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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07318
Pioneer International 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: November 30
Date of reporting period: December 1, 2005 through November 30, 2006
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
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PIONEER
-------
INTERNATIONAL
VALUE
FUND
Annual
Report
11/30/06
[LOGO] PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 26
Notes to Financial Statements 34
Report of Independent Registered Public Accounting Firm 44
Factors Considered by the Independent Trustees in Approving
the Management Contract 45
Trustees, Officers and Service Providers 51
President's
Dear Shareowner,
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Mature and emerging market economies around the world showed moderate
improvement after a flat second quarter. The United States saw some resurgence
of growth, which we expect to continue through the fourth quarter of 2006 and
into 2007, although this growth may be slow with housing sector measures down
in recent months. While inflation pressures have risen slightly in recent
months, we believe the United States may now be at the end of the Fed's
monetary tightening cycle. Mature economies, led by Japan, remain firm as do
European economic prospects with strong GDP data reflecting the broad-based
strength seen in crucial indicators.
U.S. economic growth was back on track after lackluster market results prior to
Labor Day. Consumer spending rose with receding gas prices, just in time for
the back-to-school season, which retailers now consider the second most
lucrative period after the Christmas season. U.S. economic growth is in line
with our projections. We expect U.S. GDP to finish with a level of around 3.0%
for 2006.
In our view, the pace of corporate earnings growth should slow amid pressure
from high raw materials costs and moderating economic growth. However, modest
U.S. dollar depreciation and improving growth overseas should offer some
support to U.S. earnings.
The European economy continues to improve and appears to be at its healthiest
in six years, with business confidence showing improvement across sectors and
consumers becoming more optimistic. While business sentiment indicators have
had a tendency to over-estimate growth in recent years, broad-based
improvements across countries since 2005 are a sign that European economic
growth should continue through 2006.
The positive long-term drivers of emerging markets remain in place: improving
domestic growth and inflation stability; structural reform; debt
sustainability, and favorable demographics. Together, the emerging markets'
current account surplus is at record highs, while external debt as a percentage
of GDP is at its lowest since 1991.
At its final meeting of 2006, the Federal Reserve kept interest rates unchanged
for the fourth straight time as worries about inflation continued to trump
concerns about the slowing economy. Despite inflation pressures seen by the
Fed, central bank counterparts in developed
2
Letter
economies will most likely follow the lead of keeping interest rates mostly
unchanged. U.S. economic growth is expected to remain positive, as it should
among the developed nations through the end of 2006. Any further geopolitical
issues and rising energy prices could lead to deceleration, but not a
derailment from the current healthy pace of economic growth, as investment is
expected to remain robust, benefiting from sustained internal and international
demand worldwide.
Our cautiously optimistic outlook reinforces the importance of Pioneer's
message that investors should remain diversified, take a long-term view, and
base investment decisions on economic and market fundamentals, rather than on
emotion. Our investment philosophy and approach continue to be based on the use
of fundamental research to identify a range of opportunities that offer an
attractive balance of risk and reward to help Fund shareowners work toward
their long-term goals.
Respectfully,
/s/ Osbert M. Hood
Osbert M. Hood, President
Pioneer Investment Management, 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.
Please consider the Fund's investment objectives, risks, charges and expenses.
Contact your advisor or Pioneer investments for a prospectus containing this
information. Please read the information carefully.
3
Pioneer International Value Fund
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PORTFOLIO MANAGEMENT DISCUSSION 11/30/06
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International stocks delivered strong returns during the 12 months ended
November 30, 2006, led in large measure by stocks in Europe and the emerging
markets. Even the market's reversal during the spring could not dampen the
rally for long, as investors regained their confidence when it became clear
that inflationary fears were overblown. In the following interview, portfolio
manager Christopher Smart discusses the events and factors that affected the
Fund's performance during the reporting period and his outlook for the months
ahead.
Q: How did Pioneer International Value Fund perform during the year ended
November 30, 2006?
A: For the fourth straight fiscal year, the Fund achieved strong double-digit
returns. The Fund's Class A shares had a total return of 26.07% at net
asset value for the 12-month period. An overweight position in emerging
markets and financial stocks in Europe contributed significantly to this
return. The Fund slightly trailed the 26.56% average return for the 204
International Large-Cap Core funds in its Lipper category. The Fund
underperformed the 29.25% return of the Morgan Stanley Capital
International (MSCI) All Country Free Index (excluding the United States)
for the same period; however the performance of the benchmark does not
reflect any management fees or transaction expenses.
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 were the major factors that contributed to performance for the fiscal
year?
A: The fiscal year proved to be a good time to be invested in European stock
markets. European companies in general were in healthy financial condition,
with strong balance sheets and high cash levels. This strength enabled many
corporations to increase dividends, buy back outstanding shares, and
consider potential merger-and-acquisition deals. All these factors combined
with rising earnings helped propel stock prices higher.
4
Pioneer International Value Fund
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Diversified financial stocks were standout performers for the Fund. BNP
Paribas (France) continued to deliver good results on growing sales across
its diverse distribution platforms, while Soci-t- G-n-rale (France) focused
on lowering costs to improve its profit margins and expanded its businesses
outside of France to increase its market share. Cr-dit Suisse (Switzerland)
initiated substantial internal restructuring and cost reductions in its
investment banking and insurance divisions, which we believe should
contribute to its future profitability and growth prospects. Finally,
U.K.-based Barclays Bank benefitted from the success of its domestic retail
banking arm, which experienced increased revenue from both its
savings-account and mortgage-financing businesses. In the utility sector,
the German electricity provider RWE profited from strong demand for
electricity domestically and a more favorable pricing environment.
Q: The emerging markets had a setback in the spring of 2006, but have resumed
their rally. Are you still optimistic about this sector?
A: Very much so, and the Fund's investments in these developing markets were
very rewarding. Economic growth remains generally robust, and we believe
these stocks continue to offer attractive valuations. Furthermore, improved
economic, country and company fundamentals mean that the economies are less
dependent of the vagaries on international financial flows to balance their
budgets. This, in turn, creates a more solid foundation to build their
future growth.
The Fund's performance was especially helped by its exposure to Russia,
South Korea and China. In resource-rich Russia, high-oil prices have been a
boon for the domestic economy, leading to a strong current-accounts surplus
and rapid growth in consumer spending. With the increased prosperity,
Mobile Telesystems, a provider of wireless telecommunications services,
gained new users across Russia and beyond its borders in Ukraine and
Kazakhstan. Two of the country's largest oil producers, Gazprom and Lukoil
Holding, also climbed sharply on higher oil prices.
We continued to look favorably on the South Korean market, based on our
confidence in the continued health of both the consumer and export sectors.
Hyundai Heavy Industries, one of the world's largest shipbuilders, was a
prime beneficiary of surging global demand, and the company has a
three-year order book during most of its ships. China Life Insurance, which
climbed
5
Pioneer International Value Fund
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PORTFOLIO MANAGEMENT DISCUSSION 11/30/06 (continued)
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129% for the period, benefited from the increased demand for its products
as an ever more prosperous class of Chinese look for ways to invest their
savings. Given the dramatic appreciation in this stock, which has become
overvalued in our opinion, we sold the position during the reporting period
to lock in gains.
Q: What investments detracted from performance?
A: Investments in Turkey suffered during May when global inflationary concerns
sparked a more cautious outlook and a brief flight to quality. While most
emerging markets investments began to recover from the correction when
inflation fears abated, Turkish stocks continued to decline in response to
the government's rising current account deficit, climbing interest rates
and a weakening currency. The Fund's slight overweight in Turkey relative
to its benchmark hurt performance.
Although the Japanese market rose 12% for the year, the Fund's particular
mix of stocks produced a combined return of 17%. This was gratifying,
except for the fact that even that performance failed to keep pace with the
benchmark, and our decision to overweight the country also lowered returns.
Nevertheless, we continue to see good potential for growth in Japan, given
the improvement in domestic spending. Mitsubishi Electric which makes
elevator and power equipment, for example, experienced strong demand from
cash-rich companies looking to make capital improvements, while Komatsu, a
heavy mining and construction company, boosted earnings from overall growth
in infrastructure spending.
In Europe, meanwhile, home builder George Wimpey (United Kingdom) suffered
because of its exposure to the downturn in the U.S. housing market. The
Spanish oil giant Repsol was also a laggard in response to worries about
its Latin American reserves in Argentina and Bolivia.
Q: Did you make any noteworthy changes to the portfolio during the year?
A: We did make some adjustments in the struggling telecommunications service
sector in Europe. Wireless provider Vodafone Group (United Kingdom) and
telecommunications provider France T-l-com both produced disappointing
results before we sold them during the reporting period. The industry faces
a variety of challenges,
6
Pioneer International Value Fund
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including intense competition and high costs of investing in
quickly-changing technologies.
We also sold the Mexican television broadcaster Televista during the
reporting period based on our expectations for slower earnings growth in
2007 and nervousness about its plans for further acquisitions.
Q: After a multi-year rally in international stocks, are you still confident
about the sector for the new fiscal year?
A: Yes, we remain upbeat for the foreseeable future. But after several years
of strong growth, diligent research will be more important than ever.
Global growth remains fairly robust - particularly in the emerging markets,
where we believe the risks associated with these investments are lower than
at any other time in their recent history. A large and growing middle class
from China to Brazil is likely to power strong economic performance over
the next decade. We believe these markets will not be immune from economic
cycles, but their overall growth should be better than that of the more
developed countries. In the developed markets of Europe and Japan, which
have constituted the majority of the Fund's holdings, we believe stock
prices remain attractive and economic growth shows signs of improvement.
The chief risks for international stock investing remain a global economic
slowdown and rising interest rates. While we think the outlook is still
favorable for international stocks, we intend to keep a sharp eye on
valuations to ensure that prices remain reasonable relative to earnings
prospects.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The portfolio may invest a substantial amount of its assets in issuers located
in a limited number of countries and therefore is susceptible to adverse
economic, political or regulatory developments affecting those countries. 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 or sectors.
7
Pioneer International Value Fund
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PORTFOLIO MANAGEMENT DISCUSSION 11/30/06 (continued)
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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.
8
Pioneer International Value Fund
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PORTFOLIO SUMMARY 11/30/06
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Sector Distribution
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[THE DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
Financials 26.5%
Industrials 14.5%
Consumer Discretionary 12.8%
Energy 9.3%
Materials 9.2%
Information Technology 6.8%
Consumer Staples 6.1%
Health Care 5.8%
Telecommunication Services 5.4%
Utilities 3.6%
Geographical Distribution
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(As a percentage of equity holdings)
[THE DATA IS A REPRESENTATION OF A BAR CHART IN THE PRINTED MATERIAL]
Japan 29.7% Ireland 1.6%
United Kingdom 12.7% Turkey 1.4%
Germany 9.3% Sweden 1.4%
France 9.2% Netherlands 1.3%
Switzerland 7.4% Taiwan 1.2%
South Korea 3.4% Austria 1.1%
Brazil 3.2% South Africa 1.1%
Russia 3.2% Mexico 1.0%
Australia 3.1% Spain 1.0%
Italy 2.4% Belgium 1.0%
Singapore 2.3% Other (individually less than 1%) 2.0%
10 Largest Holdings
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(As a percentage of equity holdings)*
1. Toyota Motor Co. 2.28%
2. Royal Bank of Scotland Group Plc 2.25
3. CS Group 2.22
4. BNP Paribas SA 1.93
5. Roche Holdings AG 1.83
6. JFE Holdings, Inc. 1.80
7. Royal Dutch Shell Plc 1.78
8. E.On AG 1.74
9. Mizuho Financial Group, Inc. 1.72
10. Sumitomo Mitsui Financial Group, Inc. 1.68
* 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.
9
Pioneer International Value Fund
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PRICES AND DISTRIBUTIONS
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Net Asset Value Per Share
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Class 11/30/06 11/30/05
----- -------- --------
A $23.98 $19.08
B $21.86 $17.49
C $21.64 $17.30
R $23.91 $19.07
Distributions Per Share
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12/1/05 - 11/30/06
------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
----- --------- ------------- -------------
A $0.0632 $ - $ -
B $ - $ - $ -
C $ - $ - $ -
R $0.0513 $ - $ -
10
Pioneer International Value Fund
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PERFORMANCE UPDATE 11/30/06 CLASS A SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer International Value Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) All Country
World Free Index (ACWF), excluding the U.S.
- ---------------------------------------------------
Average Annual Total Returns
(As of November 30, 2006)
Net Public
Asset Value Offering
Period (NAV) Price (POP)
10 Years 3.53% 2.92%
5 Years 12.58 11.26
1 Year 26.07 18.85
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[THE DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer MSCI ACWF
International ex U.S.
Value Fund Index
11/96 $ 9,425 $10,000
10,298 9,971
11/98 9,335 11,160
11,648 13,796
11/00 9,846 12,409
7,372 10,199
11/02 6,574 9,110
7,605 11,582
11/04 9,290 14,506
10,576 16,904
11/06 13,333 21,848
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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.
The MSCI All Country World Free Index, excluding the United States, measures the
performance of developed and emerging market stock markets. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
11
Pioneer International Value Fund
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PERFORMANCE UPDATE 11/30/06 CLASS B SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer International Value Fund compared to that of the
Morgan Stanley Capital International (MSCI) All Country World Free Index (ACWF),
excluding the U.S.
- -------------------------------------------------
Average Annual Total Returns
(As of November 30, 2006)
If If
Period Held Redeemed
10 Years 2.52% 2.52%
5 Years 11.37 11.37
1 Year 24.99 20.99
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[THE DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer MSCI ACWF
International ex U.S.
Value Fund Index
11/96 $10,000 $10,000
10,844 9,971
11/98 9,749 11,160
12,060 13,796
11/00 10,101 12,409
7,485 10,199
11/02 6,599 9,110
7,544 11,582
11/04 9,086 14,506
10,260 16,904
11/06 12,823 21,848
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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.
The MSCI All Country World Free Index, excluding the United States, measures the
performance of developed and emerging market stock markets. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
12
Pioneer International Value Fund
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PERFORMANCE UPDATE 11/30/06 CLASS C SHARES
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Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer International Value Fund compared to that of the
Morgan Stanley Capital International (MSCI) All Country World Free Index (ACWF),
excluding the U.S.
- -----------------------------------------------
Average Annual Total Returns
(As of November 30, 2006)
If If
Period Held Redeemed
10 Years 2.54% 2.54%
5 Years 11.41 11.41
1 Year 25.09 25.09
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[THE DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer MSCI ACWF
International ex U.S.
Value Fund Index
11/96 $10,000 $10,000
10,845 9,971
11/98 9,780 11,160
12,133 13,796
11/00 10,144 12,409
7,489 10,199
11/02 6,598 9,110
7,549 11,582
11/04 9,099 14,506
10,275 16,904
11/06 12,852 21,848
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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.
The MSCI All Country World Free Index, excluding the United States, measures the
performance of developed and emerging market stock markets. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
13
Pioneer International Value Fund
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PERFORMANCE UPDATE 11/30/06 CLASS R SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer International Value Fund compared to that of the
Morgan Stanley Capital International (MSCI) All Country World Free Index (ACWF),
excluding the U.S.
- -----------------------------------------------
Average Annual Total Returns
(As of November 30, 2006)
If If
Period Held Redeemed
10 Years 3.17% 3.17%
5 Years 12.35 12.35
1 Year 25.70 25.70
- -----------------------------------------------
[THE DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer MSCI ACWF
International ex U.S.
Value Fund Index
11/96 $10,000 $10,000
10,873 9,971
11/98 9,807 11,160
12,176 13,796
11/00 10,240 12,409
7,629 10,199
11/02 6,769 9,110
7,840 11,582
11/04 9,566 14,506
10,865 16,904
11/06 13,657 21,848
- --------------------------------
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.
The performance of Class R shares for the period prior to the commencement of
operations of Class R shares on April 1, 2003 is based on the performance of the
Fund's Class A shares, reduced to reflect the higher distribution and service
fees of Class R shares. For the period after April 1, 2003, the actual
performance of Class R shares is reflected. Class R shares are not subject to
sales charges and are available for limited groups of eligible investors,
including institutional investors. All results are historical and assume the
reinvestment of dividends and capital gains. Other share classes are available
for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI All Country World Free Index, excluding the United States, measures the
performance of developed and emerging market stock markets. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an Index.
14
Pioneer International 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
and redemption fees.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's
number in the third row under the heading entitled "Expenses Paid During
Period" to estimate the expenses you paid on your account during this
period.
Expenses Paid on a $1,000 Investment in Pioneer International Value Fund
Based on actual returns from June 1, 2006 through November 30, 2006
Share Class A B C R
- ---------------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 6/1/06
Ending Account Value $1,103.46 $1,099.10 $1,100.18 $1,102.92
(after expenses)
On 11/30/06
Expenses Paid During Period* $ 8.96 $ 13.68 $ 13.32 $ 10.28
* Expenses are equal to the Fund's annualized expense ratio of 1.70%, 2.60%,
2.53%, and 1.95% for Class A, Class B, Class C and Class R shares,
respectively, multiplied by the average account value over the period,
multiplied by 183/365 (to reflect the one-half year period).
15
Pioneer International Value Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads), or redemption fees that are charged at the time of the
transaction. Therefore, the table below is useful in comparing ongoing costs
only and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs were included, your
costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer International Value Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from June 1, 2006 through November 30, 2006
Share Class A B C R
- ---------------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 6/1/06
Ending Account Value $1,106.55 $1,012.03 $1,012.38 $1,015.29
(after expenses)
On 11/30/06
Expenses Paid During Period* $ 8.59 $ 13.11 $ 12.76 $ 9.85
* Expenses are equal to the Fund's annualized expense ratio of 1.70%, 2.60%,
2.53%, and 1.95% for Class A, Class B, Class C and Class R shares,
respectively, multiplied by the average account value over the period,
multiplied by 183/365 (to reflect the one-half year period).
16
Pioneer International Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/06
- --------------------------------------------------------------------------------
Shares Value
PREFERRED STOCKS - 1.7%
Automobiles & Components - 0.4%
Automobile Manufacturers - 0.4%
700 Porsche AG $ 812,422
------------
Total Automobiles & Components $812,422
------------
Utilities - 1.3%
Multi-Utilities - 1.3%
22,200 RWE AG $ 2,120,842
------------
Total Utilities $ 2,120,842
------------
TOTAL PREFERRED STOCKS
(Cost $2,248,636) $ 2,933,264
------------
COMMON STOCKS - 98.0%
Energy - 9.2%
Integrated Oil & Gas - 7.2%
38,800 Gazprom (A.D.R.) $ 1,820,535
18,600 Lukoil Holding (A.D.R.) 1,655,400
19,383 Petrobras Brasileiro (A.D.R.) 1,645,617
47,256 Repsol SA 1,703,332
85,000 Royal Dutch Shell Plc 3,001,633
32,828 Total SA 2,337,879
------------
$ 12,164,396
------------
Oil & Gas Equipment & Services - 0.7%
18,300 Technip $ 1,288,662
------------
Oil & Gas Exploration & Production - 1.3%
1,678,900 CNOOC, Ltd. $ 1,486,720
29,500 Norsk Hydro AS* 734,336
------------
$ 2,221,056
------------
Total Energy $ 15,674,114
------------
Materials - 9.2%
Commodity Chemicals - 1.0%
259,800 Asahi Kasei Corp. $ 1,671,618
------------
Construction Materials - 2.0%
21,195 CRH Plc $ 799,585
22,500 Holcim, Ltd. 2,019,167
The accompanying notes are an integral part of these financial statements. 17
Pioneer International Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/06 (continued)
- --------------------------------------------------------------------------------
Shares Value
Construction Materials - (continued)
4,100 Lafarge Br $ 595,965
------------
$ 3,414,717
------------
Diversified Metals & Mining - 2.9%
93,585 Broken Hill Proprietary Co., Ltd. $ 1,938,851
26,621 Freeport-McMoRan Copper & Gold, Inc. (Class B) 1,673,662
22,761 Rio Tinto Plc 1,218,521
------------
$ 4,831,034
------------
Steel - 3.3%
85,900 Companhia Vale do Rio Doce (A.D.R.)*(c) $ 2,022,945
52,900 Hitachi Metals, Ltd. 562,685
65,900 JFE Holdings, Inc. 3,037,994
------------
$ 5,623,624
------------
Total Materials $ 15,540,993
------------
Capital Goods - 12.2%
Building Products - 1.7%
101,000 Asahi Glass Company, Ltd. $ 1,190,038
20,170 Compagnie de Saint Gobain 1,610,330
------------
$ 2,800,368
------------
Construction & Farm Machinery & Heavy Trucks - 1.9%
47,985 Daewoo Heavy Industries & Machinery, Ltd. $ 1,527,935
11,377 Hyundai Heavy Industries* 1,648,272
------------
$ 3,176,207
------------
Electrical Component & Equipment - 0.4%
6,500 Schneider Electric SA $ 705,677
------------
Heavy Electrical Equipment - 1.5%
285,900 Mitsubishi Electric Corp. $ 2,591,314
------------
Industrial Conglomerates - 3.9%
128,700 Hutchinson Whampoa, Ltd.* $ 1,209,269
191,100 Keppel Corp. 2,156,625
352,690 KOC Holding AS* 1,207,192
22,189 Siemens 2,112,784
------------
$ 6,685,870
------------
18 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Industrial Machinery - 1.4%
74,100 AB SKF $ 1,217,235
95,100 Nabtesco Corp. 1,130,365
------------
$ 2,347,600
------------
Trading Companies & Distributors - 1.4%
131,400 Mitsubishi Corp. $ 2,449,285
------------
Total Capital Goods $ 20,756,321
------------
Commercial Services & Supplies - 0.3%
Office Services & Supplies - 0.3%
35,100 Buhrmann NV $ 493,962
------------
Total Commercial Services & Supplies $ 493,962
------------
Transportation - 1.9%
Air Freight & Couriers - 0.8%
4,100 Panalpina Welttransport Holding AG $ 514,741
20,426 TNT NV 859,895
------------
$ 1,374,636
------------
Railroads - 1.1%
271 East Japan Railway Co. $ 1,900,723
------------
Total Transportation $ 3,275,359
------------
Automobiles & Components - 4.5%
Auto Parts & Equipment - 1.0%
45,300 Denso Corp. $ 1,712,359
------------
Automobile Manufacturers - 3.0%
18,400 Hyundai Motor Co., Ltd. $ 1,390,177
64,000 Toyota Motor Co. 3,850,043
------------
$ 5,240,220
------------
Tires & Rubber - 0.4%
6,100 Continental AG $ 693,068
------------
Total Automobiles & Components $ 7,645,647
------------
Consumer Durables & Apparel - 2.8%
Apparel, Accessories & Luxury Goods - 0.4%
15,120 Adidas-Salomon AG $ 744,973
------------
The accompanying notes are an integral part of these financial statements. 19
Pioneer International Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/06 (continued)
- --------------------------------------------------------------------------------
Shares Value
Consumer Electronics - 1.4%
118,000 Matsushita Electric Industrial Co., Ltd. $ 2,291,439
------------
Homebuilding - 0.7%
41,000 Persimmon Plc. $ 1,177,189
------------
Leisure Products - 0.3%
18,200 Sega Sammy Holdings, Inc. $ 456,897
------------
Total Consumer Durables & Apparel $ 4,670,498
------------
Consumer Services - 0.7%
Casinos & Gaming - 0.3%
12,000 Opap SA $ 451,050
------------
Hotels, Resorts & Cruise Lines - 0.4%
13,700 Carnival Corp. $ 671,163
------------
Total Consumer Services $ 1,122,213
------------
Media - 1.3%
Broadcasting & Cable TV - 0.7%
26,100 Eutelsat Communications* $ 539,288
63,100 Mediaset S.p.A 749,414
------------
$ 1,288,702
------------
Movies & Entertainment - 0.6%
25,400 Vivendi SA $ 977,693
------------
Total Media $ 2,266,395
------------
Retailing - 3.0%
Apparel Retail - 1.1%
428,300 Truworths International, Ltd.* $ 1,790,285
------------
Department Stores - 1.9%
3,300 Pinault-Printemps Redoute* $ 503,732
191,200 Takashimaya Co., Ltd. (c) 2,741,844
------------
$ 3,245,576
------------
Total Retailing $ 5,035,861
------------
Food & Drug Retailing - 0.5%
Drug Retail - 0.5%
56,900 Alliance Boots Plc $ 894,246
------------
Total Food & Drug Retailing $ 894,246
------------
20 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Food, Beverage & Tobacco - 4.1%
Brewers - 0.7%
55,700 South African Breweries Plc $ 1,166,419
------------
Distillers & Vintners - 0.7%
77,300 C&C Group Plc $ 1,181,911
------------
Packaged Foods & Meats - 0.9%
4,454 Nestle SA (Registered Shares) $ 1,572,640
------------
Soft Drinks - 1.0%
16,600 Fomento Economico Mexicano SA de C.V. $ 1,747,150
------------
Tobacco - 0.8%
47,200 British American Tobacco Plc $ 1,337,422
------------
Total Food, Beverage & Tobacco $ 7,005,542
------------
Household & Personal Products - 1.4%
Household Products - 0.3%
11,600 Reckitt Benckiser Plc $ 515,954
------------
Personal Products - 1.1%
67,600 Kose Corp. $ 1,889,624
------------
Total Household & Personal Products $ 2,405,578
------------
Health Care Equipment & Services - 0.7%
Health Care Equipment - 0.5%
6,400 Synthes, Inc. $ 752,193
------------
Health Care Services - 0.2%
2,800 Fresenius Medical Care AG $ 375,881
------------
Total Health Care Equipment & Services $ 1,128,074
------------
Pharmaceuticals & Biotechnology - 5.2%
Pharmaceuticals - 5.2%
30,188 Astrazeneca Plc $ 1,750,013
61,700 Daiichi Sankyo Co., Ltd. 1,897,857
17,134 Roche Holdings AG* 3,096,463
15,082 Shire Pharmaceuticals Group Plc (A.D.R.) 913,969
17,100 UCB SA 1,085,229
------------
$ 8,743,531
------------
Total Pharmaceuticals & Biotechnology $ 8,743,531
------------
The accompanying notes are an integral part of these financial statements. 21
Pioneer International Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/06 (continued)
- --------------------------------------------------------------------------------
Shares Value
Banks - 17.2%
Diversified Banks - 17.2%
211,200 Banca Intesa S.p.A. $ 1,492,736
169,649 Barclays Plc 2,274,531
30,145 BNP Paribas SA 3,257,553
50,400 Commonwealth Bank of Australia 1,886,951
42,300 Depfa Bank plc 766,119
124,392 Development Bank of Singapore, Ltd. 1,693,186
21,600 Dexia* 590,150
15,473 Kookmin Bank (A.D.R.) (c) 1,210,762
- Mitsubishi UFJ Financial Group, Inc. 4,842
396 Mizuho Financial Group, Inc. 2,905,477
104,747 Royal Bank of Scotland Group Plc 3,800,589
12,048 Societe Generale 2,019,548
270 Sumitomo Mitsui Financial Group, Inc. 2,837,325
297,961 Turkiye Is Bankasi (Isbank) 1,239,885
20,800 Uniao de Bancos Brasileiros S.A. (Unibanco)
(G.D.R.)* 1,761,136
69,700 Westpac Banking Corp. 1,342,545
------------
$ 29,083,335
------------
Total Banks $ 29,083,335
------------
Diversified Financials - 4.0%
Asset Management & Custody Banks - 0.3%
52,400 Man Group Plc* $ 489,370
------------
Diversified Capital Markets - 3.0%
56,621 CS Group $ 3,746,280
10,200 Deutsche Bank AG 1,315,843
------------
$ 5,062,123
------------
Investment Banking & Brokerage - 0.7%
73,700 Nomura Securities Co., Ltd.* $ 1,286,198
------------
Total Diversified Financials $ 6,837,691
------------
22 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Insurance - 3.7%
Multi-Line Insurance - 2.8%
99,700 Aviva Plc* $ 1,545,745
44,765 AXA 1,696,668
5,795 Zurich Financial Services 1,506,908
------------
$ 4,749,321
------------
Property & Casualty Insurance - 0.9%
126,405 Mitsui Sumitomo Insurance Co. $ 1,553,465
------------
Total Insurance $ 6,302,786
------------
Real Estate - 1.5%
Real Estate Management & Development - 1.5%
109,701 Mitsui Fudosan Co. $ 2,566,260
------------
Total Real Estate $ 2,566,260
------------
Software & Services - 0.4%
Application Software - 0.4%
3,400 Sap AG $ 711,082
------------
Total Software & Services $ 711,082
------------
Technology Hardware & Equipment - 3.6%
Communications Equipment - 1.2%
307,600 Ericsson LM Tel Sur B $ 1,195,181
17,300 TomTom NV* 831,550
------------
$ 2,026,731
------------
Electronic Equipment & Instruments - 1.0%
22,300 Nidec Corp. $ 1,724,534
------------
Office Electronics - 1.4%
44,000 Canon, Inc. $ 2,314,798
------------
Total Technology Hardware & Equipment $ 6,066,063
------------
Semiconductors - 2.8%
Semiconductor Equipment - 1.6%
35,200 Tokyo Electron, Ltd. $ 2,705,822
------------
Semiconductors - 1.2%
138,160 Hon Hai Precision Industry (G.D.R.)* $ 1,991,262
------------
Total Semiconductors $ 4,697,084
------------
The accompanying notes are an integral part of these financial statements. 23
Pioneer International Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/06 (continued)
- --------------------------------------------------------------------------------
Shares Value
Telecommunication Services - 5.4%
Alternative Carriers - 1.9%
33,800 Fastweb* $ 1,768,576
188,100 Inmarsat Plc 1,389,022
------------
$ 3,157,598
------------
Integrated Telecommunication Services - 2.4%
357 Nippon Telegraph & Telephone Corp. $ 1,802,291
70,600 Telekom Austria AG 1,871,489
60,400 Telekomunikacja Polska SA 469,381
------------
$ 4,143,161
------------
Wireless Telecommunication Services - 1.1%
38,906 Mobile Telesystems (A.D.R.) $ 1,871,379
------------
Total Telecommunication Services $ 9,172,138
------------
Utilities - 2.4%
Electric Utilities - 2.4%
35,000 Chubu Electric Power Co., Inc.* $ 1,050,725
22,849 E.On AG 2,939,569
------------
$ 3,990,294
------------
Total Utilities $ 3,990,294
------------
TOTAL COMMON STOCKS
(Cost $134,635,124) $166,085,067
------------
TEMPORARY CASH INVESTMENT - 2.7%
Time Deposits - 2.7%
3,230,657 Dresdner Bank AG, 5.30%, 12/1/06 $ 3,230,657
1,109,787 Dresdner Bank AG, 5.29%, 12/1/06 1,109,787
190,180 Bank of Montreal, 5.28%, 12/1/06 190,180
------------
$ 4,530,624
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $4,530,624) $ 4,530,624
------------
TOTAL INVESTMENT IN SECURITIES - 102.4%
(Cost $141,414,384)(a)(b) $173,548,955
------------
OTHER ASSETS AND LIABILITIES - (2.4)% (4,037,658)
------------
TOTAL NET ASSETS - 100.0% $169,511,297
============
24 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(A.D.R.) American Depositary Receipt
(G.D.R.) Global Depositary Receipt
* Non-income producing security
(a) Distributions of investments by country of issue (excluding temporary
cash investments), as a percentage of total investment in equity
securities, is as follows:
Japan 29.7%
United Kingdom 12.7
Germany 9.3
France 9.2
Switzerland 7.4
South Korea 3.4
Brazil 3.2
Russia 3.2
Australia 3.1
Italy 2.4
Singapore 2.3
Ireland 1.6
Turkey 1.4
Sweden 1.4
Netherlands 1.3
Taiwan 1.2
Austria 1.1
South Africa 1.1
Mexico 1.0
Spain 1.0
Belgium 1.0
Other (individually less than 1%) 2.0
-----
100.0%
=====
(b) At November 30, 2006, the net unrealized gain on investments based on
cost for federal income tax purposes of $141,935,319 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $33,809,305
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (2,195,669)
-----------
Net unrealized gain $31,613,636
===========
(c) At November 30, 2006, the following securities were out on loan:
Shares Security Market Value
84,000 Takashimaya Co., Ltd. $ 1,204,577
85,041 Companhia Vale do Rio Doce (A.D.R)* 2,002,716
15,318 Kookmin Bank (A.D.R.) 1,198,634
-----------
Total $ 4,405,927
===========
Purchases and sales of securities (excluding temporary cash investments) for
the year ended November 30, 2006 aggregated $160,677,655 and $176,988,543,
respectively.
The accompanying notes are an integral part of these financial statements. 25
Pioneer International Value Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 11/30/06
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (including securities loaned of
$4,405,927) (cost $141,414,384) $173,548,955
Cash 235,900
Foreign currencies, at value (cost $466) 466
Receivables -
Investment securities sold 381,595
Fund shares sold 31,725
Dividends, interest and foreign taxes withheld 371,828
Other 39,367
------------
Total assets $174,609,836
------------
LIABILITIES:
Payables -
Fund shares repurchased $ 275,400
Upon return of securities loaned 4,530,624
Due to affiliates 118,406
Due to Pioneer Investment Management, Inc. 68,902
Accrued expenses 105,207
------------
Total liabilities $ 5,098,539
------------
NET ASSETS:
Paid-in capital $179,379,296
Undistributed net investment income 541,073
Accumulated net realized loss on investments and foreign
currency transactions (42,563,326)
Net unrealized gain on investments 32,134,571
Net unrealized gain on other assets and liabilities
denominated in foreign currencies 19,683
------------
Total net assets $169,511,297
============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $142,645,349/5,947,298 shares) $ 23.98
============
Class B (based on $15,282,490/699,119 shares) $ 21.86
============
Class C (based on $11,030,186/509,756 shares) $ 21.64
============
Class R (based on $553,272/23,137 shares) $ 23.91
============
MAXIMUM OFFERING PRICE:
Class A ($23.98 [divided by] 94.25%) $ 25.44
============
26 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 11/30/06
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $429,406) $3,502,701
Interest 48,756
Income from securities loaned, net 111,236
-----------
Total investment income $ 3,662,693
-----------
EXPENSES:
Management fees $1,413,162
Transfer agent fees and expenses
Class A 710,795
Class B 105,366
Class C 48,877
Class R 5,896
Distribution fees
Class A 342,164
Class B 147,651
Class C 97,447
Class R 2,243
Administrative reimbursements 31,508
Custodian fees 113,613
Registration fees 38,350
Professional fees 63,011
Printing expense 17,331
Fees and expenses of nonaffiliated trustees 7,164
Miscellaneous 27,200
-----------
Total expenses $ 3,171,778
Less management fees waived and expenses
reimbursed by Pioneer Investment Management, Inc. (139,596)
Less fees paid indirectly (18,158)
-----------
Net expenses $ 3,014,024
-----------
Net investment income $ 648,669
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $29,285,968
Other assets and liabilities denominated in foreign
currencies (117,234) $29,168,734
----------- -----------
Change in net unrealized gain on:
Investments $7,489,383
Other assets and liabilities denominated in foreign
currencies 44,155 $ 7,533,538
----------- -----------
Net gain on investments and foreign currency transactions $36,702,272
-----------
Net increase in net assets resulting from operations $37,350,941
===========
The accompanying notes are an integral part of these financial statements. 27
Pioneer International Value Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 11/30/06 and 11/30/05, respectively
Year Ended Year Ended
11/30/06 11/30/05
FROM OPERATIONS:
Net investment income $ 648,669 $ 727,691
Net realized gain on investments and foreign currency
transactions 29,168,734 23,097,030
Change in net unrealized gain (loss) on investments
and foreign currency transactions 7,533,538 (5,540,815)
------------- -------------
Net increase in net assets resulting from
operations $ 37,350,941 $ 18,283,906
------------- -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.06 and $0.00 per share, respectively) $ (422,171) $ -
Class R ($0.05 and $0.00 per share, respectively) (800) -
------------- -------------
Total distributions to shareowners $ (422,971) $ -
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 28,688,301 $ 24,496,335
Reinvestment of distributions 343,522 -
Cost of shares repurchased (48,210,085) (38,062,312)
Redemption fees 6,258 11,132
------------- -------------
Net decrease in net assets resulting from
Fund share transactions $ (19,172,004) $ (13,554,845)
------------- -------------
Net increase in net assets $ 17,755,966 $ 4,729,061
NET ASSETS:
Beginning of year 151,755,331 147,026,270
------------- -------------
End of year $ 169,511,297 $ 151,755,331
============= =============
Undistributed net investment income $ 541,073 $ 432,609
============= =============
28 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
'06 Shares '06 Amount '05 Shares '05 Amount
CLASS A
Shares sold 873,460 $ 19,136,281 859,489 $ 15,264,275
Reinvestment of distributions 16,934 342,739 - -
Redemption fees - 6,117 - 6,737
Less shares repurchased (1,672,704) (36,591,466) (1,642,154) (28,745,622)
---------- ------------ ---------- ------------
Net decrease (782,310) $(17,106,329) (782,665) $(13,474,610)
========== ============ ========== ============
CLASS B
Shares sold 238,751 $ 4,800,775 299,495 $ 4,977,828
Redemption fees - 121 - 594
Less shares repurchased (351,778) (7,027,253) (394,399) (6,268,298)
---------- ------------ ---------- ------------
Net decrease (113,027) $ (2,226,357) (94,904) $ (1,289,876)
========== ============ ========== ============
CLASS C
Shares sold 223,709 $ 4,436,906 252,198 $ 4,156,260
Redemption fees - 20 - 3,801
Less shares repurchased (224,137) (4,423,235) (190,600) (2,995,995)
---------- ------------ ---------- ------------
Net increase (decrease) (428) $ 13,691 61,598 $ 1,164,066
========== ============ ========== ============
CLASS R
Shares sold 14,801 $ 314,339 5,473 $ 97,972
Reinvestment of distributions 39 783 - -
Less shares repurchased (7,410) (168,131) (3,023) (52,397)
---------- ------------ ---------- ------------
Net increase 7,430 $ 146,991 2,450 $ 45,575
========== ============ ========== ============
The accompanying notes are an integral part of these financial statements. 29
Pioneer International Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
11/30/06 11/30/05 11/30/04 11/30/03 11/30/02
CLASS A
Net asset value, beginning of period $ 19.08 $ 16.76 $ 13.72 $ 11.86 $ 13.30
------- ------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.12 $ 0.12 $ 0.04 $ 0.01 $ (0.01)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 4.84 2.20 3.00 1.85 (1.43)
------- ------- -------- -------- --------
Net increase (decrease) from investment operations $ 4.96 $ 2.32 $ 3.04 $ 1.86 $ (1.44)
Distributions to shareowners:
Net investment income (0.06) - - - -
Redemption fee -(a) -(a) - - -
------- ------- -------- -------- --------
Net increase (decrease) in net asset value $ 4.90 $ 2.32 $ 3.04 $ 1.86 $ (1.44)
------- ------- -------- -------- --------
Net asset value, end of period $ 23.98 $ 19.08 $ 16.76 $ 13.72 $ 11.86
======= ======= ======== ======== ========
Total return* 26.07% 13.84% 22.16% 15.68% (10.83)%
Ratio of net expenses to average net assets+ 1.71% 1.70% 1.82% 2.36% 2.18%
Ratio of net investment income (loss) to average net assets+ 0.52% 0.61% 0.28% 0.08% (0.15)%
Portfolio turnover rate 98% 111% 122% 101% 34%
Net assets, end of period (in thousands) $142,645 $128,426 $125,880 $107,260 $100,287
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 1.79% 1.88% 1.99% 2.35% 2.17%
Net investment income (loss) 0.44% 0.43% 0.11% 0.09% (0.14)%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 1.70% 1.70% 1.82% 2.36% 2.18%
Net investment income (loss) 0.53% 0.61% 0.28% 0.08% (0.15)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
(a) Amount rounds to less than one cent per share.
The accompanying notes are an integral part of these financial statements.
30
Pioneer International Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
11/30/06 11/30/05 11/30/04 11/30/03 11/30/02
CLASS B
Net asset value, beginning of period $ 17.49 $ 15.49 $ 12.86 $ 11.25 $ 12.76
------- ------- ------- ------- --------
Increase (decrease) from investment operations:
Net investment loss $ (0.07) $ (0.04) $ (0.15) $ (0.15) $ (0.62)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 4.44 2.04 2.78 1.76 (0.89)
------- ------- ------- ------- --------
Net increase (decrease) from investment operations $ 4.37 $ 2.00 $ 2.63 $ 1.61 $ (1.51)
Redemption fee -(a) -(a) - - -
------- ------- ------- ------- --------
Net increase (decrease) in net asset value $ 4.37 $ 2.00 $ 2.63 $ 1.61 $ (1.51)
------- ------- ------- ------- --------
Net asset value, end of period $ 21.86 $ 17.49 $ 15.49 $ 12.86 $ 11.25
======= ======= ======= ======= ========
Total return* 24.99% 12.91% 20.45% 14.31% (11.83)%
Ratio of net expenses to average net assets+ 2.62% 2.57% 3.15% 3.55% 3.13%
Ratio of net investment loss to average net assets+ (0.41)% (0.25)% (1.04)% (1.12)% (1.08)%
Portfolio turnover rate 98% 111% 122% 101% 34%
Net assets, end of period (in thousands) $15,282 $14,205 $14,051 $14,138 $ 16,861
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.76% 2.96% 3.14% 3.54% 3.12%
Net investment loss (0.55)% (0.64)% (1.03)% (1.11)% (1.07)%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.60% 2.56% 3.15% 3.55% 3.13%
Net investment loss (0.39)% (0.24)% (1.04)% (1.12)% (1.08)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
(a) Amount rounds to less than one cent per share.
The accompanying notes are an integral part of these financial statements.
31
Pioneer International Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
11/30/06 11/30/05 11/30/04 11/30/03 11/30/02
CLASS C
Net asset value, beginning of period $ 17.30 $ 15.32 $ 12.71 $ 11.11 $ 12.61
------- ------- ------- ------- --------
Increase (decrease) from investment operations:
Net investment loss $ (0.06) $ (0.04) $ (0.12) $ (0.11) $ (0.53)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 4.40 2.02 2.73 1.71 (0.97)
------- ------- ------- ------- --------
Net increase (decrease) from investment operations $ 4.34 $ 1.98 $ 2.61 $ 1.60 $ (1.50)
Redemption fee -(a) -(a) - - -
------- ------- ------- ------- --------
Net increase (decrease) in net asset value $ 4.34 $ 1.98 $ 2.61 $ 1.60 $ (1.50)
------- ------- ------- ------- --------
Net asset value, end of period $ 21.64 $ 17.30 $ 15.32 $ 12.71 $ 11.11
======= ======= ======= ======= ========
Total return* 25.09% 12.92% 20.54% 14.40% (11.90)%
Ratio of net expenses to average net assets+ 2.54% 2.57% 3.12% 3.41% 3.32%
Ratio of net investment loss to average net assets+ (0.35)% (0.26)% (1.00)% (0.96)% (1.21)%
Portfolio turnover rate 98% 111% 122% 101% 34%
Net assets, end of period (in thousands) $11,030 $ 8,826 $ 6,872 $ 4,403 $ 3,859
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.54% 2.79% 3.12% 3.40% 3.31%
Net investment loss (0.35)% (0.48)% (1.00)% (0.96)% (1.20)%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.54% 2.57% 3.12% 3.41% 3.32%
Net investment loss (0.33)% (0.26)% (1.00)% (0.96)% (1.21)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
(a) Amount rounds to less than one cent per share.
The accompanying notes are an integral part of these financial statements.
32
Pioneer International Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended
11/30/06 11/30/05
CLASS R
Net asset value, beginning of period $ 19.07 $ 16.79
-------- --------
Increase from investment operations:
Net investment income $ 0.03 $ 0.06
Net realized and unrealized gain on investments and foreign currency transactions 4.86 2.22
-------- --------
Net increase from investment operations $ 4.89 $ 2.28
Distributions to shareowners:
Net investment income (0.05) -
Redemption fee -(b) -
-------- --------
Net increase in net asset value $ 4.84 $ 2.28
-------- --------
Net asset value, end of period $ 23.91 $ 19.07
-------- --------
Total return* 25.70% 13.58%
Ratio of net expenses to average net assets+ 1.95% 1.89%
Ratio of net investment income to average net assets+ 0.18% 0.40%
Portfolio turnover rate 98% 111%
Net assets, end of period (in thousands) $ 553 $ 299
Ratios with no waiver of management fees and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 2.83% 2.67%
Net investment income (loss) (0.71)% (0.38)%
Ratios with reduction for fees paid indirectly:
Net expenses 1.95% 1.89%
Net investment income 0.18% 0.40%
4/1/03 (a)
Year Ended to
11/30/04 11/30/03
CLASS R
Net asset value, beginning of period $ 13.76 $ 10.54
-------- ----------
Increase from investment operations:
Net investment income $ 0.02 $ 0.02
Net realized and unrealized gain on investments and foreign currency transactions 3.01 3.20
-------- ----------
Net increase from investment operations $ 3.03 $ 3.22
Distributions to shareowners:
Net investment income - -
Redemption fee - -
-------- ----------
Net increase in net asset value $ 3.03 $ 3.22
-------- ----------
Net asset value, end of period $ 16.79 $ 13.76
-------- ----------
Total return* 22.02% 30.55%***
Ratio of net expenses to average net assets+ 1.93% 2.23%**
Ratio of net investment income to average net assets+ 0.17% 3.87%**
Portfolio turnover rate 122% 101%
Net assets, end of period (in thousands) $ 223 $ 116
Ratios with no waiver of management fees and assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.93% 2.23%**
Net investment income (loss) 0.17% 3.87%**
Ratios with reduction for fees paid indirectly:
Net expenses 1.93% 2.23%**
Net investment income 0.17% 3.87%**
* 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.
*** Not annualized.
+ Ratios with no reduction for fees paid indirectly.
(a) Class R shares were first publicly offered on April 1, 2003.
(b) Amount rounds to less than one cent per share.
The accompanying notes are an integral part of these financial statements.
33
Pioneer International Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/06
1. Organization and Significant Accounting Policies
Pioneer International Value Fund (the Fund) is a Massachusetts business trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is to seek
long-term growth of capital.
Information regarding the Fund's principal investment risks is contained in the
Fund's prospectus. Please refer to those documents when considering the Fund's
risks. Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates, economic, and political
conditions. The portfolio may invest a substantial amount of its assets in
issuers located in a limited number of countries and therefore is susceptible to
adverse economic, political or regulatory developments affecting those
countries. 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.
The Fund offers four classes of shares - Class A, Class B, Class C and Class R
shares. Class R shares were first publicly offered on April 1, 2003. Each class
of shares represents an interest in the same portfolio of investments of the
Fund and have equal rights to voting, redemptions, dividends and liquidation,
except that each class of shares can bear different transfer agent and
distribution fees, and has exclusive voting rights with respect to the
distribution plans that have been adopted by Class A, Class B, Class C and Class
R shareowners, respectively.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting year.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
34
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 using the last sale
price on the principal exchange where they are traded. Securities that have
not traded on the date of valuation, or securities for which sale prices
are not generally reported, are valued using 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. The Fund invests primarily in
securities of non-U.S. issuers. The principal exchanges and markets for
such securities have closing times prior to the close of the NYSE. However,
the value of these securities may be influenced by changes in global
markets occurring after the closing times of the local exchanges and
markets up to the time the Fund determines its net asset value.
Consequently, the Board of Trustees of the Fund has determined that the use
of daily fair valuations as provided by a pricing service is appropriate
for the Fund. The Fund may also take into consideration other significant
events in determining the fair value of these securities. Thus, the Fund's
securities valuations may differ from prices reported by the various local
exchanges and markets. Temporary cash investments are valued at amortized
cost.
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. Dividend and interest income,
including interest on income bearing cash accounts, is recorded on the
accrual basis, 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
and are reported net of foreign taxes on capital gains at the applicable
country rates.
35
Pioneer International Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/06 (continued)
- --------------------------------------------------------------------------------
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 represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between the
amount of income accrued and the U.S. dollars actually received. Further,
the effects of changes in foreign currency exchange rates on investments
are not segregated in the statement of operations from the effects of
changes in market price of those securities but are included with the net
realized and unrealized gain or loss on investments.
C. 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 (see Note 6).
D. 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 source of the Fund's
36
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 November 30, 2006, the Fund had a net capital loss carryforward of
$42,042,391 of which the following amounts will expire between 2009 and
2011 if not utilized: $7,295,608 in 2009, $21,765,862 in 2010 and
$12,980,921 in 2011.
The Fund has reclassified $117,234 to decrease undistributed net investment
income and $117,234 to decrease accumulated net realized loss on
investments and foreign currency transactions to reflect permanent book/tax
differences. The reclassification has no impact on the net asset value of
the Fund and is designed to present the Fund's capital accounts on a tax
basis.
The tax character of current year distributions paid during the year ended
November 30, 2006 was as follows. There were no distributions paid by the
Fund during the year ended November 30, 2005.
- --------------------------------------------------------------------------------
2006
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $422,971
Long-term capital gain -
--------
Total $422,971
========
- --------------------------------------------------------------------------------
The following shows the components of accumulated losses on a federal
income tax basis at November 30, 2006.
- --------------------------------------------------------------------------------
2006
- --------------------------------------------------------------------------------
Undistributed ordinary income $ 541,073
Capital loss carryforward (42,042,391)
Unrealized appreciation 31,633,319
-----------
Total $(9,867,999)
===========
- --------------------------------------------------------------------------------
The difference between book basis and tax-basis unrealized appre ciation is
attributable to the tax deferral of losses on wash sales.
37
Pioneer International Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/06 (continued)
- --------------------------------------------------------------------------------
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 $17,890 in underwriting commissions on the
sale of Class A shares during the year ended November 30, 2006.
F. Class Allocations
Distribution fees are calculated based on the average daily net assets
attributable to Class A, Class B, Class C and Class R shares of the Fund,
respectively (see Note 4). Shareowners of each class share all expenses and
fees paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services, which are allocated based on the
number of accounts in 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 R shares can bear different
transfer agent and distribution fees.
G. 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 on the
fair value of the loaned securities that may occur during the term of the
loan will be for the account of the Fund. The loans are secured by
collateral of at least 102%, at all times, of the fair value of the
securities loaned. The fair value of collateral will be adjusted daily to
reflect any price fluctuation in
38
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
the value of the loaned securities. The Fund has the right under the
lending agreement to recover the securities on loan from the borrower on
demand. The Fund invests cash collateral in Time Deposits, which is
sponsored by Brown Brothers Harriman & Co., the Fund's custodian.
H. 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.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, manages the
Fund's portfolio. Management fees are calculated daily at the annual rate of
0.85% of the Fund's average net assets up to $500 million and 0.75% of the
excess over $500 million. For the year ended November 30, 2006, the management
fee was equivalent to a rate of 0.86% of average daily net assets.
Prior to January 1, 2006, the Fund's management fee was 0.95% of the Fund's
average daily net assets up to $300 million; 0.85% of the next $200 million;
and 0.75% of excess over $500 million. Prior to January 1, 2005, the Fund's
management fee was 1.00% of the Fund's average daily net assets up to $300
million, 0.85% of the next $200 million and 0.75% of excess over $500 million.
PIM has agreed not to impose all or a portion of its management fee and to
assume other operating expenses of the Fund to the extent necessary to limit
the Fund's expenses to 1.70%, 2.60%, 2.60%, and 1.95%, of the average daily net
assets attributable to Class A, Class B, Class C and Class R shares,
respectively. These expense limitations are in effect through April 1, 2009 for
Class A and through April 1, 2007 for Class B, Class C and Class R shares.
39
Pioneer International Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/06 (continued)
- --------------------------------------------------------------------------------
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 November 30, 2006, $4,037 was payable to PIM
related to management fees, administrative fees and certain other expenses, 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 $112,709 in transfer agent
fees payable to PIMSS at November 30, 2006.
4. Distribution and Service Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan,
Class B Plan, Class C Plan and Class R Plan) 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 Fund's 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 Class C Plan, the Fund pays PFD 1.00% of the
average daily net assets attributable to Class B and Class C of shares. The fee
consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class B and Class C shares. Pursuant to the
Class R Plan, the Fund pays PFD 0.50% of the average daily net assets
attributable to Class R shares as compensation for distribution services.
Included in due to affiliates is $1,660 in distribution fees payable to PFD at
November 30, 2006. The Fund also has adopted a separate service plan for Class R
shares (Service Plan). The Service Plan authorizes the Fund to pay securities
dealers, plan administrators or other service organizations that agree to
provide certain services to retirement plans or plan participants holding shares
of the Fund a service fee of up to 0.25% of the Fund's average daily net assets
attributable to Class R shares held by such plans.
In addition, redemptions of each class of shares 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
40
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class A shares within 18 months of purchase. Class B shares redeemed within five
years of purchase are subject to a CDSC at declining rates beginning at 4.00%,
based on the lower of cost or market value of shares being redeemed. Shares
purchased as part of an exchange or acquired as a result of a reorganization of
another fund into the Fund remain subject to any contingent deferred sales
charge that applied to the shares you originally purchased. Redemptions of Class
C shares within one year of purchase are subject to a CDSC of 1.00%. There is no
CDSC for Class R shares. Proceeds from the CDSCs are paid to PFD. For the year
ended November 30, 2006, CDSCs in the amount of $26,830 were paid to PFD.
Prior to September 1, 2006, the Fund charged a 2.0% redemption fee on each class
of shares sold within 30 days of purchase. For the year ended November 30 2006,
the Fund collected $6,258 in redemption fees which are included in the Fund's
capital account. Effective August 1, 2006, this redemption fee is no longer
charged.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses, due to interest earned on
cash held by PIMSS. For the year ended November 30, 2006, the Fund's expenses
were reduced by $18,158 under such arrangements.
6. Forward Foreign Currency Contracts
During the year ended November 30, 2006, the Fund had entered into various
contracts that obligate the Fund to deliver currencies at specified future
dates. At the maturity of a contract, the Fund must make delivery of the foreign
currency. Alternatively, prior to the settlement date of a portfolio hedge, the
Fund may close out such contracts by entering into an offsetting hedge contract.
At November 30, 2006, the Fund had no outstanding portfolio hedges and forward
currency settlement contracts.
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participates 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
41
Pioneer International Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/06 (continued)
- --------------------------------------------------------------------------------
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 year ended November 30, 2006, the
Fund had no borrowings under this agreement.
8. 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 (series', trust'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 year 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 May 30, 2008. At this time, management is evaluating
the implications of FIN 48 and its impact in the financial statements has not
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.
TAX INFORMATION (unaudited)
For the fiscal year ending November 30, 2006, the Fund has elected to pass
through foreign tax credits of $343,036.
42
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION (unaudited)
For the fiscal year ended November 30, 3006, 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 of 2003. The Fund intends to designate up
to the maximum amount of such dividend allowable under the Act, as taxed at a
maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2006 Form 1099-DIV.
43
Pioneer International Value Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of
Pioneer International Value Fund:
We have audited the accompanying statement of assets and liabilities of Pioneer
International Value Fund ("The Fund"), including the schedule of investments,
as of November 30, 2006, 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 November 30, 2006, by correspondence
with the custodian. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer International Value Fund at November 30, 2006, 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 financial highlights for each of
the periods indicated therein, in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
January 12, 2007
44
Pioneer International Value Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT
- --------------------------------------------------------------------------------
The Investment Company Act of 1940 requires that both the Board of Trustees and
a majority of the Independent Trustees (collectively "the Trustees"), voting
separately, annually approve the Fund's management contract (the "Management
Contract"). The Trustees have determined that the terms of the Management
Contract are fair and reasonable and that renewal of the contract will enable
the Fund to receive quality investment advisory services at a cost deemed
reasonable and is in the best interests of the Fund and its shareowners. In
making such determinations, the Independent Trustees relied upon the assistance
of counsel to the Independent Trustees and counsel to the Fund.
Throughout the year, the Independent Trustees regularly met in executive
session, separately from the Interested Trustees of the Fund and any officer of
Pioneer Investment Management, Inc., the Fund's adviser (the "Investment
Adviser"), or its affiliates. While the Trustees, including the Interested
Trustees, act on all major matters relating to the Fund, a significant portion
of the activities of the Board of Trustees (including certain of those described
herein) is conducted through committees, the members of which are comprised
exclusively of Independent Trustees. Such committee meetings are attended by
officers of the Fund and/or officers of the Investment Adviser to the extent
requested by the members of the committee.
In evaluating the Management Contract, the Trustees conducted a review that was
specifically focused upon the renewal of the Management Contract, and relied
upon their knowledge, resulting from their meetings throughout the year, of the
Investment Adviser, its services and the Fund. Both in meetings specifically
dedicated to renewal of the Management Contract and at other meetings during the
course of the year, the Trustees, including the Independent Trustees, received
materials relating to the Investment Adviser's investment and management
services under the Management Contract. These materials included information on
(i) the investment performance of the Fund, a peer group of funds and an index
approved by the Independent Trustees for this purpose, (ii) sales and redemption
activity in respect of the Fund, (iii) the general investment outlook in the
markets in which the Fund invests, (iv) arrangements in respect of the
distribution of the Fund's shares, (v) the procedures employed to determine the
value of each of the Fund's assets, (vi) the Investment Adviser's management of
the relationships with the Fund's unaffiliated service providers, (vii) the
record of compliance with the Fund's investment policies
45
Pioneer International Value Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
and restrictions and with the Fund's Code of Ethics and the structure and
responsibilities of the Investment Adviser's compliance department, (viii) the
nature, cost and character of non-investment management services provided by the
Investment Adviser and its affiliates and (ix) the disclosures included in the
Fund's prospectuses and reports to shareowners.
Specifically in connection with the Independent Trustees' review of the
Management Contract, the Independent Trustees requested, and the Investment
Adviser provided, additional information in order to evaluate the quality of the
Investment Adviser's services and the reasonableness of the fee under the
Management Contract. Among other items, this information included data or
analyses of (1) investment performance for one, three, five and ten year periods
for the Fund and a peer group of funds selected on the basis of criteria
determined by the Independent Trustees for this purpose, (2) management and
other fees incurred by a peer group of funds selected on the basis of criteria
determined by the Independent Trustees for this purpose, (3) the advisory fees
of comparable portfolios of other clients of the Investment Adviser, (4) expense
ratios for the Fund and a peer group of funds selected on the basis of criteria
determined by the Independent Trustees for this purpose, (5) the overall
organization of the Investment Adviser, (6) the Investment Adviser's financial
results and condition, including its and certain of its affiliates'
profitability in providing services to the Fund, (7) transfer agency fees and
administrative reimbursements paid to the Investment Adviser or affiliates, (8)
investment management staffing, and (9) operating expenses paid by the Funds to
third parties. The Trustees also reviewed information regarding the potential
for each of the Fund and the Investment Adviser to benefit from further
economies of scale in the management of the Fund in light of reasonable growth
expectations for the Fund, the breakpoints in the Fund's management fee and the
management fee of a peer group of funds selected by the Independent Trustees for
this purpose and certain of the Fund's expenses that are incurred on a basis
other than as a percentage of net assets.
The following summarizes factors considered by the Trustees in connection with
reviewing the information described above and their renewal of the Fund's
Management Contract. The Trustees did not identify any single factor as
all-important or controlling, and the summary does not detail all the matters
that were considered.
46
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
A. Ancillary Benefits to Shareowners. The Trustees considered the benefits to
shareowners of investing in a Fund that is part of a large number of
investment companies offering a variety of investment disciplines and
providing for a large variety of Fund and shareowner services.
B. Compliance and Investment Performance. The Trustees determined that the
Investment Adviser had policies and systems reasonably designed to achieve
compliance with the Fund's investment objective and regulatory
requirements. The Trustees also reviewed the Fund's investment performance
based upon total return, as well as the Fund's performance compared to the
performance of both a peer group of funds as classified by Morningstar,
Inc., an independent evaluation service ("Morningstar") and an index
approved by the Independent Trustees for this purpose. The Fund's
performance, based upon total return, was in the first quintile of its
Morningstar category peer group for the 12 months ended June 30, 2006, the
third quintile for the three years ended June 30, 2006, the third quintile
for the five years ended June 30, 2006 and the fifth quintile for the ten
years ended June 30, 2006. (In all quintile rankings referred to throughout
this discussion first quintile is most favorable to the Fund's shareowners.
Thus, highest relative performance would be first quintile and lowest
relative expenses also would be first quintile.) The Trustees also noted
that the Fund's return, gross of expenses, exceeded the return of the
Fund's benchmark index for the 12-month period ended June 30, 2006. The
Trustees concluded that the performance of the Fund was good.
C. The Investment Adviser's Personnel and Methods. The Trustees reviewed the
background of members of the team responsible for the daily management of
the Fund and the Fund's investment objective and discipline. The
Independent Trustees also have had discussions with senior management of
the Investment Adviser responsible for investment operations and the senior
management of the Investment Adviser's equities group. Among other things,
the Trustees considered the size, education and experience of the
Investment Adviser's investment staff and their use of technology and
emphasis on analytics in view of the risk profile of securities in which
the Fund invests. The Trustees concluded that the Investment Adviser had
the quality and depth of personnel and the
47
Pioneer International Value Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
well-developed methods essential to perform its duties under the Management
Contract.
D. Nature and Quality of Other Services. The Trustees considered the nature,
quality, cost and extent of other services provided to shareowners of the
Fund, including administrative and shareowner services performed by the
Investment Adviser under the Management Contract. The Trustees also
considered the reasonableness of the arrangements for reimbursement of the
Investment Adviser's out-of-pocket costs and expenses, including overhead,
for certain administrative services that the Investment Adviser is not
required to provide under the Management Contract. The Trustees also
considered the nature and extent of the other services provided by the
Investment Adviser or its affiliates under other contracts, such as
transfer agency and administration, as well as the Investment Adviser's
supervision of third party service providers. Based on these
considerations, the Trustees concluded that the nature, quality, cost and
extent of such services are satisfactory and reliable and serve the
shareowners of the Fund well.
E. Management Fee and Expenses. The Trustees considered the Investment
Adviser's fee under the Management Contract relative to the management fees
charged by its Morningstar category peer group. The Fund's management fee
for the 12 months ended June 30, 2006 was in the third quintile relative to
the management fees paid by the other funds in that peer group for the
comparable period. The Trustees also considered the Fund's expense ratio
for the 12 months ended June 30, 2006 and expense ratios for the comparable
period of a peer group of funds selected on the basis of criteria
determined by the Independent Trustees for this purpose using data provided
by Strategic Insight Mutual Fund Research and Consulting, LLC, an
independent third party. The Trustees found the Fund's expense ratio (after
giving effect to the expense limitation) for the 12 months ended June 30,
2006 to be in the fourth quintile according to data for the applicable peer
group for the most recent fiscal year.
F. Profitability. The Trustees considered the level of the Investment
Adviser's profits with respect to the management of the Pioneer Funds,
including a review of the Investment Adviser's methodology in allocating
certain of its costs to the management of each Fund, as well as the
financial results realized by the Investment Adviser
48
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
in connection with the operation of the Fund. They further considered the
profits realized by the Investment Adviser and its affiliates from non-fund
businesses that may benefit from or be related to the Fund's business. The
Trustees considered the Investment Adviser's profit margins in comparison
with the limited industry data available. The Trustees concluded that the
Investment Adviser's profits from management of the Pioneer Funds,
including the financial results derived from the Fund, bear a reasonable
relationship to the services rendered and are fair for the management of
the Fund.
G. Economies of Scale. The Trustees considered the economies of scale with
respect to the management of the Fund, whether the Fund had appropriately
benefited from any economies of scale, and whether there was potential for
realization of any further economies of scale. The Trustees concluded that,
because of breakpoints at future asset levels, any perceived or potential
economies of scale would be shared between Fund's shareowners and the
Investment Adviser in a reasonable manner as the Fund grows in size.
H. Other Benefits to the Investment Adviser. The Trustees also considered the
character and amount of fees paid by the Fund, other than under the
Management Contract, for services provided by the Investment Adviser and
affiliates, including fees for services such as shareowner services. The
Trustees also considered the receipt of sales loads and payments under Rule
12b-1 plans in respect of the Pioneer Funds (including the Fund), and
benefits to the Investment Adviser from the use of "soft" commission
dollars to pay for research and brokerage services. The Trustees further
considered the revenues and profitability of the Investment Adviser's
businesses other than the fund business, including the Investment Adviser's
institutional investment advisory business. The Trustees considered the
intangible benefits that accrue to the Investment Adviser and its
affiliates by virtue of its relationship with the Fund and the Pioneer
Funds as a group. The Trustees concluded that all these types of benefits
accruing to the Investment Adviser were reasonable in the context of the
overall relationship between the Investment Adviser and the Fund.
49
Pioneer International Value Fund
- --------------------------------------------------------------------------------
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN
APPROVING THE MANAGEMENT CONTRACT (continued)
- --------------------------------------------------------------------------------
Conclusion. In light of the Investment Adviser's overall performance, the
Trustees considered it appropriate to continue to retain the management services
of the Investment Adviser. Based on their review of the overall nature and
quality of services provided by the Investment Adviser and the fees charged by
other funds in Fund's relevant peer group, and taking into account all material
factors deemed relevant by the trustees as well as the advice of independent
counsel, the Trustees concluded that the Management Contract with the Fund,
including the fees payable thereunder (taking into account the expense
limitation), was fair and reasonable and voted to approve the continuation of
the Management Contract for another year.
50
Pioneer International 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
Wilmer Cutler Pickering Hale and Dorr
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. Hood and Mr. West) serves
as a Trustee of each of the 86 U.S. registered investment portfolios for which
Pioneer serves as investment adviser (the "Pioneer Funds"). Mr. Hood and Mr.
West each serves as Trustee of 37 of the 86 Pioneer Funds. The address for all
Interested Trustees and all officers of the fund is 60 State Street, Boston,
Massachusetts 02109.
The Fund's statement of additional information provides more detailed
information regarding the Fund's Trustees and is available upon request, without
charge, by calling 1-800-225-6292.
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.
51
Pioneer International Value Fund
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
John F. Cogan, Jr. (80)* Chairman of the Trustee since 1992.
Board, Trustee and Serves until a
President successor trustee is
elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
John F. Cogan, Jr. (80)* Deputy Chairman and a Director of Pioneer Global Asset Director of ICI Mutual
Management S.p.A. ("PGAM"); Non-Executive Chairman Insurance Company
and a Director of Pioneer Investment 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 Investment Corporation
(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 (counsel to PIM-USA and the Pioneer Funds)
- ------------------------------------------------------------------------------------------------------------------
52
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
Osbert M. Hood (54)*+ Trustee and Executive Trustee since 2003.
Vice President Serves until a
successor trustee is
elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
Osbert M. Hood (54)*+ President and Chief Executive Officer, PIM-USA since None
May 2003 (Director since January 2001; Executive
Vice President and Chief Operating Officer from
November 2000 - May 2003); Director of PGAM since
June 2003; President and Director of Pioneer since
May 2003; President and Director of Pioneer Institutional
Asset Management, Inc. since February 2006; Chairman
and Director of Pioneer Investment Management
Shareholder Services, Inc. ("PIMSS") since May 2003;
Director of PFD since May 2006; Director of Oak Ridge
Investments, LLC (a registered investment adviser in which
PIM-USA owns a minority interest) since January 2005;
Director of Vanderbilt Capital Advisors, LLC (an institutional
investment adviser wholly-owned by PIM-USA) since
June 2006; and Executive Vice President of all of the
Pioneer Funds since June 2003
- ------------------------------------------------------------------------------------------------------------------
+ Mr. Hood resigned as Trustee and Executive Vice President of the Trust on
January 9, 2007.
53
Pioneer International Value Fund
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service
Name, Age and Address With the Fund and Term of Office
David R. Bock (62) Trustee Trustee since 2005.
3050 K Street NW, Serves until a
Washington, DC 20007 successor trustee is
elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Mary K. Bush (58) Trustee Trustee since 1997.
3509 Woodbine Street Serves until a
Chevy Chase, MD 20815 successor trustee is
elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Margaret B.W. Graham (59) Trustee Trustee since 1992.
1001 Sherbrooke Street West, Serves until a
Montreal, Quebec, Canada successor trustee is
H3A 1G5 elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Other Directorships Held
Name, Age and Address Principal Occupation During Past Five Years by this Trustee
David R. Bock (62) Senior Vice President and Chief Financial Officer, Director of The Enterprise
3050 K Street NW, I-trax, Inc. (publicly traded health care services company) Social Investment
Washington, DC 20007 (2001 - present); Managing Partner, Federal City Capital Company (privately-held
Advisors (boutique merchant bank) (2002 to 2004); and affordable housing
Executive Vice President and Chief Financial Officer, finance company); and
Pedestal Inc. (internet-based mortgage trading company) Director of New York
(2000 - 2002) Mortgage Trust (publicly
traded mortgage REIT)
- -------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (58) President, Bush International (international financial Director of Brady
3509 Woodbine Street advisory firm) Corporation (industrial
Chevy Chase, MD 20815 identification and
specialty coated material
products manufacturer);
Director of Briggs &
Stratton Co. (engine
manufacturer); Director
of Mortgage Guaranty
Insurance Corporation;
and Director of UAL
Corporation (airline
holding company)
- -------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (59) Founding Director, The Winthrop Group, Inc. None
1001 Sherbrooke Street West, (consulting firm); and Desautels Faculty of
Montreal, Quebec, Canada Management, McGill University
H3A 1G5
- -------------------------------------------------------------------------------------------------------------------------
54
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Positions Held Length of Service
Name, Age and Address With the Fund and Term of Office
Thomas J. Perna (56) Trustee Trustee since 2006.
89 Robbins Avenue, Serves until a
Berkeley Heights, NJ 07922 successor trustee is
elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Marguerite A. Piret (58) Trustee Trustee since 1992.
200 State Street, 12th Floor, Serves until a
Boston, MA 02109 successor trustee is
elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Stephen K. West (78) Trustee Trustee since 1993.
125 Broad Street, Serves until a
New York, NY 10004 successor trustee is
elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
John Winthrop (70) Trustee Trustee since 1992.
One North Adgers Wharf, Serves until a
Charleston, SC 29401 successor trustee is
elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Other Directorships Held
Name, Age and Address Principal Occupation During Past Five Years by this Trustee
Thomas J. Perna (56) Private investor (2004 - present); and Senior Executive Director of Quadriserv
89 Robbins Avenue, Vice President, The Bank of New York (financial and Inc. (technology products
Berkeley Heights, NJ 07922 securities services) (1986 - 2004) for securities lending
industry)
- -------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (58) President and Chief Executive Officer, Newbury, Piret & Director of New America
200 State Street, 12th Floor, Company, Inc. (investment banking firm) High Income Fund, Inc.
Boston, MA 02109 (closed-end investment
company)
- -------------------------------------------------------------------------------------------------------------------------
Stephen K. West (78) Senior Counsel, Sullivan & Cromwell (law firm) Director, The Swiss
125 Broad Street, Helvetia Fund, Inc.
New York, NY 10004 (closed-end investment
company)
- -------------------------------------------------------------------------------------------------------------------------
John Winthrop (70) President, John Winthrop & Co., Inc. (private None
One North Adgers Wharf, investment firm)
Charleston, SC 29401
- -------------------------------------------------------------------------------------------------------------------------
55
Pioneer International Value Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Position Held With Term of Office and
Name and Age the Fund Length of Service
Dorothy E. Bourassa (58) Secretary Since 2003. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Christopher J. Kelley (41) Assistant Secretary Since 2003. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Christopher P. Harvey (45) Assistant Secretary Since 2006. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Vincent Nave (61) Treasurer Since 2000. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Mark E. Bradley (46) Assistant Treasurer Since 2004. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Officer
Dorothy E. Bourassa (58) Secretary of PIM-USA; Senior Vice President - Legal None
of Pioneer; 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 (41) Vice President and Senior Counsel of Pioneer since None
July 2002; 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), and
Assistant Secretary of all of the Pioneer Funds since
September 2003
- -------------------------------------------------------------------------------------------------------------------
Christopher P. Harvey (45) Partner, Wilmer Cutler Pickering Hale and Dorr LLP; None
and Assistant Secretary of all of the Pioneer Funds
since July 2006.
- -------------------------------------------------------------------------------------------------------------------
Vincent Nave (61) Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Treasurer
of all of the Pioneer Funds
- -------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (46) Deputy Treasurer of Pioneer since 2004; Treasurer and None
Senior Vice President, CDC IXIS Asset Management
Services from 2002 to 2003; Assistant Treasurer and
Vice President, MFS Investment Management from 1997
to 2002; and Assistant Treasurer of all of the Pioneer
Funds since November 2004
- -------------------------------------------------------------------------------------------------------------------
56
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Position Held With Term of Office and
Name and Age the Fund Length of Service
Luis I. Presutti (41) Assistant Treasurer Since 2000. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Gary Sullivan (48) Assistant Treasurer Since 2002. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Katherine Kim Sullivan (32) Assistant Treasurer Since 2003. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Terrence J. Cullen (45) Chief Compliance Since March 2006.
Officer Serves at the
discretion of the Board
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Officer
Luis I. Presutti (41) Assistant Vice President - Fund Accounting, Administration None
and Controllership Services of Pioneer; and Assistant
Treasurer of all of the Pioneer Funds
- -------------------------------------------------------------------------------------------------------------------
Gary Sullivan (48) Fund Accounting Manager - Fund Accounting, None
Administration and Controllership Services of Pioneer;
and Assistant Treasurer of all of the Pioneer Funds since
May 2002
- -------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (32) Fund Administration Manager - Fund Accounting, None
Administration and Controllership Services since
June 2003; Assistant Vice President - Mutual Fund
Operations of State Street Corporation from June 2002 to
June 2003 (formerly Deutsche Bank Asset Management);
Pioneer Fund Accounting, Administration and Controllership
Services (Fund Accounting Manager from August 1999 to
May 2002); and Assistant Treasurer of all of the Pioneer
Funds since September 2003
- -------------------------------------------------------------------------------------------------------------------
Terrence J. Cullen (45) Chief Compliance Officer of Pioneer and all of the None
Pioneer Funds since March 2006; Vice President and
Senior Counsel of Pioneer since September 2004;
and Senior Vice President and Counsel, State Street
Research & Management Company (February 1998
to September 2004)
- -------------------------------------------------------------------------------------------------------------------
*Mr. Cogan and Mr. Hood are Interested Trustees because each 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.
57
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58
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60
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HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete statement 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 $39,165 in 2006 and $38,295 in 2005.
(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 and Other Fees
There were no fees for audit-related or other services
provided to the Fund during the fiscal years ended
November 30, 2006 and 2005.
(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 $7,515 and $6,800 in 2006 and
2005, 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.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
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 November 30, 2006 and 2005,
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 $7,515 in 2006
and $6,800 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 International Value Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date January 30, 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 January 30, 2007
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date January 30, 2007
* Print the name and title of each signing officer under his or her signature.