowing limits. For the
38
Pioneer Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
year ended September 30, 2007, the Fund had no borrowings under this agreement.
7. New Pronouncements
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions have a
"more-likely-than-not" probability of being sustained by the applicable tax
authority. Tax positions deemed to not meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the reporting period in which
they are realized. Adoption of FIN 48 is required for fiscal years beginning
after December 15, 2006 and is to be applied to all open tax years as of no
later than March 31, 2008. At this time, management is evaluating the
implications of FIN 48 and any impact in the financial statements has not yet
been determined.
In addition, 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.
ADDITIONAL INFORMATION (unaudited)
For the fiscal year ended September 30, 2007, certain dividends paid by the
Fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs
and Growth Tax Relief Reconciliation Act (the Act) of 2003. The Fund intends to
designate up to the maximum amount of such dividends allowable under the Act,
as taxed at a maximum rate of 15%. Complete information will be computed and
reported in conjunction with your 2007 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 92.22%.
39
Pioneer Value Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and the Shareowners of
Pioneer Value Fund:
We have audited the statement of assets and liabilities of Pioneer Value Fund
(the "Fund"), including the schedule of investments, as of September 30, 2007,
and the related statement of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended,
and the financial highlights for each of the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Fund's internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of September 30, 2007, by correspondence
with the custodian and brokers or by other appropriate auditing procedures
where replies from brokers were not received. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Value Fund at September 30, 2007, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein, in conformity with U.S. generally accepted accounting
principles.
/S/ Ernst + Young LLP
Boston, Massachusetts
November 16, 2007
40
Pioneer Value Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Board of Trustees provides broad supervision over the Fund's
affairs. The officers of the Fund are responsible for the Fund's operations.
The Fund's Trustees and officers are listed below, together with their
principal occupations during the past five years. Trustees who are interested
persons of the Fund within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the fund are
referred to as Independent Trustees. Each of the Trustees (except Mr. Bock)
serves as a trustee of each of the 81 U.S. registered investment portfolios for
which Pioneer serves as investment adviser (the "Pioneer Funds"). Mr. Bock
serves as Trustee of 80 of the 81 Pioneer Funds. The address for all Interested
Trustees and all officers of the fund is 60 State Street, Boston, Massachusetts
02109.
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 and on the SEC's web site at
http://www.sec.gov.
41
- --------------------------------------------------------------------------------
Pioneer Value Fund
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Past Other Directorships
Name and Age With the Fund and Term of Office Five Years Held by this Trustee
John F. Cogan, Jr. (81)* Chairman of the Trustee since 1982. Deputy Chairman and a Director of None
Board, Trustee Serves until a succes- Pioneer Global Asset Management S.p.A.
and President sor trustee is elected ("PGAM"); Non-Executive Chairman and a
or earlier retirement Director of Pioneer Investment
or removal. Management USA Inc. ("PIM-USA");
Chairman and a Director of Pioneer;
Chairman and Director of Pioneer
Institutional Asset Management, Inc.
(since 2006); Director of Pioneer
Alternative Investment Management
Limited (Dublin); President and a
Director of Pioneer Alternative
Investment Management (Bermuda) Limited
and affiliated funds; Director of
PIOGLOBAL Real Estate Investment Fund
(Russia) (until June 2006); Director of
Nano-C, Inc. (since 2003); Director of
Cole Management Inc. (since 2004);
Director of Fiduciary Counseling, Inc.;
President and Director of Pioneer Funds
Distributor, Inc. ("PFD") (until May
2006); President of all of the Pioneer
Funds; and Of Counsel, Wilmer Cutler
Pickering Hale and Dorr LLP
- ------------------------------------------------------------------------------------------------------------------------------------
42
Pioneer Value Fund
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Past Other Directorships Held
Name, Age and Address With the Fund and Term of Office Five Years by this Trustee
David R. Bock (63) Trustee Trustee since 2005. Executive Vice President and Chief Director of The Enterprise
3050 K. Street NW, Serves until a succes- Financial Officer, I-trax, Inc. Social Investment
Washington, DC 20007 sor trustee is elected (publicly traded health care Company (privately-held
or earlier retirement services company) (2004 - present); affordable housing
or removal. Partner, Federal City Capital finance company); and
Advisors (boutique merchant bank) Director of New York
(1997 to 2004); and Executive Vice Mortgage Trust (publicly
President and Chief Financial traded mortgage REIT)
Officer, Pedestal Inc.
(internet-based mortgage trading
company) (2000 - 2002)
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (59) Trustee Trustee since 1997. President, Bush International, LLC Director of Brady Corpora-
3509 Woodbine Street, Serves until a succes- (international financial advisory tion (industrial identifica-
Chevy Chase, MD 20815 sor trustee is elected firm) tion and specialty coated
or earlier retirement material products
or removal. manufacturer); Director of
Briggs & Stratton Co.
(engine manufacturer);
Director of UAL Corpora-
tion (airline holding
company) Director of
Mantech International
Corporation (national
security, defense, and
intelligence technology
firm): and Member, Board
of Governors, Investment
Company Institute
- ------------------------------------------------------------------------------------------------------------------------------------
43
Pioneer Value Fund
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Past Other Directorships
Name, Age and Address With the Fund and Term of Office Five Years Held by this Trustee
Margaret B.W. Graham (60) Trustee Trustee since 1990. Founding Director, Vice-President None
1001 Sherbrooke Street West, Serves until a succes- and Corporate Secretary, The
Montreal, Quebec, Canada sor trustee is elected Winthrop Group, Inc. (consulting
H3A 1G5 or earlier retirement firm); and Desautels Faculty of
or removal. Management, McGill University
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (57) Trustee Trustee since 2006. Private investor (2004 - present); Director of Quadriserv
89 Robbins Avenue, Serves until a succes- and Senior Executive Vice Inc. (technology
Berkeley Heights, NJ 07922 sor trustee is elected President, The Bank of New York products for securities
or earlier retirement (financial and securities services) lending industry)
or removal. (1986 - 2004)
- ------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (59) Trustee Trustee since 1982. President and Chief Executive Director of New America
200 State Street, 12th Floor, Serves until a succes- Officer, Newbury, Piret & Company, High Income Fund, Inc.
Boston, MA 02109 sor trustee is elected Inc. (investment banking firm) (closed-end investment
or earlier retirement company)
or removal.
- ------------------------------------------------------------------------------------------------------------------------------------
John Winthrop (71) Trustee Trustee since 1985. President, John Winthrop & Co., None
One North Adgers Wharf, Serves until a succes- Inc. (private investment firm)
Charleston, SC 29401 sor trustee is elected
or earlier retirement
or removal.
- ------------------------------------------------------------------------------------------------------------------------------------
44
Pioneer Value Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Past Other Directorships
Name and Age With the Fund and Term of Office Five Years Held by this Officer
Daniel K. Kingsbury (49)* Executive Vice Since March 2007. Director, CEO and President of None
President Serves until a succes- Pioneer Investment Management USA
sor trustee is elected Inc.; Pioneer Investment
or earlier retirement Management, Inc. and Pioneer
or removal. Institutional Asset Management,
Inc. (since March 2007); Executive
Vice President of all of the
Pioneer Funds (since March 2007);
Director of Pioneer Global Asset
Management S.p.A. (since March
2007); Head of New Markets
Division, Pioneer Global Asset
Management S.p.A. (2000 - 2007)
- ------------------------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (59) Secretary Since 2003. Serves Secretary of PIM-USA; Senior Vice None
at the discretion of President - Legal of Pioneer;
the Board Secretary/Clerk of most of
PIM-USA's subsidiaries; and
Secretary of all of the Pioneer
Funds since September 2003
(Assistant Secretary from November
2000 to September 2003)
- ------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (42) Assistant Since 2003. Serves Vice President and Senior Counsel None
Secretary at the discretion of of Pioneer since July 2002 and
the Board Assistant Secretary of all of the
Pioneer Funds since September 2003;
Vice President and Senior Counsel
of BISYS Fund Services, Inc. (April
2001 to June 2002); Senior Vice
President and Deputy General
Counsel of Funds Distributor, Inc.
(July 2000 to April 2001)
- ------------------------------------------------------------------------------------------------------------------------------------
Vincent Nave (62) Treasurer Since 2000. Serves Vice President - Fund Accounting, None
at the discretion of Administration and Controllership
the Board Services of Pioneer; and Treasurer
of all of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (47) Assistant Since 2004. Serves Deputy Treasurer of Pioneer since None
Treasurer at the discretion of 2004 and Assistant Treasurer of all
the Board of the Pioneer Funds since November
2004; Treasurer and Senior Vice
President, CDC IXIS Asset
Management Services from 2002 to
2003
- ------------------------------------------------------------------------------------------------------------------------------------
45
Pioneer Value Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Past Other Directorships
Name and Age With the Fund and Term of Office Five Years Held by this Officer
Luis I. Presutti (42) Assistant Treasurer Since 2000. Serves Assistant Vice President - Fund None
at the discretion of Accounting, Administration and
the Board Controllership Services of Pioneer;
and Assistant Treasurer of all of
the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (49) Assistant Treasurer Since 2002. Serves Fund Accounting Manager - Fund None
at the discretion of Accounting, Administration and
the Board Controllership Services of Pioneer;
and Assistant Treasurer of all of
the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (33) Assistant Treasurer Since 2003. Serves Fund Administration Manager - Fund None
at the discretion of Accounting, Administration and
the Board Controllership Services since June
2003 and Assistant Treasurer of all
of the Pioneer Funds since September
2003; Assistant Vice President -
Mutual Fund Operations of State
Street Corporation from June 2002 to
June 2003 (formerly Deutsche Bank
Asset Management)
- ------------------------------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (48) Chief Compliance Since January 2007. Chief Compliance Officer of Pioneer
Officer Serves at the discre- since December 2006 and of all the
tion of the Board Pioneer Funds since January 2007;
Vice President and Compliance
Officer, MFS Investment Management
(August 2005 to December 2006);
Consultant, Fidelity Investments
(February 2005 to July 2005);
Independent Consultant (July 1997
to February 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
*Mr. Cogan is an Interested Trustee because he is an officer or director of the
fund's investment adviser and certain of its affiliates.
The outstanding capital stock of PFD, Pioneer and PIMSS is indirectly wholly
owned by UniCredito Italiano S.p.A. ("UniCredito Italiano"), one of the largest
banking groups in Italy. Pioneer, the fund's investment adviser, provides
investment management and financial services to mutual funds, institutional and
other clients.
46
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page is for your notes.
47
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page is for your notes.
48
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page is for your notes.
49
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page is for your notes.
50
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page is for your notes.
51
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page is for your notes.
52
- --------------------------------------------------------------------------------
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.
Audit Fees
Fees for audit services provided to the Fund, including fees
associated with the annual filing of its Form N-1A, totaled
approximately $40,475 in 2007 and $33,915 in 2006.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no fees for audit-related services provided to the
Fund during the fiscal years ended September 30, 2007 and 2006.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Tax Fees
Fees for tax compliance services, primarily for tax returns,
totaled approximately $7,820 and $7,515 in 2007 and 2006,
respectively.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
All Other Fees
There were no fees for other services provided to the Fund during
the fiscal years ended September 30, 2007 and 2006.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered into on or
after May 6, 2003, the effective date of the new SEC pre-approval
rules, the Fund's audit committee is required to pre-approve
services to affiliates defined by SEC rules to the extent that
the services are determined to have a direct impact on the
operations or financial reporting of the Fund. For the years
ended September 30, 2007 and 2006, there were no services
provided to an affiliate that required the Fund's audit
committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and affiliates,
as previously defined, totaled approximately $7,820 in 2007
and $7,515 in 2005.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has considered
whether the provision of non-audit services that were rendered to
the Affiliates (as defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible
with maintaining the principal accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Value Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date November 29, 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.