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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 811-06151
Pioneer Europe Select Equity 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: August 31
Date of reporting period: September 1, 2007 through August 31, 2008
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
[PIONEER GRAPHIC HERE]
Pioneer Europe Select
Equity Fund
- --------------------------------------------------------------------------------
Annual Report | August 31, 2008
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A PERAX
Class B PERBX
Class C PERCX
Class Y PEYSX
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 20
Notes to Financial Statements 32
Report of Independent Registered Public Accounting Firm 39
Approval of Investment Advisory Agreement 43
Trustees, Officers and Service Providers 47
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe this year have experienced one of their
most tumultuous periods in history. Investors have witnessed volatility of a
magnitude that many have never before seen. Distance often provides the best
vantage point for perspective. Still, we believe that the benefits of basic
investment principles that have stood the test of time -- even in the midst of
market turmoil -- cannot be underestimated.
First, invest for the long term. The founder of Pioneer Investments, Philip L.
Carret, began his investment career during the 1920's. One lesson he learned is
that while great prosperity affords an advantageous time for selling stocks,
extreme business slumps can create opportunities for purchase. Indeed, many of
our portfolio managers, who follow the value-conscious investing approach of
our founder, are looking at recent market conditions as an opportunity to buy
companies whose shares have been unjustifiably beaten down by indiscriminate
selling, but that nonetheless have strong prospects over time. While investors
may be facing a sustained market downturn, we continue to believe that
patience, along with staying invested in the market, are important
considerations for long-term investors.
A second principle is to stay diversified across different types of
investments. The global scope of the current market weakness poses challenges
for this basic investment axiom. But the turbulence makes now a good time to
reassess your portfolio and make sure that your investments continue to meet
your needs. We believe you should work closely with your financial advisor to
find the mix of stocks, bonds and money market assets that is best aligned to
your particular risk tolerance and investment objective.
As the investment markets sort through the continuing crisis in the financial
industry, we are staying focused on the fundamentals and risk management. With
more than 80 years of experience behind us, we have learned how to navigate
turbulent markets. At Pioneer Investments, risk management has always been a
critical part of our culture -- not just during periods of extraordinary
volatility. Our investment process is based on fundamental research,
quantitative analysis and active portfolio management. This three-pillared
process is supported by an integrated team approach and results in the careful
balance of risk and reward that we apply to each of our portfolios. While we
2 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
see potential chances for making money in many corners of the market, it takes
research and experience to separate solid investment opportunities from
speculation.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
www.pioneerinvestments.com. Thank you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this 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.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 3
Portfolio Management Discussion | 8/31/08
Widening expectations of a deceleration in growth, both in Europe and globally,
pulled down equity prices throughout Europe over the 12 months ending August
31, 2008. The losses incurred by U.S. investors from investing in European
stocks, however, were partially buffered by the effects of the strengthening
euro against the U.S. dollar. In the following discussion, Andrew Arbuthnott
reviews the factors that affected the performance of Pioneer Europe Select
Equity Fund during the 12 months ending August 31, 2008. Mr. Arbuthnott, head
of the Core European Equities Group of Pioneer Investments in Dublin, Ireland,
is a member of the team responsible for the Fund's day-to-day management.
Q How did Pioneer Europe Select Equity Fund perform during the 12 months ending
August 31, 2008?
A Pioneer Europe Select Equity Fund's Class A Shares returned -26.34% at net
asset value over the period, while its benchmark, the MSCI Europe Index,
declined 14.03%. The average return of the 108 funds in Lipper's European
Region Funds category was -17.13% over the same period.
Q What was the investment environment like during the 12 months?
A Stocks throughout Europe performed very poorly for the period as economic
growth on the Continent slowed noticeably and equity analysts steadily
lowered their estimates of corporate profit growth for 2009 as well as the
remainder of 2008. The most dominant influence tugging on equity values was
the growing credit crisis that restricted lending activity. While the
credit crisis started with the weakening in housing and in mortgages in the
United States, it spread to affect capital markets throughout the world,
including in Europe. The Continent's principal currency -- the euro --
gained 8% in value relative to the U.S. dollar over the 12 months, even
after retreating somewhat in the final month of the fiscal year. The strong
euro helped U.S. equity investors absorb some of the losses in stock values
in Europe. The MSCI Europe Index lost more than 20% in local currencies,
but about 14% after the effects of currency changes were included. However,
the strong currency added to the slowing influences on the European economy
by handicapping the ability of European corporations to compete in global
markets on the basis of price. Compounding the problems related to this
decelerating growth, the prices of oil, natural gas and other commodities
rose significantly, putting pressure on the profits and operating margins
of many industries and undermining growth in consumer spending. In this
environment, inflation increased, with the rate of growth of the consumer
price index (CPI) in Europe doubling from 2% to 4% during the 12-month
period. As a consequence, the European Central Bank, whose
4 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
central charter is to control inflationary pressures, increased short-term
interest rates, further tightening the supply of available credit.
Markets such as those in Spain, the United Kingdom, Ireland and some
Scandinavian countries, which had shown the greatest growth before 2007,
were among those that endured the greatest relative weakening during the
period. In contrast, slower-growth markets, such as those in Germany,
France and Italy, experienced less deceleration in growth.
In this environment, stock averages in all industry groups generated
negative returns for the 12 months. The industries that showed the greatest
relative strength, despite declines in average stock values, were software
and technology services, utilities, materials, energy, food, beverage and
tobacco and health care. The industries that tended to produce the poorest
returns, on a relative basis, were the retail, banking, diversified
financials, semiconductor, real estate and technology hardware groups. Most
major financial institutions produced particularly weak results because of
their exposure to the credit crisis, which forced the government in the
United Kingdom to take over one home lending company.
Q What types of investments most influenced the Fund's relative performance
over the 12 months ending August 31, 2008?
A The most serious drag on Fund results, contributing to the underperformance
relative to the MSCI Europe Index, was the overweighting of consumer
discretionary stocks, especially consumer durables, early in the fiscal
year. In particular, the Fund's investments in two homebuilding companies
in the United Kingdom -- Persimmon and Taylor Wimpey -- proved to be major
detractors from performance before the Fund liquidated the positions in
both companies. The Fund's investments in two automotive-related companies
also detracted from performance during the period. Both Daimler, the German
car company, and Michelin, the French tire company, were hit at the same
time by slowing demand for their products and rising raw materials prices.
The Fund sold both positions. Investments in the weak-performing financials
sector also hurt relative returns. Among the financials stocks that
underperformed were Royal Bank of Scotland, which was recapitalized during
the year, and Dexia, a French/Belgian institution whose diversified
operations include a bond insurer with exposure to the United States. In
contrast, BNP Paribas, the French institution, performed very well during
the period as it worked through its internal credit-related problems. Also
holding back performance was the Fund's position in CRH, the Ireland-based
global building materials company that was hurt by slowing construction
activity arising out of the decline in housing activity.
In a challenging year, several holdings did perform well. Fresenius, the
German health services company, performed well based on the consistent
demand for its dialysis products and services for the treatment of kidney
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 5
patients throughout the globe. TNT, the Dutch based transportation services
companies, appreciated in value. Its operations include the postal service
in the Netherlands as well as an express package delivery service. Parts of
TNT's stock gains were related to reports that its delivery service might
be sought by others in the industry. Also helping results were the Fund's
underweighted positions in two weak-performing industries: retailing and
insurance.
Q What changes were made in the Fund's portfolio during the 12 months?
A We substantially reduced the Fund's exposure to consumer discretionary
stocks, especially in durable goods, where we eliminated investments in
British homebuilders Taylor Wimpey and Persimmon, as well as auto-related
investments in Daimler, Michelin and Volvo, the Swedish truck manufacturer.
We also sold the Fund's investment in BSkyB, the British-based pay-for-view
broadcasting company because of concerns about its vulnerability as
consumers feel the pressures from a slowing economy and rising price
pressures. At the same time, the Fund added investments in companies that
we believed had more stable earnings growth prospects, including defense
contractors BAE Systems of the United Kingdom and Thales Group of France.
Other companies that the Fund added included: Technip, the French oil field
services company; Reed Elsevier of the Netherlands, a publisher of
materials for professional audiences, including ones in the scientific and
medical fields; and Bayer, the German pharmaceutical corporation that we
believed had a strong pipeline of potential new products in development.
Q What is your investment outlook?
A While challenges remain in Europe, we think some potentially interesting
values exist in equity markets, as evidenced by continued merger-and-
acquisition and private equity activities. Any combination of several
potential catalysts could lead investors to recognize the existing values
in European stocks. These catalysts could include: easing of inflationary
pressures; a stabilization of the housing market in the United States; or
an upswing in merger-and-acquisition activity.
If inflationary pressures in Europe begin to recede, the European Central
Bank may become more accommodative to growth by lowering short-term
interest rates. If that were to occur, we think investors may begin to be
attracted to the interesting values we already are seeing in many European
stocks, which continue to offer relatively high stock dividend yields.
One encouraging sign has been the move by several major European
institutions to take advantage of the strength of the euro to make
acquisition offers to American corporations. Inbev's proposal to take over
Anheuser-Busch and Roche's plan to acquire the remaining shares of
Genentech are two
6 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
good examples. Moreover, we think there may be further consolidation in the
banking industry, as we have already seen with the planned merger of
Commerzbank and Dresdner Bank in Germany.
We plan to maintain a relatively concentrated portfolio of companies,
typically between 30 and 35 different companies. We think we should be able
to find some good opportunities in Europe, especially when investors begin
to recognize the values that we think already exist.
Please refer to the Schedule of Investments on pages 16-19 for a full listing
of fund securities.
Investing in foreign and/or emerging markets securities involves certain risks,
including risks relating to interest rates, currency exchange rates, economic,
and political conditions. The Fund 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. The Fund invests in a limited number of securities and, as a
result, the Fund's performance may be more volatile than the performance of
funds holding more securities. 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.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 7
Portfolio Summary | 8/31/08
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 21.4%
Industrials 16.6%
Health Care 11.8%
Energy 10.6%
Materials 9.6%
Utilities 8.7%
Consumer Discretionary 8.6%
Telecommunications Services 6.4%
Consumer Staples 6.3%
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United Kingdom 33.9%
France 16.4%
Germany 14.8%
Netherlands 8.7%
Switzerland 8.6%
Norway 4.9%
Spain 3.0%
United States 2.4%
Finland 2.1%
Greece 2.1%
Ireland 2.1%
Sweden 1.0%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. National Grid Plc 6.56%
2. CS Group 5.09
3. BNP Paribas SA 4.73
4. Vodafone Group Plc 4.34
5. TNT NV 4.29
6. Fresenius Medical Care AG 3.78
7. British American Tobacco Plc 3.70
8. Bae Systems Plc 3.60
9. Siemens AG 3.56
10. Roche Holdings AG 3.52
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
8 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Prices and Distributions | 8/31/08
Net Asset Value Per Share
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class 8/31/08 8/31/07
- --------------------------------------------------------------------------------
A $ 26.25 $ 43.23
- --------------------------------------------------------------------------------
B $ 23.36 $ 39.18
- --------------------------------------------------------------------------------
C $ 23.11 $ 38.95
- --------------------------------------------------------------------------------
Y $ 27.29 $ 44.64
- --------------------------------------------------------------------------------
Distributions Per Share: 9/1/07-8/31/08
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- --------------------------------------------------------------------------------
A $ 0.4977 $ 0.1214 $ 6.9198
- --------------------------------------------------------------------------------
B $ 0.0936 $ 0.1214 $ 6.9198
- --------------------------------------------------------------------------------
C $ 0.2155 $ 0.1214 $ 6.9198
- --------------------------------------------------------------------------------
Y $ 0.6936 $ 0.1214 $ 6.9198
- --------------------------------------------------------------------------------
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 9
Performance Update | 8/31/08 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Select Equity Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) Europe
Index.
Average Annual Total Returns
(As of August 31, 2008)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
Life-of-Class
(12/29/00) 4.94% 4.13%
5 Years 10.50 9.20
1 Year -26.34 -30.58
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2007)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
1.48% 1.48%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE/MTN CHART IN THE PRINTED MATERIAL]
Pioneer
Europe Select MSCI
Equity Fund Europe Index
----------- ------------
12/00 9425 10000
7681 8111
8/02 7546 6834
8281 7457
8/04 10646 9218
13258 11700
8/06 16019 14601
18521 17955
8/08 13642 15436
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.
Pioneer Europe Fund acquired the assets and liabilities of Pioneer Europe
Select Fund (the predecessor fund) on June 24, 2005 and changed its name to
Pioneer Europe Select Equity Fund. Returns prior to June 24, 2005 reflect the
performance of the predecessor fund, which has not been restated to reflect any
differences in expenses.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations (to the extent
applicable) currently in effect through 1/1/11 for Class A shares. There can be
no assurance that Pioneer will extend the expense limitations beyond such time.
Please see the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) Europe Index measures the
performance of stocks in European developed 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.
10 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Performance Update | 8/31/08 Class B Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Select Equity Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns
(As of August 31, 2008)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(12/29/00) 3.99% 3.99%
5 Years 9.39 9.39
1 Year -26.98 -29.36
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2007)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
2.50% 2.40%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE/MTN CHART IN THE PRINTED MATERIAL]
Pioneer
Europe Select MSCI
Equity Fund Europe Index
----------- ------------
12/00 10000 10000
8130 8111
8/02 7940 6834
8620 7457
8/04 10953 9218
13501 11700
8/06 16156 14601
18488 17955
8/08 13500 15436
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
(CSDC). 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.
Pioneer Europe Fund acquired the assets and liabilities of Pioneer Europe
Select Fund (the predecessor fund) on June 24, 2005 and changed its name to
Pioneer Europe Select Equity Fund. Returns prior to June 24, 2005 reflect the
performance of the predecessor fund, which has not been restated to reflect any
differences in expenses.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations (to the extent
applicable) currently in effect through 1/1/09 for Class B shares. There can be
no assurance that Pioneer will extend the expense limitations beyond such time.
Please see the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) Europe Index measures the
performance of stocks in European developed 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.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 11
Performance Update | 8/31/08 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Select Equity Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns
(As of August 31, 2008)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(12/29/00) 4.24% 4.24%
5 Years 9.61 9.61
1 Year -26.95 -26.95
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2007)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
2.29% 2.29%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE/MTN CHART IN THE PRINTED MATERIAL]
Pioneer
Europe Select MSCI
Equity Fund Europe Index
----------- ------------
12/00 10000 10000
8140 8111
8/02 7960 6834
8690 7457
8/04 11094 9218
13709 11700
8/06 16415 14601
18822 17955
8/08 13750 15436
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.
Pioneer Europe Fund acquired the assets and liabilities of Pioneer Europe
Select Fund (the predecessor fund) on June 24, 2005 and changed its name to
Pioneer Europe Select Equity Fund. Returns prior to June 24, 2005 reflect the
performance of the predecessor fund, which has not been restated to reflect any
differences in expenses.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations (to the extent
applicable) currently in effect through 1/1/09 for Class C shares. There can be
no assurance that Pioneer will extend the expense limitations beyond such time.
Please see the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) Europe Index measures the
performance of stocks in European developed 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 Europe Select Equity Fund | Annual Report | 8/31/08
Performance Update | 8/31/08 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Select Equity Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns
(As of August 31, 2008)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(12/29/00) 5.17% 5.17%
5 Years 10.87 10.87
1 Year -25.96 -25.96
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2007)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
0.98% 0.98%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE/MTN CHART IN THE PRINTED MATERIAL]
Pioneer
Europe Select MSCI
Equity Fund Europe Index
----------- ------------
12/00 10000 10000
8150 8111
8/02 8007 6834
8786 7457
8/04 11295 9218
14085 11700
8/06 17113 14601
19876 17955
8/08 14716 15436
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 Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results
are historical and assume the reinvestment of dividends and capital gains.
Other share classes are available for which performance and expenses will
differ.
Pioneer Europe Fund acquired the assets and liabilities of Pioneer Europe
Select Fund (the predecessor fund) on June 24, 2005 and changed its name to
Pioneer Europe Select Equity Fund. The predecessor fund did not offer Class Y
shares. Returns prior to June 24, 2005 are based on the net asset value
performance of the predecessor fund's Class A shares, which has not been
restated to reflect any differences in expenses, including Rule 12b-1 fees
applicable to Class A shares.
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 Morgan Stanley Capital International (MSCI) Europe Index measures the
performance of stocks in European developed 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.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Europe Select Equity Fund
Based on actual returns from March 1, 2008 through August 31, 2008.
Share Class A B C Y
- ---------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 3/1/08
- ---------------------------------------------------------------------------------------
Ending Account $ 856.51 $ 852.84 $ 853.09 $ 858.43
Value on 8/31/08
- ---------------------------------------------------------------------------------------
Expenses Paid $ 7.00 $ 11.36 $ 10.81 $ 4.72
During Period*
- ---------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.50%, 2.44%,
2.32% and 1.01%, for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/366 (to reflect the one-half year period).
14 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Europe Select Equity Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2008 through August 31, 2008.
Share Class A B C Y
- ---------------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 3/1/08
- ---------------------------------------------------------------------------------------
Ending Account $ 1,017.60 $ 1,012.87 $ 1,013.47 $ 1,020.06
Value on 9/31/08
- ---------------------------------------------------------------------------------------
Expenses Paid $ 7.61 $ 12.35 $ 11.74 $ 5.13
During Period*
- ---------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.50%, 2.44%,
2.32% and 1.01%, for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 184/366 (to reflect the one-half year period).
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 15
Schedule of Investments | 8/31/08
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 1.6%
Automobiles & Components -- 1.6%
Automobile Manufacturers -- 1.6%
17,456 Porsche AG $ 2,459,841
------------
Total Automobiles & Components $ 2,459,841
- --------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $3,209,655) $ 2,459,841
- --------------------------------------------------------------------------------
COMMON STOCKS -- 94.2%
Energy -- 10.1%
Integrated Oil & Gas -- 8.4%
225,787 BG Group Plc $ 5,003,835
302,112 BP Amoco Plc 2,898,725
88,444 Repsol SA 2,738,013
62,872 Royal Dutch Shell Plc 2,197,084
------------
$ 12,837,657
- --------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 1.7%
32,968 Technip $ 2,706,698
------------
Total Energy $ 15,544,355
- --------------------------------------------------------------------------------
MATERIALS -- 9.2%
Construction Materials -- 2.0%
116,786 CRH Plc $ 3,063,673
- --------------------------------------------------------------------------------
Diversified Chemical -- 1.0%
25,349 Akzo Nobel* $ 1,552,665
- --------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.7%
42,913 Rio Tinto Plc $ 4,065,970
- --------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 3.5%
21,271 K+S AG* $ 2,576,716
45,105 Yara International ASA 2,788,209
------------
$ 5,364,925
------------
Total Materials $ 14,047,233
- --------------------------------------------------------------------------------
CAPITAL GOODS -- 9.9%
Aerospace & Defense -- 6.5%
604,403 Bae Systems Plc $ 5,286,275
83,151 Thales SA 4,694,210
------------
$ 9,980,485
- --------------------------------------------------------------------------------
Industrial Conglomerates -- 3.4%
48,069 Siemens AG $ 5,228,437
------------
Total Capital Goods $ 15,208,922
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
TRANSPORTATION -- 6.0%
Air Freight & Couriers -- 6.0%
121,860 Deutsche Post AG $ 2,850,266
169,380 TNT NV 6,297,970
------------
$ 9,148,236
------------
Total Transportation $ 9,148,236
- --------------------------------------------------------------------------------
MEDIA -- 6.7%
Broadcasting -- 2.1%
113,350 Eutelsat Communications SA $ 3,143,807
Publishing -- 4.6%
296,093 Elsevier NV $ 4,951,588
274,817 Informa Plc 2,127,535
------------
$ 7,079,123
------------
Total Media $ 10,222,930
- --------------------------------------------------------------------------------
FOOD & DRUG RETAILING -- 2.6%
Food Retail -- 2.6%
569,866 Tesco Plc $ 3,950,274
------------
Total Food & Drug Retailing $ 3,950,274
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 3.5%
Tobacco -- 3.5%
160,174 British American Tobacco Plc $ 5,428,353
------------
Total Food, Beverage & Tobacco $ 5,428,353
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.6%
Health Care Services -- 3.6%
103,403 Fresenius Medical Care AG $ 5,555,083
------------
Total Health Care Equipment & Services $ 5,555,083
- --------------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 7.7%
Pharmaceuticals -- 7.7%
38,460 Bayer AG* $ 3,046,549
166,529 Bristol-Myers Squibb Co. 3,553,729
30,690 Roche Holdings AG 5,172,538
------------
$ 11,772,816
------------
Total Pharmaceuticals & Biotechnology $ 11,772,816
- --------------------------------------------------------------------------------
BANKS -- 15.6%
Diversified Banks -- 15.6%
77,079 BNP Paribas SA* $ 6,954,640
146,171 Credit Agricole SA* 3,115,016
381,273 Dnb Nor Asa* 4,409,703
70,253 National Bank of Greece* 3,127,599
655,885 Royal Bank of Scotland Group Plc 2,815,601
36,155 Societe Generale 3,507,597
------------
$ 23,930,156
------------
Total Banks $ 23,930,156
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 17
Schedule of Investments | 8/31/08 (continued)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.9%
Diversified Capital Markets -- 4.9%
160,839 CS Group $ 7,475,665
------------
Total Diversified Financials $ 7,475,665
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 6.1%
Integrated Telecommunication Services -- 2.0%
93,348 Tele2 AB (B shares) $ 1,434,558
63,924 Telefonica SA 1,579,268
------------
$ 3,013,826
- --------------------------------------------------------------------------------
Wireless Telecommunication Services -- 4.1%
2,488,573 Vodafone Group Plc $ 6,369,327
------------
Total Telecommunication Services $ 9,383,153
- --------------------------------------------------------------------------------
UTILITIES -- 8.3%
Electric Utilities -- 2.0%
76,786 Fortum Corp.* $ 3,141,420
- --------------------------------------------------------------------------------
Multi-Utilities -- 6.3%
741,904 National Grid Plc $ 9,631,009
------------
Total Utilities $ 12,772,429
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $152,185,697) $144,439,605
- --------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.0%
Energy -- 0.0%
Integrated Oil & Gas -- 0.1%
60,418 Royal Dutch Shell Rights, Expires 9/10/08* $ 0
------------
Total Energy $ 0
- --------------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $0) $ 0
- --------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 95.8%
(Cost $155,395,352)(a)(b) $146,899,446
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 4.2% $ 6,439,818
- --------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $153,339,264
- --------------------------------------------------------------------------------
* Non-income producing security.
(a) At August 31, 2008, the net unrealized loss on investments based on cost
for federal income tax purposes of $155,667,418 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 6,608,694
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (15,376,666)
-----------
Net unrealized loss $(8,767,972)
-----------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
(b) Distributions of investment by country of issue, as a percentage of total
investment in securities (excluding temporary cash investments), is as
follows:
United Kingdom 33.9%
France 16.4
Germany 14.8
Netherlands 8.7
Switzerland 8.6
Norway 4.9
Spain 3.0
United States 2.4
Finland 2.1
Greece 2.1
Ireland 2.1
Sweden 1.0
-----
100.0%
-----
Purchases and sales of securities (excluding temporary cash investments) for
the year ended August 31, 2008 aggregated $127,852,938 and $189,539,979,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 19
Statement of Assets and Liabilities | 8/31/08
ASSETS:
Investment in securities (cost $155,395,352) $ 146,899,446
Cash 3,763,259
Receivables --
Investment securities sold 3,670,283
Fund shares sold 120,423
Dividends, interest and foreign taxes withheld 735,215
Due from Pioneer Investment Management, Inc. 16,060
Other 16,572
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $ 155,221,258
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 1,556,268
Fund shares repurchased 170,669
Due to affiliates 75,478
Accrued expenses 79,579
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 1,881,994
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $ 193,411,897
Undistributed net investment income 3,204,953
Accumulated net realized loss on investments and foreign currency
transactions (34,764,462)
Net unrealized loss on investments (8,495,906)
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (17,218)
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets $ 153,339,264
====================================================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $99,645,343/3,796,723 shares) $ 26.25
Class B (based on $11,811,813/505,687 shares) $ 23.36
Class C (based on $9,768,540/422,789 shares) $ 23.11
Class Y (based on $32,113,568/1,176,964 shares) $ 27.29
MAXIMUM OFFERING PRICE:
Class A ($26.25 - 94.25%) $ 27.85
====================================================================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Statement of Operations
For the Year Ended 8/31/08
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $928,441) $ 6,989,834
Interest 89,609
- -------------------------------------------------------------------------------------------------------------
Total investment income $ 7,079,443
- -------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,837,389
Transfer agent fees and expenses
Class A 480,285
Class B 126,618
Class C 45,557
Class Y 534
Distribution fees
Class A 338,023
Class B 187,066
Class C 140,228
Administrative fees 48,637
Custodian fees 73,175
Registration fees 77,116
Professional fees 56,520
Printing expense 40,355
Fees and expenses of nonaffiliated trustees 1,112
Miscellaneous 41,989
- -------------------------------------------------------------------------------------------------------------
Total expenses $ 3,494,604
Less management fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (147,326)
Less fees paid indirectly (18,776)
- -------------------------------------------------------------------------------------------------------------
Net expenses $ 3,328,502
=============================================================================================================
Net investment income $ 3,750,941
=============================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $(24,669,989)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies 40,346 $(24,629,643)
- -------------------------------------------------------------------------------------------------------------
Change in net unrealized loss on:
Investments $(41,557,935)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (31,050) $(41,588,985)
- -------------------------------------------------------------------------------------------------------------
Net loss on investments and foreign currency transactions $(66,218,628)
- -------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(62,467,687)
- -------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 21
Statement of Changes in Net Assets
Year Ended Year Ended
8/31/08 8/31/07
- ------------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 3,750,941 $ 3,424,330
Net realized gain (loss) on investments and foreign currency
transactions (24,629,643) 42,573,195
Change in net unrealized loss on investments and foreign
currency transactions (41,588,985) (12,919,335)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (62,467,687) $ 33,078,190
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.50 and $0.49 per share, respectively) $ (2,352,303) $ (2,128,405)
Class B ($0.09 and $0.03 per share, respectively) (65,718) (22,431)
Class C ($0.22 and $0.21 per share, respectively) (111,855) (104,920)
Class R ($0.00 and $0.25 per share, respectively) -- (746)
Class Y ($0.69 and $0.70 per share, respectively) (949,445) (71,612)
Net realized gain:
Class A ($7.04 and $0.00 per share, respectively) (28,830,631) --
Class B ($7.04 and $0.00 per share, respectively) (4,332,748) --
Class C ($7.04 and $0.00 per share, respectively) (3,101,810) --
Class Y ($7.04 and $0.00 per share, respectively) (8,220,577) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (47,965,087) $ (2,328,114)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 22,729,186 $ 116,343,158
Reinvestment of distributions 42,197,851 2,024,983
Cost of shares repurchased (79,556,011) (76,555,407)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Fund
share transactions $ (14,628,974) $ 41,812,734
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(125,061,748) $ 72,562,810
NET ASSETS:
Beginning of year 278,401,012 205,838,202
- ------------------------------------------------------------------------------------------------------------------------------------
End of year $ 153,339,264 $ 278,401,012
- ------------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 3,204,953 $ 2,893,500
- ------------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
'08 Shares '08 Amount '07 Shares '07 Amount
- ------------------------------------------------------------------------------------------------------------------------------------
Class A
Shares sold 367,746 $ 12,873,605 1,253,028 $ 52,767,998
Reinvestment of distributions 749,740 26,877,809 45,383 1,888,910
Less shares repurchased (1,561,874) (51,156,839) (1,168,617) (49,777,643)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (444,388) $(11,405,425) 129,794 $ 4,879,265
====================================================================================================================================
Class B
Shares sold 67,841 $ 2,156,183 271,524 $ 10,332,496
Reinvestment of distributions 129,194 4,113,825 587 22,308
Less shares repurchased (372,051) (11,280,574) (495,006) (18,997,460)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease (175,016) $ (5,010,566) (222,895) $ (8,642,656)
====================================================================================================================================
Class C
Shares sold 59,780 $ 1,877,498 181,764 $ 6,905,173
Reinvestment of distributions 87,221 2,755,687 2,420 91,199
Less shares repurchased (189,443) (5,611,457) (165,948) (6,470,838)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (42,442) $ (978,272) 18,236 $ 525,534
====================================================================================================================================
Class R*
Shares sold 522 $ 20,824
Reinvestment of distributions 18 746
Less shares repurchased (4,038) (168,760)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease (3,498) $ (147,190)
====================================================================================================================================
Class Y
Shares sold 153,787 $ 5,821,900 1,051,106 $ 46,316,667
Reinvestment of distributions 226,900 8,450,530 509 21,820
Less shares repurchased (329,829) (11,507,141) (26,042) (1,140,706)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase 50,858 $ 2,765,289 1,025,573 $ 45,197,781
====================================================================================================================================
* Class R shares were liquidated on January 31, 2007.
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 23
Financial Highlights
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/08 8/31/07 8/31/06 8/31/05 (a) 8/31/04 (a)
- ------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 43.23 $ 37.83 $ 31.54 $ 27.25 $ 21.41
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.60 $ 0.58 $ 0.50 $ 0.11 $ 0.20
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (10.04) 5.31 6.03 5.09 5.89
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (9.44) $ 5.89 $ 6.53 $ 5.20 $ 6.09
Distributions to shareowners:
Net investment income $ (0.50) $ (0.49) $ (0.24) $ (0.19) $ (0.25)
Net realized gain (7.04) -- -- (0.72) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (7.54) $ (0.49) $ (0.24) $ (0.91) $ (0.25)
- ------------------------------------------------------------------------------------------------------------------------------------
Redemption fee $ -- $ -- $ 0.00(b) $ 0.00(b) $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (16.98) $ 5.40 $ 6.29 $ 4.29 $ 5.84
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 26.25 $ 43.23 $ 37.83 $ 31.54 $ 27.25
====================================================================================================================================
Total return* (26.34)% 15.61% 20.83% 24.53% 28.56%
Ratio of net expenses to average net assets+ 1.51% 1.48% 1.66% 1.71% 1.25%
Ratio of net investment income to average net assets+ 1.77% 1.35% 1.47% 0.72% 1.58%
Portfolio turnover rate 60% 62% 43% 149% 48%
Net assets, end of period (in thousands) $ 99,645 $ 183,333 $ 155,550 $ 129,215 $ 3,108
- ------------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/08 8/31/07 8/31/06 8/31/05(a) 8/31/04(a)
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios with no waiver of fees and assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 1.58% 1.48% 1.66% 2.21% 8.30%
Net investment income (loss) 1.70% 1.35% 1.47% 0.22% (5.47)%
Ratios with waiver of fees and assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 1.50% 1.47% 1.66% 1.69% 1.25%
Net investment income 1.78% 1.36% 1.47% 0.74% 1.58%
- ------------------------------------------------------------------------------------------------------------------------------------
(a) Historical per-share amounts prior to June 24, 2005 have been adjusted to
reflect the conversion ratios utilized for the merger of the Europe Fund and
Europe Select Fund.
(b) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 25
Financial Highlights (continued)
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/08 8/31/07 8/31/06 8/31/05 (a) 8/31/04 (a)
- ------------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 39.18 $ 34.26 $ 28.63 $ 24.85 $ 19.65
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.39 $ 0.22 $ 0.24 $ (0.03) $ (0.02)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (9.08) 4.73 5.39 4.62 5.33
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (8.69) $ 4.95 $ 5.63 $ 4.59 $ 5.31
Distributions to shareowners:
Net investment income $ (0.09) $ (0.03) $ -- $ (0.09) $ (0.11)
Net realized gain (7.04) -- -- (0.72) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (7.13) $ (0.03) $ -- $ (0.81) $ (0.11)
- ------------------------------------------------------------------------------------------------------------------------------------
Redemption fee $ -- $ -- $ 0.00(b) $ 0.00(b) $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (15.82) $ 4.92 $ 5.63 $ 3.78 $ 5.20
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 23.36 $ 39.18 $ 34.26 $ 28.63 $ 24.85
====================================================================================================================================
Total return* (26.98)% 14.44% 19.66% 23.19% 27.07%
Ratio of net expenses to average net assets+ 2.46% 2.50% 2.65% 2.69% 2.17%
Ratio of net investment income (loss) to average net assets+ 0.75% 0.23% 0.36% (0.27)% 0.65%
Portfolio turnover rate 60% 62% 43% 149% 48%
Net assets, end of period (in thousands) $ 11,812 $ 26,673 $ 30,960 $ 42,249 $ 1,505
The accompanying notes are an integral part of these financial statements.
26 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/08 8/31/07 8/31/06 8/31/05 (a) 8/31/04 (a)
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios with no waiver of fees and assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 2.68% 2.50% 2.74% 3.32% 9.20%
Net investment income (loss) 0.53% 0.23% 0.27% (0.90)% (6.38)%
Ratios with waiver of fees and assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 2.44% 2.47% 2.65% 2.65% 2.17%
Net investment income (loss) 0.77% 0.26% 0.36% (0.23)% 0.65%
- ------------------------------------------------------------------------------------------------------------------------------------
(a) Historical per-share amounts prior to June 24, 2005 have been adjusted to
reflect the conversion ratios utilized for the merger of the Europe Fund and
Europe Select Fund.
(b) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 27
Financial Highlights (continued)
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/08 8/31/07 8/31/06 8/31/05 (a) 8/31/04 (a)
- ------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 38.95 $ 34.16 $ 28.60 $ 24.81 $ 19.63
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.32 $ 0.22 $ 0.19 $ 0.01 $ 0.09
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (8.90) 4.78 5.44 4.61 5.34
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (8.58) $ 5.00 $ 5.63 $ 4.62 $ 5.43
Distributions to shareowners:
Net investment income $ (0.22) $ (0.21) $ (0.07) $ (0.13) $ (0.25)
Net realized gain (7.04) -- -- (0.72) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (7.26) $ (0.21) $ (0.07) $ (0.85) $ (0.25)
- ------------------------------------------------------------------------------------------------------------------------------------
Redemption fee $ -- $ -- $ 0.00(b) $ 0.02 $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (15.84) $ 4.79 $ 5.56 $ 3.79 $ 5.18
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 23.11 $ 38.95 $ 34.16 $ 28.60 $ 24.81
====================================================================================================================================
Total return* (26.95)% 14.67% 19.73% 23.53% 27.67%
Ratio of net expenses to average net assets+ 2.33% 2.29% 2.59% 2.41% 1.72%
Ratio of net investment income to average net assets+ 0.97% 0.60% 0.52% 0.35% 1.14%
Portfolio turnover rate 60% 62% 43% 149% 48%
Net assets, end of period (in thousands) $ 9,769 $ 18,120 $ 15,270 $ 14,661 $ 1,557
The accompanying notes are an integral part of these financial statements.
28 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Year Year Year Year Year
Ended Ended Ended Ended Ended
8/31/08 8/31/07 8/31/06 8/31/05 (a) 8/31/04 (a)
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios with no waiver of fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 2.33% 2.29% 2.59% 3.72% 8.75%
Net investment income (loss) 0.97% 0.60% 0.52% (0.96)% (5.89)%
Ratios with waiver of fees and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 2.32% 2.28% 2.59% 2.39% 1.72%
Net investment income 0.98% 0.61% 0.52% 0.37% 1.14%
- ------------------------------------------------------------------------------------------------------------------------------------
(a) Historical per-share amounts prior to June 24, 2005 have been adjusted to
reflect the conversion ratios utilized for the merger of the Europe Fund and
Europe Select Fund.
(b) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 29
Financial Highlights (continued)
Year Year Year 6/24/05 (a)
Ended Ended Ended to
8/31/08 8/31/07 8/31/06 8/31/05
- ------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 44.64 $ 39.06 $ 32.54 $ 30.59
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.66 $ 0.89 $ 0.89 $ 0.07
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (10.28) 5.39 6.04 1.88
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (9.62) $ 6.28 $ 6.93 $ 1.95
Distributions to shareowners:
Net investment income $ (0.69) $ (0.70) $ (0.41) $ --
Net realized gain (7.04) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (17.35) $ 5.58 $ 6.52 $ 1.95
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.29 $ 44.64 $ 39.06 $ 32.54
====================================================================================================================================
Total return* (25.96)% 16.14% 21.50% 6.36%(b)
Ratio of net expenses to average net assets+ 1.01% 0.98% 1.10% 1.18%**
Ratio of net investment income to average net assets+ 2.27% 2.73% 2.00% 1.05%**
Portfolio turnover rate 60% 62% 43% 149%(b)
Net assets, end of period (in thousands) $ 32,114 $ 50,275 $ 3,927 $ 3,495
The accompanying notes are an integral part of these financial statements.
30 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Year Year Year 6/24/05 (a)
Ended Ended Ended to
8/31/08 8/31/07 8/31/06 8/31/05
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios with no waiver of fees and assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 1.01% 0.98% 1.10% 1.18%**
Net investment income 2.27% 2.73% 2.00% 1.05%**
Ratios with waiver of fees and assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 1.01% 0.98% 1.10% 1.18%**
Net investment income 2.27% 2.73% 2.00% 1.05%**
- ------------------------------------------------------------------------------------------------------------------------------------
(a) Class Y shares were first publicly offered on June 24, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 31
Notes to Financial Statements | 8/31/08
1. Organization and Significant Accounting Policies
Pioneer Europe Select Equity Fund (the Fund) is the sole portfolio comprising
Pioneer Series Trust IX, a Delaware statutory trust registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The investment objective of the Fund is long-term growth of capital.
The Fund offers four classes of shares -- Class A, Class B, Class C, and Class
Y shares. Class A, Class B and Class C Shares were first publicly offered on
December 29, 2000. Class Y shares were first publicly offered on June 24, 2005.
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 have exclusive voting rights with respect to
the distribution plans that have been adopted by Class A, Class B and Class C
shareowners, respectively. There is no distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Investing in the securities of European issuers involves unique risks compared
to investing in securities of U.S. issuers. These risks are more pronounced to
the extent the Fund invests a significant portion of its investments in any one
European region. The Fund's prospectuses (unaudited) contain information
regarding the Fund's principal risks. Please refer to those documents when
considering the Fund's principal risks.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities are valued at the last sale price on the
principal exchange where they are traded. Securities that have not traded on
the
32 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
date of valuation, or securities for which sale prices are not generally
reported, are valued at the mean between the last bid and asked prices.
Securities for which market quotations are not readily available are valued
at their fair values as determined by, or under the direction of, the Board
of Trustees. 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. At August 31, 2008, there were no fair
valued securities. Temporary cash investments are valued at cost which
approximates market value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends where the ex-dividend date may have passed are recorded as soon as
the Fund becomes aware of the ex-dividend data in the exercise of reasonable
diligence. Interest income, including interest on income bearing cash
accounts, is recorded on the accrual basis, net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign 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.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 33
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 entering 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. At August 31, 2008, the Fund
had no outstanding portfolio hedges or settlement hedges.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investments 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. Tax
years prior to 2004 are closed (not subject to examination by tax
authorities) due to the expiration of the statute of limitations; all other
tax years are open.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in-capital, depending on the type of book/tax differences that may
exist.
At August 31, 2008, the Fund has reclassified $39,833 to increase
undistributed net investment income and $39,833 to increase 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 Fund has elected to defer approximately $34,492,396 of capital losses
recognized between November 1, 2007 and August 31, 2008 to its fiscal year
ending August 31, 2009.
34 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
The tax character of distributions paid during the years ended August 31,
2008 and August 31, 2007 was as follows:
2008 2007
-----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 4,246,446 $ 2,328,114
Long-term capital gain 43,718,641 --
-----------------------------------------------------------------------------
Total $47,965,087 $ 2,328,114
=============================================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2008:
2008
-----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 3,204,953
Post-October loss deferred (34,492,396)
Unrealized depreciation (8,785,190)
-----------------------------------------------------------------------------
Total $ (40,072,633)
=============================================================================
For the fiscal year ended August 31, 2008, the Fund has elected to pass
through foreign tax credits of $628,997.
The difference between book-basis and tax-basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $13,393 in underwriting commissions on the sale of Class A shares
during the year ended August 31, 2008.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on their respective percentage of adjusted net assets at the beginning
of the day. Distribution fees are calculated based on the average daily net
asset value attributable to Class A, Class B and Class C shares of the Fund,
respectively (See Note 4). Class Y shares are not subject to a distribution
plan. Shareowners of each class participate in 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).
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 35
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B, Class C and Class Y shares can bear different
transfer agent and distribution expense rates.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary
of UniCredit, manages the Fund's portfolio. Management fees are calculated
daily at the annual rate of 0.85% of the Fund's average daily nets assets up to
$500 million; and 0.75% of the excess over $500 million. For the year ended
August 31, 2008, the effective management fee (net of waivers and/or assumption
of expense) was equivalent to 0.78% of the Fund's average net assets.
Effective October 1, 2007, PIM has contractually agreed to limit ordinary
operating expenses to the extent required to reduce Fund expenses to 1.50%,
2.40% and 2.40% of the average daily net assets attributable to Class A, Class
B and Class C shares, respectively. Class Y shares do not have an expense
limitation. These expense limitations are in effect through January 1, 2011 for
Class A shares and through January 1, 2009 for Class B and Class C shares.
Prior to October 1, 2007, PIM agreed to limit ordinary operating expenses to
the extent required to reduce Fund expenses to 1.75%, 2.65% and 2.65% of the
average daily net assets attributable to Class A, Class B and Class C shares,
respectively.
In addition, under the management agreement, management fees, administrative
costs and fees for certain other services, including accounting, regulatory
reporting and insurance, are paid by the Fund. Included in "Due to affiliates"
reflected on the Statement of Assets and Liabilities is $13,822 in management
fees, administrative costs and certain other services payable to PIM at August
31, 2008.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $57,831 in transfer agent fees payable to PIMSS at August 31,
2008.
4. Distribution Plans
The Fund adopted a Plan of Distribution with respect to Class A, Class B and
Class C shares in accordance with Rule 12b-1 of the Investment Company Act of
1940. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
36 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Class A shares. Pursuant to the Plan, the Fund pays PFD 1.00% of the average
daily net assets attributable to Class B and Class C 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. Prior to February 1, 2008, PFD was
reimbursed under the Plan of Distribution for distribution expenses in an
amount of up to 0.25% of the average daily net assets attributable to Class A
shares. Included in "Due to affiliates" reflected on the Statement of Assets
and Liabilities is $3,825 in distribution fees payable to PFD at August 31,
2008.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase. Class B shares that are redeemed within five
years of purchase are subject to a CDSC at declining rates beginning at 4.00%,
based on the lower of cost or market value of shares being redeemed.
Redemptions of Class C shares within one year of purchase are subject to a CDSC
of 1.00%, based on the lower of cost or market value of shares being redeemed.
Proceeds from the CDSCs are paid to PFD. For the year ended August 31, 2008,
CDSCs in the amount of $44,957 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended August 31, 2008 the Fund's expenses were
reduced by $18,776 under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $200 million committed, unsecured
revolving line of credit facility. Borrowings are used solely for temporary or
emergency purposes. The Fund may borrow up to the lesser of $200 million or the
limits set by its prospectus for borrowings. Interest on collective borrowings
is payable at the Federal Funds Rate plus 1/2% on an annualized basis. The
Funds pay an annual commitment fee for this facility. The commitment fee is
allocated among such Funds based on their respective borrowing limits. For the
year ended August 31, 2008, the Fund had no borrowings under this agreement.
7. New Pronouncements
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 37
measurements. Management is currently evaluating the impact the adoption of
SFAS 157 will have on the Fund's financial statement disclosures.
In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures
about Derivative Instruments and Hedging Activities (SFAS 161), was issued and
is effective for fiscal years beginning after November 15, 2008. SFAS 161
requires enhanced disclosures about an entity's derivative and hedging
activities. Management is currently evaluating the impact the adoption of SFAS
161 will have on the Fund's financial statement disclosures.
38 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders of
Pioneer Europe Select Equity Fund:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Europe Select Equity Fund (the Fund), including the schedule of investments as
of August 31, 2008, 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 August 31, 2008, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Europe Select Equity Fund at August 31, 2008, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the periods indicated therein, in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
October 20, 2008
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 39
ADDITIONAL INFORMATION (unaudited)
For the year ended August 31, 2008, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth
Tax Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate
up to the maximum amount of such dividends allowable under the Act, as taxed at
a maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2008 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 10.78%.
The percentages of the Fund's ordinary income distributions that are exempt
from nonresident alien (NRA) tax withholding resulting from qualified interest
income and qualified short term gains were 0% and 14.79%, respectively.
Results of Shareholder Meeting (unaudited)
At a special meeting held on May 13, 2008, shareholders of the Fund were asked
to consider the proposals described below. A report of the total votes cast by
the Fund's shareholders follows:
- ------------------------------------------------------------------------------------------------------------------------------------
Broker
For Withhold Abstain Non-Votes
- ------------------------------------------------------------------------------------------------------------------------------------
Proposal 1 -- To elect Trustees
John F. Cogan, Jr. 4,589,378.501 204,500.811 16,896.399 0
Daniel K. Kingsbury 4,680,186.412 113,692.900 16,896.399 0
David R. Bock 4,598,071.573 155,146.361 57,557.777 0
Mary K. Bush 4,615,890.435 137,327.499 57,557.777 0
Benjamin M. Friedman 4,656,942.222 136,937.089 16,896.399 0
Margaret B.W. Graham 4,694,803.590 99,075.721 16,896.399 0
Thomas J. Perna 4,648,859.659 145,019.653 16,896.399 0
Marguerite A. Piret 4,649,753.017 144,126.294 16,896.399 0
Stephen K. West 4,576,762.905 217,116.406 16,896.399 0
John Winthrop 4,666,761.880 127,117.432 16,896.399 0
Broker
For Against Abstain Non-Votes
- ------------------------------------------------------------------------------------------------------------------------------------
Proposal 2 -- To approve an
Agreement and Plan of
Reorganization 3,791,508.898 132,124.162 55,493.651 831,649.000
Broker
For Against Abstain Non-Votes
- ------------------------------------------------------------------------------------------------------------------------------------
Proposal 3A -- To approve
changes to the Fund's
fundamental investment
policy relating to borrowing
money 3,729,146.723 199,381.244 50,598.744 831,649.000
40 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Broker
For Against Abstain Non-Votes
- ------------------------------------------------------------------------------------------------------------------------------------
Proposal 3B -- To approve
changes to the Fund's
fundamental investment
policy relating to
underwriting 3,769,366.469 151,491.995 58,268.247 831,649.000
Proposal 3C -- To approve
changes to the Fund's
fundamental investment
policy relating to lending 3,766,568.132 159,132.384 53,426.195 831,649.000
Proposal 3D -- To approve
changes to the Fund's
fundamental investment
policy relating to issuing
senior securities 3,735,244.691 188,232.233 55,649.787 831,649.000
Proposal 3E -- To approve
changes to the Fund's
fundamental investment
policy relating to real estate 3,734,194.672 190,818.102 54,113.937 831,649.000
Proposal 3F -- To approve
changes to the Fund's
fundamental investment
policy relating to
commodities 3,769,770.886 151,350.688 58,005.138 831,649.000
Proposal 3G -- To approve
changes to the Fund's
fundamental investment
policy relating to
concentration 3,770,875.277 152,024.774 56,226.660 831,649.000
Proposal 3H -- To approve
changes to the Fund's
fundamental investment
policy relating to
diversification 3,785,227.014 146,181.035 47,718.662 831,649.000
Proposal 3I -- To approve
the conversion of the Fund's
investment objective from
fundamental to non-
fundamental 3,716,139.953 201,543.081 61,443.677 831,649.000
Proposal 3O -- To approve
changes to the Fund's
fundamental investment
policy relating to pledging or
guaranteeing assets 3,709,879.019 200,488.862 68,758.830 831,649.000
Proposal 3P -- To approve
changes to the Fund's
fundamental investment
policy relating to
investments made for the
purpose of exercising control
or management of issuers 3,752,670.078 152,163.156 74,293.477 831,649.000
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
41
Broker
For Against Abstain Non-Votes
- ------------------------------------------------------------------------------------------------------------------------------------
Proposal 3R -- To approve
changes to the Fund's
fundamental investment
policy relating to
investments in convertible
debt securities rated below
investment grade 3,709,289.888 215,575.818 54,261.005 831,649.000
Broker
For Against Abstain Non-Votes
- ------------------------------------------------------------------------------------------------------------------------------------
Proposal 4 -- To approve an
Amended and Restated
Management Agreement
with PIM 3,768,250.577 155,793.729 55,082.405 831,649.000
Broker
For Against Abstain Non-Votes
- ------------------------------------------------------------------------------------------------------------------------------------
Proposal 5 -- To approve a
policy allowing the
appointment of unaffiliated
sub-advisors and
amendments to sub-
advisory agreements without
shareholder approval 3,688,925.901 236,144.064 54,056.746 831,649.000
42 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the Fund's investment
adviser pursuant to an investment advisory agreement between PIM and the Fund.
The Trustees of the Fund, as required by law, determine annually whether to
continue the investment advisory agreement for the Fund. In connection with
their most recent consideration of the investment advisory agreement for the
Fund, the Trustees received and reviewed a substantial amount of information
provided by PIM in response to requests of the independent Trustees and their
independent legal counsel. The independent Trustees met on a number of
occasions with PIM and also separately with their independent legal counsel to
evaluate and discuss the information provided to them by PIM. At a meeting held
on November 13, 2007, based on their evaluation of the information provided by
PIM, the Trustees, including the independent Trustees voting separately,
unanimously approved the continuation of the investment advisory agreement for
another year.
At a meeting held on January 8, 2008, the Trustees considered whether an
amended and restated investment advisory agreement for the Fund should be
approved for an initial period ending December 31, 2009. The management fee to
be paid by the Fund to PIM under the amended and restated investment advisory
agreement is the same as the management fee provided in the previously approved
investment advisory agreement. Based on their evaluation of the information
provided by PIM, including the information provided by PIM in connection with
the Trustees' most recent approval of the continuation of the previous
investment advisory agreement, the Trustees, including the independent Trustees
voting separately, unanimously approved the amended and restated investment
advisory agreement. Shareholders of the Fund approved the amended and restated
investment advisory agreement at a meeting held on May 13, 2008.
In considering the amended and restated investment advisory agreement, the
Trustees considered various factors that they determined were relevant,
including the factors described below. The Trustees did not identify any single
factor as the controlling factor in determining to approve the amended and
restated investment advisory agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that
were provided by PIM to the Fund under the previous investment advisory
agreement, and that would continue to be provided by PIM to the Fund under the
amended and restated investment advisory agreement, taking into account the
investment objective and strategy of the Fund and the information related to
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 43
the Fund provided to the Trustees at each quarterly meeting. The Trustees
reviewed the terms of the amended and restated investment advisory agreement.
The Trustees also reviewed PIM's investment approach for the Fund and its
research process. The Trustees considered the resources of PIM and the
personnel of PIM who provide investment management services to the Fund. They
also considered PIM's compliance and legal resources and personnel.
In addition, the Trustees considered the other services that PIM provided under
the previous investment advisory agreement and that PIM would continue to
provide to the Fund under the amended and restated investment advisory
agreement and that, as administrator, PIM is responsible for the administration
of the Fund's business and other affairs. It was noted that PIM supervises and
monitors the performance of the Fund's service providers and provides the Fund
with personnel (including officers) as are necessary for the Fund's operations.
The Trustees considered the fees paid to PIM for the provision of such
services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that PIM would continue to provide to the Fund under
the amended and restated investment advisory agreement, were satisfactory and
consistent with the terms of the amended and restated investment advisory
agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
average performance of its peer group of funds as classified by Morningstar,
Inc. (Morningstar), an independent provider of investment company data, and
with the performance of the Fund's benchmark index. The Trustees considered
that the Fund's annualized total return was in the fifth quintile of its
Morningstar category for the one and three year periods ended June 30, 2007 and
in the third quintile of its Morningstar category for the five year period
ended June 30, 2007. (In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Fund's shareowners. Thus,
highest relative performance would be first quintile and lowest relative
expenses would also be first quintile.) After discussing the reasons for the
Fund's underperformance with PIM, the Trustees agreed that they would continue
to monitor the performance of the Fund especially closely.
Management Fee and Expenses
The Trustees considered that the management fee to be paid by the Fund to PIM
under the amended and restated investment advisory agreement would be the same
as the management fee to be paid by the Fund under the previously approved
investment advisory agreement. The Trustees considered information on the fees
and expenses of the Fund in comparison to the management fees of its peer group
of funds as classified by Morningstar and the expense
44 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
ratios 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 (Strategic Insight), an
independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2007 was in the third quintile relative to the management fees
paid by other funds in its peer group Morningstar category for the comparable
period. The Trustees also considered that the Fund's expense ratio for the
twelve months ended June 30, 2007 was in the fifth quintile relative to its
Strategic Insight peer group. The Trustees noted PIM's agreement to lower the
contractual expense limitation for the Fund and that the lowered expense cap
was in line with the median expense ratio of the Fund's Strategic Insight peer
group for the twelve months ended June 30, 2007. It was noted that PIM did not
currently manage any accounts with an investment objective and strategies that
were similar to the Fund.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of services provided, taking
into account the fees charged by other advisers for managing comparable mutual
funds with similar strategies. The Trustees also concluded that the Fund's
expense ratio was reasonable, taking into account the size of the Fund, the
quality of services provided by PIM, the investment performance of the Fund and
the contractual expense limitation agreed to by PIM with respect to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
recognized that PIM should be entitled to earn a reasonable level of profit for
the services provided to the Fund. The Trustees concluded that PIM's
profitability with respect to the management of the Fund was not unreasonable.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 45
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 the breakpoints in the
management fee schedule and the reduced fee rates above certain asset levels,
any perceived or potential economies of scale would be shared between PIM and
the Fund.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with
the Fund. The Trustees considered that affiliates of PIM serve as the Fund's
transfer agent and distributor. The Trustees considered the receipt by PIM and
its affiliates of sales loads and payments under Rule 12b-1 plans in respect of
the Fund and the other Pioneer funds and the benefits to PIM and its affiliates
from the use of "soft" commission dollars generated by the Fund to pay for
research and brokerage services. The Trustees further considered the intangible
benefits to PIM by virtue of its relationship with the Fund and the other
Pioneer funds. The Trustees concluded that the receipt of these benefits was
reasonable in the context of the overall relationship between PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including all of the independent Trustees, concluded that the
terms of the amended and restated investment advisory agreement between PIM and
the Fund, including the fees payable thereunder, were fair and reasonable and
voted to approve the amended and restated investment advisory agreement for the
Fund.
46 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Board of Trustees provides broad supervision over the Fund's affairs. The
officers of the Fund are responsible for the Fund's operations. The 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. West, Mr. Bock and Dr. Friedman) serves as a
Trustee of each of the 77 U.S. registered investment portfolios for which
Pioneer serves as investment adviser (the "Pioneer Funds"). Mr. West serves as
Trustee of 33 of the 77 Pioneer Funds, Mr. Bock serves as Trustee of 76 of the
77 Pioneer Funds, and Dr. Friedman serves as Trustee of 76 of the 77 Pioneer
Funds. The address for all Trustees and all officers of the Fund is 60 State
Street, Boston, Massachusetts 02109.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 47
Interested Trustees
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (82)* Chairman of the Board, Trustee since 2008. Deputy Chairman and a Director None
Trustee and President Serves until a successor of Pioneer Global Asset Man-
trustee is elected or agement S.p.A. ("PGAM");
earlier retirement or Non-Executive Chairman and a
removal. 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 Invest-
ment Management (Bermuda)
Limited and affiliated funds;
Director of PIOGLOBAL Real
Estate Investment Fund
(Russia) (until June 2006);
Director of Nano-C, Inc.
(since 2003); Director of Cole
Management Inc. (since 2004);
Director of Fiduciary
Counseling, Inc.; President
and Director of Pioneer Funds
Distributor, Inc. ("PFD")
(until May 2006); President of
all of the Pioneer Funds; and
Of Counsel, Wilmer Cutler
Pickering Hale and Dorr LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (50)* Trustee and Executive Trustee since 2008. Director, CEO and President of None
Vice President Serves until a successor Pioneer Investment Management
trustee is elected or USA Inc. (since February
earlier retirement or 2007); Director and President
removal. of Pioneer Investment
Management, Inc. and Pioneer
Institutional Asset
Management, Inc. (since
February 2007); Executive Vice
President of all of the
Pioneer Funds (since March
2007); Director of Pioneer
Global Asset Management S.p.A.
(since April 2007); Head of
New Markets Division, Pioneer
Global Asset Management S.p.A.
(2000 - 2007)
- ------------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers
or directors of the Fund's investment adviser and certain of its affiliates.
48 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Independent Trustees
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (64) Trustee Trustee since 2008. Executive Vice President and Director of
Serves until a successor Chief Financial Officer, Enterprise Community
trustee is elected or I-trax, Inc. (publicly traded Investment, Inc.
earlier retirement or health care services company) (privately-held
removal. (2004 - 2007); Partner, affordable housing
Federal City Capital Advisors finance company);
(boutique merchant bank) (1997 and Director of New
to 2004 and 2008 - present); York Mortgage Trust
and Executive Vice President (publicly traded
and Chief Financial Officer, mortgage REIT)
Pedestal Inc. (internet-based
mortgage trading company)
(2000 - 2002)
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (60) Trustee Trustee since 2008. President, Bush International, Director of Marriott
Serves until a successor LLC (international financial International, Inc.,
trustee is elected or advisory firm) Director of Discover
earlier retirement or Financial Services
removal. (credit card issuer
and electronic
payment services);
Director of Briggs &
Stratton Co. (engine
manufacturer);
Director of UAL
Corporation (airline
holding company)
Director of Mantech
International
Corporation
(national security,
defense, and
intelligence
technology firm);
and Member, Board of
Governors,
Investment Company
Institute
- ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
49
Independent Trustees (continued)
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (64) Trustee Trustee since May, Professor, Harvard University Trustee, Mellon
2008. Serves until a Institutional Funds
successor trustee is Investment Trust and
elected or earlier Mellon Institutional
retirement or removal. Funds Master
Portfolio (oversees
17 portfolios in
fund complex)
- ------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (61) Trustee Trustee since 2008. Founding Director, None
Serves until a successor Vice-President and Corporate
trustee is elected or Secretary, The Winthrop Group,
earlier retirement Inc. (consulting firm); and
or removal. Desautels Faculty of
Management, McGill University
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (57) Trustee Trustee since 2008. Private investor Director of
Serves until a successor (2004 - present); and Senior Quadriserv Inc.
trustee is elected or Executive Vice President, The (technology products
earlier retirement Bank of New York (financial for securities
or removal. and securities services) lending industry)
(1986 - 2004)
- ------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (60) Trustee Trustee since 2008. President and Chief Executive Director of New
Serves until a successor Officer, Newbury, Piret & America High Income
trustee is elected or Company, Inc. (investment Fund, Inc.
earlier retirement banking firm) (closed-end
or removal. investment company)
- ------------------------------------------------------------------------------------------------------------------------------------
50 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Position Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (79) Trustee Trustee since 1993. Senior Counsel, Sullivan & Director, The Swiss
Serves until a successor Cromwell LLP (law firm) Helvetia Fund, Inc.
trustee is elected or (closed-end
earlier retirement investment company)
or removal.
- ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 51
Fund Officers
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Officer
- ------------------------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (60) Secretary Since 2008. Serves at Secretary of PIM-USA; Senior None
the discretion of the Vice President - Legal of
Board 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 (43) Assistant Secretary Since 2008. Serves at Associate General Counsel of None
the discretion of the Pioneer since January 2008 and
Board Assistant Secretary of all of
the Pioneer Funds since
September 2003; Vice President
and Senior Counsel of Pioneer
from July 2002 to December
2007
- ------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (48) Treasurer Since 2008. Serves at Vice President - Fund None
the discretion of the Accounting, Administration and
Board Controllership Services of
Pioneer; and Treasurer of all
of the Pioneer Funds since
March 2008; Deputy Treasurer
of Pioneer from March 2004 to
February 2008; Assistant
Treasurer of all of the
Pioneer Funds from March 2004
to February 2008; and
Treasurer and Senior Vice
President, CDC IXIS Asset
Management Services from 2002
to 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (43) Assistant Treasurer Since 2008. Serves at Assistant Vice President - None
the discretion of the Fund Accounting,
Board Administration and
Controllership Services of
Pioneer; and Assistant
Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (50) Assistant Treasurer Since 2008. Serves at Fund Accounting Manager - Fund None
the discretion of the Accounting, Administration and
Board Controllership Services of
Pioneer; and Assistant
Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
52 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age with the Fund and Term of Office During Past Five Years Held by this Officer
- ------------------------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan Assistant Treasurer Since 2008. Serves at Fund Administration Manager - None
(34) the discretion of the Fund Accounting,
Board Administration and
Controllership Services since
June 2003 and Assistant
Treasurer of all of the
Pioneer Funds since September
2003; Assistant Vice President
- Mutual Fund Operations of
State Street Corporation from
June 2002 to June 2003
(formerly Deutsche Bank Asset
Management)
- ------------------------------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (49) Chief Compliance Since January 2008. Chief Compliance Officer of None
Officer Serves at the discretion Pioneer since December 2006
of the Board and of all the Pioneer Funds
since January 2007; Vice
President and Compliance
Officer, MFS Investment
Management (August 2005 to
December 2006); Consultant,
Fidelity Investments (February
2005 to July 2005);
Independent Consultant (July
1997 to February 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 53
This page for your notes.
54 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
This page for your notes.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 55
This page for your notes.
56 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
This page for your notes.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 57
This page for your notes.
58 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
This page for your notes.
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 59
This page for your notes.
60 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
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: pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
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 $35,500 in 2008 and $34,175 in 2007.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no fees for audit-related services provided
to the Fund during the fiscal years ended August 31, 2008 and 2007.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Tax Fees
Fees for tax compliance services, primarily for tax returns,
totaled approximately $8,290 and $7,820 in 2008 and 2007,
respectively.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
Other Fees
There were no fees for other services provided to the Fund during
the fiscal years ended August 31, 2008 and 2007.
(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
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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"
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SECTION III - POLICY DETAIL, CONTINUED
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SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
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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.
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AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
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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"
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SECTION III - POLICY DETAIL, CONTINUED
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SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
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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
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AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
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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.
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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.
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(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.
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 August 31, 2007 and 2006, there were no services provided
to an affiliate that required the Fund's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and affiliates, as
previously defined, totaled approximately $8,290 in 2008 and
$7,820 in 2007.
(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 Europe Select Equity Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date October 29, 2008
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 October 29, 2008
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date October 29, 2008
* Print the name and title of each signing officer under his or her signature.